By Christiana Ekpa
Nigerian President Bola Tinubu says his administration is implementing significant reforms that will reposition the country for the overall benefits of citizens.
He stated this at the opening of an Economic Retreat for members of the House of Representatives, in Abuja.
He stated that while the reforms are necessary, some of them are overdue.
The President, who was represented by his Chief of Staff, Femi Gbajabiamila, noted that though the oil and gas industry has been the mainstay of the country’s economy for a long time, the government is working assiduously to diversify the economy. Regardless, the President noted that his administration is determined to maximize the revenue potentials in the industry.
“ For this reason, we are pushing policies to attract investment in the oil and gas sector.Recently, I signed an executive order to unlock about $10 billion in fresh investments in the sector. This will happen through Fiscal Incentives for Non-Associated Gas (NAG), Midstream and Deepwater Oil & Gas Developments. Just last week, the Federal Government of Nigeria signed the Consolidated Guidelines for implementing Fiscal Incentives for the Oil & Gas Sector.
The guidelines, which represent a cornerstone of the Presidential Directive, aim to enhance the Nigerian oil and gas sector’s global competitiveness while stimulating economic growth.
“The Executive Order also streamlines contracting processes, procedures, and timelines from 36 months to 6 months. The order also seeks to ensure that local content requirements are implemented without impeding investments or the cost competitiveness of oil and gas projects.”
Tinubu added that the government has also embarked on tax reforms “ 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”. He said.
Earlier, the speaker of the House of Representatives, Tajudeen Abbas, said the 10th House is ready to support the economic policies and programmes of the Tinubu administration.
Abbas stated that the country’s collection of Value Added “is the lowest among its African peers, indicating significant inefficiencies in its tax system.”
He stated that the parliament would engage with stakeholders on laws governing finance, tax, and oil sub-sectors of the economy, with the aim of reforming the tax system.
According to him, “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.”
