Taiwo Oyedele, the chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, says the problem with the economy was not the cost of governance but rather the lack of adequate finances to run the nation.
Mr Oyedele said while delivering a keynote address at the hybrid 16th annual lecture of the Lagos chapter of the Nigerian Institute of Quantity Surveyors (NIQS) held in Victoria Island, Lagos.
Mr Oyedele explained the principles and importance of fiscal and monetary policies in shaping the economy.
“If you look at the budget of all the states, it is N16 trillion. If you add 16 to 29, it is about N45 trillion. That N45 trillion is barely $30 billion for 200 million people,” said Mr Oyedele.
Mr Oyedele said the $30 billion was less than Kenya’s budget of $32 billion for 54 million people and “It is less than one-quarter of the budget of South Africa and less than 30 per cent of the budget of New York City, not New York State, which is $107 billion.”
He pointed out that Nigeria’s budget was higher than its revenue and at about N18 trillion, representing only half the required funds.
Mr Oyedele added that the nation’s revenue was not enough to pay salaries alone under the proposed minimum wage being agitated by labour unions.
“If you take the entire revenue of the Nigerian government, local government, state government, and federal government, and you pay only the salary of civil servants, you cannot pay N500,000 per month.
“If you pay N500,000 per month per civil servant, that whole money is gone, leaving no money for defence, roads, or anything else,” he explained.
He urged NIQS to sponsor bills that tackle critical issues related to taxes and obsolete legislation affecting land, construction matters, and the economy.
Mr Oyedele called for increased collaboration between the citizens and the government to boost the nation’s economic development.
Olujide Oke, the managing partner at Jim Partnership, spoke on policy mistakes of previous and current administrations and how the challenges of COVID-19 affected productivity.
Mr Oke called for the upscaling of social skills and the provision of an enabling environment, including a stable power supply, to stabilise the economy.
He listed strategies for sustainable growth, including reviewing the cost of governance, improving security, strengthening monetary policies and rehabilitating the nation’s refineries.
(NAN)
