The Minister of Finance, Mr. Wale Edun, announced on Monday in Asaba during the opening ceremony of a four-day retreat for the Federation Account Allocation Committee (FAAC) that the Federation Account has experienced an improved revenue inflow of over N1 trillion since the removal of the subsidy.
Edun, represented by Mr. Okokon Udo, the Permanent Secretary, Finance, Special Duties, highlighted that the Federal Government had long recognized the unsustainability of the petroleum subsidy. He emphasized that the subsidy regime had previously diminished revenues that could have been allocated to critical expenditures for the well-being of the populace.
The minister affirmed the administration’s commitment to people-oriented policies, citing President Bola Tinubu’s awareness of the needs and welfare of Nigerians. He acknowledged the administration’s objective to achieve a tax revenue to Gross Domestic Product (GDP) target of 22% and a tax to GDP of 18% by 2026.
Edun emphasized the importance of avoiding an undue burden on taxpayers and instead advocated for broadening the tax base, simplifying tax administration, and streamlining collection processes.
Addressing the challenges faced by Nigerians due to the removal of fuel subsidies and the unification of exchange rates, Edun assured that the current administration, under President Tinubu, is dedicated to normalizing the economy.
He emphasized the government’s commitment to ensuring that the sacrifices made by the masses would not be in vain. Edun stated that the focus is on achieving inclusive economic growth and development, and he highlighted the implementation of well-structured palliative measures to alleviate the impact of ongoing reforms.
