…By Dorcas Funmi for TDPel Media. The President Bola Ahmed Tinubu Policy Advisory Council has recommended the declaration of a state of emergency on revenue generation in Nigeria.
The council, chaired by Senator Tokunbo Abiru and consisting of Dr Yemi Cardoso, Sumaila Zubairu, and Dr Doris Anite, submitted a report outlining their recommendations.
According to the report obtained by The PUNCH, the council proposed the merger of the Federal Inland Revenue Service (FIRS), Nigerian Customs Service (NCS), and the Nigerian Maritime Administration and Safety Agency (NIMASA) into the Nigerian Revenue Service (NRS).
This merger aims to enhance the efficient collection of direct and indirect taxes, as well as levies on behalf of the Federal Government.
The council also suggested the passage of an Emergency Economic Reform Bill to grant the President special powers to drive economic reform and support sustainable and inclusive economic growth.
The proposed bill would enable the implementation of various measures, including the removal of fuel subsidy, sale or concession of select government assets, transition to a transparent and unified foreign exchange rate system, deepening tax collection, and optimizing operating expenditure to reduce costs.
These targets are expected to be pursued by the President within the first 100 days in office.
Central Bank Reforms and Economic Milestones
In their 90-page report, the council highlighted the importance of changes in the Central Bank of Nigeria (CBN) and temporary increases in fiscal circuit breakers, such as debt limits, to achieve significant economic milestones.
The council projected a Gross Domestic Product (GDP) growth of N1 trillion and the creation of over 50 million jobs in eight years.
Reforms in the CBN are expected to help achieve external reserves of about $50 billion to $60 billion, with a monthly inflow of $6 billion to $8 billion from export earnings and other forms of capital inflow.
These measures would be supported by an exchange rate of N500 to N600 per US dollar.
Fiscal Policies and Support for Low-Income Earners
The council recommended a range of fiscal policies, including the achievement of a domestic refining capacity of two million barrels per day to enhance economic opportunities for host communities.
They also proposed providing one-off Personal Income Tax reliefs for low-income earners for up to one year as non-cash palliatives to cushion the effect of fuel subsidy removal.
Additional Fiscal Recommendations and Cash Circulation
The council put forward several other fiscal recommendations, such as using the proceeds from the sale of assets to settle existing government debt obligations and listing shares of strategic and profitable NNPC subsidiaries.
They suggested leveraging blockchain technology to create a government land registry and regionalizing and conceding the power transmission grid.
In order to resolve the cash shortage situation, if required, the council proposed extending the circulation of old naira notes until December 2024.
They recommended a gradual removal of the old notes at a rate of 5% per month, with replacement by new notes through the deposit money banks.
Trade Facilitation and Transportation Issues
To transform Nigeria into Africa’s most efficient trading nation, the council proposed decongesting the area up to 4km around the ports and designating it for cargo, roads, and railway purposes.
They emphasized the need to enforce the Presidential directive on 48-hour clearance of goods at seaports in line with Executive Order 001.
The council also suggested redefining the performance measures of key government agencies to prioritize trade facilitation and establishing a whistle-blowing mechanism to enable transporters to report and escalate issues with the relevant authorities while transporting food and other critical items.
The recommendations provided by the President Bola Ahmed Tinubu
Policy Advisory Council address key areas of revenue generation, economic reform, fiscal policies, cash circulation, and trade facilitation.
If implemented, these measures could have a significant impact on Nigeria’s economy and pave the way for sustainable growth and development.
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