The Chairman of Nigeria’s Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele believes Nigeria can significantly boost its revenue without imposing new taxes.

Instead, he advocates for better tax administration and the use of technology to close the estimated N20 trillion tax gap.

In an interview on Channels Television’s station on Friday, Oyedele emphasised that the committee’s work focuses on transformative fiscal reforms driven by evidence and wide consultation.

“We’ve done a lot of work, quite extensive and far-reaching,” he remarked. We have ve consulted widely, including with governors, federal revenue services, and primary sector stakeholders,” he said.

The Presidential Committee on Fiscal and Tax Reforms, was established to review and reform Nigeria’s fiscal and tax policies, aiming to enhance efficiency, increase revenue, promote economic growth, and reduce poverty.

The committee’s objectives include reviewing tax laws, identifying new revenue sources, developing a national fiscal policy, harmonizing tax policies, improving tax administration, enhancing transparency, promoting economic diversification, and encouraging private sector investment.

The committee’s work is expected to lead to a more effective fiscal and tax system, improving the overall well-being of Nigerians.

Regarding the pace of fiscal reforms compared to monetary policy, Oyedele explained, “Fiscal reform cannot be as rapid as monetary policy. It requires evidence-driven policies and extensive consultation to ensure accurate diagnosis and effective prescriptions.”

He further disclosed that some recommendations, including a new tax regime offering relief to small businesses and easing capital constraints, have already been implemented.

These measures, signed by the Ministers of Finance and Economy, Wale Edun are designed to stimulate growth amid current economic challenges.

When asked about generating more revenue without increasing taxes, Oyedele expressed optimism.

“We have over 60 different taxes and levies but haven’t collected enough to adequately fund infrastructure like roads,” he noted.

“Instead of introducing new taxes, we advocate consolidating and harmonizing existing ones,” he added.

Oyedele stressed the importance of leveraging data intelligence and technology to close tax gaps and ensure compliance.

“By identifying those who should be paying but aren’t, we can potentially double our revenue within two to three years,” he asserted.

He also emphasised the need for exemptions for micro-businesses and low-income earners to prevent burdening society’s most vulnerable.

Oyedele affirmed his confidence in Nigeria’s ability to mobilize revenue sustainably.

“We believe in our approach over the medium to long term by streamlining taxes and enhancing compliance through modern methods, Nigeria can unlock its economic potential without overburdening its citizens,” he said.

The committee’s proposals are expected to undergo further legislative processes in the coming weeks, aiming to pave the way for a more robust fiscal policy framework in Nigeria.

By Opeyemi Abdulsalam

The Central Bank of Nigeria (CBN) has expressed its commitment to developing and implementing additional policies aimed at addressing cybersecurity threats in the country’s financial sector.

This announcement was made by Mr. Philip Ikeazor, Deputy Governor of Financial Systems Stability at CBN, during a two-day conference organized by the Financial Institutions Training Centre (FITC) in Lagos.

The conference focused on Fintech and brought together industry experts to discuss innovative solutions and strategies for navigating the rapidly evolving financial landscape.

Mr. Ikeazor emphasized the importance of prioritizing cybersecurity in the face of increasing threats and vulnerabilities in the financial sector.

By introducing new policies and measures, the CBN aims to enhance the resilience and security of Nigeria’s financial system, protecting stakeholders and promoting a stable and sustainable financial environment.

Speaking on the theme, ‘Building Trust in the Digital Age: Balancing Performance with Compliance’, he said issues such as cybersecurity threats, data breaches, and digital fraud are persistent concerns that could erode consumer confidence in the system.

Ikeazor said the apex bank, in addition to existing measures, is working on new regulations to further enhance performance and compliance.

He said the new regulations would focus on two key areas; corporate governance and licensing requirements.

“The new regulation is crucial to mitigate the risks of the digital era,” he said.

“Every organisation should conduct its business processes in compliance with the law and the various regulations. Financial institutions need to take the compliance function as extremely important.

“Corporate governance is also very critical. Organisations need to have the right structure and be effectively transparent and accountable in the administration of their affairs,” he said.

Recall that in 2023 alone, Deposit Money Banks lost N10 billion to cyber fraud.

…says foreign currency deposits limited to Abuja and Lagos CBN branches

By Opeyemi Abdulsalam

The Central Bank of Nigeria (CBN) has released new directives to commercial banks regarding the deposit of foreign currency cash with the apex bank.

In a circular COD/DIR/INT/CIR/001/016 published on the bank’s website, the Director of Currency Operations, Mr. Mohammed Solaja, instructed Deposit Money Banks (DMBs) to submit a written notification to the Central Bank of Nigeria (CBN) at least three working days prior to depositing foreign currency notes, indicating their intention to make such a deposit.

The Central Bank of Nigeria (CBN) has specified that deposits of foreign currency can only be made at its branches in Abuja and Lagos.

It further directed that each bank would be allowed a maximum deposit of $10 million threshold for USD 100 notes and USD 50 notes daily.

The CBN said that smaller denominations of $ 20 notes and belows would be at a maximum of $1 million daily.

British Pound and Euro were also pegged at GBP 1 million and Euro 1 Million per day per DMB.

According to the circular, each denominations would be in separate boxes and two representatives of a DMB wanting to make.deposits must be present to witness the counting and confirm the amount.

It added that only CBN-registered CIT companies for deposit of foreign currency notes would be allowed to representative the DMBs in the exercise.

CBN directed that the deposits would take place between 8.00 am and 12 noon and that the selected branches must confirm the deposits same day.

Handling charge, it.said would be at 0.30 percent and would be received from the Current Accounts of DMBs with the CBN.

The bank said that the new guidelines supersede the June 17, 2017 circular referenced: COD/DIR/GEN/CMF/11/094.