In a recent announcement, Mr. Wale Edun, the Minister of Finance, shared encouraging news about the Federation Account, revealing that it has experienced a substantial increase in revenue, surpassing N1 trillion since the removal of subsidies.
The minister made this disclosure during the opening ceremony of a four-day retreat organized for members of the Federation Account Allocation Committee (FAAC) in Asaba on Monday.
Represented by the Permanent Secretary, Finance, Special Duties, Mr. Okokon Udo, Edun highlighted the Federal Government’s acknowledgment that the petroleum subsidy was not a sustainable financial model.
He emphasized that the subsidy regime had previously depleted revenues that could have been allocated to crucial expenditures for the welfare of the populace.
According to the minister, the current administration, under President Bola Tinubu, is committed to implementing people-oriented policies and is mindful of the needs and well-being of Nigerians. The removal of the subsidy, Edun asserted, aligns with the government’s objective to prioritize sustainable economic practices over short-term gains.
“We all know that achieving tax revenue to Gross Domestic Product (GDP) target of 22% and tax to GDP of 18% by 2026 are parts of the cardinal objectives of this administration,” noted Edun. He emphasized the importance of not overburdening taxpayers with excessive new taxes but rather focusing on broadening the tax base and streamlining tax administration for efficient collection.
Addressing concerns about the impact of subsidy removal on the populace, the minister acknowledged the hardships faced by Nigerians. He reassured that President Tinubu’s administration is dedicated to ensuring the normalization of the economy, aiming to make the sacrifices endured by the masses worthwhile.
“Government is bent on ensuring that the economy bounces back to normal as we continue to consolidate on recovery efforts with a focus on achieving inclusive economic growth and development,” affirmed Edun.
Furthermore, the minister highlighted that the government has implemented well-structured palliative measures to alleviate the effects of the ongoing reforms. These measures are designed to mitigate the challenges faced by the populace during the transition period, demonstrating the administration’s commitment to balancing economic reforms with the welfare of the citizens.
In conclusion, the minister’s statements provide insight into the positive impact of subsidy removal on the Federation Account, emphasizing the government’s dedication to sustainable economic growth and the well-being of the Nigerian populace. As the administration continues its efforts to normalize the economy, the reassurance of inclusive development and the implementation of palliative measures underscore the commitment to mitigating the challenges posed by economic reforms.