In a recent international forum, President Bola Tinubu sought to assure investors from G20 nations that Nigeria is a secure destination for their investments. During a panel discussion at the G20 Compact with Africa Economic Conference in Berlin, hosted by German Chancellor Olaf Scholz, President Tinubu emphasized Nigeria’s vast market potential and readiness to capitalize on its strengths for mutual success.
While President Tinubu is actively engaging with investors abroad, the Federation Account Allocation Committee (FAAC) is addressing concerns related to multiple taxation within the country. The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, announced plans at FAAC’s retreat in Delta to take decisive actions against multiple taxation. Edun assured that the government aims to avoid overburdening taxpayers with new levies but instead intends to broaden the tax base and simplify tax administration.
President Tinubu, speaking in Germany, highlighted Nigeria’s attributes, stating, “We have the youngest, largest, and most vibrant youth population in Africa, a well-educated populace, a massive market, and the political will to bring it all together under my leadership.” He underscored his administration’s commitment to transformative changes, emphasizing good governance principles and the removal of obstacles hindering businesses.
President Tinubu assured potential investors of the country’s commitment to fiscal responsibility and tax reforms. He emphasized Nigeria’s recognition of the importance of contractual sanctity and assured investors that the country has moved beyond restrictive policies, allowing capital to move freely in and out.
Back in Delta, Minister Wale Edun clarified the government’s stance on taxation, aiming to broaden the tax base and simplify administration for effective collection. The government’s target includes achieving a tax-to-GDP ratio of 18% by 2026. The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, proposed the consolidation of over 200 taxes into 10, aiming to reduce the burden on businesses.
Governor Sheriff Oborevwori of Delta State supported the need for tax reforms to create a thriving private sector, acknowledging that high costs of doing business contribute to tax evasion and avoidance. He emphasized the importance of widening the tax base and diversifying the economy.
Minister Edun also disclosed positive economic outcomes, citing improved revenue inflow to the Federation Account since the removal of the petroleum subsidy. He highlighted ongoing economic reforms, such as the States Action on Business Enabling Reforms program, aimed at enhancing the ease of doing business in collaboration with the World Bank.
In addressing concerns over the removal of the petroleum subsidy and harmonization of exchange rates, Minister Edun assured Nigerians that the government is aware of the challenges and is actively working to support the development of vital sectors through collaborative efforts with state governments.