Policy Dialogue Highlights Need for Purposeful Tax and Economic Reforms

Abuja Nigeria’s policy and fiscal reforms need to be more deliberate and coordinated, according to prominent economic leaders. Speakers at a high-level discussion on the country’s economic future, including Dr. Tayo Aduloju, CEO of the Nigerian Economic Summit Group; Christian Ebeke, IMF Resident Representative for Nigeria; and Dr. Jumoke Oduwole, Minister of Industry, Trade, and Investment, emphasized both the ambitious measures taken thus far and the areas that require immediate improvement.

“Inclusion in policy discussions without reliable data amounts to little progress,” Dr. Tayo Aduloju emphasized.

The need for data-driven improvements was emphasized by his statement that “we are holding a company, not designing policy.”

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The panel recognized recent important actions, calling the elimination of fuel subsidies and the harmonization of several foreign exchange rates “pioneering and unprecedented.”

“Removing subsidies was an unprecedentedly bold move in history.” “It was historically bold to remove historic multiple FX rates, with foregone premiums up to 65-70%,” Dr. Jumoke Oduwole remarked.

The experts did, however, also consider how things might have been done better. Despite an executive order that accompanied the policy changes, which is unprecedented in Nigerian history, they identified implementation problems.

“Where did we go wrong in the first implementation of such a policy that prioritized procurement, usage of goods created in Nigeria, and coordination of the AfCFTA ecosystem and failed to achieve the desired results? One speaker pointed out that while a lot had been going on, there was room for improvement in terms of synergy.

Christian Ebeke emphasized the session’s overarching message in her closing remarks.

He stated that “intentionality and sincerity of purpose are required, whether it is tax and fiscal reforms, bolstering public institutions, or encouraging innovation for Nigeria’s future.”

Although Nigeria has made some daring moves, the conversation made clear that in order to achieve sustainable growth, the country must concentrate on deliberate, well-coordinated changes.