Mr. Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reform, says Nigeria is not bankrupt, contrary to some claims, explaining that the issue lies with revenue leakages.
Speaking at the 1st National Revenue Assurance Summit in Abuja on Tuesday, Oyedele emphasized that the country’s challenge lies in managing its revenue rather than a lack of funds. The summit, organized by the Nigerian Financial Intelligence Unit (NFIU), brought together representatives from all states and the Federal Capital Territory (FCT).
Mr. Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reform, has clarified that Nigeria is not bankrupt as some suggest but is instead grappling with revenue leakages. He noted that the government is actively working to resolve this issue.
Oyedele explained, “I wouldn’t say Nigeria is broke, but we do face revenue leakages.” He highlighted that the summit’s focus is on addressing these leakages and ensuring the government can effectively collect and utilize its revenues for the benefit of the people.
Nigeria, according to Oyedele, has a wide range of revenue sources, including government assets, enterprises, and natural resources beyond oil and gas. “Our goal now is to harmonize and maximize these sources,” he said. He expressed optimism that through tax reforms, Nigeria could boost its revenue by focusing on wealthier citizens, rather than burdening the poorest with taxes.
He pointed out that exempting vulnerable citizens from taxes and ensuring that those with the ability to pay do so is essential. He argued that when the elite pay their taxes, they avoid extra costs associated with managing their own infrastructure, which can be more expensive.
Collaboration between federal, state, and local governments is crucial, particularly in the areas of data collection and capacity building, Oyedele noted. “We need a transformative leap in revenue, not just small improvements,” he said.
Oyedele also stressed the importance of efficient, transparent government spending. He emphasized that improving governance and increasing accountability at all levels—federal, state, and local—will lead to better outcomes for the country’s citizens.
The Chairman explained that the government is moving towards a data-driven tax collection system, aiming to ensure that small businesses and the poor are not burdened with taxes. Instead, efforts will focus on wealthier individuals and organizations that can generate substantial revenue.
Also at the summit, Mrs. Hafsat Bakari, CEO of the Nigerian Financial Intelligence Unit, called for an end to tax avoidance and evasion, stressing that the government needs resources to provide critical services such as education, healthcare, and infrastructure.
Bakari noted that the NFIU, which has historically focused on money laundering and terrorist financing, is now prioritizing tax crimes and revenue assurance. She explained that the NFIU is expanding its collaboration with state-level tax authorities, acknowledging that much tax evasion happens at the state level.
She assured both federal and state revenue authorities of the NFIU’s full support in addressing these challenges and ensuring the financial resources needed for the country’s development are secured.
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