The Finance and Coordinating Minister of the Economy, Wale Edun, has categorically ruled out any increment in taxes for the 2024 financial year. During an interactive session with the House of Representatives Committee on Finance, led by Abubakar Kabir Bichi in Abuja, Edun emphasized a strategic focus on revenue generation instead. Addressing the panel and representatives of government-owned enterprises (GOEs), the discussion aimed to enhance revenue beyond the N27.5 trillion outlined in the upcoming budget.
Edun highlighted the counter-productivity of tax increases, especially amidst efforts to attract both local and foreign investors. He clarified that the emphasis is on increasing tax returns and revenue as a percentage of GDP from approximately nine percent to 18 percent over three years, aligning it with the African average. The minister stressed the importance of enhancing the efficiency of tax administration, particularly in collection processes.
Acknowledging the necessity to allocate more funds to infrastructure, education, and health services, Edun advocated for the elimination of financial leakages and a reduction in government expenditure. He also underscored the need for accountability in oil receipts, affirming the reasonableness of the 2024 budget estimates.
In a related development, the House of Representatives Committee on Finance urged the Nigeria Customs Service (NCS) to raise its 2024 revenue target to N6 trillion. Committee Chairman Abubakar Kabir Bichi encouraged the Customs Comptroller General, Adewale Adeniyi, to consider exceeding the initially proposed N5 trillion target.
Bichi emphasized that achieving President Bola Tinubu’s Renewed Hope Agenda depends on revenue-generating agencies meeting or surpassing their revenue targets. While acknowledging the optimism in reaching N6 trillion in 2024, Adeniyi mentioned that the achievement might be facilitated if the Federal Government addresses issues surrounding concession grants.
