President Bola Tinubu has set a bold target of an 18% Tax-to-GDP ratio within the next three years.
The President expressed his determination to tackle the burden of debt servicing and the strain it places on Nigeria’s limited government revenues.
This announcement came during the inauguration of the Presidential Committee on Fiscal Policy and Tax Reforms chaired by Mr. Taiwo Oyedele.
The committee has been assigned a one-year mandate with a focus on three key areas: fiscal governance, tax reforms, and growth facilitation.
President Tinubu underscored the importance of their mission, recognizing the high expectations from the Nigerian people for an improved quality of life.
Emphasizing the government’s responsibility, he stated, “To whom much is given, much is expected. It is even more so when we campaigned on a promise of a better country anchored on our Renewed Hope Agenda.”
Nigeria faces challenges in its tax sector, including ease of tax payment and a Tax-to-GDP ratio that falls below the continental average.
President Tinubu outlined the vision to transform the tax system to support sustainable development, aiming for a minimum of 18% tax-to-GDP ratio within the next three years.
The President highlighted the crucial role of revenue in providing social services to the Nigerian people, proclaiming, “Without revenue, government cannot provide adequate social services to the people it is entrusted to serve.”
The committee has been tasked with delivering quick reforms within thirty days, recommending critical measures within six months, and ensuring full implementation within one calendar year.