The Minister of Finance, Budget and National Planning, Zainab Ahmed, says more tax collection and blockage of revenue leakages were the only realistic ways of reducing the countrys mounting debt burden.
Ahmed stated this at a workshop on tax expenditure, organised by the ECOWAS Commission under the Context of the Implementation of the Support Programme for Tax Transition in West Africa (PATF) in Abuja, on Tuesday.
The Minister, who was represented by the Director, Technical Services in the Ministry, Fatima Hayatu, said the issue of tax expenditure was a great concern for the Government.
The Federal Government had in July said the countrys debt service cost in the first quarter (Q1) 2022 was N1.94 trillion, N310 billion higher than the actual revenue received during the period, indicating that Nigerias debt-service cost outweighs its revenue.
Ahmed, however, said the debt burden is not beyond what the Government can handle. Noting that reforms in tax expenditure management were gaining traction in Nigeria, the minister observed that the development had resulted in the continuous development of in-house capabilities and internal restructuring in agencies for greater efficiency.
Ahmed also said the Government would commence the rationalisation of tax exemptions, by phasing out antiquated pioneers and other tax incentives for matured industries.
The minister noted that contrary to what was obtained in the past, the country is reaping the benefits of tax exemptions and concessions given to small businesses.
