The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has explained how Nigeria can generate N10 trillion annually through efficient management of its non-oil assets.
Oyedele stated this at a stakeholders’ forum organised by the Harvard Business School Association of Nigeria in Lagos.
The cahirman noted that the country’s non-oil assets, estimated to be worth between N80tn and N100tn, have not received adequate attention and are being mismanaged.
He said, “We found out that other than oil when you are talking about assets. Some estimates, although still working on it, show something in the region of N80 to N100tn scattered all over the place. We haven’t shown any care at all as a country about those assets such that they have been mismanaged.”
“We also found an asset worth trillions of naira, and someone even dared to register a company with the Corporate Affairs Commission to hold those assets and the shareholders are still in this same Nigeria,” the chairman said.
Oyedele emphasized the need for improved asset management and the potential benefits of selling underperforming assets to generate liquidity and stimulate economic growth.
He said, “Imagine that you become more efficient with a N100tn asset alone, even if you get a return of 10 per cent yearly that’s easily N10tn. If you cannot manage the asset well, then sell it, and get liquidity in.
“You need some of the FX liquidity and then the private sector becomes more productive not only with that stimulated economic activity, but they will pay taxes,” he said.
Oyedele, however, disdisclosed that the Committee will unveil comprehensive tax reforms aimed at bolstering economic growth and easing the burden on businesses.
According to him, central to the reform agenda is the recognition of the challenges faced by businesses, particularly the pressure of taxes on working capital.
He said businesses not liable to tax will be spared, aligning with the broader goal of fostering a balanced and conducive environment for economic growth.
“We have drafted a new tax regulation. The only reason why it hasn’t been published is that some of the things we included will amend the existing laws, so we put the amendment in the emergency bill waiting for the lawmakers to pass, so we can then issue the regulation,” he said.