Updated: FG worries over galloping inflation, to cut cash in circulation

FG worries over galloping inflation, to cut cash in circulation

Minister of Finance and Coordinating Minister for the Economy (CME), Wale Edun, has hinted about plans by the Federal Government to cut the cash in circulation to rein in inflation.

He said the measure became imperative to keep rising inflation at a desirable and stable level.

Amid fuel subsidy removal and forex liberalisation policies, Nigeria’s annual inflation rate was up 129 basis points from June to 24.08 per cent in July 2023.

Edun spoke in Abuja on Tuesday while chairing the Federation Account Allocation Committee (FAAC) meeting.

“There should be discipline in money supply to control inflation in the nation’s economy,” the minister told FAAC members.
By maintaining discipline in money supply, the government aimed to keep inflation within a target range conducive for stable economic growth and price stability, he said.
The finance minister also noted that there was a need for government to mobilise resources to deliver on its mandate to increase employment and reduce poverty.

The FAAC agreed to share N966.11 billion as federal allocation to the three tiers of government for last month.

The amount was shared from a total gross revenue of N1.746 trillion.

The total revenue was made up statutory revenue of N397.42 billion, Value Added Tax (VAT) revenue of N271.95 billion, Electronic Money Transfer Levy (EMTL) revenue of N12.84 billion and Exchange Difference revenue of N283.9 billion.

For last month, the total deductions for cost of collection came to N62.42 billion, while the total deductions for savings, transfers, refunds, and tax credit cancellation amounted to N717.96 billion.

The Excess Crude Account (ECA) stood at $473,754.57.

A communiqué made available to reporters after the meeting showed that the Federal Government got N374,48 billion; state, N310.67 billion; and the 774 local government areas went home with N229.41 billion.
Additionally, N51.55 billion was shared among the relevant states as 13 per cent derivation revenue.
The gross statutory revenue for the month of July was N1.15 trillion, which was lower than the N1.15 trillion generated in the preceding month (June) by N2.49 billion.