Dr. M.B. Shehu, OFR, Chairman of the Revenue Mobilization Allocation and Fiscal Commission (RMAFC), has emphasized the importance of robust domestic revenue mobilization as a cornerstone for Nigeria’s national development. Dr. Shehu made this assertion during his presentation at the 2024 National Council on Finance and Economic Development (NACOFED) conference held in Bauchi.
Themed “Fostering Economic Growth in Challenging Times: Strategies for Policies and Partnership for Fiscal Sustainability and National Development,” the conference brought together key stakeholders to explore strategies for navigating economic challenges.
Dr. Shehu highlighted the urgent need to diversify Nigeria’s revenue base, citing the nation’s heavy reliance on oil revenue, vulnerability to global price fluctuations, and growing debt burden. He stated, “Boosting domestic revenue provides a predictable foundation for national planning and reduces reliance on external borrowing.”
Key Revenue Sources and Recommendations
Dr. Shehu identified taxation, non-tax revenues, state-owned enterprises, and the non-oil sector as pivotal areas for enhancing domestic revenue. He stressed the importance of improving tax administration efficiency, broadening the tax base, and integrating the informal sector into the economy.
He further urged investment in solid minerals, agriculture, technology, and tourism, noting their potential to boost employment, attract foreign investment, and significantly contribute to national revenue.
To foster fiscal sustainability, Dr. Shehu recommended:
- Revenue diversification: Expanding beyond oil dependency.
- Strengthening tax systems: Enhancing collection mechanisms and compliance.
- Promoting transparency and accountability: Ensuring public trust and effective use of funds.
- Investing in renewable energy, education, and infrastructure: Establishing a foundation for long-term growth.
“Domestic revenue mobilization is not just a financial necessity but a pathway to Nigeria’s economic self-reliance,” Dr. Shehu said. He added, “By prioritizing inclusive growth and strategic investments, Nigeria can build a sustainable and resilient economy capable of meeting the aspirations of its people.”
About NACOFED 2024
The National Council on Finance and Economic Development (NACOFED), overseen by the Federal Ministry of Finance, is a critical platform for coordinating economic policies and strategies across federal, state, and local governments. Hosted annually by a state government, the conference fosters collaboration among stakeholders to address pressing financial and economic issues.
This year’s event saw the participation of key figures, including the Honourable Minister of Finance and Coordinating Minister for the Economy, Wale Edun; Permanent Secretary of the Federal Ministry of Finance, Lydia Jafiya; Accountant General of the Federation, Mrs. Oluwatoyin Shakirat Madein; Dr. M.B. Shehu, Commissioners of Finance, and Accountant Generals from Nigeria’s 36 states and the FCT.
