CITN DVP, Fowokan Backs New Finance Minister, Sets Reform Targets

Nigeria stands at a critical fiscal juncture, grappling with mounting debt, insufficient tax revenues, and volatile oil earnings. In this challenging landscape, policy experts are sounding the alarm about a potential crisis, emphasizing the urgent need for decisive interventions. Dr. Titilayo Fowokan, Deputy Vice-President of the Chartered Institute of Taxation of Nigeria (CITN), has stepped forward, urging the newly appointed Minister of Finance and Coordinating Minister of the Economy, Prof. Taiwo Oyedele, to spearhead coordinated reforms aimed at achieving tangible results.

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Strengthening revenue service efficiency through digitisation, rationalising tax incentives, and addressing tax leakages and unjustified incentives will be key to reversing the current revenue shortfall.

In a comprehensive policy brief, Fowokan outlines a roadmap for sustainable economic growth over the next 12 to 18 months. The priorities are clear: restoring macroeconomic stability, significantly increasing non-oil revenue streams, enhancing the efficiency of public spending, ensuring the nation's debt remains sustainable, and fostering inclusive growth. A central theme is revenue mobilization, addressing Nigeria's persistently low tax-to-GDP ratio, which severely hampers the government's ability to fund development initiatives. Fowokan stresses that strengthening revenue collection through digitization, streamlining tax incentives, and closing loopholes are paramount to reversing the current revenue shortfall.

Beyond revenue generation, Fowokan advocates for stringent expenditure rationalization. This includes implementing zero-based budgeting, curbing non-essential spending, improving transparency in procurement processes, and strategically reallocating resources to critical sectors. On the debt front, she calls for enhanced coordination with the Debt Management Office, a deliberate shift towards more favorable, long-term financing options, and a greater emphasis on transparency and proactive risk management. Recognizing Nigeria's continued reliance on oil, Fowokan insists on immediate corrective measures within the sector, demanding improved remittances and transparency from the Nigerian National Petroleum Company Limited (NNPCL) and robust efforts to combat oil theft.

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It is necessary that the minister look beyond stabilisation towards growth by promoting agriculture, manufacturing, and the digital economy, expanding infrastructure through Public-Private Partnerships, and supporting small and medium enterprises alongside export-led growth.

Fowokan also champions economic diversification, urging the minister to look beyond mere stabilization towards growth. This involves actively promoting sectors such as agriculture, manufacturing, and the digital economy, expanding infrastructure through public-private partnerships, and providing crucial support to small and medium-sized enterprises, alongside fostering export-led growth. While acknowledging that reforms may entail social costs, Fowokan underscores the necessity of targeted social safety nets, such as scaled cash transfers, and the protection of essential spending on health, education, and vulnerable populations to ensure inclusivity. Citing Minister Oyedele's strong credentials and shared professional background, Fowokan expresses confidence in his ability to deliver, urging visible results within the first 100 days to build public trust and embed transparency in governance.

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The new minister should set priorities around restoring macroeconomic stability, increasing non‑oil revenue, improving public spending efficiency, ensuring debt sustainability, and promoting inclusive growth.