The Centre for the Promotion of Private Enterprise (CPPE) has commended Nigeria's ongoing fiscal and tax reforms for boosting revenue and improving fiscal stability but urged state governments to demonstrate greater financial discipline to ensure the benefits reach the wider economy.
In a policy review released yesterday, CPPE Chief Executive, Dr. Muda Yusuf, said the reforms implemented in the past two years have delivered significant progress in revenue mobilisation and fiscal sustainability.
He noted that landmark measures such as fuel subsidy removal and exchange rate unification have expanded government revenues, improved fiscal space, and strengthened public investment capacity.
The CPPE report urged government at all levels to focus on revenue diversification, efficient spending, and linking fiscal outcomes to real economic performance.
Yusuf also highlighted that new tax measures have introduced reliefs for producers and priority sectors, including higher exemption thresholds for small businesses and zero-rated VAT on essential goods such as food, pharmaceuticals, and educational materials.
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He, however, cautioned that high compliance costs and increased capital gains tax could affect private investment, calling for continuous stakeholder engagement and flexible implementation.
Comparing national budgets across Africa, Yusuf observed that Nigeria's $36.7 billion federal budget remains modest relative to South Africa's $141 billion, Egypt's $91 billion, and Morocco's $73 billion, underscoring limited fiscal capacity for transformative investment.
He recommended that spending priorities focus on infrastructure, productivity, food security, security, and human capital to improve competitiveness and inclusive growth.
The CPPE also called for stronger fiscal discipline and transparency among state governments, urging them to align budgets with local economic needs and reduce overreliance on federal allocations.
Yusuf further advised that fiscal assessments be adjusted for inflation and exchange rate effects, while the government continues to broaden the tax base, enhance non-tax revenue, and prioritise high-impact spending.
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