The Chairman of the Nigeria Economic Summit Group (NESG), Mr. Niyi Yusuf, and the CEO of Emerging Africa Capital, Mrs. Toyin Sanni, have urged the federal government to curb its borrowing and enhance tax collection efforts.
They made these remarks during the Vanguard Economic Discourse held yesterday, where key stakeholders gathered to deliberate on the theme, “Taming Inflation and Stimulating Growth.”
Both Yusuf and Sanni acknowledged that inflation has become a serious challenge and proposed a range of policy measures including the elimination of fuel subsidies, stronger coordination between fiscal and monetary authorities, and reduced government expenditure to drive economic growth.
Mr. Yusuf emphasized the need for the government to boost efficiency and transparency by reassessing untargeted subsidies, tax waivers, and incentives. He advocated for increased non-oil revenue through the expansion of the tax base and improved tax collection mechanisms.
He further recommended a comprehensive fiscal management approach to diversify funding sources, including through public-private partnerships (PPP), innovative financing structures, and targeted intervention funds.
“To rein in inflation,” he said, “the federal government must reduce its reliance on Central Bank financing. Additionally, the CBN should adopt a single, market-reflective exchange rate, and there must be alignment between fiscal and monetary policies to stabilize the economy.”
Yusuf also called on the government to boost domestic trade and promote value addition by lifting forex and trade restrictions. He urged the CBN to establish a clear monetary policy framework that expands access to finance and mitigates risks stemming from the monetisation of Ways and Means advances.
On her part, Mrs. Sanni cautioned that inflation may continue to rise in the short to medium term due to factors such as worsening fuel shortages, the lingering effects of flooding on agricultural output, and persistent foreign exchange constraints.
She argued that cutting government subsidies and other forms of public support could reduce excess liquidity and inflationary pressure. Moreover, by increasing taxes, the government can moderate aggregate demand and further support inflation control efforts.
Sanni also highlighted the importance of infrastructure development, noting that improved infrastructure could enhance productivity and boost economic growth while reducing inflation.
She stressed the need for greater transparency in resource allocation and public financial management to improve economic efficiency.
Furthermore, she urged the government to tackle corruption, which would not only enhance economic efficiency but also attract foreign investment. Sanni concluded by advocating for export diversification, especially in agriculture and non-oil sectors, as a means to lessen Nigeria’s reliance on oil and buffer the economy against global oil price volatility.
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