In a presidential inauguration lecture held in Abuja, Dr Akinwumi Adesina, President of the African Development Bank, emphasized the urgent need for Nigeria to tackle its power challenges and enhance tax revenue generation. Adesina highlighted the adverse impact of the high cost of electricity on Nigeria’s private sector and called on authorities to address the prevailing issue.
Adesina firmly stated, “For faster growth, Nigeria must fix decisively, the issue of power once and for all. There is no justification for Nigeria not having enough power.” He underscored that the abnormality of inadequate power supply has become normalized, impeding the growth and competitiveness of Nigeria’s private sector, particularly within the context of the African Continental Free Trade Area.
In addition to power concerns, Adesina urged the Nigerian government to prioritize tax reform. He advocated for a shift from tax exemption to tax redemption, ensuring that multinational companies pay appropriate royalties and taxes. He also emphasized the need to curtail tax leakages and optimize revenue collection.
Addressing the issue of excessive governance expenditure, Adesina called for a significant reduction in the cost of governance, freeing up resources for development initiatives. He highlighted that Nigeria’s current allocation for development is disproportionately low, resulting in a poor human capital index ranking. Adesina encouraged the Nigerian authorities to leverage the private sector for infrastructure development, thereby alleviating the burden on the Federal Government.
Adesina further emphasized the importance of an effective social contract between the government and its citizens. He urged the Nigerian government to not only raise taxes but also ensure that quality public services are provided, enhancing the overall welfare of the populace.
By addressing the power crisis, enhancing tax revenue, and reducing the cost of governance, Nigeria can foster sustainable economic growth and development. Adesina’s recommendations serve as a call to action for Nigerian authorities to prioritize these crucial reforms for the benefit of the nation and its people.
