Nigeria’s Finance Minister plans Tax Reform and Monetary Policy Shifts

Wale Edun, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, revealed during a briefing at the ongoing Spring Meetings of the IMF and World Bank in Washington DC that the majority of Nigeria’s tax revenue, approximately 90%, comes from just nine tax categories out of the 80 in existence.

Edun emphasized the government’s aim to streamline taxation, focusing on efficient collection methods and reducing the burden on taxpayers. He highlighted plans to leverage technology for improved tax collection without increasing tax rates, with the goal of doubling tax revenue within three years.

Related Article: Dangote Refinery slashes Diesel price to N1000 per litre to combat inflation in the country.

Furthermore, Edun announced the Federal Government’s decision to suspend the use of ways and means from the Central Bank of Nigeria temporarily. This move is part of a collaborative effort between fiscal and monetary authorities to combat inflation and stabilize the currency exchange rate.

The objective is to lower interest rates, making borrowing more affordable for investors and stimulating economic growth in Nigeria. Additionally, the government plans to prioritize domestic resource mobilization over borrowing, aiming for long-term sustainability and reduced repayment pressures.

Related Article: Latest Market Insights: CBN intervention sparks 7.7% surge in Naira-Dollar exchange rate

Regarding food security, Edun addressed concerns by emphasizing efforts to enhance farmers’ access to fields, particularly in regions affected by insecurity. Agro clusters are being established in partnership with the African Development Bank to boost food production within the country.

Present at the meeting were prominent figures including former Minister of Finance Zainab Ahmed, Permanent Secretary of the Federal Ministry of Finance Lydia Shehu Jafiya, and Governor of the Central Bank of Nigeria Olayemi Cardoso, among others.

Leave a Comment