All the money that will be saved from the fuel subsidy will be channelled to education and critical infrastructures and that will eventually trickle down

In a bid to enhance the nation’s financial resources, the Tinubu-led government plans to double Nigeria’s revenue within a three-year period.

Zach Adedeji, the Special Adviser on Revenue to President Bola Ahmed Tinubu, disclosed this ambitious N30 trillion target during a recent television program. Notably, the administration aims to achieve this goal by leveraging technology and data-driven approaches, without resorting to tax hikes.

Adedeji emphasized that non-tax revenue would be the primary driver of this revenue expansion, while ensuring organized collection procedures in line with the Constitution’s provisions. Contrary to speculation, he clarified that the Nigeria National Petroleum Company Limited (NNPCL), Nigeria Customs Service, Federal Inland Revenue Service, Nigeria Maritime and Safety Administration (NIMASA), and other revenue-generating agencies of the Federal Government would not be merged. Instead, their collections would be integrated to promote efficiency and accountability.

The presidential adviser also hinted at forthcoming changes in tax and finance laws across the federation. By embracing technology and data-driven solutions, he expressed confidence that these revenue collection agencies could achieve significant transformation. Furthermore, the government aims to focus on non-taxable revenue, which would ultimately empower vulnerable segments of society.

Adedeji highlighted that out of Nigeria’s 52 different taxes, only a fraction of them, less than 10, are currently being properly accounted for. Recognizing the challenges associated with revenue generation, he firmly stated that Tinubu possesses the capacity to overcome them.

The Special Adviser further revealed plans to review existing tax and financial laws, acknowledging the need to address loopholes and bring them in line with present-day realities. Notably, Nigeria’s tax generation to Gross Domestic Product (GDP) ratio remains alarmingly low compared to other African nations. Adedeji stressed the importance of robust planning to generate sufficient revenue to support government operations.

He commended President Tinubu’s economic policies, citing the removal of petrol subsidy, unification of exchange rates, and suspension of certain taxes as courageous decisions that promote economic prosperity. Adedeji outlined three crucial elements for successful revenue management: sound economic policies, boosting citizens’ confidence by ensuring transparency in tax utilization, and effective tax administration.

Despite the challenges, the government remains resolute in addressing the revenue problem. Adedeji acknowledged the existence of multiple taxes, inefficient revenue generation and collection agencies, lack of data, and inadequate technology as obstacles to achieving revenue targets. However, he assured that the administration has comprehensive plans to overcome these challenges.

Tinubu’s ultimate objective is to implement a sound economic program that fosters shared prosperity. Adedeji stressed the urgency to review outdated fiscal policies, as the existing laws have led to leakages and fail to address modern realities. He emphasized the need for a tax framework that encompasses the digital economy, which currently lacks adequate regulations.

Regarding the concerns raised about the plight of the poor, Adedeji assured that the Tinubu administration is committed to improving their situation. The government intends to increase the productive capacity of all Nigerians, create employment opportunities, and invest the savings from fuel subsidy removal into education and infrastructure development. Adedeji expressed optimism that these measures would bring about positive change and offer renewed hope, leading to a better future for the less privileged.

Addressing fears surrounding Value Added Tax (VAT), he urged Nigerians to remain patient, assuring them that Tinubu is actively working to alleviate their hardships. Adedeji appealed for understanding and support as the administration strives to achieve its goals within a reasonable timeframe.