FG Records a Milestone in Debt Reduction, Pays off N4. 5 Trillion Ways and Means - Wale Edun

Babatunde Ayeni

As activities marking the celebration of the first year anniversary of the President Bola Ahmed Tinubu-led Administration continues, the Federal Government has disclosed that it has taken bold steps towards reducing the N7.3 trillion Ways and Means it inherited with the payment of the sum of N4.8 trillion.

 The Minister of Finance and Coordinating Minister of the Economy, Wale Edun stated this in Abuja while speaking on the achievements of his Ministry in the one year administration of the President.

 He said, in addition to having paid the N4. 8 trillion, another N2.5 trillion will be paid in the second quarter of 2024 On Debt Servicing Without recourse to Ways and Means, the Minister informed further that due to improved fiscal discipline. According to Edun, the Government has largely financed debt service obligations, including foreign debt service, without resort to Ways and Means Account Such payments he added included outstanding commitments/shareholding to multilateral development banks (MDBs) and international organizations, including over US$200m to Islamic Development Bank.

Wale Edun stated that on the National Single Window, the Federal Government launched the NSW, a technology platform for trade facilitation & import administration with the potential of annual economic benefit of US$2.7 billion. 

He added that, the Presidential Fiscal Policy and Tax Reforms Committee (PFPTRC) is in the process of tax Harmonization and streamlining of tax collection processes which he said has come up with strategies for broadening tax net as well advanced in the single-digit tax system to reduce the number of taxes in the country, Briefing on the Oil Revenue Increases, the Minister noted that Oil revenue of N1,1 trillion was achieved in the first quarter of 2024, as against N460 billion in the same period of the preceding year (2023), Edun maintained that the oil revenue flowed from an impressive increase in oil production, which recorded 1.7mbpd in the first quarter of this year, up from 1.3mbpd in June 2023.

The Minister said that Federal Government revenues from GOEs also substantially increased (Q1’2024 ₦835.7B vs ₦154.3B Q1’2023). The impressive revenue record of the period under consideration was made possible by the introduction of technology-driven strategy systems to automatically deduct revenue due to FGN. Similarly, the FGN has earned more FX income under the new revenue model.

 Specifically, the Nigeria Customs Service recorded unprecedented increases in the first quarter 87% Increase in 2023 revenue mobilization, as well as a 122% revenue increase in Q1 2024 compared to Q1 2023 In addition, he said that the Federal Inland Revenue recorded a 107% achievement of 2023 target and a 56% revenue improvement in Q1 2024 compared to Q1 2023.

The Permanent Secretary Federal Ministry of Finance Lydia Shehu Jafiya and the Permanent Secretary Special Duties, Federal Ministry of Finance, Okokon Ekanem Udo, Heads of Agencies under his supervision as well as Directors of the Ministry were all present at the breifing.