Berlin, Germany – President Bola Tinubu reassured international investors from G20 nations that their investments are secure within Nigeria’s borders. Speaking at the G20 Compact with Africa Economic Conference in Berlin, Tinubu highlighted Nigeria’s vast market potential and expressed eagerness to leverage the country’s advantages for mutual success.
Tinubu assured investors that Nigeria, under his leadership since May 2023, has undergone transformative changes aimed at removing obstacles hindering businesses. Emphasizing the importance of good governance, he stated that promoting the rule of law is crucial for attracting foreign investments.
The President further emphasized Nigeria’s youthful and educated population, presenting a significant incentive for investors akin to China’s economic resurgence. Tinubu addressed concerns about Nigeria’s previous restrictive policies, asserting that the country now allows the free movement of capital, providing flexibility for investors.
In addition to highlighting Nigeria’s socio-political stability and predictability, Tinubu revealed the government’s commitment to natural gas development and upcoming tax reforms. He assured investors that Nigeria has moved beyond restrictive policies, and capital can now move in and out of the country freely.
Meanwhile, in Delta, the Federation Account Allocation Committee (FAAC) is considering decisive actions against multiple taxation. The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, stated that the government aims to broaden its tax base while simplifying and streamlining tax administration. The government’s target is a tax-to-GDP ratio of 18% by 2026.
Telecommunication operators recently lamented facing 52 different taxes, prompting the government to consider merging over 200 taxes into 10. The Presidential Committee on Fiscal Policy and Tax Reforms suggested this consolidation to reduce the burden on businesses.
At the same meeting, Governor Sheriff Oborevwori of Delta State emphasized that taxes are the dividend of a thriving private sector. He urged the removal of institutional bottlenecks to reduce the cost of doing business in Nigeria, fostering a conducive environment for tax collection.
Wale Edun also disclosed at the meeting that the Federation Account has experienced improved revenue inflow since the removal of the petroleum subsidy, rising from an average of N650bn monthly to over N1tn monthly in the last four months. The government is set to collaborate with state governments to enhance domestic revenue mobilization and support vital sectors of the economy through the ‘States Action on Business Enabling Reforms’ program, launched in partnership with the World Bank from 2024 to 2026. This initiative aims to improve the ease of doing business in the country.