Nigeria's Finance Minister Warns Against Borrowing for Growth

Taiwo Oyedele, the Minister of Finance and Coordinating Minister of the Economy, stated on Tuesday that Nigeria cannot sustain development primarily through borrowing. He made this remark during the 28th Annual Tax Conference organized by the Chartered Institute of Taxation Nigeria in Abuja.

Oyedele warned that the country must build a sustainable fiscal system capable of supporting critical sectors such as infrastructure, education, healthcare, and social protection. He disclosed that the federal government is engaging with the World Bank for a fresh $1.25 billion loan to support economic reforms and job creation.

Oyedele outlined the need for tax reforms to address Nigeria's structurally weak tax system, which includes multiple taxation and weak compliance. He emphasized the importance of simplifying the tax system, improving fairness, and encouraging investment.

Oyedele also mentioned that minimum wage earners would be exempt from personal income tax, and the government plans to reduce corporate taxation to attract investment. Vice President Kashim Shettima defended the government's tax reforms, aiming to lift millions out of poverty and enhance economic growth.