The Policy Advisory Council set up by President Bola Tinubu has proposed the merger of some Nigerian revenue-generating agencies – mainly: the Nigerian Customs Service (NCS), the Nigerian Maritime Administration and Safety Agency (NIMASA), and the Federal Inland Revenue Service (FIRS), according to a report submitted by the council on Friday.
The council made up of Senator Tokunbo Abiru (chair), Dr Yemi Cardoso, Sumaila Zubairu, and Dr Doris Anite, was set up to recommend practical ways to resuscitate Nigeria’s dying economy.
Tinubu had, during his campaign, said he would seek ways to increase the government’s revenue generation through taxation. The council proposed the merger to enable an efficient collection of all direct and indirect taxes, as well as levies on behalf of the federal government.
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The presidency is seeking the passage of an Emergency Economic Reform Bill, which will grant the President special powers to drive the economic reform agenda and support the delivery of sustainable and inclusive economic growth, According to submissions made by the National Economy Sub-Committee.
With legislative backing, the president will push to implement the recommended economic policies as targets to be achieved within his first 100 in office.
Other recommendations made by the council include the already-implemented removal of fuel subsidy, sale or concession of select government assets, and optimization of operating expenditure to reduce cost.
The report includes the following recommendations:
Passage of an Emergency Economic Reform Bill to grant the President special powers to drive economic reform and declare a state of emergency in revenue generation and national security.
Transform agencies such as FIRS, Customs, NIMASA, etc. into the Nigerian Revenue Service to collect all direct and indirect taxes and levies on behalf of the Federal Government.
Reform the Central Bank of Nigeria and implement civil service reform as suggested in the Oronsaye Report.
Make interim leadership appointments (to be ratified later by the National Assembly) and implement temporary increases in fiscal circuit-breakers, such as debt limits, which will be ratified by the National Assembly.
The report focuses on fiscal and monetary policies, industry, trade, and capital market reforms. It states that changes in the Central Bank of Nigeria and temporary increases in fiscal circuit breakers would contribute to achieving a Gross Domestic Product growth of N1 trillion and creating over 50 million jobs for citizens within eight years.
The report also proposes reforms in the CBN to achieve external reserves of about $50 billion-$60 billion, with a monthly inflow of at least $6 billion-$8 billion from export earnings and other capital inflows, supporting an exchange rate of N500-N600/$.
In terms of fiscal policies, the council recommends achieving a domestic refining capacity of two million barrels per day while providing economic opportunities for host communities. It also proposes one-off Personal Income Tax reliefs for low-income earners as non-cash palliatives to cushion the impact of fuel subsidy removal.
Other fiscal recommendations include settling existing FGN debt obligations with proceeds from the sale of assets, listing shares of strategic and profitable NNPC subsidiaries, and privatizing or selling down FGN’s stake in corporate assets to generate liquidity.
The advisory council also suggests leveraging blockchain technology to create a Government land registry, regionalizing and concessioning the power transmission grid, and extending the circulation of old naira notes until December 2024 to resolve the cash shortage situation.
To transform Nigeria into Africa’s most efficient trading nation, the council proposes decongesting areas within a 4km radius of ports for cargo, roads, and railways, enforcing the 48-hour clearance of goods at seaports as directed by the President, and redefining performance measures of key government agencies to emphasize trade facilitation.
Additionally, they recommend establishing a whistle-blowing mechanism to enable transporters to report and escalate issues with relevant authorities while transporting food and other critical items.