Chairman Presidential Committee on Fiscal Policy and Tax Reforms, Dr Taiwo Oyedele has said that in 2025, there will be reforms on budget processing, medium term expenditure framework, and fiscal strategy paper to support economic rebasing.
He said this at the Lagos Chamber of Commerce and Industry (LCCI) 2025 Economic Review and Outlook Conference on Thursday in Lagos.
The News Agency of Nigeria (NAN) reports that the National Bureau of Statistics had announced plans to rebase Nigeria’s Gross Domestic Product (GDP) using 2019 as the new base year instead of 2010.
Rebasing means to base GDP against a benchmark of prices from a particular year over a duration of years to determine the GDP for current periods.
Oyedele said that rebasing the economy would make an impact on the country’s projected tax to GDP ratio and measurement of per capita income, and improve investors’ perception of the country.
According to him, rebasing the economy gives signal to investors to have second thoughts about the country and take investment in the country more seriously.
“The Consumer Price Index (CPI) basket will also be rebased to impact inflation, giving a clearer indication of where the country is going.
“On the tax reforms bills, we are engaging with key stakeholders and we believe we are making progress and expect that the bills should be enacted into law by the end of the first quarter of 2025.
“There are significant provisions in the tax reform bills that hold possibilities for the country from business reforms to cost and tax reduction, while ensuring that small businesses can thrive without excess burdens.
“I am positive about 2025 and what it holds for businesses, families and individuals, and by complementing the other sound fiscal policies by the Federal Government, I think it can only get better,” he said.
The chairman said that, in 2025, inflation would start to moderate and foreign exchange rate stabilise since factors that pushed up costs might no longer be there.
He added that there would be more inflow of foreign exchange to the federation account.
Oyedele said that beyond the CPI, in 2025, the Federal Government might start producers cost index which would impact sales, measure monetary policy interventions and provide more reliable survey on inflation.
Dr Tope Fasua, Special Adviser to the President on Economic Affairs, said that implications of the rebasing included changes in the size and structure of the economy and increased tax to GDP ratio.
Fasua emphasised the value of optimism, saying that bad news cost African countries about 3.2 billion pounds yearly.
“Every problem is an opportunity for value.
“We must think about a campaign to promote Nigeria’s image as the cleanest, safest and most organised country in Africa,” he said.
Chief Francis Meshioye, President, Manufacturers Association of Nigeria (MAN), said that the manufacturing sector, in 2024, encountered micro-economic challenges that severely impacted its performance and contributions to the nation’s GDP.
Meshioye, represented by Dr Segun Alabi, Head, Corporate Communications, MAN, said the challenges included high inflation rate, Naira depreciation, rising interest rates, and increased electricity tariff.
He called for collective efforts to find solutions to the challenges in order to boost productivity and facilitate national development.
The MAN president stated that the outlook for the manufacturing sector would be largely dependant on the success of the ongoing economic reforms, including the proposed tax reforms and stabilisation of critical macro-economic indicators.
He urged the Federal Government to remove the constraints to the growth of the economy and expedite action on the reforms to achieve the desired results.
“I am truly inspired by the resilience demonstrated by our business community, especially in the face of the numerous challenges that we encountered in recent years.
“I am confident that, together, we can overcome these challenges and build a more prosperous and sustainable future for our country.
“Let us harness our collective strength and expertise as organised private sector to drive economic growth, create jobs, and improve quality of life for all Nigerians, as the government can no longer be left to tackle these challenges alone,” he said.