In addressing the challenge of excess liquidity within the economy, the Federal Government has announced plans to implement targeted strategies.
Led by the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, the government aims to curb the pressure of surplus funds circulating in the financial system.
During discussions held at the ongoing Spring Meetings of the IMF and World Bank in Washington DC, Minister Edun stated the administration’s commitment to identifying effective Ways and Means to alleviate the liquidity issue. He highlighted the collaborative efforts between fiscal and monetary authorities to mitigate inflationary pressures and stabilize the exchange rate.
“In our pursuit, we are focusing on reducing reliance on borrowing and enhancing domestic resource mobilization,” stated Minister Edun. He outlined plans to reform the tax system, leveraging technology and policy reforms to double tax revenue over the next three years.
The Minister stated the need for efficiency in tax collection, pointing out that a significant portion of revenue is derived from a handful of tax categories. By streamlining the tax structure and leveraging technology, the government aims to improve collection rates without increasing tax burdens on citizens.
“We are committed to enhancing tax compliance while ensuring fairness and efficiency in the system,” affirmed Minister Edun.
In addition to addressing economic challenges, the government is also prioritizing food security initiatives. Minister Edun highlighted efforts to tackle insecurity, particularly in regions affecting agricultural productivity.
Collaborative ventures with institutions like the African Development Bank are underway to establish agro clusters, aimed at boosting food production and enhancing farmers’ access to resources.
The meeting in Washington DC was attended by key government officials, including former Minister of Finance, Zainab Ahmed, Permanent Secretary of the Federal Ministry of Finance, Mrs. Lydia Shehu Jafiya, and Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso.
