In this interview, Mr. Zaccheus Adedeji, the Special Adviser to President Bola Tinubu on Revenue, discusses the efforts of the Tinubu Administration to enhance Nigeria’s revenue, ensure sustainable financing, and implement ongoing reforms to positively transform the nation’s economic prospects.
The last three months have been challenging for Nigerians due to the economic reforms initiated by President Tinubu. Is the President on track to fulfill his election promises?
For this government, our focus extends beyond the present moment or the short-term achievements of the President’s tenure. We are laying the groundwork for a prosperous future. While the foundation of a building may not always appear glamorous, it is undeniably the most critical part. As the house takes shape, its beauty becomes evident, and it provides shelter from external challenges.
In this short period, we have accomplished several significant milestones, such as addressing pressing tax issues, eliminating the wasteful subsidy on petrol to create fiscal headroom, and implementing forex reforms to rectify market distortions. These actions have placed us on the right path, moving in the right direction.
How is this administration planning to alleviate the burden on Nigerians facing the high cost of living following the removal of fuel subsidies?
We recognize the challenges faced by , particularly in the wake of economic reforms. President Tinubu signed executive orders on July 6 that reversed tax increases on manufacturers, suspended excise taxes on Single Use Plastics that would have affected SMEs, and deferred the commencement of various changes introduced through the Fiscal Measures and Finance Act 2023. These measures provide individuals and businesses with reasonable time to adapt without major disruptions to their livelihoods.
The removal of wasteful subsidies on petrol and forex has halted the financial drain on our treasury and is setting the stage for sustainable financing. Although some of these measures have led to short-term difficulties, we are confident that Nigerians will soon reap the benefits.
Are there plans to reduce the nation’s dependency on a single revenue-generating sector?
We firmly believe that Nigeria’s potential is vast, provided we enhance our policy environment and improve the efficiency of both the private and public sectors. President Tinubu has approved the establishment of a Presidential Fiscal Policy and Tax Reforms Committee, composed of distinguished Nigerians. This committee will advise the government on necessary reforms and support their implementation.
Ultimately, the committee’s work and other policy actions will result in diversifying the economy, revenue sources, and foreign exchange earnings, leading to a more productive economy.
What strategies are in place to attract foreign direct investment and create a conducive environment for potential investors?
President Tinubu’s philosophy is to tax returns on investment rather than investment itself, tax consumption instead of production, and facilitate prosperity while ensuring fair and progressive taxation. This administration’s market-friendly approach has already stimulated excitement in the capital market, with over 20% growth, the best performance in 15 years.
We are also working on reforms to create more job opportunities and entrepreneurship in the digital economy, particularly for our youth. Recognizing the volatility of the oil and gas sector and its impact on the economy, we are committed to diversifying into sectors like agriculture, solid minerals, and maritime.
How can the funds saved from subsidy removal contribute to economic stability?
The removal of subsidies on Premium Motor Spirit (PMS) and forex is a prudent decision that will not only curtail wasteful spending but also promote resource efficiency and eliminate economic distortions. This, in turn, reduces the need for excessive borrowing by the government at all levels to fund public spending.
The savings can be redirected towards building critical infrastructure, social services in education and healthcare, and reducing multidimensional poverty. Infrastructure projects like roads, power, rail, broadband, and pipelines are essential for a productive economy and can only be provided by the government. By investing in these areas, we create an environment that attracts investors and fosters economic growth.
Why should Nigerians trust President Tinubu and his team to deliver on the ‘Renewed Hope Agenda’?
President Tinubu’s agenda centers on inclusive and sustainable economic prosperity. Appointments in his administration are based on competence, with technocrats managing various economic aspects. Even the appointed politicians have proven records of performance.
We are making substantial progress, moving in the right direction, and I am confident that Nigerians will begin to experience the benefits of this administration’s policies in the near future. The future holds great promise.