Nigeria can’t sustain devt through borrowing – Taiwo Oyedele
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said Tuesday that the country can no longer rely mainly on borrowing to fund development, warning that Nigeria must build a sustainable fiscal system capable of supporting critical sectors of the economy.
...Laments the burden of multiple taxes and levies on businesses
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said Tuesday that the country can no longer rely mainly on borrowing to fund development, warning that Nigeria must build a sustainable fiscal system capable of supporting critical sectors of the economy.
Oyedele spoke at the 28th Annual Tax Conference of the Chartered Institute of Taxation of Nigeria in Abuja.
This is coming barely 24 hours after The PUNCH exclusively reported that the Federal Government had intensified engagement with the World Bank over a fresh $1.25bn loan targeted at supporting economic reforms, job creation and competitiveness.
His words, “Nigeria cannot continue to finance development primarily through borrowing. We must build a fiscal system capable of sustainably supporting critical infrastructure, quality education, affordable healthcare, security, and social protection...
“Businesses faced overlapping debts, unpredictable enforcements, and rising compliance costs. Citizens often perceived the tax system as unfair because the burden was unevenly distributed.
“Our approach is guided by a simple principle: a good tax system should raise revenue efficiently, support economic growth, protect the vulnerable, and strengthen trust between governments and citizens."
He added that sustainability was not only about generating revenue but also about promoting growth, reducing inequality, protecting vulnerable groups, as well as encouraging productivity.
According to him, the Federal Government’s ongoing tax reforms were designed to make the economy more investment-friendly while improving fiscal sustainability.
He also, said that the reforms were necessary because Nigeria’s tax system had long suffered from structural weaknesses, including multiple taxation, fragmented administration, weak compliance, and over dependence on a narrow revenue base.
On corporate taxation, he said the government was proposing reductions in companies’ income tax rates to improve Nigeria’s attractiveness as an investment destination.
Oyedele further lamented the burden of multiple taxes and levies on businesses, noting that the Federal Government was already working with sub-national governments to harmonise taxes and reduce compliance costs, even as 15 states had already enacted tax harmonisation laws and urged other states to follow suit.
According to him, the Federal Government’s ongoing tax reforms were designed to make the economy more investment-friendly while improving fiscal sustainability.
He also, said that the reforms were necessary because Nigeria’s tax system had long suffered from structural weaknesses, including multiple taxation, fragmented administration, weak compliance, and over dependence on a narrow revenue base.
On corporate taxation, he said the government was proposing reductions in companies’ income tax rates to improve Nigeria’s attractiveness as an investment destination.
Oyedele further lamented the burden of multiple taxes and levies on businesses, noting that the Federal Government was already working with sub-national governments to harmonise taxes and reduce compliance costs, even as 15 states had already enacted tax harmonisation laws and urged other states to follow suit.
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