Wale Edun: We’ve recorded N1trn monthly revenue inflow since subsidy removal

Wale Edun, minister of finance, says the federation account has witnessed an improved monthly revenue inflow from an average of N650 million to N1 trillion in the last four months, since the removal of the petrol subsidy.

Edun spoke on Monday at the opening ceremony of a four-day retreat organised for members of the federation account allocation committee (FAAC) in Asaba, according to NAN.

Edun, represented by Okokon Udo, permanent secretary, finance, special duties, made the statement while speaking on the impact of the subsidy removal on the nation’s revenue.

He said the government had for long realised that the subsidy regime was not sustainable, as it eroded revenues that should have been available to fund viable expenditures that are critical to the wellbeing of the populace.

The minister said the present administration is mindful of the needs and welfare of Nigerians and assured that it would continue to implement people-oriented policies.

Edun said the federal government is not oblivious to the untold hardship faced by Nigerians, following the removal of the subsidy, and harmonisation of exchange rates.

He, therefore, reassured that all the sacrifices made by Nigerians would not be in vain.

“Government is bent on ensuring that the economy bounces back to normal as we continue to consolidate on recovery efforts while focusing on achieving inclusive economic growth and development,” he said.

Edun said the federal government has, so far, put in place well-structured palliative measures to cushion the economic consequences of the ongoing reforms.

EDUN MAKES CASE FOR EXPANSION OF TAX NET

Speaking on income generation, the minister said the streamlining and widening of the tax net is paramount in achieving the government’s revenue goals.

“Achieving tax revenue to gross domestic product (GDP) target of 22 percent and tax to GDP of 18 percent by 2026 are parts of the cardinal objectives of this administration,” Edun said.

“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.

“Among the prior activities of this government after coming into office, was the constitution of a presidential committee of fiscal policy and tax reforms.

“The committee has submitted an interim report which is full of optimism.”

In his remarks, Sheriff Oborevwori, governor of Delta, tasked the federal government to muster the political will by putting the necessary policy and institutional framework in place to diversify the nation’s economy.

The governor, represented by Monday Onyeme, deputy governor of the state, said there is no magic wand to diversifying the nation’s economy from over-dependence on revenue from crude oil unless concerted efforts are made in other key sectors.

He said Nigeria needs to take concrete steps in diversifying the country’s economy for the expansion of the revenue base.

Oborevwori also said the country has not properly managed its oil wealth.

He said it is worrisome that the oil sector only contributed between five and seven percent to the nation’s GDP.

Oborevwori also urged the committee to look into the payment of 13 percent derivation to oil-producing states.