How FG Can Generate N10tn Annually Through Non-oil Assets – Oyedele

How FG Can Generate N10tn Annually Through Non-oil Assets – Oyedele

Taiwo Oyedele, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has outlined a strategy for Nigeria to generate N10 trillion annually by efficiently managing its non-oil assets.

Speaking at a stakeholders’ forum organized by the Harvard Business School Association of Nigeria in Lagos, Oyedele emphasized that the country’s non-oil assets, valued between N80 trillion and N100 trillion, have not been given proper attention and are currently being mismanaged.

He said, “We found out that other than oil when you are talking about assets. Some estimates, although still working on it, show something in the region of N80 to N100tn scattered all over the place. We haven’t shown any care at all as a country about those assets such that they have been mismanaged.”

“We also found an asset worth trillions of naira, and someone even dared to register a company with the Corporate Affairs Commission to hold those assets and the shareholders are still in this same Nigeria,” the chairman said.

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Oyedele emphasized the need for improved asset management and the potential benefits of selling underperforming assets to generate liquidity and stimulate economic growth.

He said, “Imagine that you become more efficient with a N100tn asset alone, even if you get a return of 10 per cent yearly that’s easily N10tn. If you cannot manage the asset well, then sell it, and get liquidity in.

“You need some of the FX liquidity and then the private sector becomes more productive not only with that stimulated economic activity, but they will pay taxes,” he said.

However, Oyedele revealed that the Committee is set to introduce comprehensive tax reforms with the goal of enhancing economic growth and alleviating the burden on businesses.

As part of the reform agenda, the committee acknowledges the challenges confronted by businesses, particularly the impact of taxes on working capital.

Oyedele emphasized that businesses not subject to tax will be exempted, aligning with the overarching objective of creating a balanced and favorable environment for economic growth.

“We have drafted a new tax regulation. The only reason why it hasn’t been published is that some of the things we included will amend the existing laws, so we put the amendment in the emergency bill waiting for the lawmakers to pass, so we can then issue the regulation,” he said.

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