President Bola Ahmed Tinubu has approved the establishment of a Presidential Committee on Fiscal Policy and Tax Reforms.
Presidential spokesman, Dele Alake, announced this in a statement on Friday.
According to him, the constitution of the committee was in consonance with his promise to remove all barriers impeding business growth in Nigeria.
He said the committee would be chaired by Fiscal Policy Partner and Africa Tax Leader at PriceWaterhouseCoopers (PwC), Mr. Taiwo Oyedele, comprised experts from both the private and public sectors and have responsibility for the various aspects of tax law reform, fiscal policy design and coordination, harmonization of taxes, and revenue administration.
Special Adviser to the President on Revenue, Mr. Adelabu Zacch Adedeji, explained that President Tinubu recognised the importance of a sound fiscal policy environment and an effective taxation system for the functioning of the government and the economy.
”Nigeria ranks very low on the global ease of paying taxes while the country’s Tax to GDP ratio is one of the lowest in the world and well below the African average.
‘This has led to an overreliance on borrowing to finance public spending which in turn limits the fiscal space as debt service costs consume a greater portion of government revenue, annually resulting in a vicious cycle of inadequate funding for socio-economic development.
”While some incremental progress has been recorded over the years, the outcomes have not been transformative enough to change the narrative,” he said.