The Chairman of the Presidential Fiscal Policy and Tax Reform Committee, Taiwo Oyedele, stated that the federal government loses approximately N6 trillion annually due to outdated tax incentives.
He mentioned during a press briefing by the Ministry of Finance that the current administration is working on reviewing these tax incentives to prevent such losses.
Oyedele emphasized the need to update incentives that are no longer relevant, and he aims to introduce disincentives to boost the economy and increase the tax-to-GDP ratio to 18% within three years. The committee also intends to streamline incentives to bridge the tax gap and encourage greater tax compliance, potentially yielding N20 trillion.
Furthermore, the Minister of Finance, Wale Edun, highlighted the government’s plans to attract Foreign Direct Investment (FDI) to reduce reliance on using 90% of revenue to service debts. Edun also emphasized the importance of tapping into Nigerians’ foreign exchange holdings in domiciliary accounts and encouraging diaspora remittances and investments in the country.
Additionally, Mele Kyari, the Group Managing Director of the Nigerian National Petroleum Corporation Ltd (NNPCL), noted that oil consumption has decreased by 30%, from 66.7 million to 46 million barrels per day, following the removal of fuel subsidies.