Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has said excessive business regulations cost the country more than the combined revenue from corporate tax, personal income tax and value-added tax.
He disclosed this on Wednesday while unveiling five planned fiscal reforms aimed at attracting investors, reducing inflation and stimulating economic growth.
Oyedele spoke at the Nigerian Investors’ Forum held alongside the World Bank and International Monetary Fund annual meetings in Bangkok, Thailand.
He identified agriculture and food security, electricity, inflation management, business regulation and fiscal data management as the five priority areas for reform.
On regulation, the minister said overlapping rules, unclear policies and excessive compliance requirements were imposing significant costs on businesses and discouraging investment.
“We estimate that over-regulation, regulatory burden, lack of clarity, a number of those excessive burdens that we impose on businesses actually are costing us more than the combined revenue from corporate tax, personal income tax, and VAT combined,” he said.
He said the government had begun developing an economic policy framework to reduce these burdens and create conditions in which businesses could grow while the government also benefited.
Oyedele said agricultural reforms would target the factors driving food prices, which he identified as a major contributor to inflation.
He argued that the government needed to identify the specific causes of rising prices and address them directly rather than rely on general explanations.
The minister said the government intended to reduce inflation and sustain lower levels through coordinated action, including collaboration with state governments.
He added that the proposed measures would have assigned responsibilities and timelines rather than remain broad policy declarations.
On electricity, Oyedele said Nigeria could not achieve its ambition of building a $1tn economy without addressing persistent power supply challenges.
“You cannot power a one trillion-dollar economy in darkness,” he said.
He disclosed that the government was examining measures involving electricity pricing, transmission infrastructure and operational efficiency to address the sector’s problems.
The minister also identified the availability and reliability of government data as a major concern for investors and economic analysts.
He said figures on important indicators, including Nigeria’s tax-to-GDP ratio, were difficult to obtain and sometimes differed across government institutions and international organisations.
According to him, the government is finalising a system for publishing fiscal information on the Ministry of Finance’s website, with plans for regular updates and improved accessibility.
Oyedele said the initiative was intended to improve transparency and strengthen confidence in official economic figures.
The reforms were presented at a forum organised to showcase investment opportunities in Nigeria and facilitate discussions between government officials, bankers and corporate investors.
Oyedele said the government wanted to create a more predictable business environment that could attract investment and support economic development.
However, the minister’s announcement did not provide specific implementation dates for all five reform areas or quantify the expected investment gains.
