As activities marking the celebration of the first anniversary of President Bola Ahmed Tinubu continues, the Federal Government has disclosed that it has taken bold steps towards reducing the N7.3 trillion Ways and Means it inherited with the payment of the sum of N4.8 trillion
The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun stated this today in Abuja during the Ministerial Press Briefing on the achievements of his Ministry in the one year administration of the President.
He informed that in addition to having paid the N4.8 trillion, another N2.5 trillion will be paid in the second quarter of 2024
On debt servicing Without recourse to Ways and Means, the Minister informed further that due to improved fiscal discipline, the Government has largely financed debt service obligations, including foreign debt service, without resort to Ways and Means account.
Such payments, he added, included outstanding commitments/shareholding to multilateral development banks (MDBs) and international organizations, including over $200 million to Islamic Development Bank.
On the National Single Window project, he said it has the potential of annual economic benefit of $2.7 billion.
Edun added that the Presidential Fiscal Policy and Tax Reforms Committee (PFPTRC) was in the process of tax Harmonization and streamlining of tax collection processes which he said has come up with strategies for broadening tax net as well advanced in the single-digit tax system to reduce the number of taxes in the country,
Oil revenue increases, the Minister noted that Oil revenue of N1,1 trillion was achieved in the first quarter of 2024, as against N460 billion in the same period of the preceding year (2023),
The Minister maintained that the oil revenue flowed from an impressive increase in oil production, which recorded 1.7mbpd in the first quarter of this year, up from 1.3mbpd in June 2023.
The Minister said that Federal Government revenues from (GOEs) also substantially increased (Q1’2024 N835.7B vs N154.3B Q1’2023). The impressive revenue record of the period under consideration was made possible by the introduction of technology-driven strategy systems to automatically deduct revenue due to FGN. Similarly, the FGN has earned more FX income under the new revenue model.
Specifically, the Nigeria Customs Service recorded unprecedented increases in the first quarter 87% Increase in 2023 revenue mobilization, as well as a 122% revenue increase in Q1 2024 compared to Q1 2023
In addition, he said that the Federal Inland Revenue recorded a 107% achievement of 2023 target and a 56% revenue improvement in Q1 2024 compared to Q1 2023.
Under the Fiscal Policies & Financial Management Edun said the administration launched the Incentives Monitoring & Evaluation Platform (IMEP) to prevent the misuse of tax incentives by blocking and limiting access to those who do not qualify for the incentives.
“We also strengthened the implementation of fiscal policies around the Import Duty Tax Incentive to boost key economic sectors and deliver more sustainable socio-economic impacts”.
