‘Our economy is trapped’ – President Tinubu Vows To End Nigeria’s Over-Reliance On Foreign Loans

President Tinubu Vows to Reduce Nigeria’s Reliance on Foreign Borrowing

President Bola Tinubu has emphasized his determination to break the cycle of excessive dependence on borrowing for public expenditure. He also pledged to alleviate the strain of debt servicing on Nigeria’s limited government income.

In a statement released on Tuesday by his spokesperson, Ajuri Ngelale, the President articulated his commitment during the inauguration of the Presidential Committee on Fiscal Policy and Tax Reforms, led by Taiwo Oyedele.

Tinubu urged the committee to enhance the country’s revenue profile and business environment, with the aim of achieving an 18% Tax-to-GDP ratio within three years.

The President outlined the committee’s one-year mandate, focusing on fiscal governance, tax reforms, and growth facilitation. He further instructed all government ministries and departments to cooperate fully with the committee to fulfill its mission.

Tinubu underscored the importance of this endeavor, recognizing the high expectations citizens have for a better quality of life. He stated, “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 status in the global tax landscape, the President acknowledged that the nation still faces challenges, including the ease of tax payment and the Tax-to-GDP ratio, which falls below 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,” stated Tinubu.

The Committee is expected to deliver swift reforms within thirty days and recommend crucial reform measures within six months. Full implementation of the reforms is slated to occur within one year.

Recognizing President Tinubu’s history of revenue transformation, Zacchaeus Adedeji, Special Adviser to the President on Revenue, praised the committee members as accomplished individuals from diverse sectors.

Chairman of the Committee, Oyedele, pledged the committee’s unwavering commitment to advancing the nation’s interests. He highlighted the need to modernize existing laws to address the complexity of taxes, reduce the burden on the vulnerable, and cater to the concerns of investors, both large and small…[CONTINUE READING HERE]