The removal of subsidy has markedly increased the monthly revenue entering the Federation Account, rising from an average of N650 billion to over N1 trillion in the past four months, as reported by Minister of Finance and Coordinating Minister of Economy, Wale Edun.
Addressing a four-day retreat in Asaba, the Delta state capital, Edun credited this positive shift to the sweeping economic reforms instituted by President Bola Tinubu’s administration.
Emphasizing the administration’s commitment to steering the nation’s economy in a positive direction, Edun’s sentiments were conveyed by the Permanent Secretary of the Ministry, Mr. Okokon Udo.
The statement highlighted significant changes brought about by economic reforms initiated since May 2023, within the first six months of the administration.
These reforms include the discontinuation of the petroleum subsidy and modifications in fiscal and monetary policies, particularly focused on eradicating multiple taxation, among other pivotal measures.
“The Federation Account, in particular, has experienced a notable upswing in revenue since the subsidy removal, escalating from an average of N650 billion monthly to over N1 trillion in the last four months. The government has long acknowledged the unsustainable nature of the petroleum subsidy, recognizing its impact on diminishing revenues that could otherwise be allocated to essential expenditures crucial to the well-being of the populace,” highlighted Edun’s statement.
The minister asserted that two primary objectives of the Tinubu-led administration are to achieve the 22 percent tax revenue to GDP target and the 18 percent tax to GDP target by the year 2026.
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