The Civil Society Legislative Advocacy Centre (CISLAC), an NGO, has urged the incoming government to sustain strategic policies with potential of driving economic growth and development.
Mr Auwal Musa, Executive Director, CISLAC/TI-Nigeria, disclosed this in an interview with the News Agency of Nigeria (NAN) in Lagos on Tuesday.
Musa said that Nigeria had a long way to go towards revitalising the economy, adding that the incoming government needed the political will to demonstrate and at least ensure the transparent and accountable implementation of strategic and sustainable developmental policies.
He said that the Nigerian economy must at least grow at 7-8 per cent a year for five to 10 years, based on an investment-led strategy, to avoid the possibility of multi-dimensional poverty, debt, and insecurity consuming the country the next decade.
“Over the last decade, the country spent over N10 trillion on fuel subsidies, about N15.5 trillion on Capital Expenditure, N2.5 trillion on Health, and about N3.9 trillion on Education.
“In its latest National Multidimensional Poverty Index report, the National Bureau of Statistics (NBS) said that 63 per cent of Nigerians are poor due to a lack of access to health, education, living standards, employment, and security.
“The 133 million poor Nigerians recorded by the NBS, exceeded the World Bank’s projection for Nigeria in 2022.
“The incoming government needs to sustain strategic policies with the potential of driving economic growth and development.
“Moving forward, deliberate efforts must be made to avert placement of priorities and reverse some of the current policies, sustain and effectively implement new ones,” he said.
Musa said that all leakages associated with government revenue must be blocked such as oil theft, skewed concessions, and fuel subsidy, among others, and a wholesome review of the tax administration to make it more equitable and investor friendly.
He said that the nation seems to be behind in all economic growth fundamentals, except a large market, which if not harnessed might become a curse as the implementation of the Africa Continental Free Trade Area (AfCFTA) agreement swings gains more steam.
He said that the incoming government must focus on debt sustainability, maximising revenue generation from oil and non-oil resources through fair, transparent, equitable, progressive taxes, complementary policies, reduce leakages and wastes through strong transparency and accountability mechanisms and a reduction in the cost of governance.
The Executive Director said that the latter could be largely achieved by the implementation of the recommendations of the Oronsaye Report.
He said to encourage long-term development, the government should also ensure that borrowing was done on conditions that were consistent with entrenching debt sustainability and that borrowed funds were wisely invested in the economy’s value-added sectors.
“There is also a need for Nigeria to operate an efficient tax administration that will ensure greater compliance to remittances, devoid of all forms of evasions in the system to tackle revenue challenges.
“Incessant increases of taxes are probably because of revenue shortfall, but it is detrimental to the economy.
“There is a need for the incoming government to restructure the tax system, enlarge the tax base, eliminate harmful tax expenditures (waivers, reduced rates, special deductions, and tax credits),” he said.
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