The Minister of Finance, Mr. Wale Edun, announced that the Federation Account has experienced enhanced revenue inflow since the removal of the subsidy, increasing from an average of N650 million monthly to over N1 trillion in the last four months.
The minister shared this information on Monday during the opening ceremony of a four-day retreat organized for members of the Federation Account Allocation Committee (FAAC) in Asaba.
Represented by the Permanent Secretary of Finance, Special Duties, Mr. Okokon Udo, Edun emphasized that the government recognized the unsustainability of petroleum subsidy, which had been eroding revenues that could have been allocated to critical expenditures benefiting the populace.
The minister highlighted the government’s commitment to addressing 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,” Edun stated.
He emphasized the importance of broadening the tax base, simplifying tax administration, and streamlining collection processes to achieve the administration’s goals.
Edun also mentioned the establishment of a Presidential Committee of Fiscal Policy and Tax Reforms, which has submitted an interim report full of optimism, reflecting the government’s commitment to fiscal responsibility and revenue enhancement.