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The Chairman, Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, lamented the general laxity towards federal government’s assets across the country estimated at N100 trillion.
With proper management, he said, the government can earn N10 trillion from the assets yearly to fund developmental programmes. Oyedele stated this at an end-of-year cocktail party held in his honour by the Harvard Business School Association of Nigeria (HBSAN).
“Government has not shown care at all about those assets such that they are being mismanaged. Imagine that you become more efficient with a hundred trillion assets alone. Even if you get a return of 10 per cent per annum, that is N10-trillion revenue,” he said.
The tax expert said if the assets could not be managed properly, it should be sold off. He said some of it would give FX liquidity to make the private sector more productive, adding that not only would that stimulate economic activities, but would bring returns in the form of taxes.
Oyedele said while nothing has been done to the Ministry of Finance Incorporated (MOFI) Act, the law of 1959 would be rewritten to make it clear that those assets, including government’s interest in enterprises, should be managed by MOFI.
Oyedele noted that the top pillar of the 75-member presidential committee was economic growth facilitation, adding that the only sustainable way to generate revenue is to grow the economy.
He said the country needed to look at impediments that make it difficult for the economy to be competitive and grow, particularly for small businesses.
Oyedele said the committee has presented its reports to the President with key recommendations to address critical economic issues ranging from exchange rate management, the impact of fuel subsidy removal, and moderation of inflation to facilitating economic growth.
Oyedele said Nigeria’s inflation rate is about four times the global average, while the gross domestic product (GDP) size is not big enough and falling in dollar terms because of naira depreciation.
He said the country’s capital income has also fallen over the past 10 years and has been negative, noting that there are more poor people today than the country had yesterday due to unemployment.
Oyedele noted that the rising public debt is even more worrisome with a huge gap in the amount being borrowed versus capital spending, which needs explanation, especially as the country was borrowing to fund recurrent expenditure and debt service.
He said the committee has suggested to the federal government measures to address duplication of functions in public service, ensure prudent public financial management and optimise value from government assets and natural resources.
Oyedele said the committee has also recommended policy signalling and collaboration by ministries, departments and agencies (MDAs).He said the committee has also introduced a spending framework to enhance the priority and quality of spending as well as fiscal measures to complement foreign exchange management for convergence and stability.
HBSAN President, Collins Onuegbu, said stakeholder engagement and public consultation was apt, especially as it was a very difficult time for the economy. He said members of the association who own businesses are worried about the impacts of the new tax regime on businesses.
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