Tax reforms designed to further stimulate the economy
To cushion the unintended effects of the on-going socio-economic reforms, more support will be given to the poor and vulnerable, the President has said.
President Bola Ahmed Tinubu also reiterated his determination to prioritise the welfare of the generality of Nigerians as the reforms continue to bear fruits.
He gave the assurance on Wednesday night in Rio de Janeiro, Brazil during a meeting with the Managing Director of the International Monetary Fund (IMF), Madame Kristalina Georgieva.
She visited him on the sidelines of the G20 Leaders’ Summit.
Presidential spokesman Bayo Onanuga, explained that the President told the IMF Managing Director that his government is working on a comprehensive reform of taxation to stimulate the economy further.
The Tax Reform Bills are before the National Assembly.
Onanuga added that the President acknowledged that the massive economic reform efforts have created a side effect that affected the purchasing power of Nigerians.
The President removed subsidy on petrol and floated the naira – the twin policies geared towards opening up the economy for the needed investments that will create jobs and make Nigerians richer.
However, the side effects of the policies are being alleviated with the social investment programme.
Hailing the IMF chief on her election for a second term in office, President Tinubu appreciated her support in implementing the reforms and called for more institutional backing for stability and sustainable growth.
“We have started seeing positive results from our reforms, and the Nigerian people now understand the need for them, but we have to reduce the hardship that has resulted from the implementation”, he said.
The President emphasised the critical need for educational access.
“We have too many children out of school, and we know that education is a way out of hunger and poverty. That is why we are designing ways and incentives to keep these children in school, and we need your support for these kids who want to stay in school,” he told the IMF chief.
President Tinubu stressed that substantial resources must be invested to stimulate the much-needed infrastructural development in the country.
“We are engaging stakeholders and sensitising Nigerians to expand the economy’s tax base for inclusive developmental growth. We are doing this without necessarily increasing the taxes on our people who have already given a lot. We will require your support on this”, he said.
The Managing Director, who expressed a desire to visit Nigeria, hailed the Tinubu administration’s economic reforms and their positive indicators.
She assured the President of support in diversifying the Nigerian economy.
She specifically lauded the social investment programmes as a way of cushioning the effects on the most vulnerable and promised the assistance of the body in this regard.
She said that the IMF is focused on developing vulnerable societies and devoting substantial resources to emerging economies.
The managing director expressed the Fund’s readiness to offer technical support for the budgeting process, adding that it will assist Nigeria in achieving the best possible results from loans.
Madame Georgieva said the world had suffered some shocks from the pandemic that caused damage to world economies.
She said over the last two years, the IMF has injected about $1 trillion into the world economy, adding that while the developed countries managed the shocks better, the developing nations did not do so.
She also said the IMF is working with developing countries to build resilient institutions to better manage future global economic shocks.
She stressed that it is the right of every country to benefit from the Fund after a critical analysis of its priorities.
The IMF Managing Director informed President Tinubu that the organisation’s Executive Board had approved the 3rd Chair for Sub-Sahara Africa (SSA), enhancing the African voice.
She congratulated Nigeria for hosting the IMF’s African Caucus meeting in Abuja in August.
Madame Georgieva also advocated the deepening of regional economic ties, assuring Tinubu that the IMF is ready to support this process.
