As part of its efforts to tackle Nigeria’s fiscal crisis, the Federal Government is projecting to raise the country’s N15 trillion yearly revenue to N30 trillion by 2026. Special Adviser on Revenue to President Bola Tinubu, Zacchaeus Adedeji, stated this yesterday, while appearing as a guest on Channels TV programme, Politics Today.
Adedeji, who offered an insight into what the fiscal policy of the Tinubu administration will look like, said that revenue generation will be based on sound economic policies and prosperity of the country.
He listed some of the obstacles to efficient revenue collection in the country to include, multiple revenue generating agencies, challenges with tax enforcement, lack of a sound economic policy that will lead to shared economic prosperity, lack of fiscal discipline and antiquated tax laws.
He said: “Some of our levies date back to 1938, 1958. By the time we make all the changes, it will significantly raise revenues.”
According to him, the government was determined to replicate the achievements that President Tinubu recorded as Governor of Lagos States, between 1999 and 2007, at the national level.
He explained that the philosophy behind the Tinubu administration’s plans was to secure the lives and property of Nigerians, enable a private sector-led economy and create a conducive environment for all businesses to thrive. He clarified that the Government was not planning to collapse all its revenue generating agencies, but instead would harmonise the agencies to prevent duplication of responsibilities and ensure efficiency of revenue collection. The Special Adviser said that the government would tax consumption and not production, stressing that poor Nigerians will smile under the Tinubu administration.
Last Friday, President Tinubu approved the establishment of a Presidential Committee on Fiscal Policy and Tax Reforms. The committee is headed by the Fiscal Policy Partner and Africa Tax Leader at PricewaterhouseCoopers, Mr Taiwo Oyedele.
A statement by the Special Adviser on Special Duties, Communication and Strategy, Dele Alake, said that the committee: “Will comprise experts from both the private and public sectors and have responsibility for the various aspects of tax law reform, fiscal policy design and coordination, harmonisation of taxes, and revenue administration.” According to the statement, the committee’s primary objective is to enhance revenue collection efficiency and ensure transparent reporting. It will also promote the effective utilisation of tax and other revenues to boost citizens’ tax morale, foster a healthy tax culture, and drive voluntary compliance.
Commenting on the responsibilities of the committee, Adedeji said: “It should be noted that this committee will not only advise the government on necessary reforms but will also drive the implementation of such recommendations in support of the comprehensive fiscal policy and tax reform agenda of the current administration.”
