The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, says Nigeria needs to address its financial management to enhance revenue generation.
Speaking on News Central TV’s Jasiri about reforming Nigeria’s tax system on Thursday, Oyedele outlined several key areas that require attention, including revenue generation, expenditure management, prioritisation of spending, and overall efficiency to ensure benefits for the citizens.
He highlighted the importance of effective coordination among various governmental bodies, and stressed the necessity of adhering to fiscal limits and the need for clear consequences when these limits are breached.
“We need to address our finances as a country. This includes how we generate revenue, how we spend the revenues generated, and ensuring there is priority and efficiency in spending to benefit the people. We must also ensure proper coordination among the organs of government. How do we respect fiscal limits, and what consequences are in place when these limits are not respected?” He said.
Oyedele also mentioned the concept of revenue transformation, which encompasses both taxation and the management of government assets.
According to him, many government assets are currently being mismanaged, and there are also independent enterprises and a wealth of natural resources, including solid minerals, that could be better utilised.
“We refer to this as revenue transformation because we can no longer merely celebrate incremental improvements when starting from a very low base,” he stated.
Oyewole also disclosed that in 2023, the total revenue generated in Nigeria was less than half of Kenya’s budget. For 2024, the revenue forecast stands at N51 trillion, which is significantly less than one-quarter of South Africa’s budget.
“The total revenue generated in Nigeria in 2023 was less than half of Kenya’s budget. For 2024, N51 trillion was generated, which is less than one-quarter of South Africa’s budget.
“This small budget does not represent our revenue; it reflects significant deficit financing, meaning a substantial portion is borrowed money. This illustrates how small our revenue base is. Thus, we are pursuing revenue transformation,” he said.
Oyedele stressed the importance of fostering economic growth, ensuring that people can prosper, and creating an environment where businesses can thrive.
He stated that this is the only sustainable way to generate revenue, given that revenues and taxes arise as a result of economic activities, thus the need for a balanced economic equation.
“Another focus is on how to ensure the economy can grow, allowing people to prosper and businesses to thrive. This is the only way to generate revenue. Revenues and taxes result from economic activities, and the equation must balance,” he said.