FG's Revenue Surges to N9.1trn in Q1 2024 Amid Strong Economic Policies, No Tax Hikes –Finance Minister

Samuel Mobolaji

The Federal Government’s revenue for the first quarter of 2024 has surged to an impressive N9.1 trillion, more than double the figure for the same period in 2023, according to Mr Wale Edun, the Minister for Finance and Coordinating Minister of the Economy.

Speaking at the 17th Annual Banking and Finance Conference organized by the Chartered Institute of Bankers of Nigeria (CIBN) in Abuja, Edun highlighted the success of the government’s revenue collection strategies, emphasizing that this remarkable increase was achieved without raising taxes.

Represented by Dr. Armstrong Takang, Managing Director of the Ministry of Finance Incorporated, Edun attributed the revenue boost to improved revenue collection policies and the strategic deployment of technology.

“This revenue growth positions us to make essential social and capital investments that will have a positive impact on both the economy and its citizens,” he noted.

Despite the revenue gains, the minister acknowledged the persistent challenge of rising food prices. “Our primary concern remains tackling the sharp increases in food prices, but several initiatives are underway to boost food supply and curb food inflation,” Edun assured the audience.

In addition to Edun’s remarks, the Governor of the Central Bank of Nigeria (CBN), Dr. Olayemi Cardoso, expressed optimism about actionable solutions from the conference, which would contribute to Nigeria’s ambition of becoming a one-trillion-dollar economy. Cardoso, represented by Dr Blaise Ijabor, Director of Risk Management at CBN, emphasized the critical role bankers’ play in driving economic growth and development.

Similarly, Managing Director of the Nigeria Deposit Insurance Corporation (NDIC), Mr. Bello Hassan, commended CIBN for organizing the conference and reiterated the NDIC’s commitment to fostering confidence in the banking system.

In a keynote address, Chairman of the United Bank for Africa (UBA) Group, Mr. Tony Elumelu, stressed the importance of access to electricity, security, and youth entrepreneurship as key drivers of Nigeria’s accelerated economic growth. Speaking on the topic “Accelerated Economic Growth and Development: The State of Play and the Way Forward,” Elumelu linked the nation’s food insecurity to the ongoing security challenges, urging for comprehensive reforms.

Elumelu also praised past and present CBN governors for their efforts in transforming the banking sector through reforms that have positively impacted the industry.

President of CIBN, Prof. Pius Olanrewaju, in his opening remarks, underscored the conference’s role as a platform for actionable outcomes, not just discussions.

He shared data from the CBN, noting that net credit from the banking sector to the private sector stood at N74.9 trillion in July 2024, compared to N46.3 trillion in July 2023.

Olanrewaju highlighted the recent lifting of foreign exchange restrictions on 43 previously prohibited import items as a critical resolution from the previous year’s conference, underscoring the banking sector’s central role in driving Nigeria’s economic growth.

“The potential of our economy is vast, and realizing it requires effective policies, investments, and governance. The banking industry is not just a participant but a driver of this growth and development,” Olanrewaju remarked.

He called for collaboration between the private sector, government, and civil society to build a prosperous and resilient economy for Nigeria.

The conference was attended by high-profile guests, including Nigeria’s Vice President Kashim Shettima and Vice President Jeremiah Kpan Koung of Liberia.