back to top

Fix power supply and industrialisation would be achieved, Tinubu charges FG

FORMER governor of Lagos State, Bola Tinubu, has charged the Muhammadu Buhari and Yemi Osinbajo-led federal government to address the challenge of power supply in the country if the aspirations of an industrialised Nigeria were to be realised.

Tinubu, speaking at the 11th Annual Bola Tinubu Colloquium in Abuja on Thursday, also advised the government against increasing Value Added Tax (VAT) but rather to expand the nation’s tax net so that businesses that were hitherto not paying their fair share of tax would begin to pay.

According to the national leader of the ruling All Progressives Congress (APC), the major challenge hindering the industrialisation of Nigeria is the lack of regular power supply.

Citing an instance with the automobile industry, Tinubu regretted that of all the millions of cars plying Nigerian roads on a daily basis, none is manufactured in the country. “Even the paints on them, the brake pads, the windscreens, the exhaust pipes are not made in Nigeria whereas we can do it if we rededicate ourselves to reforming the electricity of this country,” Tinubu said.

“I believe the second Buhari administration will work to increase electricity generation, transmission and distribution by more than 50 per cent within the next four years. It’s a challenge that we must go through and we are all will be held responsible for this.



“We require serious and bold reforms. Whatever is happening to our gas? We have abundant of it. If it is tax reforms or tax exemptions, or tax incentives, let’s find a way to use that gas and not flare them, to industrialise our country.”

On the proposed increase in VAT, Tinubu warned that such a move could be counter-productive as it would further reduce the people’s spending ability which would, in turn, slow down the economy.




     

     

    Recall that the Minister of Finance, Zainab Ahmed, had said that “there would be a VAT increase during the course of 2019.  We will announce later the items and what the rate will be. We will have to take a request to the National Assembly for amendment of the VAT law before it takes effect”.

    However, Tinubu does not think increasing taxes would be a great idea. “Consumers’ spending is slipping, and this is where I will stop and appeal to Professor Yemi Osinbajo, the Vice President, and his team to put a huge question mark on any increase of VAT, please,” he said.

    “If we reduce the purchasing power of the people, we can further slow down the economy.

    Read Also:

    “Let’s widen the tax net. Those who are not paying now, if it is inclusive of Bola Tinubu, let the net get bigger and we take in more taxes and that is what we must do in the country, instead of the additional layer of tax.”

    Join the ICIR WhatsApp channel for in-depth reports on the economy, politics and governance, and investigative reports.

    Support the ICIR

    We invite you to support us to continue the work we do.

    Your support will strengthen journalism in Nigeria and help sustain our democracy.

    If you or someone you know has a lead, tip or personal experience about this report, our WhatsApp line is open and confidential for a conversation

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here


    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    Support the ICIR

    We need your support to produce excellent journalism at all times.

    -Advertisement-

    Recent

    - Advertisement