Finance Minister Wale Edun highlighted the remarkable growth in the Federation Account, citing a drastic surge from N650 million to over N1 trillion monthly since the removal of fuel subsidy.
Speaking at a four-day retreat for the Federation Account Allocation Committee (FAAC) in Asaba, Edun emphasized the unsustainability of the subsidy regime, stressing that it depleted funds crucial for public welfare.
“Subsidies eroded revenues essential for critical public expenditures,” stated Edun, reiterating the government’s commitment to implementing citizen-centric policies. He emphasized the need to strike a balance between tax objectives and not overburdening taxpayers.
Edun acknowledged the hardship resulting from subsidy removal and exchange rate harmonization, assuring that the government aimed to revive the economy, consolidating recovery efforts and prioritizing inclusive growth.
The Minister disclosed measures, including the Presidential Committee of Fiscal Policy and Tax Reforms, aimed at optimizing fiscal policies. He reassured that the administration had implemented palliative measures to mitigate the economic impact of ongoing reforms.
The retreat’s theme, “Creating a Resilient Economy through Diversification of Revenue,” received commendation from Edun, underscoring the necessity to diversify the nation’s economy beyond crude oil dependency.
Delta State’s Deputy Governor, Sir Monday Onyeme, echoed the sentiment, emphasizing the need for concerted efforts to diversify the economy beyond oil revenue.
He highlighted Delta’s steps, including the establishment of a Trade and Export unit, aimed at making economic diversification a reality.
Onyeme stressed the neglect of non-oil sectors due to oil wealth, urging concrete steps toward diversification. He emphasized the disproportionality between oil sector contribution (5%-7% of GDP) and non-oil sectors (93%-95% of GDP), urging a focused strategy to bolster the latter for revenue growth.
Furthermore, Onyeme urged FAAC to address concerns related to the Nigeria National Petroleum Company Limited’s roles in economic diversification.
The retreat, attended by Accountant Generals from the 36 states, the FCT, and stakeholders like Customs, aimed to strategize on bolstering revenue accruals and addressing pertinent economic concerns, including the evolving roles within the oil and gas sector.
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