…widens taxation net to expand economy

The Minister of Budget and Economic Planning, Atiku Bagudu, has said the Federal Government is deeply concerned with reforming the economy through the development of various sectors with priority for sound infrastructure.

He said there was need to expand the economy for a wider tax net to raise capital for the government.

In an interactive session with journalists in Lagos yesterday, the Minister also said with a clear target to increase Nigeria’s revenueto-GDP ratio from nine per cent to 18 per cent, Nigeria is laying foundation for a stronger fiscal position, increased tax revenue, and greater financial sustainability.

Describing every phase of budget as a work in progress, the Honourable Minister said the additional N4.5 trillion to the 2025 budget was done based on the assurance from revenue generating agencies that it was realisable.

“Economists argue that you expand the economy as soon as possible because if the economy is expanded you collect more taxes.

We have been under investing. We need to generate more revenue for infrastructure development. We all know how the N4.5 trillion has been distributed,” he said.

On the possibility of attracting investors into the economy through the capital market, he said the Federal Government had set up a marketing strategy and put policies in place to make that possible.

According to him, “we have to be deliberate in meeting those investors holding the capital. Mr. President has been going round the world, meeting investors who are increasingly showing interest.

“Part of Mr. President’s aspiration is that all must see themselves as marketing the country, even though there are challenges; every country has challenges. We should tell the world we have a country of over 200 million people who are busy, and working with enthusiasm.”

He said the Federal Government was currently channeling trillions of naira into key sectors to drive growth, enhance food security and strengthen industrial capacity.

He reaffirmed the administration’s commitment to longterm economic stability, emphasising that the difficult decisions taken, such as removing fuel and electricity subsidies, were already setting the nation on a path to prosperity.

Reflecting on global parallels, Bagudu noted that Saudi Arabia took a similar route, embarking on a nineyear reform journey that saw the removal of subsidies and the introduction of new revenue measures.

He, however, noted that Nigeria’s approach was even more ambitious, as the government pushes forward with bold initiatives despite the complexities of a democratic system.

According to him, President Bola Tinubu remains focused on his vision of economic expansion, ensuring that infrastructure is restored, insecurity is tackled, food security is strengthened and social protection is prioritised.