Non-oil revenue in H1 2024 outperformed 2023 record, says Wale Edun

Wale Edun, the minister of finance, says non-oil revenue in the first half (H1) of 2024 outperformed 2023 figure.

Edun spoke on key economic performance highlights for the first half of 2024 at the ministerial press briefing in Abuja  on Thursday.

On November 29, 2023, President Bola Tinubu presented a budget proposal of N27.5 trillion to the national assembly for the fiscal year 2024.

Speaking on the budget, Atiku Bagudu, minister of budget and national planning, said the projected national revenue in 2024 is estimated at N18.32 trillion, marking a substantial 66 percent increase compared to the previous year’s budget.

The minister also said oil-related sources are expected to contribute N7.94 trillion (43.3 percent), while non-oil revenue is projected to contribute N10.39 trillion.

Addressing journalists on Thursday, Edun said non-oil revenue surpassed H1 revenue in 2023 and also exceeded the 2024 budget by 30 percent.

“As I say to you, it is evidence-based, data-driven conversation to indicate where, in objective terms, this economy is going,” the minister said.

“Non-oil revenue in the first half of 2024, outperformed revenue in the first half of 2023, and not only that, it was 30 percent above the budget.”

‘CBN ADJUSTING MPR TO ADDRESS INFLATION’

The minister said the Central Bank of Nigeria (CBN) is taking proactive measures to adjust the monetary policy rate (MPR) in order to tackle inflation “head-on”.

Edun said the efforts are starting to yield the desired results.

He also said the gap between inflation and interest rates is closing, which, according to the economist, strengthens the naira’s viability and aligns with the president’s economic policies.

“Foreign direct investment is inching up, portfolio investment has risen substantially compared to the same period last year,” he said

“Internal reforms are positively impacting external accounts. The trading position is improving, both the balance of trade and the current account balance are positive as you can see from the charts when you compare Q1 2023 to Q1 2024 figures.

“The reforms have put the economy in a more favourable position globally and these are the building blocks.

“Our government revenue to gross domestic product (GDP) and government expenditure to GDP is low compared to our neighbours at around 14-15 percent and the target is to increase that to around 25 percent.

“The critical nature of our revenue effort cannot be overestimated. We are pleased that the efforts so far are gaining traction.”

‘IMPROVED RATING AN INDICATION OF POSITIVE ECONOMIC REFORMS’

Edun attributed the positive economic indicators to the bold and necessary reforms implemented by federal government, highlighting the improved outlook from international rating agencies.

“If you look at the rating agencies, the three rating agencies that rate Nigeria’s foreign debt, one has kept the outlook stable, two have said that the outlook for the economy is improved,” the minister said.

“Moody’s and Fitch have moved from stable to positive, and S&P has kept the outlook for the ratings the same.

“Essentially, it is a plus and it is an indication that the view of the economic reforms is positive. It is a sign that others also see that we are on the right track.”

Edun also reported a reduction in the budget deficit from 6.1 percent recorded in 2023 to 4.4 percent in 2024 on an annualised basis, closely approaching the 2024 target of 4.1 percent.

He urged stakeholders to closely monitor these metrics as the country continues to invest in boosting economic growth, “which will include borrowing”.