Minister of Finance and Coordinating Minister of the economy, Wale Edun, has said revenue generated by the government will be used to fund social intervention programmes that will benefit 20 million Nigerians.
Edun spoke at the 30th Nigeria Economic Summit (NES), hosted by the Nigeria Economic Summit Group (NESG) on Tuesday.
On September 10, Edun announced that the government recorded over N9.1 trillion in revenue for the first quarter (Q1) of 2024 — up from the N4.06 trillion generated in the same period in 2023.
According to the minister, the increased revenue is primarily used to finance social programmes aimed at mitigating the impact of essential but challenging reforms that have affected the cost of living.
Edun said the social investment programmes will impact 60 percent of the poorest, reaching 20 million Nigerians.
“In terms of revenue, the number one place to look was inwards, domestic resource mobilisation. That’s where the government started. By the first half of this year, revenue was doubled,” he said.
“Aggregate government revenue was more than doubled. And that was achieved by applying technology very robustly.
“We have applied technology in a way which essentially reforms the civil service.
“Rather than waiting for compliance from government ministries, departments and agencies and government companies, we looked at what the rules and regulations were, how much a company was allowed to spend on its revenue, and then how much of its surplus it had to provide to government.
“The social investment program is spearheaded by direct transfers to reach 60 percent poorest in the population. And right now, 20 million households are being supported directly.
“And it’s going to rise to, well, it’s 20 million people, 4 million households so far, and it’s going to rise to 15 million households who will be paid directly by the government.
“That is how President Tinubu and his government is spending the money which is being yielded from better oil production, which has been driven by improved oil production and macroeconomic reforms that are expected to save the country 5 percent of GDP.
“There is a broad array of social investment initiatives where these funds are being directed.”
Edun said the federal government intends to tackle poverty by enhancing agricultural productivity and food security, which is essential to lowering the high inflation rate burdening many Nigerians.
“We are looking to food production to help bring down inflation,” he said.
“Our aim is to make food more available, affordable, and to reduce the cost of living for Nigerians.”
He added that to support the effort, the government is partnering with the African Development Bank (AfDB) to establish agricultural processing zones, which will provide a robust supply of raw materials for domestic industries.
On his part, Ndiamé Diop, the World Bank country director for Nigeria, acknowledged the country’s significant revenue increase, noting that its revenue-to-gross domestic production (GDP) ratio is expected to improve.
Diop said in 2022, Nigeria spent 12.9 percent of its GDP, but revenue covered only 7.6 percent, leaving the country with a substantial fiscal deficit funded mainly through debt.
“This trajectory could have led to a crisis,” Diop said.
