Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun has disclosed that the Federal Government (FG) is relying on non-oil revenue-generating agencies to meet its budgetary obligations.
To this end, the Minister has tasked the heads of these non-oil revenue agencies to deploy information technology tools to block leakages and waste within the system.
He issued this directive on Monday in Abuja at the 5th edition of the National Treasury Workshop, organized by the Office of the Accountant General of the Federation.
The theme of the workshop was: “Nigeria’s Revenue Challenges and the Way Forward: Exploring Non-Oil Alternatives.”
Edun was represented at the event by the Permanent Secretary in the Ministry, Mrs. Lydia Jafiya Shehu.
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According to him, “In this year’s budget, about N14 trillion is allocated for debt servicing. That’s not the issue.
“The issue is, you must generate the revenue. The onus lies on non-oil revenue agencies.
“For us to generate more revenue, the onus lies on us to adopt information technology tools to avoid leakages and waste.
“Several non-oil sectors have demonstrated strong potential for revenue generation, job creation, and economic transformation.
“It is time to explore these aggressively. Let me highlight a few critical areas such as agriculture and agro-processing, solid minerals and mining, manufacturing and industrialization, tourism and hospitality, the digital economy and ICT, tax reforms and compliance, etc.,” he said.
The government, Edun continued, is aware of the challenges impeding non-oil sector revenue generation and is committed to addressing them.
“While the potential of non-oil revenue sources is evident, several challenges impede their full exploitation.
“Some of these challenges include poor infrastructure, high cost of doing business, bureaucratic bottlenecks, regulatory inefficiencies, insecurity and its impact on investment confidence, low tax compliance, and widespread revenue leakages.”
“The government is already taking bold steps to tackle these issues through reforms in public financial management, digitalization of revenue collection, and strengthening tax administration,” the Minister added.
Edun expressed satisfaction with the choice of the workshop theme, describing it as both timely and imperative.
“It underscores the urgent need to rethink our revenue generation strategies, especially in light of the volatile nature of oil revenues, which have long been the backbone of our economy but are currently facing a downturn.
“The recent global shifts in energy policies, declining oil demand, and fluctuating crude prices have made it abundantly clear that we cannot afford to be overly dependent on oil revenues.
“We must, therefore, embrace a diversified economic approach that taps into the immense potential of non-oil sectors such as agriculture, solid minerals, manufacturing, tourism, the digital economy, and creative industries,” he said.
“I am glad that key experts like the Chairmen of FIRS and the Presidential Committee on Fiscal Policy and Tax Reforms will be presenting papers at this forum.
“Let us all understand that more needs to be done, and the insights gathered from this workshop will be instrumental in shaping further policy directions,” he concluded.
In her welcome address, the Accountant General of the Federation, Dr. Oluwatoyin Sikirat Madein, stated that the National Treasury Workshop is a yearly event where seasoned technocrats are invited to discuss key issues affecting the nation’s economy, with the aim of proffering workable solutions to move the country forward.
‘Even though the event is a yearly occasion, the one preceding this took place some years back in November 2021, with the theme COVID-19 and the Global Economy: Implications on the Nigerian National Treasury in Uyo, Akwa Ibom State,” she added.
