By Ayodele Oni
President Bola Tinubu has assured Nigerians on the determination of his administration not to rely on borrowing money to run Government.
With the country’s debt burden running into trillions of Naira, the president expressed his resolve to break the vicious cycle of over reliance on borrowing for public spending.
He pointed out that the continous borrowing has resulted into burden of debt servicing which places pressure on the management of Nigeria’s limited government revenues.
Tinubu, who gave the assurance on Tuesday in Abuja, while inaugurating the Presidential Committee on Fiscal Policy and Tax Reforms, chaired by Mr. Taiwo Oyedele.
He charged the committee to improve the country’s revenue profile and business environment as the Federal Government moves to achieve an 18% Tax-to-GDP ratio within three years.
He therefore directed the Committee to achieve its one-year mandate, which is divided into three main areas: fiscal governance, tax reforms, and growth facilitation.
The President also directed all government ministries and departments to cooperate fully with the committee towards achieving their mandate.
A statement by Ajuri Ngelale, Special Adviser to the President on Media and Publicity, said that President Tinubu told the Committee members the significance of their assignment, as his administration carries the burden of expectations from citizens who want government to make their lives better.
“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.”
Tinubu said the nation is still facing challenges in areas such as ease of tax payment and its Tax-to-GDP ratio, which lags behind 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, 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.”
Recounting the President’s sterling track record on revenue transformation, the Special Adviser to the President on Revenue, Mr. Zacchaeus Adedeji described the committee members, drawn from the public and private sectors, as accomplished individuals from various sectors.
“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,” he said.
Chairman of the Committee, Mr. Taiwo Oyedele pledged the total commitment of members to give their best in the interest of the nation, saying that many of our existing laws are out-dated, 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.
