"NIGERIA CANNOT KEEP BORROWING ITS WAY TO DEVELOPMENT" - MINISTER OF FINANCE, AYEDELE

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has warned that Nigeria cannot continue to rely on borrowing to fund development, stressing the need for a sustainable fiscal system. 

He spoke at the 28th Annual Tax Conference of the Chartered Institute of Taxation of Nigeria in Abuja. 

“Nigeria cannot continue to finance development primarily through borrowing. We must build a fiscal system capable of sustainably supporting critical infrastructure, quality education, affordable healthcare, security, and social protection,” he said. 

His remarks follow reports of ongoing Federal Government discussions with the World Bank over a proposed $1.25bn loan for reforms, job creation, and competitiveness. 

Oyedele said sustainability goes beyond revenue, adding that it must also promote growth, reduce inequality, and protect vulnerable groups. 

He explained that tax reforms are aimed at fixing structural issues like multiple taxation, weak compliance, fragmented administration, and overdependence on limited revenue sources. 

“Businesses faced overlapping debts, unpredictable enforcements, and rising compliance costs. Citizens often perceived the tax system as unfair because the burden was unevenly distributed,” he said. 

He added that the reforms seek to simplify taxation, improve fairness, attract investment, and strengthen public trust. 

According to him, minimum wage earners have been exempted from personal income tax, while reliefs have been introduced for low- and middle-income earners. 

He also noted planned reductions in corporate tax rates and reforms in VAT to ease costs and curb inflation.

Oyedele said the government is working with states to reduce multiple taxation, with 15 states already adopting harmonisation laws.He further stated that digital systems, automation, and data integration will drive future tax administration.