By Tony Ailemen, Abuja – President Bola Tinubu has assured that ongoing tax reform bills currently before the Nigerian National Assembly will not increase the tax burden on the country’s most vulnerable citizens. Speaking in Brazil during a meeting with Kristalina Georgieva, the Managing Director of the International Monetary Fund (IMF), Tinubu emphasized his commitment to prioritizing social investment programs and addressing the welfare of the poor.
In his remarks, Bayo Onanuga, Special Adviser to the President on Information and Strategy, conveyed that Tinubu also acknowledged the economic challenges Nigerians are facing, particularly the erosion of purchasing power due to ongoing reforms. However, the President reassured that his administration would continue to provide social safety nets to ease the unintended consequences of the economic adjustments.
Tinubu Emphasizes Social Welfare and Educational Access
During the meeting, President Tinubu acknowledged that the current reforms have brought about economic strain but expressed confidence that Nigerians now understand their necessity. He stated, “We have started seeing positive results from our reforms, and the Nigerian people now understand the need for them, but we have to reduce the hardship that has resulted from the implementation.”
The President also stressed the importance of education as a means of alleviating hunger and poverty in Nigeria, highlighting the large number of children currently out of school. “Education is a way out of hunger and poverty. That is why we are designing ways and incentives to keep these children in school, and we need your support for these kids who want to stay in school,” Tinubu told Georgieva.
He also highlighted the urgent need for infrastructure development and investment in critical sectors to stimulate the country’s growth and improve living standards.
Tax Reforms to Stimulate Economic Growth
Tinubu reassured the IMF chief that the government’s tax reforms would focus on expanding the tax base without placing additional financial strain on citizens. The President stressed that the reforms are designed to stimulate economic growth and create opportunities for inclusive development without increasing the taxes for the general population.
“We are engaging stakeholders and sensitizing Nigerians to expand the economy’s tax base for inclusive developmental growth. We are doing this without necessarily increasing the taxes on our people who have already given a lot,” the President said, further requesting the IMF’s continued support in these efforts.
IMF’s Support and Commitment to Nigeria
In response, Kristalina Georgieva commended the Tinubu administration’s economic reforms and their positive indicators. She praised Nigeria’s efforts to protect the most vulnerable through social investment programs and assured the President of continued support in diversifying the Nigerian economy.
Contrary to the common perception, Georgieva emphasized that the IMF is committed to supporting vulnerable societies and is directing significant resources to emerging economies. She expressed the IMF’s readiness to offer technical support to Nigeria, particularly in refining the country’s budgeting process and ensuring that the economic reforms yield the best possible results.
Georgieva also highlighted the IMF’s broader goal of helping countries build resilient institutions to manage future global economic shocks. She noted that over the last two years, the IMF had injected about $1 trillion into the global economy, which helped mitigate the impacts of the pandemic. However, she pointed out that developing countries had struggled more with these shocks compared to developed nations.
Regional Economic Integration and Support
Further underscoring the importance of regional collaboration, Georgieva announced that the IMF had approved the creation of a 3rd Chair for Sub-Saharan Africa (SSA), which she said would amplify Africa’s voice within the Fund. She also lauded Nigeria for hosting the IMF African Caucus meeting in Abuja earlier this year and advocated for deeper regional economic ties, with the IMF standing ready to support this process.
In conclusion, both leaders expressed optimism about the path forward, with Tinubu reiterating his commitment to securing a stable and sustainable economic future for Nigeria, and Georgieva offering continued backing for the country’s reform efforts.