During a briefing at the ongoing Spring Meetings of the International Monetary Fund (IMF) and World Bank in Washington DC, Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed that approximately 90% of Nigeria’s tax revenue stems from just nine tax heads.
Despite about 80 different taxes and levies across the country, Edun highlighted that these nine taxes contribute significantly to the Gross Domestic Product (GDP).
Edun emphasized the government’s aim to streamline taxation by focusing on these nine taxes to enhance people’s willingness to pay and consequently boost revenue collection without increasing tax rates.
“Our strategy is to increase tax revenue without raising tax rates. We want to utilize technology to streamline tax collection, aiming for more efficiency,” Edun stated.
He elaborated that with proper utilization of technology and a concentrated effort on the nine high-yielding taxes, the government anticipates doubling tax revenue within three years.
Addressing the issue of excess liquidity, Edun outlined the Federal Government’s commitment to temporarily suspending the use of ways and means from the Central Bank of Nigeria (CBN). This move aims to foster collaboration between fiscal and monetary authorities to alleviate inflationary pressures and stabilize the currency exchange rate.
“The aim is to bring down inflation, stabilize the exchange rate, and lower interest rates to stimulate economic growth,” Edun explained.
Furthermore, Edun emphasized the importance of reducing external borrowing and focusing on domestic resource mobilization for sustainable economic growth.
Regarding food security, Edun assured that the government is actively addressing the issue by facilitating farmers’ access to their fields, especially in regions affected by insecurity. Additionally, agro clusters are being established in collaboration with the African Development Bank to bolster food production within the country.
Alongside Minister Edun, former Minister of Finance Zainab Ahmed, Permanent Secretary of the Federal Ministry of Finance Mrs. Lydia Shehu Jafiya, Governor of the CBN Mr. Olayemi Cardoso, and other senior government officials attended the meeting.
