- Says FG committed to economic reforms, poverty alleviation
- CBN affirms commitment to monetary, price stability
- Foreign inflow on NGX drops to N11bn – Report
- Taxes, oil jack up FG’s revenue by 76% to N12.5trn — Budget Office
The Federal Government has expressed confidence that President Bola Tinubu’s economic reforms have laid the foundation for local investments that will drive industrialisation and lift citizens out of poverty.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, made this statement at the opening ceremony of the 2024 National Council on Finance and Economic Development conference, held at the Sulaimanu Adamu Square, Bauchi Government House, on Monday.
Edun noted that Nigerians should be encouraged by the fact that the country now has a more sustainable macroeconomic environment, one that is friendly to investors.
The minister, who expressed profound appreciation to Bauchi State Governor Bala Mohammed for hosting the conference, added: “What transpires in this formal conference is very important because conversations will take place that will clarify matters and build trust and confidence among individuals.”
“It is vital to understand each other’s situations, financial and economic needs, available resources, and the skills and specialisations on the ground,” he said.
He maintained that the conference would facilitate an understanding of what can be offered individually and collectively, enabling the country to fulfill its potential.
Edun further stated, “President Bola Tinubu’s administration inherited both the assets and liabilities, but there was no looking back. The focus was on charting a forward path, making plans to first stabilise the economy. Then, we sought to attract investments from both domestic and foreign private-sector investors to increase Nigeria’s productivity, grow the economy, create jobs, and, of course, lift a large number of people out of poverty.
“When we look at where we are now, essentially, the major macroeconomic reforms are in place.
“The President has stopped the bleeding that was costing 5 percent of the country’s GDP every year. This was adding no value except to a few individuals and neighbouring countries benefiting from the fuel subsidy and related foreign exchange subsidy.
“These benefits were reserved for just a few, while the mass of Nigerians saw no advantages from these structures,” he said.
According to him, these structures have been removed, and the federation account will benefit from the increased flow of resources to the federal, state, and local governments.
This will allow more investment not only in infrastructure but also in social services like education and health.
“The path is now clear for private-sector investors, and as we know, we are back in business on the road to industrialisation, particularly with what is happening in the petroleum refining sector. Crude oil is no longer just shipped abroad; it is being refined locally to produce petroleum products and raw materials for industry.
“We should be encouraged that we now have a more stable, sustainable macroeconomic environment that is investor-friendly and will enable them to produce competitively for the domestic market, as well as for export,” he concluded.
In his remarks, Bauchi State Governor, Bala Mohammed, expressed his delight that, 17 years later, Bauchi State is hosting this historic event again.
He said, “It is a privilege and highlights the importance of collaboration in addressing the economic challenges and opportunities before us. Seventeen years ago, Bauchi State hosted the same conference, which was widely regarded as successful and impactful.
“This year, I assure you that we have spared no effort to ensure that this gathering surpasses expectations. Your presence is a testament to your commitment to advancing Nigeria’s financial and economic landscape.”
He urged all participants to contribute constructively to the benefit of all Nigerians.
CBN affirms commitment to monetary, price stability
Also, the Central Bank of Nigeria has reiterated its dedication to maintaining monetary and price stability while cautioning the public against fraudulent schemes involving fake contract awards and project funding claims linked to the bank.
In a press statement issued on Monday, the apex bank denied claims of involvement in construction contracts and special financial interventions, describing such reports as false and fraudulent.
Acting Director of Corporate Communications at the CBN, Mrs. Hakama Ali, clarified that the bank has stopped direct development interventions and project funding in line with its current management’s focus.
The bank further warned against unauthorised public notices on social media and other outlets, noting that fraudsters were exploiting its name to deceive Nigerians.
The statement read, “The Central Bank of Nigeria wishes to alert members of the public to the activities of fraudsters purporting to award letters of contracts related to construction works and special financial interventions on behalf of the Bank.
“We wish to clarify that this is false. These individuals are solely motivated by the desire to defraud unsuspecting Nigerians. Any such assertions are fraudulent and should be disregarded.
“The Bank hereby reiterates that, in line with the focus of its current management, it has discontinued direct development interventions and special projects funding. Furthermore, CBN has not authorised public notices for such interventions on social media platforms or any other news outlet.
“The CBN remains committed to its core mandate of ensuring monetary and price stability, and a sound and efficient financial system in Nigeria.”
The apex bank urged members of the public to remain vigilant and report any suspicious activities to law enforcement agencies.
Foreign inflow on NGX drops to N11bn – Report
However, foreign inflow into the Nigerian Exchange Limited declined to the lowest point of the year at N11.26bn in September.
This is according to the latest Domestic & Foreign Portfolio Investment Report of the NGX.
The report indicated that as foreign inflow weakened, foreign investors increased the amount of their investments that they liquidated between August and September.
Foreign inflow into Nigeria in the first nine months of 2024 stood at N310.99bn higher than N108.93bn in 2023.
The highest value of inflow was recorded in May 2024, N54.87bn, and it has steadily declined since then to N11.26bn in September.
In terms of foreign outflow, it worsened to N30.15bn in September compared to N24.38bn in August.
Experts have noted the unstable naira and high interest rate environment were making investors abandon the equity market in search of better yields.
The naira closed trading on the Nigerian Autonomous Foreign Exchange Market at 1652.25/$ on Friday and at its last meeting, the Monetary Policy Committee of the Central Bank of Nigeria pegged the benchmark interest rate at 27.25 per cent.
The CBN has continued to tighten the interest rate in a bid to tackle inflation. With inflation hitting 33.88 per cent in October, there are already projections that the apex bank would hike rates at its next MPC meeting albeit not aggressively.
Meanwhile, the NGX report has indicated that as of September 30 2024, total transactions at the local bourse increased significantly by 29.90 per cent from N379.52bn (about $237.70m) in August 2024 to N493.01bn (about $307.84m) in September 2024.
The performance of the current month, when compared to the performance in September 2023 (N295.80bn) revealed that total transactions increased by 66.67 per cent.
In September 2024, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 84 per cent.
“A further analysis of the total transactions executed between the current and prior month (August 2024) revealed that total domestic transactions increased by 40.23 per cent from N322.05bn in August 2024 to N451.60bn in September 2024. However, total foreign transactions decreased by 27.95 per cent from N57.47bn (about $35.99m) to N41.41bn (about $25.86m) between August 2024 and September 2024,” the report added.
In the month under review, retail Investors outperformed Institutional Investors by 28 per cent. A comparison of domestic transactions in the current month and the prior month (August 2024) revealed that retail transactions increased by 59.42 per cent from N180.72bn in August 2024 to N288.10bn in September 2024.
Taxes, oil jack up FG’s revenue by 76% to N12.5trn — Budget Office
In a related development, rising taxes and oil revenues by the Federal Government have boosted its earnings by 76 per cent, from N7.1 trillion in 2022 to N12.5 trillion in 2023.
The newly released 2025-2027 Medium Term Expenditure Framework and Fiscal Strategy Paper, obtained from the Ministry of Budget and Economic Planning, revealed this development.
According to the budget office, while total revenue was up by 76 per cent, oil revenue rose by a whopping 200 per cent from N0.8 trillion in 2022 to N2.4 trillion in 2023, contributing 19.2% to total revenue.
The remarkable increase in oil revenue is attributed largely to higher crude oil production, which increased from an average of 1.31mbpd in 2022 to 1.41mbpd in 2023.
Non-oil revenue increased by 57.8% from N6.4 trillion in 2022 to N10.1 trillion in 2023, contributing 80.8% to the total revenue.
In 2023, the actual gross oil and gas revenue was N7.87 trillion, compared to N9.38 trillion projected, representing an 83.9% performance.
After accounting for deductions, the net oil and gas revenue which accrued to the Federation Account was N4.93 trillion.
This is N306.0 billion, about 6.6% above the target.
Non-oil revenue outperformed the budget both at gross and net levels.
The projection for gross non-oil taxes was N7.53 trillion, but N9.89 trillion was collected, representing a performance of 31.2% over the budget.
Corporate Income Tax (CIT) and Value-added Tax (VAT) collections were N4.27 trillion and N3.64 trillion, representing 103.9% and 23.2% performances above the target, respectively. Customs collection was N1.98 trillion, which is 79.6% of the target.
FG’s revenue showed significant performance over the budget.
While the budget provision was N11.05 trillion in 2023, the actual revenue was N12.84 trillion, representing % over the budget.
Of this actual revenue, oil revenue was N2.38 trillion (6.6% over the target), while non-oil tax revenue was N3.31 trillion (34.3% above the target).
The contributions of CIT and VAT to FGN non-oil tax revenue were N1.92 trillion and N476.11 billion, respectively, representing 106.1% and 24.3% higher than the Budget.
N781.80 billion was collected as import duties, excise, and fees, while N107.47 billion was from Special Levies bringing the total collections by the Nigerian Customs Service to N889.27 billion. FG’s share of the Electronic Money Transfer Levy was N23.65 billion.
Other revenues collected include independent revenues of N1.84 trillion, a draw-down of N159 billion from Special Accounts, a Signature bonus of N256.99 billion, and an Education Tax of N719.44 billion. N2.19 trillion accrued as Government Owned Enterprises (GOEs) retained revenue, while Grants/Aid was N1.57 trillion.
Special Accounts, a Signature bonus of N256.99 billion, and an Education Tax of N719.44 billion. N2.19 trillion accrued as Government Owned Enterprises (GOEs) retained revenue, while Grants/Aid was N1.57 trillion.
The budget office said “The expectation is for increased and sustainable revenue streams as the positive effects of the diverse reforms begin to yield the desired results.
“The government will therefore be able to meet its fiscal obligations and implement programmes and projects articulated in the Renewed Hope Agenda of the current Administration.
“While the increase in the non-oil revenue raises the tax-GDP ratio, Nigeria still ranks low when compared with nations with similar economic potentials.
“This narrative could possibly change with the full implementation of the recommendations of the Presidential tax reform committee.
“The progress being recorded in the tax system is already being noticed, with the 2023 Tax Transparency in Africa Report highlighting that Nigeria is making progress in the development of its Exchange of Information (EOI) strategy, aimed at curbing tax evasion through transparency among the 33 member countries.”
