The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has disclosed that the removal of fuel subsidy has contributed to a significant increase in monthly Federation Revenue, reaching an average of N1 trillion over the past four months. Speaking at a two-day retreat for the Federal Account Allocation Committee (FAAC) in Asaba, the minister, represented by Permanent Secretary Mr. Okokon Udo, highlighted the positive impact of this decision on revenue shared among the federal, state, and local governments, surpassing the previous average of N650 billion monthly.
The minister emphasized that the retreat’s theme aligns with the directive from President Bola Ahmed Tinubu’s administration to focus on domestic revenue mobilization, calling it a timely and crucial initiative. The retreat is currently taking place at the Dome Event Centre in Asaba, Delta State.
According to a statement from the Director of Press at the Federal Ministry of Finance, Mr. Stephen Kilebi, the minister noted that the economic reforms implemented by the current administration have garnered praise from economic experts within Nigeria and international organizations such as the International Monetary Fund and the World Bank.
Mr. Edun emphasized the government’s commitment to ensuring the economy rebounds to normalcy, consolidating recovery efforts, achieving inclusive economic growth, and promoting development. He reiterated the government’s dedication to fiscal and monetary reforms aimed at creating an enabling business environment, diversifying the revenue base, investing in critical infrastructure, and maintaining macroeconomic stability.
Delta State Governor, Mr. Sheriff Oborevwori, represented by Deputy Governor Monday Onyeme, commended FAAC members for their fairness in distributing Federation Revenue among the three tiers of government. He acknowledged corrections made in the computations for oil-producing states, ensuring fairness in refunds.
Governor Oborevwori highlighted the need for further attention, particularly regarding the payments of the 13% derivation to oil-producing states under the Petroleum Industry Act (PIA). He expressed concerns raised by stakeholders about the new roles of the Nigeria National Petroleum Company Limited (NNPCL) and hoped that the retreat would address and permanently lay these concerns to rest.