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Tag: Edun

  • UPDATED: Fed Govt denies rumours of VAT increase

    UPDATED: Fed Govt denies rumours of VAT increase

    …Reassures Nigerians of Fiscal Stability

    The federal government has dismissed circulating rumours of a possible increase in Nigeria’s Value-Added Tax (VAT) from 7.5 percent to 10 percent, stating that no such hike is being considered.

    The clarification came from the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, in a statement he issued and signed on Monday, September 9.

    Edun emphasised the government’s dedication to fiscal stability and reassured Nigerians that President Bola Ahmed Tinubu’s administration is committed to implementing sustainable economic policies without placing additional strain on citizens.

    Edun categorically stated that the current VAT rate remains unchanged at 7.5 percent, dismissing speculation about a possible increase to 10 percent.  He stressed that there is no proposal or plan under review by the government to raise VAT, contrary to recent reports.

    “The current VAT rate is 7.5 percent, and this is what the government is charging on a spectrum of goods and services to which the tax is applicable. Therefore, neither the Federal Government nor any of its agencies will act contrary to what our laws stipulate,” the Minister explained.

    The statement was a direct response to media reports and opinion pieces suggesting the government was preparing to increase VAT as part of its economic recovery strategy.

    Such reports, according to Edun, have created unnecessary panic and misinformation among the public.

    Edun maintained the administration’s commitment to using fiscal policy to achieve robust and sustainable economic growth, reduce poverty, and foster an enabling environment for businesses to flourish.

    Read Also: Can Wale Edun, Yemi Cardoso, Taiwo Oyedele save the Nigerian economy?

    He underscored the importance of a balanced and stable tax system for Nigeria’s fiscal health, highlighting that tax policy, tax laws, and tax administration must work in harmony.

    “The tax system stands on a tripod, namely tax policy, tax laws, and tax administration. All three must combine well to give us a sound system that gives vitality to the fiscal position of the government,” Edun stated.

    Contrary to the narrative that the government is seeking to impose more financial hardships on Nigerians, the Minister pointed out several relief measures taken by President Tinubu’s administration to mitigate the impact of inflation and rising food prices.

    Edun noted that recent suspensions on import duties for essential commodities, including rice, wheat, and beans, are part of the government’s efforts to ease economic pressure on both businesses and consumers.

    “It is on record that the Federal Government, as part of efforts to bring relief to Nigerians and businesses, recently ordered the stoppage of import duties, tariffs, and taxes on rice, wheat, beans, and other food items,” Edun emphasized.

    These policies are designed to not only stabilize the economy but also to ensure food security by making staple goods more affordable for the average Nigerian.

    The Minister urged Nigerians to disregard unverified reports and assured the public that any tax reforms or adjustments would be communicated through official government channels.

    He emphasized the importance of relying on accurate information to prevent misinformation and unnecessary anxiety among the public.

    “The imputation in some media reports on the issue of VAT and the opinion articles that have sprouted from them seem to wrongly convey the impression that the government is out to make life difficult for Nigerians. That is not correct. If anything, the Federal Government has, through its policies, demonstrated that it is committed to creating a congenial environment for businesses to thrive,” Edun said.

    The Ministry of Finance, he added, remains committed to transparent communication on all tax and economic policies to keep citizens well-informed and to avoid any confusion regarding the government’s fiscal decisions.

  • Edun commends military’s role in economic recovery

    Edun commends military’s role in economic recovery

    The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, paid a courtesy visit to the Chief of Defence Staff (CDS), General Christopher Gwabin Musa, to discuss the crucial role of the military in safeguarding democracy and driving Nigeria’s economic and social recovery.

    During the visit, Mr. Edun expressed gratitude to General Musa and the entire Nigerian Armed Forces for their tireless efforts in creating and maintaining a secure environment conducive to economic growth. 

    He emphasised that the military’s dedication aligns with President Bola Ahmed Tinubu’s mandate to enhance the quality of life for all Nigerians through a secure and stable nation.

    “The military’s unwavering commitment to securing the nation has provided the foundation upon which our economy can thrive,” Edun stated.

    General Musa, in his response, reaffirmed the military’s commitment to protecting Nigeria’s democratic values. 

    He acknowledged the significance of the military’s role in the country’s economic and social recovery, stressing that a secure environment is essential for the successful implementation of economic policies and social initiatives.

    General Musa said: “We in the military are fully aware of our responsibility in safeguarding democracy. Our role is not just to defend the nation from external threats but also to ensure that the internal environment remains stable, allowing for economic activities to flourish.”

    Read Also: Reworked Whistleblowing Bill for National Assembly soon, says Edun

    The discussions between the Minister and the Defence Chief also touched on the continued collaboration between the military and the economic sector. General Musa expressed his gratitude to the Minister for the consistent support provided to the armed forces, noting that such backing is crucial in enhancing the operational capabilities of the military.

    The visit included a tour of the Defence Headquarters, where General Musa provided Mr. Edun with an overview of the operational and administrative functions of the Defence Headquarters. 

    The tour was an opportunity for the minister to gain a better understanding of the military’s strategic operations and how these contribute to national security and economic stability.

    As the discussions progressed, both leaders recognized the importance of a strong partnership between the military and the economic sector.

    They expressed optimism that their ongoing collaboration would yield significant positive outcomes for the nation.

    The visit marks a significant step towards strengthening the relationship between Nigeria’s military and its economic management team. 

    The ongoing cooperation is expected to foster a secure and thriving environment, paving the way for the country to achieve sustainable economic growth and improved living standards for its citizens.

    As Nigeria continues to navigate through various challenges, the partnership between the military and the economic sector remains a cornerstone of the nation’s strategy for recovery and growth. 

    The visit by Mr. Edun to the Defence Headquarters is a clear signal of the government’s commitment to ensuring that all sectors work together towards a common goal— a secure, prosperous, and resilient Nigeria.

  • Reworked Whistleblowing Bill for National Assembly soon, says Edun

    Reworked Whistleblowing Bill for National Assembly soon, says Edun

    President Bola Ahmed Tinubu will soon transmit a reworked Whistleblowing Bill to the National Assembly for legislative action, Minister of Finance and Coordinating Minister for the Economy, Mr. Wale Edun said yesterday.

    The minister said that the Federal Government has recovered N83,019,178,375.86; $609,083,391.91 and 5,494,734.71 euros since the introduction of the whistleblowing policy in 2017.

    Edun described the feat as a testament to the effectiveness of the policy and the contributions of patriotic citizens who provided valuable information.

    The planned transmission of the Bill from the Presidency came on the heels of a call by the Chairman of the Economic and Financial Crimes Commission (EFCC), Mr. Ola Olukoyede, on federal lawmakers to enact a law to strengthen the whistle blower policy.

    The EFCC boss, who spoke on Tuesday at the ongoing Nigerian Bar Association – Annual General Conference  (NBA-AGC 2024), believed that enactment of the law will make it mandatory for law enforcement agencies to protect whistle blowers.

    Speaking yesterday at a sensitisation workshop on the implementation of the whistleblowing policy, Mr. Edun confirmed that the President was preparing to “re-present the Whistleblowing Bill to the National Assembly for legislative action.”

    He urged the public to support the expeditious passage of the bill into law.

    The minister emphasized the government’s commitment to implementing the present administration’s Renewed Hope Agenda (RHA) and ensuring a robust legal framework to drive the implementation of the whistleblowing policy.

    He added that the policy is aimed at ensuring accountability of public institutions and promoting good governance.

    “The government values the right to privacy and protection of every Nigerian” and that “the whistleblowing policy is not intended to witch-hunt but rather to safeguard the nation’s resources for development,” Edun assured Nigerians.

    The minister reiterated government’s commitment to protecting whistleblowers from reprisals and ensuring confidentiality in handling their reports.

    The Permanent Secretary, Special Duties at the Ministry of Finance, Mr. Okokon Ekanem Udo, acknowledged challenges facing the implementation of the policy.

    He spoke of the need to reinforce and sustain the initial enthusiasm that greeted the policy’s introduction seven years ago.

    Mr. Yusuf Sule, the Director of the Presidential Initiative on Continuous Audit (PICA), stated that “the recovered funds represent only liquid assets and do not include non-movable properties or vehicles. He noted that all recoveries are paid into the FGN Assets Recovery Account maintained by the Office of the Accountant-General of the Federation (OAGF) and domiciled in the Central Bank of Nigeria (CBN).

    Read Also: Seyi Edun expresses gratitude to God after surviving health scare

    To encourage whistleblowing, the government offers rewards.

    Up to a billion naira, there is a reward of five per cent of the recovered sum; from N1 billion to N5 billion, there is a four per cent reward on the recovered amount and for recoveries exceeding N5 billion, the whistleblower will get two per cent of the recovered funds.

    “Whistleblowers are entitled to a percentage of the recovered funds, with the percentage varying based on the amount recovered,” Sule said.

  • Reforms transforming economy, says Edun

    Reforms transforming economy, says Edun

    To help Nigeria’s economy match the goals of President Bola Ahmed Tinubu’s administration, Finance Minister and Coordinating Minister for the Economy Wale Edun has identified how important it is to keep carrying out reforms to shape the country’s future.

    Delivering a keynote address at the Nigerian Economic Summit Group (NESG) Conference in Abuja, Edun reflected on the country’s 25 years of democratic governance, stressing the importance of sustained progress in governance and the expansion of economic opportunities.

    One of the significant points raised by Edun was the introduction of Nigeria’s first US dollar domestic bond, a groundbreaking initiative designed to tap into the savings of Nigerians in the diaspora.

    This move, he noted, is expected to boost domestic economic growth by channeling foreign currency into the local economy, thereby strengthening the naira and creating a more resilient financial system.

    This initiative is a clear signal of the government’s intent to leverage international capital for domestic development, fostering a more robust and diversified economy, he said.

    Read Also; Mpox: NCDC confirms 40 cases as US donates vaccine to Nigeria

    Despite the positive strides in financial innovation, Edun acknowledged the ongoing challenges within Nigeria’s agricultural sector, particularly in the areas of food inflation and food security.

    He reiterated the government’s commitment to addressing these issues through targeted interventions aimed at stabilizing food prices and ensuring a more secure and sustainable food supply chain.

    The Minister underscored the importance of learning from successful international models to enhance the effectiveness of these strategies, pointing to the necessity of strategic planning and consistent policy implementation.

    Edun commended the NESG for its continued efforts in facilitating critical economic discussions, which have been instrumental in shaping the nation’s economic policies. He reiterated President Tinubu’s unwavering commitment to advancing comprehensive economic reforms, which are central to the administration’s vision of a prosperous and inclusive Nigeria.

    The Minister commended NESG for their crucial role in facilitating these vital economic discussions and reiterated President Tinubu’s unwavering commitment to advancing comprehensive economic reforms.

    With the Minister’s address, Nigeria’s economic reforms agenda has received a significant boost, and the present Administration’s commitment to attracting foreign investment, curbing food inflation as well as improving food security, is expected to yield positive outcomes.

  • REA briefs Edun on rural electrification progress

    REA briefs Edun on rural electrification progress

    The Rural Electrification Agency (REA) says it has made significant strides in advancing Nigeria’s electrification projects according to a recent briefing provided by the agency’s Managing Director, Abba Abubakar Aliyu, to the Minister of Finance and Coordinating Minister for the Economy, Mr. Wale Edun.

    The meeting, which was contained in a statement from the Ministry of Finance, emphasized the transformative impact of REA’s initiatives on communities across the country.

    During the briefing, Abba Abubakar Aliyu presented a comprehensive overview of the REA’s successful projects, showcasing how electrification is changing the landscape of rural and underserved areas in Nigeria.

    According to the statement signed by Muhammad Manga, Director of Information and Public Relations at the Ministry, Aliyu’s presentation included photographic evidence of power plants established at several key institutions.

    These institutions, which benefit from REA’s electrification efforts, include the University of Abuja, the University of Maiduguri, Michael Okpara University of Agriculture in Umudike, Federal University Gashua in Yobe, the Federal University of Agriculture in Abeokuta, and the Nigerian Defence Academy in Kaduna. These installations represent a significant leap in the agency’s mission to provide reliable power to critical sectors of society.

    In response to the REA’s presentation, Minister Wale Edun praised the agency for its remarkable achievements and underscored the crucial role of electrification in driving Nigeria’s economic growth and development. He highlighted the importance of raising public awareness about the positive impacts of REA’s work, which he described as a cornerstone for empowering communities and stimulating economic progress.

    Read Also: Benefits of $500m domestic bond offer, by Edun, experts

    “REA’s efforts are not just lighting up homes and institutions; they are illuminating the future of Nigeria by improving livelihoods and creating economic opportunities,” Edun stated.

    He emphasised that the continued success of these initiatives would lead to sustained economic development and a brighter future for the nation.

    The Rural Electrification Agency’s work has far-reaching implications for Nigeria’s economic landscape. By providing reliable electricity to previously underserved regions, REA is helping to unlock the potential of these communities, enabling them to participate more fully in the national economy. The Minister’s recognition of these efforts underscores the vital role that energy plays in economic empowerment and community development.

    The projects showcased by REA not only provide essential services to educational and military institutions but also set the stage for broader economic benefits. Reliable electricity is a critical factor in attracting investment, improving educational outcomes, and enhancing the overall quality of life in rural areas. The agency’s work is therefore pivotal in achieving the federal government’s broader goals of economic diversification and inclusive growth.

    With the REA’s continued dedication to its mission, Nigeria is poised to witness significant advancements in its rural electrification efforts, which will, in turn, drive economic growth and development. Minister Edun’s commendation reflects the government’s support for these initiatives and its commitment to leveraging electrification as a tool for national progress.

    “As REA continues to illuminate Nigeria’s future, the country can expect improved livelihoods, increased economic opportunities, and a brighter tomorrow,” Edun remarked, reinforcing the agency’s pivotal role in shaping the nation’s future.

  • Edun: Govt targets telecom sector to boost economy

    Edun: Govt targets telecom sector to boost economy

    • Telcos worry over challenges
    • NGX lists gains of operations

    The Federal Government yesterday underscored the importance of the telecommunication sector towards boosting the Nigerian economy as the country looks towards leveraging on the opportunities offered by emerging technologies.

    Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, said the liberalisation of the telecom sector 25 years ago has ushered in a new era of private capital investment and competition.

    Edun spoke at a forum tagged: Telecom Investment Forum 2.0 with focus on: The Next Investment Frontier in Nigeria organised by Financial Derivatives Company (FDC) in Lagos.

    Edun was represented by Managing Director of Ministry of Finance Incorporated (MoFI), Dr. Armstrong Takang.

    He said the phenomenal progress in the industry has been undeniable given the sector’s soaring contribution to Gross Domestic Products (GDP) and its profound impact on daily lives.

    According to him, from mobile banking to online education, countless Nigerians have benefited from the opportunities brought by the liberalization of the telecoms sector.

    He noted that telecoms would be the cornerstone for the Fourth Industrial Revolution and Nigeria must be adequately prepared to tap opportunities from the new horizon.

    “Artificial Intelligence and other emerging technologies hold immense promise, but we need to ensure this sector is primed to capitalize on them. While technology may disrupt jobs, history shows that it also creates new opportunities. The world’s largest companies are testaments to this,” Edun said.

    He however expressed concern over the decelerating investment inflow and job creation within the sector, calling for a comprehensive assessment of the industry’s trajectory.

    He pointed out that a supportive policy framework could make the telecom industry even more attractive for investments.

    “With the right regulations and enabling policies, the telecommunications sector has the potential to become a cornerstone of Nigeria’s economic future,” Edun said.

    Group Managing Director, Nigerian Exchange Group (NGX Group), Temi Popoola underscored the significant impact of the telecommunications industry on capital market efficiency, transparency, and financial inclusion.

    Read Also: Edun meets NNPC, others on crude oil sale to local refineries in Naira

    “The telecommunications sector is not just about connectivity; it is a vital cog in the machinery that drives market transparency and informed decision-making,” Popoola said.

    He pointed out that two of the top five most capitalised companies on NGX are telecommunications giants, illustrating the deep-seated connection between the industry and the financial market.

    Popoola emphasised that the influence of telecoms extends well beyond their primary services.

    “Their contributions extend beyond connectivity; they facilitate the dissemination of real-time market data, which is crucial for enhancing market transparency,” Popoola said.

    He pointed out the synergistic relationship between the telecoms industry and the capital market, which fosters a robust ecosystem benefiting suppliers, partners, and investors.

    Popoola stressed the importance of fostering an environment that encourages innovation, which will drive further investment in infrastructure and talent development within the sector.

    He called for continued collaboration between the telecommunications industry and the financial markets to unlock new opportunities that would enhance both sectors.

    Mobile network operators (MNOs) and other stakeholders in the telecom sector meanwhile expressed deep concern over the drought in investment flow into the telecom sector.

    The stakeholders included Chief Executive Officer, MTN Nigeria, Karl Toriola; his counterpart in Airtel Nigeria, Carl Cruz; Chief Executive Officer, Chapel Hill Denham, Bolaji Balogun and Chairman, Association of Licensed Telecom Companies of Nigeria (ALTON), Gbenga Adebayo.

    They cautioned that prolonged investment drought will hurt telecom infrastructure expansion, job creation, contribution to national GDP and customer experience on the network.

    Toriola who spoke virtually said the telecom sector is now in an intensive care unit (ICU) gasping for breath, adding that there was an urgent need to rescue the sector from total collapse.

    The MTN CEO who differed with the position of his Airtel CEO counterpart, Cruz, who had expressed optimism that investment will continue to flow into the sector, said pricing increase has become an imperative; an absolute necessity in view of the crushing increase in cost of operation, due to inflation, cost of buying diesel to power base transceiver stations (BTS) and other costs.

    Cruz said conversation around boosting investment in the sector in the country is something that should happen, adding that the industry also faces a myriad of challenges including insecurity of infrastructure.

    According to him, Airtel suffers over 1000 optic fibre cable cuts every month while the industry battles with some 50 different taxes and levies by all the three tiers of government and non-state actors but expressed optimism that investment will continue to flow into the sector.

    Adebayo said the actions of public officers are disincentive to investment, adding that tariff should be taken off the ambit of regulation because it is purely a commercial decision.

    He frowned at the situation where the final cost of a finished product does not reflect its cost element.

    He said a major part of the promise the federal government made during the liberalisation of the telecom sector was the supply of electricity from the national grid for at least 18 hours daily, lamenting that the promise has been kept consistently in breach.

    Balogun said the sector has seen a significant investment over the years running to $70 billion. He said aside from the MNOs, data centres have sprung up just as tower companies (TowerCos). Others are cable companies (CableCos), internet service providers (ISPs) and infrastructure companies (infraCos).

    He however identified areas for further investment to include complete or near universal coverage, service quality, small but growing number of smartphones, broadband quality and penetration, industry’s carbon footprint remains far too large and talent pool development which he said is limited largely in big operators.

    Balogun emphasised the need for strategic interventions to harness the sector’s full potential and drive national development.

    “Nigeria has immense potential in the telecommunications sector. To realise this potential, we must prioritise domestication and localisation,” Balogun said.

    He called for a shift from an import-dependent model to one that fosters local production of telecommunications equipment.

    “Government policies and incentives must support local manufacturers. Massive investments in network expansion are crucial. Broadband accessibility should be a priority as it is essential for driving digital inclusion and economic growth,” Balogun said.

    He advocated for public-private partnerships to accelerate infrastructure deployment just as he emphasized the importance of talent development.

    “Investing in our local talent is key to the industry’s growth. We need to promote STEM education and foster stronger collaboration between academia and industry.”

    He highlighted the need for a conducive regulatory environment noting that clear and stable policies are essential for attracting investment and fostering innovation.

    He added that efficient dispute resolution mechanisms and a supportive government role are crucial for creating an enabling business environment.

    “Leveraging the telecommunications sector for financial inclusion was another key recommendation. “The sector can play a pivotal role in expanding access to financial services through mobile banking and other digital financial services,” Balogun said.

    He urged the federal government to place tariffs on imported goods to protect local assembly or manufacture; co-invest in import through MOFI or NSIA; encourage financial transparency by mandating operators to publish financial statement; create differentiated tax rates or tax rebate for listed companies; and set a requirement for any concession-based company to be listed on the NGX.

  • Edun meets NNPC, others on crude oil sale to local refineries in Naira

    Edun meets NNPC, others on crude oil sale to local refineries in Naira

    The Federal Government has moved to ensure a hitch-free implementation of President Bola Ahmed Tinubu’s directive for the sale of crude to local refineries in Naira by meeting with the Nigerian National Petroleum Corporation Limited (NNPCL) Group Managing Director Mele Kyari and relevant stakeholders.

    The other stakeholders from various sectors involved in the petroleum and financial industries at the meeting included   Heineken Lokpobiri, minister of State for Petroleum Resources (Oil);     Zacch Adedeji, executive chairman,   Federal Inland Revenue Service (FIRS); and   Lydia Jafiya, permanent secretary, Ministry of Finance.

    The meeting which was convened by Minister of Finance and Coordinating Minister of the Economy  Wale Edun, took place in the Finance Ministry in Abuja on Monday.

    Federal Executive Council had on July 29 okayed President Tinubu’s proposal for NNPCL  to halt the sale of crude oil to local refineries in foreign currency.

    It (FEC) which approved that   450,000 barrels for domestic consumption be sold to the refineries in Naira, said the decision was to stabilise  pump price of refined fuel and the dollar-naira exchange rate.

    Read Also: PHOTOS: Edun leads meeting on NNPCL crude sales in naira

    A statement by Mohammed Manga, director of Information and Public Relations in the Finance Ministry, said Edun and the stakeholders engaged in in-depth discussions aimed at addressing the longstanding challenges within the petroleum sector.

    The challenges, according to the statement, have often hindered the full potential of Nigeria’s oil industry, particularly in relation to refining capacity and financial stability.

    It added that the sale of crude to the local refineries in Naira is intended to support their operations and strengthen the domestic economy.

    Edun, according to the statement, expressed optimism about the initiative, emphasising that the collective efforts of the parties  at the meeting would be crucial in ensuring its success.

    “This ground-breaking initiative will empower local refineries, stimulate economic growth, and redefine our nation’s petroleum landscape,” he stated.

    The statement partly reads:  “On Monday, the Honourable Minister of Finance and Coordinating Minister of the Economy, Wale Edun, led a key meeting aimed at implementing President Tinubu’s directive for the Nigerian National Petroleum Corporation Limited to sell crude oil to local refineries in Naira.

    “This initiative is intended to strengthen the domestic economy and support the sustainable operations of local refineries, including the Dangote Refinery.

    ‘’During the in-depth discussions, the finance minister expressed strong confidence in the collaborative efforts of all stakeholders to achieve the directive’s objectives.

    “The in-depth discussions underscored longstanding challenges within the petroleum sector, but the Minister expressed strong confidence in the collaborative efforts of all stakeholders to achieve the directive’s objectives.”

  • PHOTOS: Edun leads meeting on NNPCL crude sales in naira

    PHOTOS: Edun leads meeting on NNPCL crude sales in naira

    Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, led a crucial meeting on Monday morning to implement President Tinubu’s directive for the Nigerian National Petroleum Corporation Limited (NNPCL) to sell crude oil to local refineries in Naira.

  • Nigeria’s economy growing faster on reform gains, says Edun

    Nigeria’s economy growing faster on reform gains, says Edun

    The economy is growing faster and government’s financial position becoming better as ongoing reforms continue to address fundamental pillars for sustainable development.

    Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, yesterday gave a full overview of the national economic data, with significant improvements in fiscal and monetary positions. 

    Speaking at the newly introduced quarterly media briefing yesterday in Abuja, Edun highlighted that the economy grew faster in the first quarter of 2024 compared to 2023.

    According to him, economic activity in the first quarter of 2024 was not only faster than first quarter of 2023, but it was also the second fastest first-quarter growth in the last six years.

    He noted that the economic growth was broad-based across several sectors including agriculture, industries and services, with agricultural growth recovering from negative in the first quarter of 2023 to a modest growth in the first quarter of 2024.

    He pointed out that the industrial sector grew seven times faster in first quarter 2024 than in first quarter 2023.

    He attributed this positive economic performance to the government’s well-coordinated fiscal and monetary policies.

    Edun explained that aggregate federal government revenue in the first half of 2024 was more than double of the corresponding period in 2023.

    He attributed the revenue growth to the reconfiguration and improvement in government finances, with oil revenue as a percentage of gross revenue increasing from 11 per cent in the first half of 2023 to 30 per cent in the first half of 2024.

    The finance minister also highlighted the strong performance of non-oil revenue, which not only surpassed the revenue in the first half of 2023 but was also 30 per cent above the 2024 budget target, without any increases in taxes.

    He emphasised the government’s commitment to further improving revenue through increased oil production and sales, as well as enhancing the fiscal policy landscape to attract more investment into the sector.

    He pointed out that Nigeria’s debt burden has reduced in dollar terms, and the government’s fiscal deficit has improved, as the country’s economic reforms continue to yield positive results.

    “Our debt has fallen in dollar terms from $108 billion to $91 billion. Not only that, the government has diligently serviced all its loans and obligations with no recourse to ways and means financing. The government has met all its obligations,” Edun said.

    He noted that the government is not relying on ways and means borrowing, which can be inflationary, and has paid back the previous N7.3 trillion obligation within a year of President Bola Tinubu’s administration.

    Read Also: Edun: 2024 Budget will be fully implemented

    He highlighted the improving debt service-to-revenue ratio, which has declined from 97 per cent in the first half of 2023 to 68 per cent in 2024, indicating the government’s strong position in managing its debt obligations.

    On the budget, Edun said that the 2024 budget deficit has moved in the right direction, with a target of 4.1 per cent of GDP, an improvement from the 6.1 per cent deficit recorded in 2023.

    “On an annualized basis, we are at 4.4 per cent, so you can see we are effectively very, very close to the budgetary target,” Edun said.

    He noted government’s efforts to attract foreign inflows, including the implementation of the national single window project, which is expected to generate $2.7 billion per annum in economic benefits.

    He added that the government’s accelerated stabilisation and advancement plan has already attracted $500 million in investment in the gas sector, with $7 billion more on the sidelines waiting to come in.

    According to him, to address the high cost of living, the government has implemented several initiatives and interventions, including a strategic input programme to increase the supply of food, a pivot to Compressed Natural Gas (CNG) fuel for mass transit vehicles, and providing lower-cost financing for the manufacturing industry and production.

    He expressed optimism that inflation, despite being “quite sticky at the moment,” will moderate soon due to the government’s commitments and actions.

    “Clearly, as part of the reform program, on the monetary side, monetary policy has been tightened. CBN has been proactive in adjusting the monetary policy rate to address inflation head-on, which is in line with its legal mandate,” Edun said.

    Addressing the concerns about social unrest, Edun acknowledged the right to protest and freedom of speech in a democracy, but urged Nigerians to give the government more time to push through the necessary reforms that have come at a cost.

    He emphasized the government’s plans to provide long-term, low-interest mortgages to ordinary Nigerians to help alleviate the high cost of living.

  • Why banks should pay levy on forex windfall, by Edun, others

    Why banks should pay levy on forex windfall, by Edun, others

    Minister of Finance and Coordinating Minister of the Economy, Olawale Edun, yesterday defended the Federal Government’s proposed one-off levy on the 2023 foreign exchange (forex) windfall by banks.

    The Federal Government’s proposal to tax the banks’ gain is contained in the proposed amendment to the 2023 Finance Act before the National Assembly.

    Also before the National Assembly is an Executive Bill seeking an amendment to the 2024 Appropriation Act to raise N6.2 trillion to fund infrastructure.

    Appearing before the National Assembly Joint Committee on Finance, Edun and Federal Inland Revenue (FIRS) Chairman, Zach Adedeji, said it is normal for government to impose such levy on windfall arising from changes in government policy and ensure that the profit is redistributed to the people.

    The minister told the panel that there is nothing new in imposing such levies on windfall all over the world, and in this case, the local banks profited so much from foreign exchange transactions not by their own ingenuity but as a result of changes in government policy.

    Edun said: “The bank windfall profit levy although small still constitutes an important contribution to   government finances at a time when revenues have substantially increased despite minimizing taxes.”

    The minister explained that the monies to be taken from the banks should not be considered as tax but levies, dismissing the view that the levies would be passed on to customers.

    He said: “This is an important opportunity given to all stakeholders. All over the world it is common that the society takes a share of such profit.

    “This is an important contribution to the finances of the government at this time,  however it is important to say that  has been robust  without raising taxes , there is a minimisation of taxes, government revenue has increased substantially.

    “Broadly speaking, it a levy on realised gains on foreign exchange within the banking sector. It is a pity that the Central Bank of Nigeria (CBN) and the Bankers’ Committee are not at this crucial discussion to fine-tune the proposed legislation.”

    The proposed legislation has however been greeted with a few concerns, a major one being that banks could transfer the burden of the levy to their customers.

    But the finance minister urged the lawmakers to give the banks the benefit of the doubt, allaying fears regarding possible cases of underreporting by banks.

    The FIRS boss explained that the bank windfall profits levy would help in balancing the economic inequality in the country especially after government introduced its harmonization policy of the foreign exchange market.

    According to Adedeji, the manufacturing sector has made N1.7 trillion loss as a result of the forex and based on that, the agency cannot tax them.

    “It’s not that we are going after the profit but recovering the losses incurred by the activities as a result of their own ineptitude, bringing a policy to correct the policy decision. Everybody realised that it is  not their money, money earned in the normal course of your business,” the FIRS boss said.

    Chairman of the joint Committee, Senator Sani Musa, said the intent behind the levy is to ensure that banks contribute their fair share to national revenue, especially in light of the substantial gains made from forex.

    Musa said: “The proposed Finance (Amendment) Bill, 2023, is a pivotal step in our nation’s economic transformation journey.

    “This bill seeks to impose a 50% levy on the realized profits from all foreign exchange transactions of banks within the 2023 financial year.

    “The intent behind this levy is to ensure that banks contribute their fair share to national revenue, especially in light of the substantial gains made from foreign exchange activities. The levy does not affect Nigerians, it is not on Nigerians, but the huge profits on forex that the banks made.

    “His Excellency President Bola Ahmed Tinubu has initiated numerous economic reforms aimed at propelling Nigeria towards a future of advancement and prosperity.

    “This bill is one of the bold decisions undertaken to provide the government with the necessary funding to address our country’s multifaceted infrastructure deficit. The success of these reforms hinges on our collective support and active participation.

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    “Our discussions today will cover the detailed provisions of the bill, including the Federal Inland Revenue Service’s role in assessing, collecting, and enforcing the levy, the mechanisms for deferred payment agreements, and the penalties for non-compliance.

    “It is crucial that we address any concerns, suggestions, and insights you may have to ensure the smooth implementation of this levy.

    “Your presence and input are invaluable as we work together to refine this legislation for the benefit of all Nigerians. Let us embrace this economic transition, support the government’s efforts, and collaborate to achieve a balanced and prosperous future for our nation.”

    In a circular issued in March, the CBN directed commercial banks in the country not to touch or spend the profits they made from foreign exchange transactions.

    The government is pushing for a 50-50 sharing formula with the banks with defaulters liable to go to jail once the proposed bill becomes law.