The President of the Federal Republic of Nigeria, President Bola Tinubu has said his administration was implementing significant reforms that would reposition the country for the overall benefits of citizens.
He made this statement at the opening of an economic retreat for members of the House of Representatives, yesterday, in Abuja with the theme, ‘Navigating Change: Legislative Strategies for Economic Transformation.’ He stated that while the reforms were necessary, some of them were overdue.
The President, who was represented by Mr. Femi Gbajabiamila, his Chief of Staff, highlighted that though the oil and gas industry had been the mainstay of the country’s economy for a long time, the government was working assiduously to diversify the economy. However, the President noted that his administration was determined to maximise the revenue potentials in the industry.
According to him, “For this reason, we are pushing policies to attract investment in the oil and gas sector. Recently, I signed an executive order to unlock about $10 billion in fresh investments in the sector. This will happen through Fiscal Incentives for Non-Associated Gas (NAG), Midstream and Deepwater Oil & Gas Developments.
“Just last week, the Federal Government of Nigeria signed the Consolidated Guidelines for implementing Fiscal Incentives for the Oil & Gas sector.”
The guidelines, which represent a cornerstone of the presidential directive, aim to enhance the Nigerian oil and gas sector’s global competitiveness, while stimulating economic growth.
“The Executive Order also streamlines contracting processes, procedures, and timelines from 36 months to six months. The order also seeks to ensure that local content requirements are implemented without impeding investments or the cost competitiveness of oil and gas projects.”
President Tinubu added that the government had also embarked on tax reforms “to limit the taxes collected without negatively affecting the government’s revenues. All of these have the same objective, which is to reduce government interference with the commercial imperatives of businesses in the country, so that businesses based here can be competitive and focused on their core objectives of economic growth through innovation and trade.”
The President, while commending the National Assembly for its support to his administration, said the executive arm of government needs the support of the parliament to fully implement its reforms.
Earlier, the speaker of the House of Representatives, Mr. Tajudeen Abbas, said the 10th House was ready to support the economic policies and programmes of the Tinubu’sadministration.
Abbas stated that the country’s collection of Value Added Tax was the lowest among its African peers, indicating significant inefficiencies in its tax system.
He stated that the parliament would engage with stakeholders on laws governing finance, tax, and oil sub-sectors of the economy, with the aim of reforming the tax system.
According to him, “as a critical arm of the government, the legislature has a crucial role in shaping our nation’s economic transformation and development. Part of our law-making powers is the authority to enact tax reforms and strengthen resource governance mechanisms.
“By designing and implementing progressive tax policies, we strive to ensure a fair and efficient tax system that boosts revenue, while fostering economic growth and equity. This involves not only broadening the tax base and simplifying tax codes but also enhancing compliance and minimising loopholes that benefit only the wealthy.
“Going further, the legislature’s oversight function is central in the governance of natural and financial resources. It ensures transparency and accountability in the exploitation and management of resources, which is essential for sustainable development. By holding the government and private sectors accountable, the legislature helps to prevent the mismanagement and corruption that can often undermine economic progress.”
The speaker noted that the retreat was aimed at fostering stakeholders’ engagement, ensuring constructive dialogue and insights on legislative strategies that would contribute to the economic transformation of our country.
“Accordingly, this forum allows us to take a deep dive into the tax reforms instituted by President Tinubu and undertakes a review of the implementation of the Petroleum Industry Act (2021). We consider these two initiatives vital in our nation’s quest for economic recovery, transformation and growth. The two areas speak to both the oil and non-oil sectors of the Nigerian economy.”
On his part, the deputy speaker, Mr. Benjamin Kalu, in his welcome address, said the parliament would develop a clearer roadmap to its role in the implementation of the Petroleum Industry Act (PIA).
“This retreat provides a critical platform to plan on how the House of Representatives can ensure the successful execution of this landmark legislation.
“The role of the National Assembly, particularly the House of Representatives, in this process cannot be overstated. We are the custodians of the people’s will, entrusted with the responsibility of ensuring that the lofty ideals enshrined in the PIA are translated into tangible benefits for all Nigerians.
“This retreat serves as a critical forum for us to collectively planon how to fulfil this vital mandate. This retreat is designed to be a springboard for action. By its conclusion, we aim to achieve a multi-pronged outcome. We will emerge with a deeper understanding of the Petroleum Industry Act (PIA) and its impact on the oil and gas sector and our national development goals.
“We will collaboratively develop a clear roadmap for the House’s role in implementing and overseeing the PIA. This is consistent with the legislative agenda of the 10th House of Representatives, and the Renewed Hope Agenda of the President.”
saharandaily