Tinubu Makes Fresh Move To End Overreliance On Borrowing For Public Expenditure

Tinubu Makes Fresh Move To End Overreliance On Borrowing For Public Expenditure

President Bola Tinubu emphasized his administration’s determination to break the cycle of excessive reliance on borrowing for public spending, which leads to the burden of debt servicing on Nigeria’s limited government revenues…CONTINUE READING

During the inauguration of the Presidential Committee on Fiscal Policy and Tax Reforms, chaired by Taiwo Oyedele, the President tasked the committee with enhancing the country’s revenue generation and business environment, aiming to achieve an 18% Tax-to-GDP ratio within three years.

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The President, at the presidential Villa, instructed the Committee to accomplish its one-year mandate, focusing on three main areas: fiscal governance, tax reforms, and facilitating growth.

He also instructed all government ministries and departments to collaborate fully with the committee to fulfill their mandate.

President Tinubu underlined the significance of the task at hand and highlighted that his administration bears the weight of citizens’ expectations for improved lives.

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

“This is especially true as we campaigned on the promise of a better country through our Renewed Hope Agenda. I am committed to using every moment in this office to work towards enhancing the quality of life for our people.”

While acknowledging Nigeria’s international tax status, the President pointed out the existing challenges in areas like ease of tax payment and Tax-to-GDP ratio, which lags behind Africa’s average.

“Our goal is to reshape the tax system to promote sustainable development while achieving a minimum of 18% tax-to-GDP ratio in the next three years.

“Without revenue, the government cannot adequately provide social services to the people it serves.”

The Committee is tasked to present a schedule of rapid reforms achievable within thirty days, propose critical reform measures within six months, and fully implement them within a year.

Highlighting the President’s history of revenue transformation, the Special Adviser to the President on Revenue, Zacchaeus Adedeji, praised the committee members, hailing them as accomplished individuals from various sectors.

“Mr. President, your record in revenue transformation is impeccable. You demonstrated this during your tenure as the Governor of Lagos State over two decades ago,” the Special Adviser noted.

Chairman of the Committee, Taiwo Oyedele, committed the members to give their best in the nation’s interest.

“Many of our existing laws are outdated, requiring comprehensive updates for complete harmonization to address the complexity of taxes and alleviate the burden on the disadvantaged while catering to the concerns of investors, both large and small,” Oyedele assured.