FG to Focus on Expanding Non-Oil Revenue Sources- Edun

The Federal Government has reiterated its commitment to aggressively pursuing non-oil revenue streams to lessen dependence on crude oil earnings and enhance economic stability.

At the 5th National Treasury Workshop in Abuja, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, emphasized the need to reassess Nigeria’s revenue generation strategies. Represented by the Permanent Secretary at the Ministry of Finance, Lydia Jafiya-Shehu, Edun highlighted the government’s commitment to intensifying efforts to tap into alternative revenue sources, aiming to reduce reliance on volatile oil earnings and ensure long-term economic stability.

Edun noted that recent changes in global energy policies, declining crude oil demand, and fluctuating prices have made it clear that Nigeria can no longer rely solely on oil revenues. He emphasized that the government is now prioritizing the expansion of revenue generation from diverse sectors, including agriculture, solid minerals, manufacturing, tourism, the digital economy, and creative industries, as part of its strategy to ensure a more stable and diversified economic future.

Edun emphasized that while several non-oil sectors hold significant potential for revenue generation, job creation, and economic transformation, they remain largely underutilized. He called for an aggressive exploration of these sectors, pointing to key areas such as agriculture and agro-processing, solid minerals and mining, manufacturing, tourism, the digital economy, and tax reforms as critical to diversifying Nigeria’s economy and driving growth.

The minister acknowledged that despite the potential of non-oil sectors, several challenges continue to hinder their effective development. He identified poor infrastructure, high business costs, bureaucratic bottlenecks, insecurity, low tax compliance, and revenue leakages as major obstacles.

He stated that the government is already implementing bold reforms to address these challenges, focusing on public financial management improvements, the digitalization of revenue collection, and the strengthening of tax administration.

The minister stressed that the private sector’s role in supporting government efforts is crucial and cannot be overstated. He highlighted the importance of accountability and transparency in public financial management as essential for building trust and attracting investment. Edun expressed confidence that the ongoing workshop would offer valuable insights and strategies to realign the country’s revenue framework with global best practices.

Also speaking at the workshop, the accountant-general of the Federation, Dr. Oluwatoyin Madein, stressed the urgency of tackling Nigeria’s revenue challenges, emphasizing that economic diversification is key to achieving fiscal stability. She pointed out that factors such as exchange rate volatility, low revenue performance, and rising costs have increasingly complicated fiscal operations in recent years.

Dr. Oluwatoyin Madein outlined the workshop’s agenda, highlighting five key areas of focus: economic diversification, tax reform, budget efficiency, fiscal federalism, and public financial management reforms. She noted that experts from the public and private sectors, as well as academia, would be part of the discussions to ensure comprehensive policy recommendations.

Madein urged participants to engage actively in the deliberations, stressing that the workshop’s outcomes should result in actionable policies to strengthen Nigeria’s revenue framework at both federal and sub-national levels.