Breaking: Tinubu inaugurates committee on fiscal policy, tax reforms

Nigerian President Asiwaju Bola Ahmed Tinubu on Tuesday in Abuja, inaugurated the presidential committee on fiscal policy and tax reforms.

It could be recalled that the president in July, approved the establishment of the committee headed by Taiwo Oyedele, a tax and fiscal policy expert.

Tinubu, in a statement released by Dele Alake, his special adviser on special duties, communications and strategy, said the committee will comprise experts from both the private and public sectors, adding that the panel would be responsible for various aspects of tax law reforms, fiscal policy design and coordination, harmonisation of taxes, and revenue administration.

The statement also stated that the committee’s primary objective is to enhance revenue collection efficiency, ensure transparent reporting, and promote the effective utilisation of tax and other revenues to boost citizens’ tax morale, foster a healthy tax culture, and drive voluntary compliance.

Zacchaeus Adedeji, special adviser to the president on revenue, while speaking on the committee’s establishment, emphasised the importance of a sound fiscal policy environment and an effective taxation system for the functioning of the government and the economy, saying Nigeria ranks very low on the global ease of paying taxes while the country’s tax to gross domestic product (GDP) ratio “is one of the lowest in the world and well below the African average”.

“This has led to an overreliance on borrowing to finance public spending which in turn limits the fiscal space as debt service costs consume a greater portion of government revenue, annually resulting in a vicious cycle of inadequate funding for socio-economic development,” he had said.

“While some incremental progress has been recorded over the years, the outcomes have not been transformative enough to change the narrative.”