At this significant crossroads, the future prosperity of Nigeria heavily relies on visionary reforms and active civic participation. One such critical reform, currently being pursued by President Bola Tinubu, involves the restructuring of our nation’s tax system—a move that promises to lay the foundation for sustainable economic growth and enhanced socio-economic equity.
Let us begin with the essence of the reform. These changes are not just about numbers and policies; they represent a transformative vision for our country; one where resources are judiciously managed, and opportunities are equitably distributed among all Nigerians, especially the youth, who are the backbone of our nation.
Driving Economic Growth
The proposed tax reform is designed to foster an economic environment where businesses can thrive and innovation is encouraged. By broadening the tax base and ensuring efficiency in collection, the government aims to create a more stable economic foundation. This stability is crucial for attracting domestic and international investments, which, in turn, translate to increased job opportunities, particularly for young Nigerians entering the workforce.
Enhancing Public Service Delivery
The link between tax reform and effective public service delivery can not be overstated. With better compliance and fairer distribution, tax revenues can significantly boost funding for essential services such as education, healthcare, and infrastructure. Imagine schools with state-of-the-art facilities, hospitals with modern equipment, and roads that connect our nation seamlessly, all attainable with the right fiscal policies and when government can mobilise enough revenue to deliver on them. As it currently stands, Nigerian government is unable to mobilise tax revenue to fund our development compared to our peers in Africa like South Africa, Kenya, Algeria, Egypt, Angola and Ethiopia where government tax to GDP ratio is well over 18%.
Empowering Youth and Entrepreneurs
One of the exciting aspects of these reforms is the focus on creating a supportive environment for youth entrepreneurship. The reforms include some tax exemptions for businesses with annual turnover of less than fifty million naira, which significantly benefits budding entrepreneurs. This measure encourages startups and small enterprises, enabling young Nigerians to transform their innovative ideas into flourishing businesses without the immediate pressure of financial burdens.
Furthermore, the reform proposes some tax exemptions for employees whose annual income is less than ten million naira. This initiative directly impacts young professionals entering the workforce, allowing them to save more and invest in their future, thereby enhancing their economic stability.
Ensuring Transparency and Accountability
At the heart of any effective reform is transparency. The proposed changes include measures to enhance accountability in tax administration, ensuring that every naira collected is directed towards meaningful development projects. This approach aims to build public trust and foster a civic culture where contributing to national growth is seen as a collective responsibility.
A Call to Action
To the vibrant youth of our nation, your role in this transformation is indispensable. We urge you to engage in this dialogue, to understand the nuances of these policy shifts, and to advocate for transparent and equitable reforms. Your voices, your ideas, and your actions are essential in driving this change and securing a prosperous future for all.
Let us unite with purpose and determination, embracing these reforms not as mere policy adjustments but as the stepping stones to a brighter Nigeria. Together, we can create an enduring legacy of prosperity and equity for generations to come.
Ojepe is the Senior Special Assistant to the President on Youth Engagement
