The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has disclosed that the Federal Government is expected to save a substantial N8 trillion annually from the removal of fuel subsidy and exchange rate unification policies. Oyedele highlighted the necessity for the government to utilize these savings effectively to alleviate the challenges faced by the average Nigerian.
Speaking at the Lagos Chamber of Commerce and Industry 2024 Economic Outlook and Budget Analysis, Oyedele emphasized the importance of intentional spending to positively impact the populace, particularly addressing multidimensional poverty. The committee recommended the suspension of certain “nuisance taxes” to alleviate frustration among the people.
Additionally, Oyedele stressed the urgent need to create digital opportunities for Nigeria’s youthful population, asserting the country’s capacity to generate $20 billion annually from the technology sector.
The panel also made recommendations to promote exports, including services and intellectual property, and address existing loopholes in diaspora remittances. Oyedele called for amendments to laws allowing Nigerian companies to pay taxes in dollars, potentially saving about $3.5 billion annually.
The Director General of the Budget Office, Ben Akabueze, expressed concerns about the country’s consistent deficit budgets over the past three decades, leading to a worrisome debt profile. Akabueze emphasized the need to focus on raising public revenues and highlighted that efficient spending, rather than reduced spending, should be the priority.
Bismarck Rewane, CEO of Financial Derivatives, identified key economic challenges, including sub-optimal growth, income inequality, high poverty, unemployment rates, inflation, fiscal imbalances, and currency pressures. He attributed the prolonged forex crisis to factors such as lack of transparency, unclear policy direction, ineffective price discovery, capital controls, and high speculation/arbitrage activities.
