Edun: Why FG Mandated Agencies to Remit 50% of Revenue Proceeds to Govt
Appeals for assistance of IsDB to mobilise resources from Arab Coordination league for infrastructural devt
Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, said President Bola Tinubu's focus on increasing domestic revenue generation was behind the government's mandate to federal revenue generating agencies to remit 50 per cent of their proceeds to the federal government. Edun disclosed this yesterday in Riyadh, Saudi Arabia, during a meeting with President of Islamic Development Bank (IsDB) and Governors Roundtable, at the 2024 IsDB Group Annual Meetings and Golden Jubilee marking the 50th Anniversary of the bank.
The theme of the anniversary was “Cherishing our Past, Charting our Future: Originality, Solidarity, and Prosperity.”
Edun said the current emphasis in Nigeria was a deviation from the norm of remitting earnings after deducting operational costs. He also stated that the surplus funds from the earnings were utilised for crucial infrastructure development, social welfare programmes, and job creation.
He revealed that with oil serving as the key revenue source, steps were taken to bolster pipeline security and increase crude production. He said those steps led to the current output of 1.6 million barrels per day.
The minister appealed to IsDB to expand its portfolio of projects with more concessional loans to support government's ongoing efforts to develop the economy.
Edun stated that in view of the fragility of the country due to insecurity and climate issues, the federal government was seeking more grants and technical assistance from the bank.
Edun requested the assistance of IsDB to mobilise resources from the Arab Coordination league for infrastructural development.
He stated, “We wish to request for the visibility and presence of IsDB affiliates (ICD, ITFC, ICIEC) in the regional hub of Abuja to intensify their support to the private sector, who are important growth drivers, and to support the renewed hope initiative of Mr. President.”
The minister commended the bank for its continued support to the economic development of Nigeria, especially for approving the I-dice project aimed at creating the next unicorn in the Nigerian technology space and the Special Agro Processing Zone Project (SAZP) to support the country's import substation drive.
According to him, “The President Tinubu renewed hope encapsulates a comprehensive vision for Nigeria's future, built on the pillars of economic prosperity, social development, and political stability.
“Crafted to address the pressing challenges facing the nation while leveraging its vast potential, this agenda aims to instil optimism and confidence among Nigerians and international stakeholders alike.
“President Tinubu recognises the need to reduce Nigeria's dependence on oil revenue and promote diversification across multiple sectors, including agriculture, manufacturing, and technology.
“By harnessing the nation's abundant natural resources and human capital, the administration aims to unlock for growth and prosperity.”
Edun added, “Addressing the country's infrastructure deficit is essential for unlocking economic potential and improving the quality of life for all Nigerians. The renewed hope agenda prioritise infrastructure projects, including roads, railways, ports, and energy infrastructure, to enhance connectivity, facilitate trade, and drive economic growth across the country.
“Nigeria's youthful population presents both a challenge and opportunity. President Tinubu is committed to the harnessing the energy and creativity of the youth through targeted programme and initiatives aimed at skills development, entrepreneurship, and job creation.
“By investing in education, vocational training, and access to finance, the administration seeks to empower young Nigerians to become drivers of economic growth and development.”
In his remarks, Chief Executive Officer of Jaiz Bank, Haruna Musa, stated that the bank had signed a $20 million agreement in the form of Memorandum of Understanding (MoU) with the Islamic Corporation for the Development of the Private Sector (ICD).
Musa hinted that ICD supported businesses across the globe, and said the $20 million was the capital injection into Jaiz Bank.
He said they would provide funds in terms of equity, which they could use to support their operations in Nigeria.
Musa stated, “The MoU we signed today is more of supporting the working capital because after the announcement by the Central Bank of Nigeria (CBN) for recapitalisation, the qualifying capital for Jaiz Bank is about N18.7 billion currently, and the requirement by the CBN is about N20 billion for our categorisation as non-interest bank. I am very confident that Jaiz Bank will be able to meet up with the capital requirement of the CBN.”