President Bola Tinubu has expressed his commitment to breaking Nigeria’s cycle of excessive borrowing for public expenditures and the resulting debt burden on Nigeria’s limited government revenues.
According to a State House Press Release signed by Special Adviser to the President (Media & Publicity), Ajuri Ngelale, the President said this as he inaugurated the Presidential Committee on Fiscal Policy and Tax Reforms, which is headed by Mr. Taiwo Oyedele.
The committee’s task is to enhance the country’s revenue generation and business environment, as the FG aims to achieve an 18% Tax-to-GDP ratio within 3 years.
A Three-fold Mandate
The President directed the Committee to achieve its one-year mandate, which is divided into three main areas: fiscal governance, tax reforms, and growth facilitation.
While providing clear directions to the Committee members, the President emphasized the vital role their work plays in fulfilling the promise of his administration, he said:
- ”We cannot blame the people for expecting much from us. To whom much is given, much is expected.
- ”It is even more so when we campaigned on a promise of a better country anchored on our Renewed Hope Agenda. I have committed myself to use every minute I spend in this office to work to improve the quality of life of our people.”
Transforming Nigeria’s Tax System
Addressing the challenges faced by Nigeria’s tax sector, President Tinubu highlighted Nigeria’s lower-than-desired Tax-to-GDP ratio and difficulties in tax payment processes.
According to him,
- “We aim to transform the tax system to support sustainable development while achieving a minimum of 18% tax-to-GDP ratio within the next three years.
- ”Without revenue, the government cannot provide adequate social services to the people it is entrusted to serve.
- ”The Committee, in the first instance, is expected to deliver a schedule of quick reforms that can be implemented within thirty days. Critical reform measures should be recommended within six months, and full implementation will take place within one calendar year.”
In response to the President’s charge, Mr. Taiwo Oyedele, Chairman of the Committee, assured the President of the committee’s unwavering dedication to giving their best to Nigeria’s interest.
- “Many of our existing laws are outdated, hence they require comprehensive updates to achieve full harmonization to address the multiplicity of taxes, and to remove the burden on the poor and vulnerable while addressing the concerns of all investors, big and small,” he said.
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