Wale Edun, minister of finance and coordinating minister of the economy, says the federal government is targeting a 77 percent increase in internally generated revenue (IGR).
Edun spoke on Wednesday at the opening of the 2024 strategic management retreat held by the Federal Inland Revenue Service (FIRS) in Abuja.
The retreat was themed ‘Re-imagining Tax Administration for Equity and Economic Growth’.
Edun said tax plays an integral role in the government’s quest to boost revenue that will help bridge the infrastructure deficit and build social safety nets that will cater to ordinary Nigerians.
He commended the management of the FIRS for its commitment to meeting its set revenue target.
“It is commendable that the FIRS is holding this retreat at the beginning of the year to rub minds on how to increase government revenue,” the minister said.
“There is a plan to increase the total overall revenue—that is, tax revenue plus government revenue—to about 25% of GDP from about 14%.
“In fact, from January 2, using digitisation, the federal government now takes its own share of revenue directly. It’s necessary to do that. We’re focusing not on expensive debts but on domestic results mobilisation.
“We are projecting a 77 percent increase in IGR. We believe we can achieve that target through technology and collaboration.
“Then we can assist in funding critical infrastructure revenue and, at this time of reform, interventions that will assist the populace with the rise in cost of living.”
The federal government had issued a circular directing “automatic” 50 percent remittance of the total revenue of all its self-funded enterprises.
The directive took immediate effect on December 28, 2023, following a presidential order.
In the latest circular, the finance ministry directed agencies and parastatals to remit 50 percent of their gross internally generated revenue (IGR) to the sub-recurrent account (SRA), a sub-component of the consolidated revenue fund (CRF).
Some of the major agencies affected are the FIRS, the Nigerian Ports Authority (NPA), the Nigerian Communications Commission (NCC), and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
These agencies had also pledged to increase their revenue in 2024.