Minister of Finance, Wale Edun, has said the Federation Account 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.
Oborevwori accuses CBN of poor remittance of revenues to states
The minister stated, yesterday, in Asaba at the opening ceremony of a four-day retreat organised for members of the Federation Account Allocation Committee (FAAC).
The minister, represented by the Permanent Secretary, Finance, Special Duties, Okokon Udo, said the government had, for long, realised that petroleum subsidy was not sustainable.
According to him, the subsidy regime eroded revenues that should have been available to fund viable expenditures that were critical to the well-being of the populace.
The minister said the present administration was mindful of the needs and welfare of Nigerians and assured that it would continue to implement peoples oriented policies.
“We all know that achieving the 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. “What is necessary to be done is to broaden the tax base, simplify and streamline tax administration for ease of collection,” he said.
On the theme of the Retreat, “Creating a Resilient Economic through Diversification of the Nation’s Revenue”, the minister commended the choice, stressing that it was suitable.
MEANWHILE, Delta State Governor, Sheriff Oborevwori, at the event, called for detailed accounting statements and reports from the Central Bank of Nigeria (CBN) and stressed the need to avoid delays that would hinder state governments from meeting their mandates.
The governor noted that after FAAC’s plenary resolutions, CBN had not responded to the demands on clarity made in relation to the management of the Federation Account.
Describing the action of the CBN as a setback to the workings of the state finance, he urged the Ministry of Finance to use the four-day retreat to ensure the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), in respect of the distribution of revenues, used the vertical and horizontal revenue formula as benchmark to do the needful.
According to the governor, who spoke through his Deputy, Mr. Monday Oyeme, the introduction of States Action on Business Enabling Reforms (SABER), is a good omen as a lot is expected from this reform to boost business activities in the nation; even as the experience gained from the State Fiscal Transparency Accountability and Sustainability for Results (SFTAS) is enormous because the benefits are long lasting.
Oborevwori described the inclusion of the Nigeria Custom Service as very important, saying it would push the diversification of the national revenue base.
According to him, some reforms have been implemented to enable the Nigeria Customs Service to be in a better position to contribute to the nation’s revenue.