Connect with us

Business & Economy

Experts urge FG to broaden tax net to reduce borrowings

Published

on

Tax
Tax
Share

Finanical analysts have urged the Federal Government to broaden the tax net to boost revenue and reduce the country’s rising debt profile.

They gave the advice in separate interviews with the News Agency of Nigeria (NAN) in Lagos on Friday.

Sheriffdeen Tella, a Professor of Economics at the Olabisi Onabanjo University Ago-Iwoye, Ogun, said the Federal Government should broaden the tax net to improve its revenue and reduce new borrowings.

“The authorities should deploy technology so as to ensure that eligible Nigerians do not evade taxes particularly the elite.

“The payment of taxes is quite crucial to meet government statutory obligations to the people for the public good,” Tella said.

He suggested that the Federal Government should sell the country’s moribund assets to raise revenue and reduce the urge to borrow to meet its obligations.

He added that the political class must cut down the cost of governance to reflect the times.

“ Our political office holders must see the need to reduce the high cost of governance because the pandemic has led to a drop in government revenue.

“ The country’s economy is yet fragile and our office holders must live within the current economic realities,” Tella said.

Also speaking, Dr Titus Okunrounmu, a former Director, Budgeting Department of the Central Bank of Nigeria (CBN), said the Federal Government should manage its debt exposure by strengthening its diversification drive.

“ More emphasis ought to be given to the mining sector, among others to contribute adequately to government earnings.

“The sector should be enhanced through private investment to change the revenue position of the country,” Okunrounmu said.

NAN reports the World Bank listed Nigeria among the top 10 countries with high debt risk exposures.

It stated this in the financial statement for International Development Association (IDA), which was among the World Bank Fiscal Year 21 audited financial statements released on Monday.

The financial statement said, “IDA faces two types of credit risk: country credit risk and counterparty credit risk.

“Country credit risk is the risk of loss due to a country not meeting its contractual obligations; and counterparty credit risk is the risk of loss attributable to a counterparty not honoring its contractual obligations.

“IDA is exposed to commercial as well as noncommercial counterparty credit risk.”

Nigeria was rated fifth on the list with $11.7bn IDA debt stock, while India led the list with $22bn IDA debt stock, followed by Bangladesh with $18.1bn IDA debt stock, Pakistan with $16.4bn IDA debt stock, and Vietnam with $14.1bn IDA debt stock.

But the Debt Management Office (DMO), in a swift reaction, flayed media reports listing Nigeria as a “high-debt risk nation.”

The agency said such publications claiming that the classification came from the IDA Audited Financial Statement for the Fiscal Year 2021 (July 1, 2020 – June 30, 2021) were a misinterpretation of the report.

DMO stated: “The World Bank’s report was an assessment of the performance of IDA and not the performance of the IDA loans nor the debt repayment capacity of the beneficiaries of IDA loans.”
(NAN)

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business & Economy

FG Launches Free Financial Education Programme for 100,000 Youths 

Published

on

FG logo
Share

The Federal Ministry of Youth Development, in partnership with Investonaire Academy, has commenced registration for a nationwide financial education programme designed to train 100,000 Nigerian youths annually in financial literacy, entrepreneurship, global trade, and investment.

In a statement signed by Omolara Esan, Director of Information & Public Relations, the Ministry said the initiative reflects its commitment to equipping young Nigerians with the skills to navigate today’s complex financial landscape, enhance employability, and foster sustainable wealth creation.

The programme will provide participants with exposure to global asset classes, including commodities, gold, equities, and foreign exchange, as well as training in risk management, portfolio development, and wealth-building strategies.

Successful candidates will receive industry-recognised certificates to support career advancement and entrepreneurial opportunities. Training will be delivered via an interactive Learning Management System (LMS), incorporating gamified learning, simulations, quizzes, and real-life trading scenarios. Physical sessions will begin in Abuja before expanding nationwide.

The programme is open to students, NYSC members, entrepreneurs, job seekers, and young professionals across Nigeria’s 36 states and the FCT.

Registration is free and currently ongoing via www.investonaire.org.

 

 

 

 

Continue Reading

Business & Economy

Okonjo-Iweala Hails Tinubu’s Reforms, Urges Focus on Growth and Hardship Relief

Published

on

President Bola Ahmed Tinubu and WTO DG, Dr. Ngozi Okonjo-Iweala,
Share

Director-General of the World Trade Organisation (WTO), Dr. Ngozi Okonjo-Iweala, has praised President Bola Tinubu’s economic reforms as steps in the right direction, while urging the administration to now prioritise economic growth and measures to ease hardship for Nigerians.

Speaking to journalists after a meeting with the President in Abuja on Thursday, Okonjo-Iweala commended the government’s efforts to stabilise the economy, describing stability as the necessary foundation for long-term progress.

“We think the President and his team have worked hard to stabilise the economy. You cannot really improve an economy unless it is stable. So he has to be given the credit for the stability of the economy,” she said.

While acknowledging the positive impact of ongoing reforms, she stressed that stability alone was insufficient.

“The reforms have been in the right direction. What is needed next is growth. We now need to grow the economy and put in place social safety nets so that people who are feeling the pinch of the reforms can also have some support to weather the hardship,” she noted.

Okonjo-Iweala said discussions with the President focused on balancing structural reforms with relief measures for vulnerable citizens, as well as strategies for job creation and boosting disposable income.

“The next step is: how do we build social safety nets to help Nigerians cushion the hardship they are feeling, and then how do we grow the economy so we can put out more jobs and more money in people’s pockets?” she asked.

The WTO chief emphasised that without job creation and increased incomes, the benefits of reform would not fully reach ordinary Nigerians.

Continue Reading

Business & Economy

Dangote Refinery Fires Back at Shutdown Rumours, Flaunts 40m-Litre Petrol Output

Published

on

Aliko Dangote
Share

The management of Dangote Petroleum Refinery has moved to quash speculation about an operational shutdown, insisting that the multibillion-dollar facility remains in full swing.

In a statement on Friday, the refinery dismissed reports of fuel shortages as “baseless” and “misleading,” declaring that it continues to churn out over 40 million litres of petrol and 15 million litres of diesel every single day.

Far from winding down, operations at the giant plant in Lagos are, according to the company, running at full capacity with truck loading activities in constant motion. The sale of Residual Catalytic Oil (RCO) in recent days, it explained, is a normal part of refining operations—not an indication of trouble.

Throwing down the gauntlet to sceptics, the refinery invited fuel marketers to place orders for its daily production for the next 90 days, saying the offer underscored both its transparency and its determination to safeguard Nigeria’s energy security.

The company also used the opportunity to reaffirm its stance against the importation of substandard petroleum products, vowing to maintain quality and reliability in the domestic market.

 

 

 

Continue Reading