We’ve exited ways and means… CBN would no longer fund FG’s debt —Wale Edun

Wale Edun, minister of finance and coordinating minister of
the economy, says the federal government had “exited” servicing its debts
through ways and means.



 



Edun spoke on Thursday at the 2024 Access corporate forum,
themed, ‘Nigeria’s Economic Rebirth: Hopes and Implications’.



 



His statement comes days after the Central Bank of Nigeria
(CBN) said it would sustain its ways and means advances to the federal
government at a 5 percent limit for the 2024-2025 fiscal year.



 



Ways and means is a loan facility through which the CBN
finances the federal government’s budget shortfalls.



 





Speaking on plans to boost revenue and managing finance, the
minister said the government would no longer be going to the CBN to clear
debts.



 



“We have exited Ways and Means. What does that mean? It means
that the government, when it has to pay domestic debt service or foreign debt
service, does not go to the central bank to debit the consolidated revenue fund
of the government, which means just printing the money,” Edun said.



 



“But more importantly, we are putting in place, with the
backing and support of Mr. President, a world-class treasury and liability
management system that will take this country to where it should be in terms of
financial management.”



 



Edun said the successful delivery of the government’s
economic stabilisation plan would reinforce the gains being recorded from
reforms.



 



 The minister also
said plans are ongoing to mobilise 360,000 farmers to cultivate 360,000
hectares of land to yield an estimated harvest of 1.4 million metric tonnes of
maize, wheat, and cassava because “we must produce the food that we eat”.



 



In addition, he said the government is providing support and
relief to manufacturers through fiscal measures, noting that the economic
management team would be reconvened soon, as the government is documenting its
economic plan.



 



According to Edun, the federal government aims to reduce the
number of taxes businesses pay to a single digit.



 



 “The rationale is
this: 90 percent or so of the tax revenues that arrive in the government
coffers comes from less than 10 taxes,” he said.



 



“There is ongoing work to bring down the rate of corporate
income tax as we are trying to encourage investments in order to grow the
economy.”



 



Edun said foods, pharmaceuticals, and health products will
exempted from VAT, while “taxes on luxury items will be adjusted upwards”.