In a move aimed at fostering comprehensive stakeholder engagement, Nigeria's National Economic Council (NEC) has recommended that the current Tax Reform Bill be withdrawn from the National Assembly. This decision followed a presentation by Mr. Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, who emphasized the importance of broader consultations to align the proposed reforms with diverse interests across the nation.
Vice President Kashim Shettima, chairing the 145th NEC meeting at the Presidential Villa, underscored the need for decentralized energy solutions to combat Nigeria's persistent national grid failures, which have plunged various northern states into darkness. Shettima advocated for renewable energy initiatives, such as solar mini-grids and wind turbines, as a path to a stable, diversified energy framework. “The recent blackouts remind us of the urgency to expand our energy infrastructure,” he said, adding that embracing renewable sources could help eliminate the instability that has plagued Nigeria’s energy sector.
Reflecting on the importance of the tax reforms initiated by President Bola Ahmed Tinubu's Renewed Hope Administration, Shettima highlighted the potential for these reforms to broaden Nigeria's revenue base and reduce dependency on limited sectors. Acknowledging the fiscal challenges at the sub-national level, he stated, “I have no doubt that broadening our revenue base is a common aspiration.”
In addition to fiscal and energy issues, NEC tackled the country's flood crisis, which has devastated 34 states, displacing over 740,000 people and claiming hundreds of lives. The Minister of Water Resources, Prof. Joseph Utsev, reported significant losses of property and farmlands, prompting NEC to urge the Ministry of Water Resources to conduct an urgent integrity review of Nigeria’s waterways and dams. States were also urged to submit flood reports to facilitate comprehensive mitigation efforts.
Amid economic discussions, Honorable Minister of Finance, Mr. Wale Edun, briefed NEC on Nigeria’s financial reserves, reporting on the Excess Crude Account, Natural Resources Fund, and Stabilization Account. He noted recent economic relief initiatives benefiting 25 million Nigerians, which include digital outreach, microenterprise loans, and sector-specific support across agriculture, manufacturing, and health. Edun also introduced a policy allowing Nigerians with foreign currency outside the formal banking system to deposit it into domestic accounts without penalties for nine months, aiming to boost financial inclusion and stability.
Additionally, the World Bank-supported SOLID project was reviewed by NEC, emphasizing support for internally displaced persons (IDPs) and host communities in northern Nigeria through sustainable livelihoods and infrastructure. NEC’s resolution urged collaboration among states and the World Bank to ensure that these funds effectively benefit target communities.
This NEC meeting underscored the importance of strategic reform and collaboration to address Nigeria’s complex challenges in energy, fiscal policy, and disaster resilience, as stakeholders across the federation work to strengthen the nation’s socio-economic foundation.
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