Taiwo Oyedele, the chairman of the Presidential Fiscal Policy and Tax Reforms Committee, bemoaned the widespread disregard for the nation’s federal government’s assets, which are believed to be worth N100 trillion.
He claimed that with careful management, the government could take N10 trillion a year from the assets to pay for infrastructure projects. Oyedele said this during a cocktail reception hosted by the Harvard Business School Association of Nigeria (HBSAN) in his honor after the year.
The government has mismanaged such assets because it has shown no concern for them. Suppose that just with a hundred trillion assets, you become more efficient. That is N10 trillion in revenue, even if you only receive a ten percent annual return,” he stated.
The tax expert advised selling the assets if they could not be managed effectively. A portion of it, he said, would provide FX liquidity to boost productivity in the private sector. He went on to say that this would not only boost economic activity but also yield tax returns.
Although the Ministry of Finance Incorporated (MOFI) Act has not been altered, according to Oyedele, the 1959 law will be revised to explicitly state that MOFI should be in charge of managing such assets, which include the government’s stake in businesses.
Oyedele stated that the promotion of economic growth was the primary goal of the 75-member presidential committee and that this is the only long-term means of producing income.
He said the nation needed to examine the barriers that prevent the economy from growing and becoming competitive, especially for small enterprises.
According to Oyedele, the group has submitted its reports to the President with important suggestions to handle important economic concerns like managing exchange rates, the effects of eliminating fuel subsidies, controlling inflation, and promoting economic growth.
According to Oyedele, Nigeria’s inflation rate is around four times higher than the world average, and the country’s GDP is shrinking due to the devaluation of the naira.
Due to unemployment, he said that the nation’s capital income has also decreased during the previous ten years and has been negative. He also noted that the number of impoverished people in the nation has increased.
Oyedele pointed out that the alarming rise in public debt is made even more concerning by the stark disparity between borrowing and capital expenditures, which calls for an explanation—particularly given that the nation was borrowing to pay for debt payment and ongoing expenses.
According to him, the committee has recommended actions to the federal government to resolve redundant duties in the public sector, guarantee responsible administration of public funds, and maximize the value of public assets and natural resources.
According to Oyedele, the group has also suggested that ministries, departments, and agencies (MDAs) work together and communicate policies. He stated that in addition to fiscal measures to support foreign exchange management for convergence and stability, the committee has also created a spending framework to improve the spending’s quality and priority.
Collins Onuegbu, President of HBSAN, stated that stakeholder involvement and public input were appropriate, particularly given the challenging economic times. According to him, association members who are business owners are concerned about how the new tax law would affect their companies.
