A renowned Nigerian economist, Mr Tilewa Adebajo, has advised the federal government to pay more attention to fixing how public funds are managed than making efforts to increase tax revenues.
Speaking on the flagship breakfast programme of Arise TV, The Morning Show, last Thursday, Mr Adebajo noted that while Nigeria was not yet in a debt crisis, it needs urgent changes in the way money is handled to avoid bigger problems in the future.
According to him, the government has already violated some parts of the Fiscal Responsibility Act, which was meant to guide how funds are borrowed and spent.
He submitted that the administration of President Bola Tinubu should have carried out fiscal reforms before the tax reforms.
“In my view, fiscal reforms should have commenced before the tax reforms,” Adebajo stressed.
Recall that in June 2025, Mr Tinubu signed the four tax reform bills passed by the National Assembly into law.
The four bills: the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill, were passed by the National Assembly after extensive consultations with various interest groups and stakeholders.
It is believed that the new tax laws would significantly transform tax administration in the country, leading to increased revenue generation, improved business environment, and a boost in domestic and foreign investments.
The new tax laws are expected to become effective January 1, 2026.
For Mr Adebajo, relying on taxes alone without cutting unnecessary spending by the government will only put more pressure on citizens, noting that fiscal reforms are important because they control government expenses, though he emphasised that Nigeria was not yet in a debt crisis despite concerns over rising borrowings.