The Minister of Finance, Wale Edun, says the federation account has been witnessing improved revenue inflow since the removal of subsidy from average of N650 million monthly to over N1 trillion in the last four months.
The minister made the disclosure at the opening ceremony of a four-day retreat organised for members of the Federation Account Allocation Committee (FAAC) in Asaba, the Delta State capital, on Monday.
Edun, who was represented by the Permanent Secretary, Finance, Special Duties, Okokon Udo, said the government had for long, realised that petroleum subsidy was not sustainable.
According to him, subsidy regime eroded revenues that should had been available to fund viable expenditures that were critical to the well-being of the people.
The minister said the present administration was mindful of the needs and welfare of Nigerians, assuring that it would continue to implement peoples oriented policies.
He said: “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 needs not to overburden the tax payers 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 which is full of optimism.”
The minister added that the present administration was not oblivious of the untold hardship faced by Nigerians, following the removal of fuel subsidy and the harmonisation of exchange rates.
He reassured that all the sacrifices made by people would never be in vain.
”Government is bent on ensuring that the economy bounces back to normal as we continue to consolidate on recovery efforts with focusing on achieving inclusive economic growth and development,” Edun added.
Edun said President Bola Tinubu-led administration has so far put in place a well-structured palliative measures to cushion the economic consequences of the ongoing reforms.
Speaking at the event, Delta State Governor, Sheriff Oborevwori, urged the federal government to muster the political will by putting necessary policy and institutional framework in place to diversify the nation’s economy.
The governor, who represented by his deputy, Monday Onyeme, said there was no magic wand to diversify the nation’s economy from over dependence on revenue from crude oil unless concerted efforts were made in other key sectors.
He noted that the diversification of the nation’s economy must go beyond mere rhetoric to concrete measurable steps by facilitating the non-oil exports such as agricultural products, manufactured goods, and services as well as the expansion of the revenue base.
Oborevwori said Delta State was taking the lead to diversify its economy by creating a trade and export unit to drive the process in order to make economic diversification a reality.