President Bola Tinubu has directed the Economic Management Team chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun to immediately review deduction and revenue retention by all income generating agencies in the country.
The President gave this charge on Wednesday in his remarks at the opening of the Federal Executive Council (FEC) meeting he chaired on Wednesday at the Presidential Villa.
The President charged the panel to “Present actionable recommendations to this Council for an optimal way forward.”
According to him, the review has become necessary in view of his administration’s target of $1 trillion economy by 2030.
The President harped on enhancing spending efficiency, and
review of deductions from the Federation Account such as the cost of collection by revenue agencies such as FIRS, Customs, NUPRIC and NIMASA and others.
Stressing the importance of savings and investments as catalysts for growth, he said “Let me emphasize the critical role of savings in catalyzing investment and growth. Currently, public investment as a share of GDP stands at a low 5.0%, largely due to insufficient public savings
“We must urgently review and optimize our savings. There is also the need to reassess the 30% management fee and the 30% frontier exploration deduction by NNPC based on the Petroleum Industry Act
We must optimize every available Naira to sustain our momentum and finance our growth trajectory-especially in a time of global liquidity constraints,” he said.
As a result, our economy is now better positioned to attract both domestic and foreign private investment-investment that is critical to stimulating sustained growth, creating decent jobs, and lifting millions of Nigerians out of poverty.
Aside the $1 trillion economy target, the President also sets a 7 percent growth rate by 2027.
“Our Renewed Hope Agenda remains focused on achieving a $1 trillion economy by the year 2030. To realize this vision, we must now accelerate our efforts to achieve a minimum growth rate of 7.0% by 2027. This is not just an economic target it is a moral imperative. Stimulating higher growth is the only sustainable path to solving the poverty challenge in Nigeria,” he said.
He restated that his administration was resolute in its determination to ensure inclusive economic growth and poverty reduction with the recent launch of the Renewed Hope Ward Development Programme-a ward-based initiative covering all 8,809 wards across the 774 local government areas in Nigeria.
“This programme is close to my heart. It is designed to empower active grassroots economic players, using a micro-level approach to tackle poverty. We aim to bring sub-national governments and private sector partners on board to ensure efficient and impactful implementation,” he said.
