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Subsidy Removal: FG Announces N1 Trillion Monthly Revenue Inflow

Published

1 year ago

Nov 21, 2023.

Eko Hot Blog reports that the the removal of subsidies increased revenue inflow into the Federation Account from an average of N650 billion per month to over N1 trillion over the last four months, according to Minister of Finance and Coordinating Minister of Economy, Wale Edun.

Making this disclosure at a four-day retreat held in Asaba, Delta state capital, Edun said that the economic reforms that the President Bola Tinubu-led administration had undertaken since its inception clearly outlined the right steps towards the transformation of the country’s economy.

Mr Edun’s statement was read by the ministry’s Permanent Secretary, Mr. Okokon Udo.

President Bola Tinubu

“The economic reforms which this administration has undertaken since its inception in May, 2023 clearly outlined right steps to transformation of the country’s economy.In less than six months of the administration, we have witnessed the introduction of important reforms, such as petroleum subsidy removal, fiscal and monetary policies reforms aimed at removing multiple taxation among others,” he said.

“The Federation Account in particular is witnessing improved revenue inflow since the removal of subsidy from an average of N650 billion monthly to over N1 trillion in the last four months.The government had for long realised that petroleum subsidy is not sustainable given it erodes revenues that should have been available to fund viable expenditures that are critical to wellbeing of the populace,” he added.

He claimed that two of Tinubu’s administration’s main goals are to reach the 22 percent tax revenue to GDP target and the 18 percent tax to GDP target by 2026.

It would be recalled that President Tinubu had on assumption of office immediately removed fuel subsidy and floated the country’s currency.

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