The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, called for urgent need for the country to reduce its overreliance on oil revenue and instead shift focus toward agriculture and the mineral resources sector.
The minister gave the advice on Monday, at the 3-day Treasury Workshop organised by the Office of the Accountant General of the Federation (OAGF) with the theme: “Nigeria’s Revenue Challenges and the Way Forward: Exploring Non-Oil Alternatives”, in Abuja.
Represented by the Permanent secretary, Mrs Lydia Shehu Jafiya explained that the recent global shifts in energy policies, declining oil demand and fluctuating crude prices have jointly made it abundantly clear that the country cannot afford to be overly dependent on oil revenues.
According to him, “We must, therefore, embrace a diversified economic approach that taps into the immense potential of non-oil sectors such as agriculture, solid minerals, manufacturing, tourism, digital economy and creative industries.
“Nigeria is blessed with abundant natural and human resources that remain largely untapped. The question before us today is: how can we harness these resources effectively to drive sustainable economic growth and development?”
He further noted that the workshop seeks to provide actionable answers to this question by fostering robust discussions among key stakeholders in the financial and economic landscape, as well as exploring Non-Oil Revenue Sources, adding that several non-oil sectors have demonstrated strong potentials for revenue generation, job creation, and economic transformation.
Edun highlighted some of critical areas to aggressively explore to include agriculture and Agro-Processing; Solid Minerals and Mining; Manufacturing and Industrialization, Tourism and Hospitality; The Digital Economy and ICT;Tax Reforms and Compliance, among others.
However, while addressing the key Challenges in Revenue Mobilization the noted that the potential of non-oil revenue sources, several challenges impede their full exploitation.
According to him, some of these challenges include: poor infrastructure and high cost of doing business
Bureaucratic bottlenecks and regulatory inefficiencies insecurity and its impact on investment confidence, low tax compliance and widespread revenue leakages.
The minister disclosed that the government is already taking bold steps to tackle these issues through reforms in public financial management, digitalization of revenue collection, and strengthening of tax administration.
” I am glad that key experts like both the Chairmen, FIRS and Presidential Committee on Fiscal Policy and Tax Reforms will be presenting papers at this forum. Let us all understand that, more needs to be done, and the insights gathered from this workshop will be instrumental in shaping further policy directions”, he added.
Edun who stressed the role of the private sector in complementing government efforts in generating non oil revenue said accountability and transparency in public financial management remain paramount in building trust and attracting investment.
He urged all participants to actively engage in discussions and contribute innovative solutions that will enhance revenue generation and prudent allocation of scarce resources to the various sectors.
In her opening remarks at the event, the Accountant General of the Federation, Dr Oluwatoyin Madein disclosed that the National Treasury Workshop is a yearly occasion where seasoned technocrats are invited to rub minds on salient issues confronting the nation’s economy with a view to proffering workable solutions in order to move the country forward.
She said even though the event is a yearly occasion, the one preceding this took place some years back in November 2021 with the theme Covid-19 and the Global Economy: Implications on the Nigerian National Treasury in Uyo, Akwa-Ibom state.
She said the theme is very apt considering the state of the economy owing to a multiplicity of factors ranging from the exchange rate volatility, low revenue performance, rising costs, amongst others, which have complicated fiscal operations in the last few years.
According to her, the theme has been packaged in five lead papers including:
– Nigeria’s Revenue Challenges and the Urgency for Economic Diversification;
– Tax Reform and Revenue Mobilization: Expanding Nigeria’s Tax Base and Tax Net.
Others are, Diversifying Nigeria’s Economy through Effective Budgeting: Maximizing the Non-Oil Sectors for Sustainable Growth and Development; Rethinking Nigeria’s Revenue Allocation Formula: Implications for Fiscal Federalism and Subnational Development.
