President Ahmed Tinubu has reiterated that the economic reforms and policies being introduced by his administration have associated challenges.
He said his administration was implementing significant policy changes, which were long overdue, in order to reform governance and position the country for progress and shared prosperity for the citizenry.
Tinubu, who was represented by his Chief of Staff, Hon. Femi Gbajabiamila, spoke yesterday in Abuja at a two-day retreat for members of the House of Representatives on Economic Transformation and Development.
The retreat had the theme, “Navigating Change: Legislative Strategies for Economic Transformation.”
Tinubu stated, “As you know, my administration is implementing significant policy changes to reform how we govern and position our country for progress and shared prosperity for all citizens.
“These reforms, while necessary and, in some cases, long overdue, are not without their challenges. I am deeply grateful for your unwavering support and understanding during these times.
“Your understanding and support have been invaluable, and I am confident that with our continued collaboration, we can overcome any challenges that lie ahead.
“The oil and gas industry has long been the lifeblood of our national economy. My administration is working tirelessly to change this and diversify our economy from overreliance on the production of fossil fuels.”
The president added that his administration was also determined to maximise revenue potential from this critical industry. Tinubu noted that for this reason, his government was pushing policies to attract investment in the oil and gas sector.
He recalled that he recently signed an executive order to unlock about $10 billion in fresh investments in the sector.
Tinubu said that would happen through Fiscal Incentives for Non-Associated Gas (NAG), Midstream and Deepwater Oil & Gas Developments.
He said, just last week, that the federal government signed the Consolidated Guidelines for implementing Fiscal Incentives for the Oil and Gas Sector.
The president explained that the guidelines, which represented a cornerstone of the presidential directive, aimed at enhancing the Nigerian oil and gas sector’s global competitiveness while stimulating economic growth.
He added, “Related to this are the reforms we are implementing to our tax regimes to limit the taxes collected without negatively affecting government revenues.
“All of these have the same objective – to reduce government interference with the commercial imperatives of businesses in the country so that businesses based here can be competitive and focus on their core objectives of economic growth through innovation and trade.
“We will need the support of the National Assembly to fully implement some of these reforms, as statutory changes will be required in some areas.”
However, the lawmakers whom the retreat was organised for appeared to be uninterested, as the rowdiness and their loitering indicated that the retreat was another money wasting scheme.
For instance, while the programme was going on, the lawmakers were rowdy, forcing the master of ceremony to plead with them to maintain silence or talk in low voice with their colleagues.
Some of the lawmakers later left without coming back to the hall.
In his remarks, Speaker of the House, Hon. Tajudeen Abbas, stressed that Nigeria’s efficiency in collecting Value Added Tax (VAT) “is the lowest among its African peers, indicating significant inefficiencies in its tax system.”
Abbas expressed the readiness of the 10th House to aid the economic policies and programmes of the Tinubu administration. He said this included engagement with stakeholders on laws governing finance, tax and oil sub-sectors of the economy, with the aim of causing positive reforms.
The legislative retreat on economic transformation and development was organised by the House in collaboration with the Federal Inland Revenue Service (FIRS) and the Konrad Adenauer-Stiftung Foundation (KAS).
Abbas noted that the House made a deliberate decision to focus on tax reforms and modernisation, as well as a review of the implementation of the Petroleum Industry Reform Act (2021). “The overarching objective is to discuss and identify concrete legislative strategies for economic transformation,” he said.
The speaker expressed pleasure that the legislative retreat was taking place, “at a point in our nation’s economic landscape when the current administration is diligently implementing policies and initiatives to steer our economy towards recovery, growth, and sustainable development.”
He stated that the commitment and foresight shown by the government in addressing economic challenges, “deserve commendation, and it is imperative that we, as legislators, align our efforts to support and enhance these endeavours.”
Abbas added, “As a critical arm of government, the legislature has a crucial role in shaping our nation’s economic transformation and development. Part of our law-making powers is the authority to enact tax reforms and strengthen resource governance mechanisms.
“By designing and implementing progressive tax policies, we strive to ensure a fair and efficient tax system that boosts revenue while fostering economic growth and equity. This involves not only broadening the tax base and simplifying tax codes but also enhancing compliance and minimising loopholes that benefit only the wealthy.”
The speaker stated that the National Assembly was vital in ensuring continuous review of the PIA to ensure its effectiveness in a rapidly evolving industry landscape. He said this involved meticulously monitoring the implementation of the Act, analysing its impact, and identifying areas where modification might be necessary.
Adedayo Akinwale
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