The Vice Chairman of the Nigerian Economic Summit Group (NESG), Mr. Omoboyede Olusanya has urged the federal government to implement an effective tax system and increase its foreign exchange revenue from the oil sector in a move to effectively implement its 2023 fiscal budget.
Olusanya made this disclosure while speaking on the 2023 budget when he appeared on Arise TV’s special coverage of the federal government of Nigeria’s 2023 budget presentation themed, “Arise and KPMG: Budget Day.”
President Muhammadu Buhari signed the 2023 Appropriation Bill into law following its passage by the National Assembly. The National Assembly increased the aggregate revenue and planned expenditure from N9.73 trillion and N20.51 trillion to N10.49 trillion and N21.83 trillion, respectively. This has effectively increased the budgeted fiscal deficit by N560 billion to N11.34 trillion.
Olusanya who is also the Group Managing Director/CEO, of Flour Mills of Nigeria Plc, said the country has a tax problem, urging stakeholders to tread with caution not to hurt those who are already in the system.
He added that the country cannot over-regulate or overtax at the same time.
Olusanya said, “Nigeria has a huge taxation problem. There is no doubt we need to widen and defend the tax system in the country. But we also cannot over-regulate or overtax those who are the system because that in itself becomes a disincentive.
He added, “We need to create this environment where we widen the tax base. This is because our tax-to-revenue ratio is bad. But we need to be careful not to over-regulate and kill the golden goose that is laying the egg.
Olusanya suggested that Nigeria would solve its tax problem by enhancing security around the oil sector to solve the demand-supply issue on the foreign exchange front.
He said, “What we are leaving on the table in terms of foreign exchange, we are not getting from oil that is either stolen or not produced and it is significant enough to make a huge difference to that demand and supply side and will allow us to systematically solve the foreign exchange issue which we need to deal with.
“But we need to deal with it in a way that it will not cause any damage to the economy on the other side.”
He said there had never been a time when Nigeria lacked ideas as to how to solve its economic challenges, noting that all it required is political will and desire to implement all the initiatives and action items brought up by the Nigerian Economic Summit Group.
