• Tuesday, December 05, 2023
businessday logo


Tinubu vows to end Nigeria’s reliance on borrowing

Tinubu vows to end Nigeria’s reliance on borrowing

Bola Tinubu, President of Nigeria, on Tuesday in Abuja expressed his commitment to breaking the country’s reliance on borrowing for public spending.

This was said during the inauguration of the Presidential Committee on Fiscal Policy and Tax Reforms, chaired by Taiwo Oyedele.

Tinubu, charged the committee to improve the country’s revenue profile and business environment as the Federal Government moves to achieve an 18% Tax-to-GDP ratio within three years.

According to a statement signed by Ajuri Ngelale, Special adviser to the president (Media & Publicity) on August 8, Tinubu directed the Committee to achieve its one-year mandate, which is divided into three main areas: fiscal governance, tax reforms, and growth facilitation.

”We cannot blame the people for expecting much from us. To whom much is given, much is expected.” Tinubu said.

”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,” he declared.

Read also: What Nigerian government must prioritize to revive health sector – USAID

Tinubu acknowledging Nigeria’s current international standing in the tax sector said the nation is still facing challenges in areas such as ease of tax payment and its Tax-to-GDP ratio, which lags behind even Africa’s Continental average.

“Our aim is 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, 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,” the President directed.

Oyedele pledged the total commitment of members to give their best in the interest of the nation.

“Many of our existing laws are out-dated, hence they require comprehensive updates to achieve full harmonisation 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.