The Minister of Finance and Co-ordinating Minister of the Economy, Wale Edun says the Federation Account is witnessing improved revenue inflow since the removal of fuel subsidy from an average of N650 billion monthly to over N1 trillion in the last four months.
Wale Edun made the disclosure at the opening ceremony of a two-day retreat holding at the Dome Event Centre, Asaba, Delta State for Federal Account Allocation Committee (FAAC) organized by the Federal Ministry of Finance in collaboration with Delta State Government, with the theme “Creating Resilient Economy through Diversification of the Nation’s Revenue”.
This was contained in a statement signed by Stephen Kilebi, Director Press and Public Relations at the ministry.
The minister who was represented by the Permanent Secretary Finance, Okokon Ekanem Udo, stated that the choice of the retreat’s theme reflects the directive given by President Bola Ahmed Tinubu’s administration to domestic revenue mobilisation and very timely.
He said that the economic reforms the administration has embarked on since its inception in May 2023 clearly outlined right steps to transformation of the country’s economy, adding that, in less than six months of the administration, the country has witnessed the introduction of many reforms, such as: petroleum subsidy removal, fiscal and monetary policies reforms aimed at removing multiple taxation and streamlining/simplifying tax administration as well as achieving single foreign market that will ensure willing buyers and sellers. Those reforms according to the Minister are applauded not only by the experts within the Nigerian economy but also International Development Partners such as the International Monetary Fund and the World Bank among others, noting that, these reforms are what Nigeria as a country needs right now to move from its perennial problems.
He explained that Government is not oblivious of the untold hardships faced by Nigerians following the removal of petroleum subsidy and harmonisation of exchange rate, affirming that “all the sacrifices will not be in vain as government is bent on ensuring that the economy bounces back to normal as we continue to consolidate the recovery efforts on achieving inclusive economic growth and development”.
Earlier, the Delta State Governor Sheriff Oborevwori who was represented by the Deputy Governor of Delta State, Monday Onyeme, in his keynote address said that FAAC members are committed and dedicated to their duty and have been doing a wonderful job in enhancing revenue accruals or inflows into the Federation Account, which has benefited the three tiers of government. This, according to him is especially true in the case of the oil producing states of the federation where several wrong computations are being corrected and refunds made.
He noted 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 (PIA)”.
The Governor added that, since the implementation of the PIA a lot of concerns have been raised by stakeholders of this sector in respect of the new roles of the Nigeria National Petroleum Company Limited (NNPCL) as it effects inflows of revenue into the Federation Account, stating that, it is his hope that this retreat will address these concerns and lay them to rest permanently.
He maintained that the operation of the Federal Inland Revenue Service (FIRS) has been largely governed by the FIRS Act 2007, but with the introduction of the Finance Act of 2019, 2020 and 2021 and other responsibilities assigned to the Federal Inland Revenue Service he hopes that this retreat will enable stakeholders to obtain a better understanding of the operations of the FIRS in the light of the need for economic diversification.
He noted that a lot is expected from the government State Fiscal Transparency Accountability and Sustainability for Results (SFTAS), the introduction of State Action on Business Enabling Reforms (SABER), the operation of the Nigeria Custom Service and many other initiatives/reforms will boost business activities and contribute positively to the nation’s revenue.
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