The Minister of Finance, Mr Wale Edun, says 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 stated this on Monday in Asaba at the opening ceremony of a four-day retreat organised for members of the Federation Account Allocation Committee (FAAC).
Edun was represented at the occasion by the Permanent Secretary of Finance, Special Duties, Mr Okokon Udo.
The minister stated that the government had long realised that petroleum subsidy was unsustainable, adding that it eroded revenues that should have been made available to fund viable expenditures critical to the populace’s well-being.
According to him, the present administration was mindful of the needs and welfare of Nigerians.
“’ 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 full of optimism,” he said.
The minister also noted that the President Bola Tinubu administration was aware of the untold hardship faced by Nigerians following the removal of fuel subsidy and harmonisation of exchange rates.
“Government is bent on ensuring that the economy bounces back to normal as we continue to consolidate on recovery efforts while focusing on achieving inclusive economic growth and development,” he added.
Edun said Tinubu has put well-structured palliative measures in place to cushion the ongoing reforms’ economic consequences.
