Tinubu Promises To End Nigeria’s Dependence On Borrowing For Public Expenditure

Posted by Nwa Diokpa Featured, Latest Headlines, News Across Nigeria Tuesday, August 8th, 2023

(AFRICAN EXAMINER) – President Bola Tinubu has assured Nigerians of breaking the vicious cycle of overreliance on borrowing for public spending and the resulting burden of servicing the debt of the borrowed loan.

Tinubu made this known in a statement by his spokesperson, Ajuri Ngelale, on Tuesday after he inaugurated the Presidential Committee on Fiscal Policy and Tax Reforms, chaired by Taiwo Oyedele.

The president tasked 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.

The Nigerian leader also directed the Committee to achieve its one-year mandate, which is divided into three main areas: fiscal governance, tax reforms, and growth facilitation.

He also directed all government ministries and departments to work together with the committee so that they can achieve their mandate.

He said: “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.”

Acknowledging Nigeria’s current international standing in the tax sector, the President stated that the nation still faces challenges such as ease of tax payment and its Tax-to-GDP ratio, which lags behind even Africa’s Continental average.

“We aim 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 occur within one calendar year,” the President directed.