The Minister of Finance, Mr. Wale Edun, has said that the federation account is wit­nessing improved revenue inflow since the removal of subsidy from an average of N650 million monthly to over N1 trillion in the last four months.

The minister stated this on Monday 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, Mr. Okokon Udo, said the government had 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 people-oriented policies.

“We all know that achieving tax revenue to Gross Domestic Product (GDP) target of 22 per­cent and tax to GDP of 18 percent by 2026 are parts of the cardinal objectives of this administration.

“However, in doing that, we ap­preciate the need not to overbur­den the taxpayers by introducing so many new taxes.

“What is necessary to be done is to broaden the tax base, simplify, and streamline tax administration for ease of collection,” he said.

Edun added, “Among the pri­or activities of this government after coming into office was the constitution of a Presidential Committee of Fiscal Policy and Tax Reforms.

“The committee has submitted an interim report that is full of op­timism’’

The minister also noted that the present administration was not oblivious to the untold hard­ship faced by Nigerians following the removal of fuel subsidy, and harmonisation of exchange rates.

He reassured that all the sacri­fices made by people would never be in vain.

“The government is bent on en­suring that the economy bounces back to normal as we continue to consolidate recovery efforts while focusing on achieving inclusive economic growth and develop­ment,” he added.

Edun said that the Bola Tinu­bu-led administration has so far put in place well-structured pal­liative measures to cushion the economic consequences of the ongoing reforms.

On the theme of the retreat, ‘Creating a Resilient Economy through Diversification of the Nation’s Revenue’, the minister commended the choice, stressing that it was suitable.

Edun also noted that the retreat clearly outlined the urgent need to diversify the nation’s economy.

In an opening remark, Gov. Sheriff Oborevwori of Delta tasked the Federal Government to muster the political will by putting the necessary policy and institutional framework in place to diversify the nation’s economy.

The governor, represented by his deputy, Sir Monday Onyeme, said that there was no magic wand to diversify the nation’s economy from over-dependence on revenue from crude oil unless concerted efforts were made in other key sectors.

He noted that the diversifi­cation of the nation’s economy must go beyond mere rhetoric to concrete, measurable steps by fa­cilitating non-oil exports such as agricultural products, manufac­tured goods, and services, as well as the expansion of the revenue base.

Oborevwori affirmed that Del­ta was taking the lead in diversi­fying its economy by creating a Trade and Export Unit to drive the process of making economic diversification a reality.

He noted that some schools of thought believe that the discov­ery of crude oil, which led to the neglect of agriculture and other revenue-yielding non-oil sectors of the economy, was a curse.

Oborevwori said the country had not properly managed its oil wealth, adding that it was worri­some that the oil sector contributed between five percent and seven percent of the nation’s GDP.

He added that the non-oil sec­tor, mostly agriculture, agribusi­ness, manufacturing, and small-scale enterprises, contributed 93 percent to 95 percent, yet the bulk of public revenue was from the oil and gas sector.

“Statistics have made it more exigent for the government to grow the non-oil sector to widen the revenue base while ensuring that maximum benefits are de­rived from the oil industry,” he said.

The governor commended the FAAC for its commitment to duty by enhancing revenue accruals into the federation account.

He urged the committee to look into the payment of 13 percent der­ivation to oil-producing states.

Oborevwori challenged the committee to use the retreat to address the concerns raised by stakeholders concerning the new roles of the Nigerian National Petroleum Company Limited, among others, by giving a better understanding of their roles in the economic diversification of the country.

Accountants General from the thirty-six states and the FCT, as well as other stakeholders such as Customs, are attending the retreat.