The Minister of Finance, Wale Edun, on Monday revealed that the Federation Account is witnessing improved revenue inflow since the removal of subsidy from an average of N650 million monthly to over N1 trillion in the last four months.
The minister made the disclosure at the opening ceremony of a four-day retreat organised for members of the Federation Account Allocation Committee, (FAAC) in Asaba.
Wale Edun, who was represented by Udo Okokon, the Permanent Secretary Finance, Special Duties, said the subsidy regime eroded revenues that should have been available to fund viable expenditures that were critical to the well-being of the populace.
“We all know that achieving tax revenue to Gross Domestic Product (GDP) target of 22 per cent and tax to GDP of 18 per cent by 2026 are parts of the cardinal 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.
“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 that is full of optimism.”
The minister also noted that the present administration was not oblivious to the untold hardship faced by Nigerians following the removal of fuel subsidy, and harmonisation of exchange rates.
“The government is bent on ensuring that the economy bounces back to normal as we continue to consolidate recovery efforts while focusing on achieving inclusive economic growth and development,” he added.
Edun said that the Bola Tinubu-led administration has so far put in place well-structured palliative measures to cushion the economic consequences of the ongoing reforms.
Edun also noted that the retreat clearly outlined the urgent need to diversify the nation’s economy.
Those in attendance are: Accountant Generals from the thirty-six states and the FCT, as well as other stakeholders such as Customs.
