- The Nigerian federal government reports a significant rise in monthly revenue to over N1 trillion following the removal of the subsidy
- Finance Minister Olawale Edun commends reforms, including subsidy removal and tax adjustments, to improve revenue and welfare allocation
The federal government declared on Monday that the Federation Account has experienced a substantial increase in monthly revenue, soaring from an average of N650 billion to over N1 trillion in the last four months since the removal of the subsidy.
Chief Olawale Edun, the Minister of Finance and Coordinating Minister of the Economy, made this revelation at the opening of the Federal Accounts Allocation Committee (FAAC) retreat in Delta. He commended the state government for hosting the 2023 FAAC retreat.
Edun, represented by Mr. Okokon Ekanem, the Permanent Secretary, Special Duties, Federal Ministry of Finance, highlighted significant reforms undertaken in the six months of the Bola Tinubu administration. These reforms include the removal of the petroleum subsidy and fiscal and monetary policy adjustments aimed at eliminating multiple taxation and simplifying tax administration. The objective is to achieve a single foreign exchange market.
The government acknowledged the unsustainable nature of the petroleum subsidy, recognizing its adverse impact on revenue that could otherwise be allocated to critical expenditures for the welfare of the populace. Edun emphasized the commitment to consider the needs and welfare of Nigerians while implementing policies.
He stated, “We all know that achieving tax revenue to GDP target of 22 per cent and tax to GDP of 18 per cent by 2026 are part of the terminal objectives of this administration. However, in doing that, we appreciate the need not to overburden the taxpayers by introducing so many new taxes. What is necessary to be done is to broaden the tax base, simplify and streamline tax administration for ease of collection.”