The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, revealed that the monthly revenue inflow into the Federation Account Allocation Committee (FAAC) fund has increased from N650 billion to N1 trillion since the removal of the petrol subsidy, as declared by President Bola Ahmed Tinubu in his May 29 inauguration speech.
All Nigeria Latest News reports that Edun stated that the subsidy regime eroded much-needed revenue.
The Minister made the remarks at the opening of a four-day retreat for FAAC members held in Asaba, the Delta State capital.
Edun, represented by Mr Okokon Udom, the Permanent Secretar, said the government realised that petroleum subsidy was not sustainable.
The Minister stated that the administration is cognizant of the needs of Nigerians and reassured that it would persist in implementing policies focused on the welfare of the people.
“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.
“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.”
Edun also noted that the administration was not oblivious to the hardship faced by Nigerians following the removal of the petrol subsidy and harmonisation of exchange rates.
He said: “The government is bent on ensuring that the economy bounces back to normal as we continue to consolidate recovery efforts while focusing on achieving inclusive economic growth and development.”
The Minister said the Administration has so far put in place well-structured palliative measures to cushion the economic consequences of the ongoing reforms.
On the theme of the retreat: “Creating a resilient economy through diversification of the nation’s revenue,” the minister said it was apt.