VIDEO: FG adopts digitalisation to mop-up revenue, targets 60%, says Minister of Finance

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has said the Federal Government is adopting digitalisation to mop-up revenue, stressing that the President Bola Tinubu-led administration is targeting a 60per cent increase in revenue for 2024.

He said the government was using digital technology to improve tax collection.

Speaking during an interview anchored by Semafor World Economy Summit in Washington D.C , Edun expressed that the growth in revenue is meant to keep debt at sustainable levels and relieve widespread hardship in the country.

The Minister stated that the revenue target is a very much a stretch target but the present FG needs to reduce its fiscal deficit from around 6.1per cent of Gross Domestic Product (GDP) to 3.8per cent.

Edun said the government is working to increase oil production to at least 2 million barrels per day (bpd). Oil production was 1.47 million bpd in 2023 against the government’s target of 1.69 million bpd, the Organization of Petroleum Exporting Countries (OPEC) said.

According to Edun, increasing oil production is “the lowest hanging fruit” for growing Nigeria’s revenues.

The 2 million bpd target includes tapping into condensates, a form of oil obtained from natural gas whose output is not restricted by OPEC quotas for member states.

Edun said the government had already had some success in addressing these problems.

Nigeria’s government also aims to boost revenues through “greater efficiency in collecting taxes and other fees and charges that the government has a right to impose.”

President Bola Tinubu’s reforms since assuming the presidency last May has included the partial suspension of a petrol subsidy scheme and the devaluation of the naira currency. Those measures have given rise to price increases for consumers, especially for food and transportation. Inflation as of March was at 33.2per cent, a near-three-decade high.

According to hm, the government has responded to the “costly and painful” impact of the reforms through direct cash transfers to the poorest and most vulnerable based on lessons learned from the COVID-19 pandemic.