- President Bola Tinubu defended the petrol subsidy removal, calling it necessary for Nigeria’s future despite economic hardships
- Tinubu reaffirmed his commitment to controversial tax reforms, aiming to create a fairer and more equitable system
- Tinubu further highlighted strategies for economic recovery, including boosting local production and fighting corruption
President Bola Tinubu has made it clear that there is no turning back on his administration's tax reform plans, which have sparked significant controversy across the country.
Speaking during a media chat in Lagos on Monday, December 23, Tinubu stressed that the reforms were necessary to eliminate colonial-era assumptions in Nigeria's tax system and were part of his broader economic agenda.
The Presidential Media Chat, Tinubu’s first since assuming office, was aired on the Nigerian Television Authority on Monday night.
During the session, the President reaffirmed his commitment to the tax reforms despite mounting opposition, particularly from northern governors who have expressed concerns about the potential economic impact.
The tax reform bills, which include the Nigeria Tax Bill 2024 and the Tax Administration Bill, were transmitted to the National Assembly on September 3, 2024, following recommendations from the Taiwo Oyedele-led Presidential Committee on Fiscal and Tax Reforms.
These bills aim to create a more equitable and streamlined tax system by broadening the tax base and reducing disputes.
However, the bills have faced resistance, especially from the 19 northern state governors. On October 29, 2024, the Northern Governors Forum criticised the proposed Value Added Tax (VAT) sharing template, calling it detrimental to the region’s economic interests. This led to the indefinite suspension of a planned debate on the bills in the House of Representatives.
Despite the backlash, Tinubu has maintained that the reforms are pro-poor and designed to ensure a fairer distribution of resources across the country. "Tax reform is here to stay.
We cannot continue to use outdated methods in today’s economy. The goal is to widen the tax net and ensure a fairer distribution of wealth," he said, emphasising that such reforms often face resistance but are necessary for long-term growth.
The President also addressed concerns about the removal of petrol subsidies, which has led to increased fuel prices and widespread economic hardship.
Tinubu reiterated that the subsidy removal was an essential step to safeguard Nigeria’s future, pointing out that the country had been spending its future by providing fuel subsidies to neighbouring countries.
"I have no regrets about removing the subsidy. We were spending our future. We were deceiving ourselves," he stated.
"Phased removal is part of unnecessary fear. The country cannot continue to live beyond its means. We must manage our resources wisely to avoid financial disaster."
On the issue of government size, Tinubu rejected calls for a cabinet downsizing, asserting that his appointees were crucial to the smooth running of the country.
"Nigeria is a large country, and we need many hands to manage its affairs. Efficiency and effectiveness are key, not the size of the cabinet," he added.
The President’s comments also touched on the recent stampedes at food distribution events, where at least 67 people lost their lives.
Tinubu blamed the organisers for the tragic events, calling for better organisation and discipline in society. He also stressed the importance of responsible giving, warning against poorly planned events that can lead to chaos.
In terms of fighting corruption, Tinubu pointed to his administration’s efforts, such as the removal of fuel subsidies and the recent discovery of assets linked to former officials, as evidence of his commitment to tackling graft.
He also mentioned the introduction of student loans as a means to reduce the temptation for students to engage in corrupt practices to fund their education.
On economic recovery, Tinubu reiterated that increasing local production and reducing imports were key strategies for addressing inflation, which currently stands at 34%.
He expressed confidence that with the right incentives, including low-interest loans to farmers and improved security, Nigeria could become more self-sufficient.
Regarding food prices, Tinubu rejected the idea of price controls, instead emphasising the importance of boosting agricultural production to ensure sufficient supply in the market.
"We don’t believe in price control. We need to increase local production to feed ourselves and export," he further expressed.
Senate approves Tinubu’s $2.2 billion loan request to fund 2024 budget deficit
Meanwhile, TheRadar reported that the Senate approved President Bola Tinubu’s loan request of $2.2 billion to partially finance the N9.7 trillion budget deficits for the 2024 fiscal year.
The approval followed the presentation of a report by the Chairman of the Senate Committee on Local and Foreign Debts, Aliyu Wamakko, during plenary on Thursday, November 21.
