President Bola Tinubu has granted approval for the establishment of a Presidential Committee focused on Fiscal Policy and Tax Reforms. Leading this committee as Chairman will be Mr. Taiwo Oyedele, an expert in Fiscal Policy and Africa Tax Leader at PriceWaterhouseCoopers (PwC).
According to Mr. Adelabu Zacch Adedeji, the Special Adviser to the President on Revenue, President Tinubu acknowledges the criticality of creating a conducive fiscal policy environment and implementing an efficient taxation system to drive government functionality and economic growth.
The committee will consist of professionals from both the public and private sectors, tasked with addressing various aspects such as tax law reform, fiscal policy design and coordination, tax harmonization, and revenue administration.
Nigeria currently faces challenges in its global ranking for ease of paying taxes, with a Tax to GDP ratio that falls below the African average and ranks among the lowest worldwide. Consequently, the country heavily relies on borrowing to meet public expenditure requirements, resulting in a limited fiscal space. The escalating costs of debt servicing further exacerbate this issue, perpetuating a cycle of insufficient funding for socio-economic development.
Mr. Adedeji emphasized that although some progress has been made over time, the outcomes have not been transformative enough to reshape the situation.