‘Nigeria can generate N10tn from non-oil assets’ - Oyedele

Nigeria can easily earn N10trn yearly if its non-oil assets are efficiently managed.

The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, disclosed this at a stakeholders’ forum organised by the Harvard Business School Association of Nigeria.

He stated that the country’s non-oil assets estimated to worth between N80trn and N100trn have not received adequate attention and as a result being mismanaged.

He said: “We found out that other than oil when you are talking about assets, some estimates, although still being worked on, show something in the region of N80 to N100trn scattered all over the place. We haven’t shown any care at all as a country about those assets such that they have been mismanaged.

Oyedele stressed the need for improved asset management and the potential benefits of selling underperforming assets to generate liquidity and stimulate economic growth.

He said: “Imagine that you become more efficient with a N100trn asset alone, even if you get a return of 10 per cent yearly, that’s easily N10 trn. If you cannot manage the asset well, then sell it, and get liquidity in.

“You need some of the FX liquidity and then the private sector becomes more productive not only with that stimulated economic activity, but they will pay taxes,” he said.

The chairman further disclosed the committee will unveil comprehensive tax reforms aimed at bolstering economic growth and easing the burden on businesses.

According to Oyedele, central to the reform agenda is the recognition of the challenges faced by businesses, particularly the pressure of taxes on working capital.

The chairman said businesses not liable to tax will be spared, aligning with the broader goal of fostering a balanced and conducive environment for economic growth.

He noted: “We have drafted a new tax regulation. The only reason why it hasn’t been published is that some of the things we included will amend the existing laws, so we put the amendment in the emergency bill waiting for the lawmakers to pass, so we can then issue the regulation.”