The Minister of Finance and Coordinating Minister of Economy, Mr Wale Edun, says the Federation Account witnessed improved revenue inflow since the removal of subsidy from an average of N650 billion monthly to over N1 trillion in the last four months.
Edun stated this on Monday at a four-day retreat organised for members of the Federation Account Allocation Committee in Asaba, the Delta State capital.
The minister’s speech was read by the ministry’a Permanent Secretary, Mr Okokon Udo, who commended FAAC for the theme of the retreat “Creating a Resilient Economy through Diversification of the Nation’s Revenue”
He said, “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.
“The economic reforms which this administration has undertaken since its inception in May, 2023 clearly outlined right steps to transformation of the country’s economy.
“In less than six months of the administration, we have witnessed the introduction of important reforms, such as petroleum subsidy removal, fiscal and monetary policies reforms aimed at removing multiple taxation among others.
“The Federation Account in particular is witnessing improved revenue inflow since the removal of subsidy from an average of N650 billion monthly to over N1 trillion in the last four months.
“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 wellbeing of the populace.”
He said achieving tax revenue to GDP target of 22 per cent and tax to GDP of 18 per cent by 2026 are parts of the cardinal objectives of Tinubu’s administration.
Declaring the retreat open, the Delta State Governor, Sheriff Oborevweri, called on FAAC to address the delayed remittances of allocation to the states.
The governor, represented by its Deputy, Mr Monday Onyema, said since the implementation of the Petroleum Industry Act, a lot of concerns have been raised by stakeholders in respect of the new roles of the Nigeria National Petroleum Company Limited as it affects inflow of revenue into the Federation Account.
The governor said, “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.
“However, I note that there is still much work to be done in this direction, particularly on the payments of 13% derivation to oil-producing states, since the coming into force of the Petroleum Industry Act.
“The CBN is the custodian of the Federation Account. All revenues collected by the revenue-generating units are warehoused in the CBN before distribution to the federating units.
“It has been observed that at times, there are delays in the remittances to states after FAAC plenary resolutions. I expect a more detailed and clarity of accounting statements/report after this retreat.”
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