My regime will stop Nigeria’s dependence on borrowing for public expenses ~ Tinubu

President Bola Tinubu, while in Abuja on Tuesday, firmly expressed his determination to break the cycle of excessive reliance on borrowing for public expenditures. This cycle, he noted, had resulted in a heavy burden of debt servicing on the management of Nigeria’s limited government revenues.

During the inauguration of the Presidential Committee on Fiscal Policy and Tax Reforms, chaired by Mr. Taiwo Oyedele, the President charged the committee with the responsibility of enhancing the nation’s revenue profile and business environment. The ultimate goal is to achieve an 18% Tax-to-GDP ratio within the span of three years.

The President outlined the committee’s one-year mandate, divided into three key areas: fiscal governance, tax reforms, and facilitating growth. He also emphasized the necessity for full cooperation from all government ministries and departments to ensure the successful achievement of the committee’s goals.

President Tinubu acknowledged the weight of expectations placed on his administration by citizens eager for positive change. He stated his commitment to improving the quality of life for Nigerians, highlighting the Renewed Hope Agenda that his administration campaigned on.

In recognition of Nigeria’s current status in the international tax sector, the President acknowledged the challenges the nation faces, including ease of tax payment and its Tax-to-GDP ratio, which falls below the continental average for Africa.

He stressed the transformation of the tax system to promote sustainable development and to reach a minimum of 18% tax-to-GDP ratio within three years. The President instructed the committee to deliver quick reforms within 30 days, recommend critical reform measures within six months, and achieve full implementation within a year.

The Special Adviser to the President on Revenue, Mr. Zacchaeus Adedeji, highlighted President Tinubu’s history of revenue transformation, underscoring the committee’s significance.

Committee Chairman, Mr. Taiwo Oyedele, pledged the committee’s unwavering commitment to the nation’s interests. He emphasized the need for comprehensive updates to existing laws, addressing outdated measures, harmonizing multiple taxes, and catering to the concerns of all investors while lessening the burden on the vulnerable.

In this pursuit, President Tinubu’s administration aims to shape a sustainable revenue structure that ensures adequate social services for the people it serves.