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From Uche Usim, Abuja
Minister of Finance, Budget and National Planning, Mr. Wale Edun, on Friday, disclosed that only N2 billion has been released to states out of the N5 billion earmarked to ameliorate the economic impact of subsidy removal and naira float policy.
He said the facility was a combination of loan and grant, though he did not specify which percentage was loan and which was grant.
Speaking at a media briefing in Abuja on Friday, Edun said the reason for releasing N2 billion was to mitigate an obvious surge in inflation if N5 billion had been released at once. He said the release by installment was a calculated attempt to keep the economy in tranquil mode and not disturb it by further hike inflation.
“The president is going to deliver a better life to Nigerians by encouraging investments that increase productivity and ultimately grow the economy and thereby creating jobs and reducing poverty.
“Oil revenue is improving. Prices are high and production is recovering. States governments have their role to play”, he said.
Also speaking at the event, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mr. Mele Kyari, hailed President Tinubu for swiftly removing petrol subsidy, thereby saving the firm from bankruptcy. He also applauded the president for re-engineering the security architecture in the oil producing areas thereby boosting oil production 1.67 million barrels per day (plus condensate).
In his remarks, Taiwo Oyedele, chairman, Presidential Committee on Fiscal Policy and Tax Reforms, said there should be a slash in tax incentives and rebates, which currently stand at N6 trillion annually.
He said the highest tax concession should not exceed N2 trillion, as Nigeria is not getting value for huge tax incentives.
Oyedele added that if people pay correct taxes, Nigeria should take in N20 trillion annually.
