The Minister of Finance, Mr Wale Edun, says that the Federation Account is witnessing improved revenue inflow since the removal of subsidy from an average of N650 million monthly to over N1 trillion in the last four months.
The minister stated this on Monday in Asaba at the opening ceremony of a four-day retreat organised for members of the Federation Account Allocation Committee (FAAC).
The minister, represented by the Permanent Secretary, Finance, Special Duties, Mr Okokon Udo, said the government had, for long, realised that petroleum subsidy was not sustainable.
According to him, the subsidy regime eroded revenues that should have been available to fund viable expenditures that were critical to the well-being of the populace.
NAN reported that the minister said the present administration was mindful of the needs and welfare of Nigerians and assured that it would continue to implement people-oriented policies.
“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.
”What is necessary to be done is to broaden the tax base, simplify and streamline tax administration for ease of collection,” he said.
Edun added, “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 also noted that the present administration was not oblivious to the untold hardship faced by Nigerians following the removal of fuel subsidy, and 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,” he added.
Edun said that President Bola Tinubu-led administration has so far put in place well-structured palliative measures to cushion the economic consequences of the ongoing reforms.
