In a recent announcement, Wale Edun, the Minister of Finance and Coordinating Minister of Economy, revealed a significant surge in revenue for the Federal Government. According to Edun, government-owned entities, ministries, departments, and agencies (MDAs) contributed a total of N835.70 billion in February.
This impressive figure marks a substantial increase from previous periods, with a notable growth of N681.45 billion compared to the N154.25 billion remitted in 2022. Edun highlighted this remarkable 441.78% surge during a presentation titled “Reconstructing the Economy for Growth, Investment and Climate Resilience Development” at the Lagos Business School Breakfast Club.
“The increasing revenue contribution of MDAs and government-owned enterprises (GOEs) is a positive indicator for our economic trajectory,” remarked Edun. He attributed this growth to an automated two-times daily sweep of 50 per cent of MDAs and GOEs internally generated revenue (IGR) since January 2, 2024.
Edun emphasized the government’s commitment to further enhancing revenue streams, outlining a robust execution plan aimed at achieving a 78 per cent year-on-year increase in budgeted revenue for 2024. He stressed the importance of implementing an enhanced revenue assurance model to achieve a target budget deficit of 3.9 per cent of GDP, down from 6.1 per cent in 2023.
To bolster fiscal discipline, Edun detailed prudent expenditure measures, including minimizing redundancy, reducing leakages through digitization, and eliminating inefficiencies. Additionally, a revamped process for the commencement of 2024 capital expenditure payments for MDAs and GOEs was announced, focusing on direct payments to contractors while promoting a government-wide cost curtailment culture.
The Minister’s announcement signals a promising outlook for the Federal Government’s fiscal health, reflecting proactive measures to optimize revenue streams and promote sustainable economic growth.
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