President Bola Tinubu has vowed to end Nigeria’s over-reliance on borrowing to finance public spending.

He spoke on Tuesday at the inauguration of the presidential committee on fiscal policy and tax reforms.

The committee, set up on July 7, 2023, is chaired by Taiwo Oyedele, a tax and fiscal policy expert. The committee, which comprises experts from both the private and public sectors, is responsible for the various aspects of tax law reform, fiscal policy design and coordination, harmonisation of taxes, and revenue administration.

Speaking at the event, the president said the committee is in line with his promise to remove all barriers impeding business growth in Nigeria.

“The consequences of the ongoing failure of our tax regime are real and significant. The inability of the government to efficiently raise revenue has led directly to an overreliance on borrowing to finance public spending,” Tinubu said.

“A government that cannot properly fund itself will also lack the flexibility or fiscal scope to sensibly manage the economy or respond to external shocks.

Instead, debt service begins to consume an ever greater portion of the government’s already meagre revenues. “This traps the economy in a vicious cycle of borrowing simply to service previous debt and leaves almost no scope for socio-economic development.

“As President, I am determined to end this cycle. On the day of my inauguration, I promised that my administration would address all of the issues impeding investment and economic growth in Nigeria. This promise is why I saw an end to the fuel subsidy. It is the reason the Central Bank has called an end to its multiple exchange rate system under my watch.

“It is for the same reason we gather here today to inaugurate the Presidential Committee on Fiscal Policy and Tax Reforms.”

On his part, Zacchaeus Adedeji, special adviser to the president on revenue, said the inauguration of the committee would give it the opportunity to further engage with various stakeholders to identify their pains and critical concerns bothering on tax and fiscal policies, as well as collectively develop the solutions necessary to address the challenges in a holistic manner.

Also speaking at the event, Oyedele said that those who evade tax get away with little or no consequences, adding that there needs to be a change. He said Nigerians are willing to pay tax if they see what it translates to.

“The consequences of the ongoing failure of our tax regime are real and significant. The inability of the government to efficiently raise revenue has led directly to an overreliance on borrowing to finance public spending,” Tinubu said.

“A government that cannot properly fund itself will also lack the flexibility or fiscal scope to sensibly manage the economy or respond to external shocks.

Instead, debt service begins to consume an ever greater portion of the government’s already meagre revenues. “This traps the economy in a vicious cycle of borrowing simply to service previous debt and leaves almost no scope for socio-economic development.

001Lagos:
The economy is trapped and you want to use the money realised from subsidy removal to fund senseless and most stupid war

Are you not mad?

Racoon:
Forget all these silly reasons for the irresistible impulsive urge to go borrowing for every economic challenge. This is simply due to lack of economic foresight, feasible economic blueprints to rejig the economy, inordinate urge to increase the cost of governance even in the face of global economic meltdown and financial exigencies.

001Lagos:
The economy is trapped and you want to use the money realised from subsidy removal to fund senseless and most stupid war
Are you not mad?

“The consequences of the ongoing failure of our tax regime are real and significant. The inability of the government to efficiently raise revenue has led directly to an overreliance on borrowing to finance public spending,” Tinubu said.

“A government that cannot properly fund itself will also lack the flexibility or fiscal scope to sensibly manage the economy or respond to external shocks.

Instead, debt service begins to consume an ever greater portion of the government’s already meagre revenues. “This traps the economy in a vicious cycle of borrowing simply to service previous debt and leaves almost no scope for socio-economic development.

001Lagos:
The economy is trapped and you want to use the money realised from subsidy removal to fund senseless and most stupid war

Are you not mad?

orisa37:
Two or more CURRENCIES SHOULD NOT CIRCULATE PARI PASU IN ANY ECONOMY. THE BAD ONE WILL CHASE THE GOOD OUT OF CIRCULATION. BASIC ECONOMIC PRINCIPLES. ALL EXCHANGES MUST GO THROUGH CBN AND THEIR ACCREDITED AGENTS IN BANKS, AIRPORTS, BUREAU DE CHANGE, HOTELS, ABOKIS ETCETERA ETCETERA. FEDERAL GOVERNMENT ALLOCATIONS TO THE STATES SHOULD ALWAYS BE IN NAIRA. REGULATE TRAVELLING ALLOWANCES AND ESTACODES BY TRAVELERS CHEQUES AND CBN'S DENOMINATED RATES.

BoldBrainz:


I don't know who you are, but God bless you for that first sentence that began your write-up. That's literally what we've been screaming about since this deranged clown assumed office.

Racoon:
https://www.thecable.ng/our-economy-is-trapped-tinubu-vows-to-end-nigerias-over-reliance-on-loans/amp

Domestic debt: Lagos borrows over N126bn in three months, DMO releases other States’ figures

The Lagos State Government has borrowed over N126 billion domestically in the last quarter of 2021, the Debt Management Office (DMO) has said.

According to a report released by the DMO, Lagos, whose domestic debt stood at N532.12 billion as of September 30, 2021, is now owing N658.95 billion as at the end of December, 2021.

This represents an increase of N126.83 billion in the last three months of the year 2021, according to the DMO.

DAILY POST observed that Lagos is the State with the highest domestic debt figure as of the time under review.

Ogun State comes second with a total of N232.62 billion debt as of December.

Ogun’s debt profile rose from N192.41 billion to N232.62 within three months, making a debt increase of N40 billion.

https://dailypost.ng/2022/03/21/domestic-debt-lagos-borrows-over-n126bn-in-three-months-dmo-releases-other-states-figures/