Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, recently announced a notable rise in the Federation Account’s revenue, a direct result of the government’s decision to remove fuel subsidies. Since this pivotal policy change, the account, central to all federally collected revenues, has experienced a remarkable increase from an average of N650 billion to over N1 trillion monthly in just four months.
Subsequently, President Bola Ahmed Tinubu’s move to eliminate the subsidy on premium motor spirit (PMS) during his inauguration on May 29, 2023, has been a key factor in this financial boost. Edun shared these developments at a two-day retreat for the Federal Account Allocation Committee (FAAC) in Asaba, Delta State, which centered on the theme “Creating Resilient Economy through Diversification of the Nation’s Revenue.”
Organized by the Federal Ministry of Finance in partnership with the Delta State Government, the retreat, hosted at the Dome Event Centre, is aimed at bolstering the Tinubu administration’s commitment to domestic revenue mobilization. Representing the ministry, Permanent Secretary Finance Okokon Ekanem Udo conveyed Edun’s insights on the administration’s economic reforms. These include the removal of petroleum subsidies, fiscal and monetary policy reforms, and initiatives towards establishing a unified foreign market.
Interestingly, these reforms have won praise from national experts and international development partners like the International Monetary Fund and the World Bank. Acknowledging the resultant hardships, Edun reassured that these sacrifices are steps towards economic recovery and inclusive growth.
Additionally, Edun lauded Delta State for its hospitality and expressed confidence in the retreat’s potential to achieve its set goals. “We are dedicated to maintaining these reforms to foster a business-friendly environment, diversify our economic revenue streams, and ensure macroeconomic stability,” he emphasized.
Meanwhile, Delta State Governor Hon. Sheriff Oborevwori, represented by Deputy Governor Monday Onyeme, commended FAAC’s role in boosting revenue inflows. He stressed the importance of ongoing efforts to ensure fair payments to oil-producing states as mandated by the Petroleum Industry Act (PIA). Oborevwori also raised concerns about the Nigeria National Petroleum Company Limited’s (NNPCL) impact on revenue inflows.
Highlighting the necessity of shifting from short-term political spending, Oborevwori advocated for long-term development strategies and economic diversification. He stressed the significance of solid policy and institutional frameworks to boost non-oil exports, expand the revenue base, and actualize economic diversification.
The retreat also tackled the Federal Inland Revenue Service’s (FIRS) functioning under the Finance Act of 2019, 2020, and 2021, focusing on its contribution to economic diversification.
Udo, representing the Permanent Secretary, underscored the retreat’s relevance amidst Nigeria’s current economic challenges. He outlined a detailed agenda to discuss mobilizing domestic revenue, curbing wasteful spending, prioritizing expenditures, and addressing revenue leakages.
According to a report by This Day Live, the event gathered notable attendees, including the Accountant-General of the Federation, finance commissioners, state accountants general, representatives from the World Bank, FAAC, and management of the Federal Ministry of Finance, among others.
