The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has announced an ambitious target to boost Federal Government’s Internally Generated Revenue (IGR) by a significant 77%.
Speaking at the 2024 Strategic Management Retreat of the Federal Inland Revenue Service (FIRS) in Abuja on Wednesday, he added that the Federal Government plans to move away from relying on expensive debts.
He also emphasised the critical role of tax in the government’s strategy to increase revenue. Edun added that the increase is crucial for bridging the existing infrastructure deficit and constructing robust social safety nets to support ordinary Nigerians.
The finance minister said: “We are projecting a 77% increase in IGR. Our revenue as a percentage of Gross Domestic Product (GDP) is low at below 10%. It should be much higher. “Government needs so much to spend on infrastructure and social services. The idea is to shift from expensive debts to domestic revenue mobilisation.”
Edun had earlier said that the Federal Government makes over N1 trillion monthly since the removal of fuel subsidy. An increase by 77% will likely mean that the Federal Government wants to make about 1.77 trillion monthly.
At the end of last year, the three tier of governments shared about N1.13 trillion revenue made in December 2023. If the government can boost its tax collection process with its target of N19.41 trillion for this year and revive the oil and gas sector, the target appears feasible, especially with macroeconomic stability.
