The Director-General of the Nigeria Employers’ Consultative Association (NECA), Adewale-Smatt Oyerinde on Friday demanded the reversal of President Muhammadu Buhari’s government’s policies and a review of tax administration by the incoming administration to encourage economic growth.
Oyerinde, who disclosed this in a statement in Abuja on Friday, said deliberate efforts must be made to reverse some of the current policies and implement new ones.
“A wholesome review of the tax administration to make it more equitable and investor-friendly should be initiated.
“With over 50 different taxes, levies and fees and Company Income Tax hovering around 35 percent, raising taxes in order to increase revenue will be counterproductive.
“As the nation nears the mark of N77trn in debt with negligible impact on infrastructural development, the incoming government must develop strategies to diversify the revenue base through the revival of the country’s lagging non-oil sectors.
“While there have been projections for a global recession in 2023, the time for a major paradigm shift in our economic philosophy is now.
“Over the last decade, the country has spent over N10tn on fuel subsidy, about N15.5tn on Capital Expenditure, N2.5tn on Health, and about N3.9tn on Education.
“This is a misplacement of priority and shows that critical developmental items such as education, health, and infrastructure have suffered due to crass misplacement of our economic priorities.”
According to him, Nigeria loses $2.5 billion in oil revenue monthly, blaming the development on Nigeria’s inability to meet the Organization of the Petroleum Exporting Countries (OPEC) 1.8 million barrels per day production quota.
The NECA chief said: “Crude oil production grew in the month of December 2022 by 4.2 percent month-on-month to 1.23million barrels per day, but remained significantly short of the 1.8million barrel per day allocated by OPEC to the nation, amounting to about $2.5billion loss monthly at an average of $100pb.”