Wale Edun, minister of finance and coordinating minister of the economy, says revenue generated by the government will be used to fund social intervention programmes that will benefit 20 million Nigerians.
Edun spoke at the 30th Nigeria Economic Summit (NES), hosted
by the Nigeria Economic Summit Group (NESG) on Tuesday.
On September 10, Edun announced that the government recorded
over N9.1 trillion in revenue for the first quarter (Q1) of 2024 — up from the
N4.06 trillion generated in the same period in 2023.
According to the minister, the increased revenue is
primarily used to finance social programmes aimed at mitigating the impact of
essential but challenging reforms that have affected the cost of living.
Edun said the social investment programmes will impact 60
percent of the poorest, reaching 20 million Nigerians.
“In terms of revenue, the number one place to look was
inwards, domestic resource mobilisation. That’s where the government started.
By the first half of this year, revenue was doubled,” he said.
“Aggregate government revenue was more than doubled. And
that was achieved by applying technology very robustly.
“We have applied
technology in a way which essentially reforms the civil service.
“Rather than waiting for compliance from government
ministries, departments and agencies and government companies, we looked at
what the rules and regulations were, how much a company was allowed to spend on
its revenue, and then how much of its surplus it had to provide to government.
“The social investment program is spearheaded by direct
transfers to reach 60 percent poorest in the population. And right now, 20
million households are being supported directly.
“And it’s going to rise to, well, it’s 20 million people, 4
million households so far, and it’s going to rise to 15 million households who
will be paid directly by the government.
“That is how
President Tinubu and his government is spending the money which is being
yielded from better oil production, which has been driven by improved oil
production and macroeconomic reforms that are expected to save the country 5
percent of GDP.
“There is a broad array of social investment initiatives
where these funds are being directed.”
‘AGRICULTURAL PRODUCTIVITY WILL BE ENHANCED TO LOWER
INFLATION’
Edun said the federal government intends to tackle poverty
by enhancing agricultural productivity and food security, which is essential to
lowering the high inflation rate burdening many Nigerians.
“We are looking to
food production to help bring down inflation,” he said.
“Our aim is to make food more available, affordable, and to
reduce the cost of living for Nigerians.”
He added that to support the effort, the government is
partnering with the African Development Bank (AfDB) to establish agricultural
processing zones, which will provide a robust supply of raw materials for
domestic industries.
On his part, Ndiamé Diop, the World Bank country director
for Nigeria, acknowledged the country’s significant revenue increase, noting
that its revenue-to-gross domestic production (GDP) ratio is expected to
improve.
Diop said in 2022, Nigeria spent 12.9 percent of its GDP,
but revenue covered only 7.6 percent, leaving the country with a substantial
fiscal deficit funded mainly through debt.
“This trajectory could have led to a crisis,” Diop said.
The ongoing reforms, he suggested, are essential to
stabilising Nigeria’s fiscal position and ensuring sustainable economic growth.
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