Party offers plan to beat challenges

Our Reporter

The Youth Party has outlined measures to help the Federal Government increase its revenue by $30 billion n three years.

It unveiled a ‘Bold Revenue Plan for Nigeria’.

A member of the Board of Trustees, Francis Akinlotan, said: “Nigeria has a huge revenue problem as we are not generating enough to cover our spending. Recurrent expenditure is high and our debt is piling up. Our ever-rising debt service is consistently crowding out expenditure in critical infrastructure and human capital development.

“We cannot adequately fund our priorities – our police, schools, military, and healthcare. Almost a third of our budget is borrowed which in turn means that over N2 trillion of our annual budget is for debt servicing. Recurrent expenditure is high and we cannot comfortably pay salaries from the revenue we generate.

“Our budget deficits have averaged N4.4 trillion. The government should not be borrowing for day-to-day spending and salary payment. Its reliance on revenue from oil has made our revenue generation vulnerable and volatile, this in recent times has partly caused us to go into recession.”

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Akinlotan listed its party’s plan for fixing the country’s revenue problems with the following suggestions – eliminate unnecessary tax exemptions that has cost the government about N2 trillion; increase in revenue generation (a progressive tax regime that reduces corporate tax to 22 per cent and attracts the participation of the informal economy).

He suggested partial divestment of Federal Government’s equity in companies; replacement of universal petrol subsidy with targeted public transport and LNG subsidy; stoppage of electricity subsidy, reduction in cost of governance and public trust and accountability.

Akinlotan added: “We have Ministries, Departments and Agencies (MDAs) that do not work or have outlived their usefulness. The Youth Party urges the government to prioritise the implementation of the Stephen Orosanya’s report set up by former President Goodluck Jonathan, and ensure compliance that suit the peculiarities of today’s governance structure.

“Money that would be saved from the scrapping and merging of MDAs could be used to fund the real economy – fund human capital and provide seed funding for start-ups. Our cost of governance must reflect our revenue realities. We recommend the reduction in salaries and the undue luxurious allowances in our National Assembly budget in a way that will be unattractive to rent-seekers.”