The federal government announced yesterday that the removal of the subsidy has led to a significant increase in the monthly inflow to the Federation Account, soaring from an average of N650 billion to over N1 trillion in the past four months.
The Minister of Finance and Coordinating Minister of the Economy, Chief Olawale Edun, made this revelation at the commencement of the FAAC retreat in Delta, commending the state government for agreeing to host the 2023 Federal Accounts Allocation Committee (FAAC) retreat.
Representing Edun, the Permanent Secretary, Special Duties, Federal Ministry of Finance, Mr. Okokon Ekanem, stated, “In six months of the Bola Tinubu administration, the nation had witnessed important reforms such as petroleum subsidy removal, fiscal and monetary policy reforms aimed at removing multiple taxation, streamlining and simplifying tax administration as well as achieving a single foreign exchange market.
“Government has long realized that the petroleum subsidy is unsustainable, eroding revenues that should have been used to fund viable expenditures critical to the well-being of the populace.
As we continue to implement our policies, we will remain mindful of the needs and welfare of Nigerians.
“We all know that achieving a tax revenue to GDP target of 22 per cent and tax to GDP of 18 per cent by 2026 are part of the terminal 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,” Edun emphasized.
