Finance Minister, Mrs. Kemi Adeosun, on Sunday assured that the Federal Government strategy of refinancing maturing domestic debt (Treasury Bills) with the recently issued $2.5bn Eurobond is yielding the desired results.
Taking to her personal twitter handle, Adeosun said the Eurobond was in a bid to bring down borrowing costs, which is being achieved currently with a 5% drop in the Federal Government’s average borrowing cost from 18% to 13%.
Encouraged by the result, she tweeted: “We will continue to work very hard on debt service cost.”
She also announced that the 2017 fiscal year may close with the Federal Government’s capital spending rising above N1.5tr, “which is higher than what we achieved in the 2016 budget. We’re also looking forward to the passage of the 2018 budget by the National Assembly.”
She reiterated the news that over five million new taxpayers have so far been added to the country’s tax base over the past two year, applauding the Federal Inland Revenue Service (FIRS) and other tax authorities at state level for doing a great deal of work on expanding the tax base and enforcing tax payment.
This, she hinted is in line with the determination of government to diversify its revenue base.
The minister equally used the opportunity to advise Nigerians to “trust the Muhammadu Buhari administration to deliver on its promises of improving the economy and providing sustainable infrastructure development.
“All around the country, we have rail, power and road projects ongoing, creating jobs, and improving citizens’ lives.”
Mrs. Adeosun, had on Thursday noted that despite the five million growth in the number of tax-compliant Nigerians from 14m to 19m within a space of two years, there are still 46m others that are economically active people outside of the tax net.
Addressing a World Bank Mission of 10 Executive Directors led by Patrizio Pagano in Abuja, Adeosun spoke of the Federal Government’s desire to mobilise more revenues by growing the number of tax-compliant people so as to drive its growth plan for the economy.
“We have been able to grow the tax payers’ base to 19 million in two years from the 65 million economically active people who are not tax complaint,” she said.
Besides further growing the number of tax-compliant persons, Adeosun assured that the administration would accelerate Nigeria’s growth level and also improve the ‘Ease of Doing Business’ in the country.
“The Nigerian Government is working towards accelerating the country’s growth level. The growth will be underpinned by stimulating the ‘Ease of Doing Business’ in Nigeria and improving our capital expenditure which we have done in the last two years.
“Nigerians should trust the Government to deliver on its promises of improving the economy and providing sustainable infrastructure development. We are very optimistic but we will remain vigilant,” Adeosun had said