Finance Minister says borrowing culture can’t develop economy amid FG’s fresh push for $1.25bn loan

Nigeria’s Minister of Finance and Coordinating Economy, Taiwo Oyedele, said, no country can develop with borrowing culture.

He said on Tuesday that Nigeria must build a sustainable fiscal system to grow its economy and develop it, insisting that borrowing can’t develop the nation.

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Oyedele spoke during the 28th Annual Tax Conference of the Chartered Institute of Taxation of Nigeria in Abuja, as a guest speaker at the ocassion.

The Mjnister position comes amid the Federal Government’s push for the World Bank’s fresh $1.25 billion loan meant for supporting economic reforms, job creation and competitiveness.

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Oyedele argued that it takes sustainable fiscal system to create jobs, support economy, provide healthcare, security and provide quality education and not borrowing.

He said, sustainabilitynwas not all about generating revenue, but promotion of growth.

He added that sustainability was not all about generating revenue, but reducing inequality, protecting vulnerable groups, and encouraging productivity across the nation at all levels.

He expressed optimism that the ongoing reforms by the present administration would position the economy as a hub of investment.

He defended the tax reform which he said was overdue
as Nigeria’s tax system had long suffered from structural weaknesses, including multiple taxation, fragmented administration, weak compliance, and overdependence on a narrow revenue base.

“Businesses faced overlapping debts, unpredictable enforcements, and rising compliance costs.”

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