President Tinubu Vows To End Nigeria’s Over-Reliance On Borrowing

President Tinubu reaffirmed his steadfast commitment on Tuesday, August 8, in Abuja, to breaking the vicious cycle of over-reliance on borrowing for public spending and the accompanying burden of debt payment on the management of Nigeria’s limited government revenues.

The President charged the Presidential Committee on Fiscal Policy and Tax Reforms, chaired by Mr Taiwo Oyedele, with improving the country’s income profile and business environment as the Federal Government works to attain an 18% tax-to-GDP ratio within three years.

According to Ajuri Ngelale, President Tinubu’s spokesperson, the President authorized the Committee to complete its one-year mandate, which is divided into three primary areas: fiscal governance, tax changes, and growth facilitation. He also instructed all government ministries and departments to fully cooperate with the committee in carrying out their task.

President Tinubu stressed the importance of the Committee’s job, noting that his administration bears the burden of residents’ expectations that their government improve their lives.

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

Recognizing Nigeria’s existing international ranking in the tax sector, the President stated that the country still faces issues in areas such as ease of tax payment and its Tax-to-GDP ratio, which is lower than 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, the 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.

Mr Zacchaeus Adedeji, Special Adviser to the President on Revenue, hailed the committee members, selected from the public and private sectors, as accomplished individuals from various sectors, citing the President’s excellent track record on revenue transformation.

“Mr President, you have the pedigree when it comes to revenue transformation. You demonstrated this when you were the Governor of Lagos State over 20 years ago,” the Special Adviser said.

Mr Taiwo Oyedele, Chairman of the Committee, vowed that all members would give their all in the sake of the nation.

“Many of our existing laws are outdated, 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.