The federal government is setting its sights on achieving an 18 percent tax-to-gross domestic product (GDP) ratio within the next three years. President Bola Tinubu unveiled this ambitious plan during the inauguration ceremony of the Presidential Committee on Fiscal Policy and Tax Reforms in Abuja.
President Tinubu emphasized the transformative potential of an improved tax system in fostering sustainable development while stressing the importance of attaining the 18 percent tax-to-GDP ratio milestone within the designated timeframe. The President charged the committee with the task of enhancing the nation’s revenue profile and business climate, further instructing them to fulfill their one-year mandate, which spans fiscal governance, tax reforms, and growth facilitation.
Additionally, President Tinubu directed all governmental departments and ministries to collaborate fully with the committee to accomplish their objectives. Recognizing the weight of expectations placed on his administration by the citizens who yearn for improved living conditions, President Tinubu underscored the commitment to leveraging his time in office to enhance the quality of life for all.
Acknowledging Nigeria’s current position in the global tax landscape, President Tinubu acknowledged that the country faces challenges in areas such as simplifying tax payment procedures and raising the tax-to-GDP ratio, which currently trails even Africa’s continental average. The President stressed the essential role of revenue in enabling the government to provide vital social services to its constituents.
The committee’s immediate task involves presenting a swift schedule of reforms that can be executed within 30 days. Within six months, they are to propose crucial reform measures, with full implementation slated to occur within one calendar year. President Tinubu’s historical success in revenue transformation, as noted by the Special Adviser on Revenue, Mr. Zacchaeus Adedeji, lends weight to the committee’s undertaking.
The Chairman of the Committee, Mr. Taiwo Oyedele, reaffirmed the members’ unwavering dedication to contributing their best for the nation’s betterment. He highlighted the need to modernise outdated legislation, achieving comprehensive updates to streamline various taxes and alleviate the burden on vulnerable populations while accommodating the interests of investors, both major and minor.
President Bola Tinubu reinforced his steadfast commitment to breaking the cycle of excessive reliance on borrowing for public expenditures and the resultant strain of debt servicing on Nigeria’s limited government revenues. This pledge underscores the government’s determination to usher in a more sustainable and robust financial landscape.
