The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, revealed on Monday that Nigeria’s Federation Account has experienced a surge in revenue, surpassing a trillion naira over the last four months, News About Nigeria reports.
He attributed this financial upturn to the removal of the petroleum subsidy, citing a monthly average increase from N650 billion.
Addressing members of the Federation Account Allocation Committee (FAAC) at a retreat in Asaba, Delta State, the minister’s speech, read by the ministry’s Permanent Secretary, Mr Okokon Udo, acknowledged FAAC’s efforts in steering economic diversification under the theme ‘Creating a Resilient Economy through Diversification of the Nation’s Revenue’.
“I commend your choice of the theme because of the suitability and the utmost attention of the current administration of Bola Tinubu has directed to domestic revenue mobilisation,” stated the minister.
He further elaborated on the positive impacts of recent economic reforms, including the removal of the petroleum subsidy and fiscal and monetary policy adjustments to eliminate multiple taxation.
“The government had for long realised that petroleum subsidy is not sustainable given it erodes revenues that should have been available to fund viable expenditures that are critical to the wellbeing of the populace,” he added.
Mr Edun emphasised Tinubu’s administration’s commitment to achieving a tax revenue to GDP target of 22 per cent and tax to GDP of 18 per cent by 2026.
In his opening declaration, Delta State Governor, Sheriff Oborevweri, represented by his Deputy, Mr Monday Onyema, urged FAAC to address concerns about delayed remittances of allocations to states.
He particularly highlighted the need for clarity regarding the Petroleum Industry Act’s impact on revenue inflows into the Federation Account.
“It is my hope that this retreat will address these concerns and lay them to rest permanently. This is especially true in the case of the oil-producing states of the federation, where several wrong computations are being corrected and refunds made,” Governor Oborevweri remarked.
He also pointed out the role of the Central Bank of Nigeria (CBN) in overseeing the Federation Account and emphasised the importance of timely remittances to states after FAAC plenary resolutions.
Governor Oborevweri anticipated more detailed accounting statements and reports following the retreat.