The Chairman of the Revenue Mobilization Allocation and Fiscal Commission (RMAFC), Dr. M.B. Shehu, has called for the integration of Nigeria’s informal sector as relevant authorities move to broaden the nation’s tax base.
He also emphasized the need for a robust approach to domestic revenue mobilization to finance national development.
This was disclosed in a statement by Maryam Umar Yusuf, the Commission’s Head of Information and Public Relations Unit, on Friday, November 22, 2024.
Economic Growth
- Speaking at the 2024 edition of the National Council on Finance and Economic Development (NACOFED) in Bauchi, themed “Fostering Economic Growth in Challenging Times: Strategies for Policies and Partnerships for Fiscal Sustainability and National Development,” Shehu stressed the urgent need to diversify Nigeria’s revenue base to ensure fiscal independence and economic resilience.
- He highlighted the “importance of enhancing efficiency in tax administration and expanding the tax base by integrating the informal sector into the economy.”
- According to Shehu, Nigeria’s reliance on oil revenue, coupled with global price volatility and rising debt burdens, underscores the need for sustainable alternatives.
- He emphasized that taxation, non-tax revenues, state-owned enterprises, and the non-oil sector are pivotal sources of domestic revenue for the country.
“Boosting domestic revenue provides a predictable foundation for national planning and reduces reliance on external borrowing.
“Domestic revenue mobilization is not just a financial necessity but a pathway to Nigeria’s economic self-reliance,” he said.
- Shehu also called for the development of solid minerals, agriculture, technology, and tourism, noting that the potential of these untapped non-oil sectors could boost employment, attract foreign investments, and contribute significantly to national revenue.
- Dr. Shehu recommended diversifying revenue sources, strengthening tax systems, and promoting transparency and accountability, according to the statement.
- The meeting was attended by the Minister of Finance and Coordinating Minister for the Economy, Wale Edun; the Permanent Secretary of the Federal Ministry of Finance, Lydia Jafiya; the Accountant General of the Federation, Mrs. Oluwatoyin Shakirat Madein; as well as Commissioners of Finance and Accountant-Generals from the 36 states of the Federation and the FCT.
What you should know
- The National Council on Finance and Economic Development (NACOFED) is a financial body primarily overseen by the Federal Ministry of Finance.
- It coordinates economic policies and strategies across all tiers of government (federal, state, and local) to drive national economic development.
- The NACOFED Conference is held annually and hosted by a state government, providing a platform for key stakeholders to discuss and agree on crucial financial and economic issues affecting the country.
- This recent comment by the RMAFC Chairman comes amid a report by Jobberman Nigeria, in partnership with the Mastercard Foundation, which revealed that the informal sector dominates employment trends in Nigeria, with 76.7% of employed Nigerians engaging in informal work for at least one hour weekly.