On Monday, Nigeria’s Finance and Coordinating Minister of the Economy, Mr. Wale Edun, stressed the urgent need to rethink the country’s revenue generation strategies, particularly in light of the declining oil revenues that have historically supported the economy. Speaking at the opening of the 5th National Treasury Workshop, titled “Nigeria’s Revenue Challenges and the Way Forward: Exploring Non-Oil Alternatives,” Edun underscored the importance of seeking out alternative sources of revenue to ensure long-term fiscal stability.
Represented by Lydia Jafiya Shehu, the Ministry’s Permanent Secretary, Edun pointed out the volatility of oil revenues, which have been significantly impacted by global shifts in energy policies, declining demand, and fluctuating oil prices. He emphasized that the nation could no longer afford to be overly reliant on oil revenues.
Urging a Diversified Economic Approach
Edun called for embracing a diversified economic model that would tap into Nigeria’s abundant natural and human resources. He listed key non-oil sectors with strong potential for driving economic growth and job creation, including agriculture, solid minerals, manufacturing, tourism, digital economy, and the creative industries.
“We must harness these resources effectively to drive sustainable growth and development,” he stated. The minister noted that the workshop would provide a platform for robust discussions among stakeholders to find actionable solutions to these challenges.
Tackling Challenges in Non-Oil Sectors
While acknowledging the vast potential of non-oil sectors, Edun identified several barriers that hinder their full exploitation. These include poor infrastructure, high business costs, bureaucratic inefficiencies, low tax compliance, and security concerns that impact investor confidence. However, he assured that the government is addressing these issues through ongoing reforms in public financial management, digital revenue collection, and improvements in tax administration.
Edun emphasized the importance of the private sector in complementing the government’s efforts, particularly in fostering economic growth and sustainability.
Role of Transparency and Accountability in Revenue Generation
The Finance Minister also stressed the importance of accountability and transparency in public financial management. He noted that these principles are vital for building trust and attracting both local and foreign investment, which will be crucial for diversifying Nigeria’s revenue base.
The Accountant-General of the Federation (AGF), Dr. Oluwatoyin Madein, echoed Edun’s sentiments, describing the workshop’s theme as timely given the current state of Nigeria’s economy, which faces challenges such as exchange rate volatility, low revenue performance, and rising costs. Madein highlighted the workshop as an annual event where experts come together to discuss and propose solutions to the country’s economic issues.
