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HomeBusinessFinance Minister Edun says government-owned enterprise revenues surge to N835.70 bln in...

Finance Minister Edun says government-owned enterprise revenues surge to N835.70 bln in Feb

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The Minister of Finance and Coordinating Minister of Economy, Wale Edun, has revealed a substantial increase in revenues generated by government-owned enterprises (GOEs), ministries, departments, and agencies (MDAs), reaching N835.70 billion in February.

This figure marks a significant growth of N681.45 billion, equivalent to 441.78 percent, compared to the N154.25 billion remitted by MDAs during the same period in 2022.

Speaking at the Lagos Business School Breakfast Club, Edun attributed this surge in revenue to the implementation of automated processes for the daily sweep of 50 percent of MDAs and GOEs’ internally generated revenue (IGR) since January 2, 2024.

The directive for MDAs to remit 100 percent of their IGR to the Sub-Recurrent Account, a sub-component of the Consolidated Revenue Fund, was issued by the Federal Government in December 2023.

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This initiative aims to enhance revenue generation, fiscal discipline, accountability, and transparency in financial resource management.

Edun emphasised the significance of augmenting revenues as part of a comprehensive strategy to achieve a 78 percent year-on-year increase in budgeted revenue for 2024.

He highlighted the importance of implementing an enhanced government revenue assurance model to reduce the budget deficit from 6.1 percent of GDP in 2023 to 3.9 percent.

Additionally, the government has increased the pricing of government securities to attract dollar inflows, albeit at a higher cost, while revamping the process for initiating 2024 capital expenditure payments by MDAs and GOEs through direct payments to contractors.

Prudent expenditure measures, including minimizing redundancy, reducing leakages through digitization, and promoting cost curtailment culture across all MDAs and GOEs, have also been implemented to ensure fiscal efficiency.

(Edited by Oludare Mayowa; omayowa@globalfinancialdigest.com; Newsroom: +234 8033 964 138)

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