Respect fiscal limits to address economic challenges – Oyedele
Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has underscored the importance of Nigeria adhering to its fiscal constraints to tackle its economic issues effectively.
Addressing the National Summit of Fiscal Responsibility Agencies in Abuja on Friday, Oyedele pointed out that Nigeria’s fiscal troubles stem not only from global economic conditions but also from domestic policy inconsistencies, administrative errors, and specific challenges such as insecurity and ineffective project management.
He remarked, “There is a pressing need for a stronger focus on fiscal governance, which encompasses prudent financial management, responsible spending, and careful borrowing. This requires coherent policy coordination both within the Federal Government and among sub-national entities, emphasizing adherence to fiscal limits and thresholds.”
Oyedele criticized the practice of legally restricting borrowing from the Central Bank of Nigeria to a maximum of five percent of the previous year’s revenue, only to exceed this limit significantly. He stated, “We must acknowledge the reality of our situation. We are a resource-poor country, and unfortunately, one that exhibits significant wastefulness.”
He argued that economic development cannot be achieved through mere optimism but requires practical economic decisions and accountability. “We need to hold the government accountable and make informed economic choices,” he asserted.
Oyedele also highlighted the disparity in budget sizes, noting that Nigeria’s budget is less than a quarter of South Africa’s. He expressed concern about the nation’s heavy reliance on borrowing and emphasized the necessity for policy coordination and tax system reform to alleviate the burden on the poor.
He explained, “Our goal is to redesign the tax system to ensure that the burden does not fall disproportionately on the poor, the vulnerable, or small businesses. Economic development requires substantial investment, and for this to happen, Nigeria must become a more favorable environment for prosperity.”
In conclusion, Oyedele called for effective governance and strategic economic planning to create a conducive environment for growth and development.
