President Bola Tinubu has declared that the fiscal revenue of Nigeria has more than doubled under his administration, soaring over N9.1 trillion in the first half of 2024.
Tinubu made this statement during his address on Sunday at the Presidential Villa in Abuja to the nation regarding the ongoing nationwide protest.
Tinubu attributed the revenue increase to the government’s efforts in blocking leakages, introducing automation, and mobilizing funding creatively, all without placing an additional burden on the people.
Tinubu also noted that productivity in the non-oil sector is gradually increasing, reaching new levels and capitalizing on the opportunities presented by the current economic environment.
“In the past 14 months, our government has made significant strides in rebuilding the foundation of our economy to carry us into a future of plenty and abundance.
“On the fiscal side, aggregate government revenues have more than doubled, hitting over 9.1 trillion Naira in the first half of 2024 compared to the first half of 2023 due to our efforts at blocking leakages, introducing automation and mobilising funding creatively without additional burden on the people.
“Productivity is gradually increasing in the non-oil sector, reaching new levels and taking advantage of the opportunities in the current economic ambience,” Tinubu said.
Reduction in Revenue to Debt Ratio
The President also explained that there had been a reduction in the debt burden of the country, with revenue on debt service declining from 97% in 2023 to 68% in 2024.
He said the country has cleared legitimate outstanding foreign exchange obligations of about $5billion without any adverse impact on our programmes.
According to the President, the reduction in debt has provided the country with greater financial freedom, allowing for increased spending on essential social services such as education and healthcare.
He said this financial relief has also enabled state and local governments to receive the highest allocations from the Federation Account in the nation’s history.
“Coming from a place where our country spent 97% of all our revenue on debt service; we have been able to reduce that to 68% in the last 13 months.
“We have also cleared legitimate outstanding foreign exchange obligations of about $5billion without any adverse impact on our programmes.
“This has given us more financial freedom and the room to spend more money on you, our citizens, to fund essential social services like education and healthcare.
“It has also led to our State, and Local Governments receiving the highest allocations ever in our country’s history from the Federation Account,” Tinubu added.
What you should know
According to the latest report, the Federation Accounts Allocation Committee (FAAC) distributed N1.354 trillion in June revenue among the Federal Government, states, and Local Government Councils (LGCs).
The increase in FAAC allocation is driven by foreign exchange devaluation as well as revenues redistributed from the removal of subsidy.
According to the Minister of Finance, Wale Edun, Nigeria’s revenue to debt service ratio declined from 97% in 2023 to 68% in 2024, indicating a reduction in the debt burden of the government.
Edun said the country’s revenue is now being managed in such a way that promotes transparency, accountability and visibility of government spending.
He said the revenue condition has been revamped as it no longer depends on ways and means advances from the Central Bank to fund its fiscal obligations.
