By Dare Ojepe

At this significant crossroads, the future prosperity of Nigeria heavily relies on visionary reforms and active civic participation. One such critical reform, currently being pursued by President Bola Tinubu, involves the restructuring of our nation’s tax system—a move that promises to lay the foundation for sustainable economic growth and enhanced socio-economic equity.

Let us begin with the essence of the reform. These changes are not just about numbers and policies; they represent a transformative vision for our country; one where resources are judiciously managed, and opportunities are equitably distributed among all Nigerians, especially the youth, who are the backbone of our nation.

Driving Economic Growth

The proposed tax reform is designed to foster an economic environment where businesses can thrive and innovation is encouraged. By broadening the tax base and ensuring efficiency in collection, the government aims to create a more stable economic foundation. This stability is crucial for attracting domestic and international investments, which, in turn, translate to increased job opportunities, particularly for young Nigerians entering the workforce.

Enhancing Public Service Delivery

The link between tax reform and effective public service delivery can not be overstated. With better compliance and fairer distribution, tax revenues can significantly boost funding for essential services such as education, healthcare, and infrastructure. Imagine schools with state-of-the-art facilities, hospitals with modern equipment, and roads that connect our nation seamlessly, all attainable with the right fiscal policies and when government can mobilise enough revenue to deliver on them. As it currently stands, Nigerian government is unable to mobilise tax revenue to fund our development compared to our peers in Africa like South Africa, Kenya, Algeria, Egypt, Angola and Ethiopia where government tax to GDP ratio is well over 18%.

Empowering Youth and Entrepreneurs

One of the exciting aspects of these reforms is the focus on creating a supportive environment for youth entrepreneurship. The reforms include some tax exemptions for businesses with annual turnover of less than fifty million naira, which significantly benefits budding entrepreneurs. This measure encourages startups and small enterprises, enabling young Nigerians to transform their innovative ideas into flourishing businesses without the immediate pressure of financial burdens.

Furthermore, the reform proposes some tax exemptions for employees whose annual income is less than ten million naira. This initiative directly impacts young professionals entering the workforce, allowing them to save more and invest in their future, thereby enhancing their economic stability.

Ensuring Transparency and Accountability

At the heart of any effective reform is transparency. The proposed changes include measures to enhance accountability in tax administration, ensuring that every naira collected is directed towards meaningful development projects. This approach aims to build public trust and foster a civic culture where contributing to national growth is seen as a collective responsibility.

A Call to Action

To the vibrant youth of our nation, your role in this transformation is indispensable. We urge you to engage in this dialogue, to understand the nuances of these policy shifts, and to advocate for transparent and equitable reforms. Your voices, your ideas, and your actions are essential in driving this change and securing a prosperous future for all.

Let us unite with purpose and determination, embracing these reforms not as mere policy adjustments but as the stepping stones to a brighter Nigeria. Together, we can create an enduring legacy of prosperity and equity for generations to come.

-Ojepe is the Senior Special Assistant to the President on Youth Engagement_

President of the Dangote Industries Limited, Aliko Dangote, has lauded President Bola Tinubu over his role in ensuring the implementation of the crude-for-naira deal.

Africa’s richest man disclosed this in a statement made available to Newsmen on Saturday.

According to him, the deal has led to the reduction in the prices of petroleum products across the country.

This comes as Dangote reiterated his commitment to providing Nigerians with quality petroleum products.

“The Dangote Refinery is for the benefit of Nigeria and Nigerians. We will therefore continue to work with various value chain players to deliver high-quality petrol at cheaper prices.

“Our aim is for all Nigerians to have ready access to high-quality petroleum products that are good for their vehicles, good for their health, and good for their pockets,” Dangote said.

Recall that in September 2024, Tinubu approved the sale of crude to local refineries in Naira and the corresponding purchase of petroleum products in Naira.

The move, which commenced on October 1, led to reduced pressure on the dollar and ensured the stability of the local currency.

Dangote also appreciated Nigerians for their unwavering support, and thanked the government for creating an enabling environment for the domestic refining industry.

The Minister of Finance, Wale Edun, said Nigeria needs to invest $20 billion annually to achieve its economic targets by 2030.

Edun disclosed this on Friday during the Citizens and Stakeholders Engagement on the Implementation of Presidential Priorities and Ministerial Deliverables for the Fourth Quarter of 2024, held in Abuja.

Edun stressed the urgency of the investment, noting its role in driving economic growth and facilitating infrastructural development.

According to him, an additional $20 billion per year is required to grow the economy by an average of 6.3 percent in the medium term.

“We need significantly more growth,” Edun stated. “An additional $20 billion is the target we need for social infrastructure to facilitate logistics for agriculture.”

This comes as President Bola Tinubu in 2023 announced a $1 trillion gross domestic product, GDP target by 2030.

In 2023, Nigeria’s economy stood at $363 billion. Data from the National Bureau of Statistics, NBS puts GDP for the first three quarters of 2024 at $134 billion. In line with the data by NBS, Nigeria needs to add at least $866 billion between October 2024 and December 2030. This equates to increasing GDP size by 7.5 times within six years. This means the $134 billion GDP figure in 2023 must increase by 8.4 per cent by 2024, reaching approximately $145 billion.