The Policy Advisory Council led by President Bola Ahmed Tinubu has recommended the declaration of a state of emergency on revenue generation in Nigeria. The council has proposed the merger of several government agencies, including the Federal Inland Revenue Service, Nigerian Customs Service, and Nigerian Maritime Administration and Safety Agency, into the Nigerian Revenue Service. This consolidation aims to enhance the efficient collection of direct and indirect taxes on behalf of the Federal Government.
The council suggests that the President should be granted special powers through the passage of an Emergency Economic Reform Bill to drive economic reform and support sustainable and inclusive economic growth.
As part of their recommendations, the council has outlined targets to be achieved within the first 100 days in office. These targets include the removal of fuel subsidy, the sale or concession of select government assets, the transition to a transparent and unified foreign exchange rate system, the improvement of tax collection, and the optimization of operating expenditure to reduce costs.
The council’s report also covers fiscal and monetary policies, industry and trade reforms, and capital market reforms. It proposes changes in the Central Bank of Nigeria and temporary increases in fiscal circuit breakers to stimulate economic growth, aiming for a N1 trillion Gross Domestic Product growth and the creation of over 50 million jobs within eight years.
The report suggests reforms in the CBN to increase external reserves to $50 billion-$60 billion, with a monthly inflow of $6 billion-$8 billion. It recommends achieving a domestic refining capacity of two million barrels per day, formalizing illegal refineries, and encouraging modular refineries to create economic opportunities for host communities.
Other fiscal recommendations include settling existing government debt obligations with proceeds from the sale of assets, listing shares of strategic NNPC subsidiaries, privatizing or selling down government stakes in corporate assets, leveraging blockchain for a government land registry, and regionalizing and concessioning the power transmission grid.
The advisory council also proposes extending the circulation of old naira notes until December 2024 if needed, with a gradual removal of the old notes at a rate of 5% per month through deposit money banks.
