Nigeria now spends less than 50% of its revenue on debt servicing, down from 97%, according to Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee.
Nigeria now spends less than 50% of its revenue on debt servicing, down from 97%, according to Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee. Speaking at PwC’s Executive Summit in Lagos, Oyedele credited ongoing reforms for the shift. “We’ve cleared unmet forex futures… and we’re spending more on infrastructure,” he said.
He warned that without reforms, Nigeria’s economy could have collapsed like Zimbabwe or Venezuela. “Nigeria today, without reforms, would have looked like that,” he added.
Oyedele stated that if reforms had begun a decade ago, Nigeria would be a $1tn economy today. He criticised past petrol subsidies and deficit spending, claiming, “We printed over N30tn to spend. We’re not building roads… We were paying salaries.”
Highlighting informal sector issues, Oyedele noted only 3% can pay taxes, prompting exemption for the bottom 97%. “Let them breathe,” he said, stressing consequences for tax evasion under the new progressive tax system.