The National Economic Council (NEC) has recommended the withdrawal of the current Tax Reform Bill from the National Assembly to allow for wider consultation among stakeholders, ensuring that the proposed reforms are well-aligned with broader economic interests. This call for inclusive dialogue follows a presentation by Mr. Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee.
During the 145th NEC meeting held at the Presidential Villa in Abuja, Vice President Kashim Shettima highlighted the Council’s commitment to decentralizing Nigeria’s national electricity grid to address frequent grid collapses, especially in the North. Shettima outlined measures for achieving energy decentralization, including mini-grids, solar, and renewable energy solutions like photovoltaic systems and wind turbines, to diversify power sources.
“A robust economy is the backbone of every nation. The recent blackouts caused by vandalism remind us of the urgent need to expand our energy infrastructure,” Shettima noted. He emphasized that decentralizing electricity generation, transmission, and distribution through state empowerment and renewable energy adoption is critical to stabilizing Nigeria’s power supply.
Shettima also underscored the importance of implementing the Nigeria Energy Sector Implementation Plan (NESIP), noting that leveraging the country’s diverse energy resources could drive growth and benefit local communities across regions.
On tax reforms, the Vice President emphasized the Tinubu administration’s commitment to widening Nigeria’s revenue base and promoting economic stability. “The reforms open avenues to address concerns, particularly regarding VAT’s implications for sub-national revenues,” Shettima remarked. He called for a shared commitment to reduce dependency on limited sectors and foster sustainable economic growth.
Further, addressing Nigeria’s low Human Capital Index ranking, Shettima acknowledged troubling metrics in life expectancy, maternal and child mortality, and education. “We are here to confront and redeem these realities,” he affirmed, outlining NEC’s resolve to address social sector challenges in consultation with development partners.
NEC also examined Nigeria’s preparedness for flood resilience, noting efforts to mitigate flood damage and health risks. The Council commended the Ministry of Water Resources and NEMA for their proactive response to recent floods, which impacted 34 states, displaced 740,743 individuals, and caused extensive losses. States have been urged to submit comprehensive flood damage reports to enhance coordinated relief efforts.
The Minister of Finance, Mr. Wale Edun, updated NEC on national accounts, reporting $473,754.57 in the Excess Crude Account, ₦26.1 billion in the Natural Resources Fund, and ₦36.3 billion in the Stabilization Account. Edun also outlined economic relief measures benefiting 25 million Nigerians, including microenterprise loans and targeted support in agriculture, manufacturing, and health sectors.
Additionally, Edun announced a nine-month grace period for Nigerians holding dollars outside the banking system to deposit funds domestically without penalties.
Lastly, NEC reviewed the World Bank-supported SOLID project, aimed at providing sustainable livelihoods and resilient infrastructure for internally displaced persons (IDPs) and host communities in Northern Nigeria, urging collaborative efforts to ensure project funding reaches its intended goals.
