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Tag: #EconomicPolicy

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Atiku outlines the policies he would have implemented differently if he had been president: $10 billion for MSMEs and the progressive elimination of subsidies.

The Peoples Democratic Party (PDP) presidential candidate for 2023, Atiku Abubakar, claims that if he had won the presidency of Nigeria, his reforms would have “benefited from more adequate preparations” and “more sufficient diagnostic assessment of the country’s conditions.” Abubakar claimed that his policy changes would have “protected our fragile economy against a much deeper crisis by preventing business collapse” in a post on his X account on Sunday. He called President Bola Tinubu’s administration “overkill” for raising the energy cost, floating the currency rate, and eliminating the gasoline subsidy. In order to “first eliminate revenue leakages arising from governance, including the cost of running the government and the government procurement process,” the former vice president stated that he would have set an example. He also said that “alternative approaches to conflict resolution such as diplomacy, intelligence, improved border control, deploying traditional institutions, and good neighborliness” would have been used by his administration. According to Abubakar, he would have established an economic stimulus fund (ESF) “to support MSMEs across all economic sectors with an initial investment capacity of approximately US$10 billion.” The former vice president claimed that even though he supported eliminating the gasoline subsidy, his government would have implemented the measures using “a gradualist approach.” “The abrupt and total elimination of subsidies would not have occurred. We used a gradualist approach while I was vice president, and we finished phases 1 and 2 of the reform before the end of our term, which is instructive,” he added. According to Abubakar, his government would have a “managed-floating system” of foreign exchange. “We would not be able to run an open, private sector-friendly economy under a fixed exchange rate system, so it was out of the question,” he stated. READ ALSO: Police Arrest 17 Nigerians, 113 Foreigners For Cybercrimes, Hacking But, considering Nigeria’s fundamental economic circumstances, implementing a floating exchange rate regime would be overkill. “We would have urged our central bank to handle foreign exchange in a gradualist manner. It would have been better to have a managed-floating system. We love to have you back, Kindly Subscribe to our Newsletter.

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According to Tinubu, tax reform bills will not be removed from the national assembly.

President Bola Tinubu declared that the tax reform proposals would not be removed from the National Assembly notwithstanding the uproar surrounding them. This was revealed in a statement by Bayo Onanuga, the President’s Special Advisor on Information and Strategy. Instead, he clarified that the proposals ought to pass the legislature. “The National Economic Council recommended that the tax reform bills already sent to the National Assembly be withdrawn for further consultation,” the statement said of President Bola Tinubu. The Nigerian leader also praised the recommendations given by the members of the National Economic Council, particularly Vice President Kashim Shettima and the 36 state governors. He feels that without rescinding the measures, the legislative process, which has already started, offers a chance for input and required modifications. from the National Assembly. President Tinubu welcomes more discussions and involvement with important stakeholders to allay any concerns over the legislation as the National Assembly considers them for passage, but he also urges the NEC to let the process run its course. President Tinubu had only one goal in mind when he established the Presidential Committee on Tax and Fiscal Policy Reform in August 2023: to realign the economy for increased productivity and efficiency and create a more favorable business and investment climate. This goal is still more important now than it has ever been, the statement said. NEC Demands Tax Reform Bill WithdrawalNEC voiced concerns on Thursday on the Tax Reform Bill that President Bola Tinubu sent to the National Assembly. The Based on the findings and suggestions of the Presidential Committee on Fiscal and Tax Reforms, which the President established to aid in increasing the nation’s revenue generation, the measure was sent to NASS. The NEC unanimously demanded that the bill be withdrawn. This was one of the decisions made at the NEC meeting held at the Presidential Villa in Abuja, which was presided over by Vice President Kashim Shettima. Following the meeting, the governors briefed State House Correspondents, pointing out that the proposed reforms require enough agreement among the stakeholders. According to Oyo State Governor Seyi Makinde, who briefed reporters, NEC noted that sufficient consultations were required to gather the opinions of stakeholders, including state governors, in order to guarantee that the legislation is favorable. to every Nigerian. “The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms presented to NEC today. Fair taxes, prudent borrowing, and sustainable spending are their top priorities,” he stated. The Council recognized that the nation is underperforming on every metric, including the yield from its main sources of income, the tax to GDP ratio, and others. Following much discussion, NEC concluded that the suggested improvements require adequate agreement between and among the stakeholders. Therefore, the Council recommends that the tax reform bill now before the National Assembly be withdrawn in order to broaden consultations and foster agreement on these reforms for the good of the entire nation and to provide people with They should be aware of our goal and the direction we are taking with regard to tax reform, since there is a great deal of disinformation and misunderstanding,” Governor Makinde stated. Northern Governors Turn Down the BillThe action was taken just days after some of the proposals—most notably the VAT-sharing template in one of the bills—were rejected by the powerful Northern Governors’ Forum. Following a meeting in Kaduna, the northern governors came to this decision, calling for justice and equity. This is due to the fact that businesses pay VAT according to the location of their tax office and headquarters, not the location of the goods and services that are used. Given the aforementioned, the forum unanimously denounces the proposed Tax Amendments and urges National Assembly members to oppose any legislation that would endanger “the welfare of our people,” stated Inuwa Yahaya, the forum’s chairperson as well. To be clear, the Northern Governors’ Forum has nothing against policies or initiatives that promote the growth and development of the country. However, in order to guarantee that no geopolitical zone is overlooked or undervalued, the forum demands equity and fairness in the execution of all national policies and programs,” he stated. READ ALSO: Court approves N1.1 billion bail for 114 protesters charged with arson against public facilities. The governors that attended were Ahmadu Umaru Fintiri of Adamawa, Bala Mohammed of Bauchi, AbdulRahman AbdulRazaq of Kwara, Babagana Zulum of Borno, Uba Sani of Kaduna State, Inuwa Yahaya of Gombe, Dauda Lawal Dare of Zamfara, and Abdullahi Sule of Nasarawa. The deputy governors of the other governors represented them. Gombe State Governor Yahaya reading the statement declared during the conference that the tax proposals were not in the best interests of the North and gave northern lawmakers instructions to oppose them. We love to have you back, Kindly Subscribe to our NewsLetter.

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Breaking: The NEC has advised the withdrawal of President Tinubu’s tax reform bills.

The National Executive Council (NEC) has recommended withdrawing the four tax reform bills submitted to Parliament by President Bola Tinubu. This decision was made during a meeting at the Presidential Villa on Thursday, chaired by Vice President Kashim Shettima, and included governors from all 36 states. Oyo State Governor Seyi Makinde, who spoke to reporters after the meeting, explained that the NEC called for the withdrawal to allow for broader consultations and to build consensus around the proposed reforms. The bills have sparked controversy, particularly with the Northern Governors Forum opposing them. These four bills were part of President Tinubu’s initiative to revamp Nigeria’s tax system. They aim to establish a central revenue service responsible for collecting all government revenues, including those currently managed by agencies like customs and the ports authority. Additionally, the bills propose allocating a larger share of VAT revenues to states, which has raised concerns among northern leaders who believe it could disadvantage their region. During the meeting, the NEC emphasized the importance of alignment among stakeholders regarding these reforms, acknowledging existing miscommunication. A spokesperson for President Tinubu previously stated that the proposed laws would not increase current tax rates but would instead streamline and enhance the existing tax framework. The reforms are designed to ensure a fairer distribution of tax responsibilities without adding to the burden on citizens, and they are not expected to lead to job losses. In fact, they aim to create new job opportunities by fostering a dynamic, growth-oriented economy. Currently, tax administration suffers from a lack of coordination among federal, state, and local authorities, which leads to confusion and inefficiency. The proposed laws aim to improve this situation by harmonizing revenue collection and management across all levels of government, without eliminating the functions of any existing agencies. READ ALSO: Wike: Unpainted taxis will not be permitted to pick up customers in Abuja. Regarding the controversial derivation-based VAT distribution model, the spokesperson stated that the new approach intends to create a fairer system. It considers the place of supply or consumption, ensuring that states in the Northern region that produce essential goods do not lose out due to VAT exemptions or consumption in other areas. The ongoing tax reform seeks to address the inequities in the current model for distributing VAT revenues. We Love To Have You Back. Pease kindly Provide Us With Your Email.

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