The Federal Government has expressed confidence in achieving its N36.35tn revenue target for 2025.
The FG based this confidence on economic reforms which have continued to take shape under President Bola Tinubu’s administration.
According to a press statement on Monday, the Minister of Budget and Economic Planning, Abubakar Bagudu, made this assertion during a hearing at the National Assembly Joint Committees on Finance, where he discussed the 2025 Appropriation Bill.
Speaking in Abuja, Bagudu highlighted the positive impact of the administration’s recent reforms, particularly the removal of fuel and foreign exchange subsidies, which he said have already started to yield results.
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According to Bagudu, these changes have begun to boost the revenue of all three tiers of government, with tangible benefits first visible in the Federation Account as early as October 2023.
The minister noted that the government expects this upward revenue trajectory to continue, driven by the savings from subsidy removals.
He was quoted in the story as saying, “The 2024 budget is this administration’s first full-year budget, and lessons learned from 2024 have formed the basis of the assumptions in 2025.
“The principal among those assumptions and lessons was the removal of the fuel subsidy and its effect on revenue and expenditure, the removal or deregulation of the foreign exchange market and its impact on both government revenue and spending, and other price-distorting issues, such as electricity, which has not been fully dealt with.
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“All the major, bold, and courageous steps taken with the support of the National Assembly are intended to generate more revenues for the three tiers of government, correct distortions in the economy, and improve expenditure efficiency so that we can ensure that the revenue generated goes a long way.”
He revealed that Tinubu has instructed all revenue-generating Ministries, Departments, and Agencies, as well as Government-Owned Enterprises, to intensify their efforts in bringing more funds into the national coffers.
In addition to the subsidy removals, Bagudu also pointed to the government’s efforts to increase oil production at a lower cost, which he said would further swell the nation’s treasury.
