Subsidy removal takes monthly Federation Account inflow to N1tr
Monthly revenue inflow into the Federation Account Allocation Committee (FAAC) fund has risen from N650 billion to N1trillion monthly since the withdrawal of subsidy on petrol, Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has said.
Subsidy on petrol was declared gone by President Bola Ahmed Tinubu in his inauguration speech on May 29.
According to Edun, the subsidy regime eroded much-needed revenue.
He spoke in Asaba, the Delta State capital, at the opening of a four-day retreat organised for FAAC members.
The minister, represented by the Permanent Secretary Mr Okokon Udom, said the government realised that petroleum subsidy was not sustainable.
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Edun said the administration was mindful of the needs of Nigerians and assured that it would continue to implement people-oriented policies.
“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 which is full of optimism.”
The minister also noted that the administration was not oblivious to the hardship faced by Nigerians following the removal of the petrol subsidy and harmonisation of exchange rates.
Edun said: “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.”
Edun said the Administration has so far put in place well-structured palliative measures to cushion the economic consequences of the ongoing reforms.
On the theme of the retreat: “Creating a resilient economy through diversification of the nation’s revenue,” the minister said it was apt.
Delta State Governor Sheriff Oborevwori urged the Federal Government to muster the political will to diversify the economy.
The governor, represented by his Deputy, Sir Monday Onyeme, said there was no magic wand to diversify the nation’s economy from over-dependence on revenue from crude unless concerted efforts were made in other key sectors.
He noted that the diversification of the economy must go beyond mere rhetoric to concrete measurable steps by facilitating non-oil exports such as agricultural products, manufactured goods and services as well as the expansion of the revenue base.