FG’s revenue soars to ₦9.1 trillion in Q1 2024
The Federal Government of Nigeria has reported an impressive surge in revenue for the first quarter of 2024, reaching ₦9.1 trillion, more than double the figure for the same period in 2023. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, made this announcement during the 17th Annual Banking and Finance Conference organized by the Chartered Institute of Bankers of Nigeria (CIBN) in Abuja on Tuesday.
Edun, who was represented by Dr. Armstrong Takang, Managing Director of the Ministry of Finance Incorporated, attributed the remarkable growth to improved revenue collection strategies and the deployment of technology, which has streamlined processes and boosted efficiency. He emphasized that despite this significant increase, the government had not raised taxes but instead focused on optimizing existing revenue generation mechanisms.
At the heart of this surge lies a critical fact: the government has not imposed additional tax burdens on its citizens. Edun reassured Nigerians that the administration is working to meet and exceed its revenue targets by improving collection methods rather than increasing taxes. “Such progress will enable us to essentially make social and capital investments that positively impact both the economy and its citizens,” Edun said.
This achievement is a testament to the government’s commitment to economic reform and fiscal responsibility. The use of technology has allowed for better tracking and collection of revenues, contributing significantly to the overall increase. It reflects the administration’s intention to create a sustainable, growth-oriented economy without overburdening the populace with new taxes.
Despite the revenue boost, Edun acknowledged that Nigeria continues to face challenges, particularly the sharp rise in food prices, which has caused widespread inflationary pressures. However, he assured the audience that several initiatives are in the pipeline to address this issue, including measures to boost food supply and curb food inflation.
Central to the discussions at the conference was the drive toward accelerating economic growth, with a focus on banking’s role in the process. Dr. Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), emphasized the importance of actionable solutions as the nation strives toward achieving a one trillion-dollar economy.
Represented by Dr. Blaise Ijabor, Director of the Risk Management Department at CBN, Cardoso highlighted the banking sector’s pivotal role in the country’s economic development. “Bankers are critical stakeholders in the growth and development of the economy,” Cardoso said, underscoring the need for collaboration between financial institutions and the government to achieve national growth objectives.
The Nigeria Deposit Insurance Corporation (NDIC) also expressed its support for the conference. Bello Hassan, Managing Director of NDIC, congratulated the CIBN for organizing the event, reaffirming the NDIC’s commitment to engendering public confidence in the banking system.
One of the keynote speakers at the event, Tony Elumelu, Chairman of the United Bank for Africa (UBA) Group, touched on some of Nigeria’s most pressing economic challenges. Speaking on the topic “Accelerated Economic Growth and Development: The State of Play and the Way Forward,” Elumelu underscored the importance of access to electricity, adequate security, and youth entrepreneurship as key drivers for Nigeria’s development.
Elumelu noted that food insecurity is closely tied to the issue of insecurity, which continues to plague various parts of the country. “Insecurity is one of the primary factors causing food shortages, and this must be addressed if we are to make any meaningful progress,” Elumelu remarked.
He praised the Central Bank of Nigeria, both past and present, for the reforms that have reshaped the banking sector. These reforms, Elumelu added, have had a transformative effect, creating a more resilient and responsive financial system that can better support the country’s growth ambitions.
The President of the Chartered Institute of Bankers of Nigeria, Prof. Pius Olanrewaju, in his opening address, positioned the banking sector as a crucial driver of Nigeria’s economic transformation. He noted that the conference was not just a forum for discussion but a platform to generate actionable outcomes that could directly impact the nation’s financial landscape.
Olanrewaju highlighted recent data from the CBN, which showed that net credit from the banking sector to the private sector had risen sharply. As of July 2024, net credit stood at ₦74.9 trillion, compared to ₦46.3 trillion in July 2023, underscoring the banking industry’s critical role in fueling private sector growth.
He also referenced key resolutions from the previous year’s conference, including the recommendation to lift the ban on certain prohibited items. In October 2023, the CBN had responded by lifting foreign exchange restrictions on 43 previously banned items, a move that was widely welcomed by the business community and financial institutions.
“Our sector is at the heart of our economic engine, providing much-needed funds for businesses to thrive,” Olanrewaju said. He emphasized that the potential for Nigeria’s economic growth is vast, but its realization depends on the effective collaboration of key stakeholders, including the private sector, government, civil society, and individuals.
Despite the positive outlook, the speakers agreed that Nigeria still faces significant challenges. Food inflation, insecurity, and infrastructure deficits remain key hurdles to sustainable development. However, there was a consensus that these challenges can be overcome through coordinated efforts and the implementation of sound policies.
In his closing remarks, Olanrewaju urged all stakeholders to embrace the opportunity to work together to build a prosperous and resilient economy for Nigeria. “Indeed, only when we collectively work together to achieve these goals will we see the success we so desire,” he said.
The conference, which attracted participants from across Africa, also included contributions from Vice President Kashim Shettima of Nigeria and Vice President Jeremiah Kpan Koung of Liberia. Their presence underscored the regional significance of Nigeria’s economic progress and the potential for cross-border collaboration in the quest for a stronger African economy.
The first quarter of 2024 has set a strong precedent for Nigeria’s financial outlook, with the government’s revenue collection hitting an unprecedented ₦9.1 trillion. This growth, achieved without raising taxes, reflects the effectiveness of the administration’s revenue generation strategies and the pivotal role of technology in streamlining processes.
However, the road ahead remains challenging. Addressing issues such as food inflation, insecurity, and infrastructure gaps will be crucial to sustaining the momentum and ensuring that the gains made in revenue generation translate into tangible benefits for the Nigerian populace.
As the discussions at the 17th Annual Banking and Finance Conference revealed, the collaboration between the public and private sectors will be essential in achieving the government’s ambitious economic goals. With the right policies and sustained efforts, Nigeria could well be on its way to realizing its dream of a trillion-dollar economy.
