FG focuses on non-oil revenue to meet budget targets
The Federal Government is counting on non-oil revenue-generating agencies to meet its budgetary commitments, urging them to use technology to prevent financial leakages and waste.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, made this known in Abuja on Monday at the 5th National Treasury Workshop, organised by the Office of the Accountant General of the Federation.
The event, themed “Nigeria’s Revenue Challenges and the Way Forward: Exploring Non-Oil Alternatives,” focused on strategies for boosting government revenue outside the oil sector.
Represented by the Permanent Secretary in the Ministry of Finance, Lydia Jafiya Shehu, Edun emphasised the need for innovative solutions to increase revenue.
“In this year’s budget, about N14 trillion is for debt servicing. That is not the main issue—the real challenge is generating enough revenue,” he said.
“The responsibility falls on non-oil revenue agencies. To achieve this, we must deploy information technology tools to eliminate leakages and waste.”
The Minister highlighted several sectors with significant revenue potential, including agriculture and agro-processing, solid minerals and mining, manufacturing, tourism, the digital economy, and improved tax collection.
He stressed the importance of aggressively developing these industries to reduce dependence on oil revenues.
Edun acknowledged the challenges limiting revenue growth in non-oil sectors, such as poor infrastructure, high business costs, bureaucratic hurdles, regulatory inefficiencies, insecurity, low tax compliance, and widespread financial leakages.
“The government is already taking bold steps to address these issues through public financial management reforms, digitalising revenue collection, and strengthening tax administration,” he assured.
The Minister described the workshop theme as timely, noting that the country must rethink its revenue generation strategies. He warned that relying on oil revenue is no longer sustainable due to global shifts in energy policies, declining oil demand, and fluctuating crude prices.
“We must adopt a diversified economic approach by tapping into non-oil sectors such as agriculture, solid minerals, manufacturing, tourism, the digital economy, and creative industries,” he stated.
Edun also commended the participation of key experts, including the Chairmen of the Federal Inland Revenue Service (FIRS) and the Presidential Committee on Fiscal Policy and Tax Reforms. Their presentations, he said, would provide valuable insights for shaping future government policies.
In her welcome address, the Accountant General of the Federation, Dr. Oluwatoyin Sikirat Madein, explained that the National Treasury Workshop serves as a platform for technocrats to discuss critical economic issues and propose solutions to boost national development.
She recalled that the last edition was held in November 2021 in Uyo, Akwa Ibom State, with the theme “COVID-19 and the Global Economy: Implications on the Nigerian National Treasury.”
The federal government’s renewed focus on non-oil revenue sources aligns with its broader strategy to create a stable and resilient economy by reducing dependence on oil and strengthening other key sectors.
