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Tuesday, 14 September 2021

The Centre for Social Justice (CSJ) has asked the federal government to immediately discontinue fuel and electricity subsidies to create fiscal space for the funding of infrastructure and other national priority projects.

The Lead Director of the centre, Barr Eze Onyekpere, made the call on Monday in Abuja at a briefing on the Medium-Term Expenditure Framework (MTEF) 2022-2024.

He also called for the immediate prosecution of persons who have contributed to the economic crises in the sectors, in the interest of national development.

“Savings in the cost of governance and removal of subsidies should be channelled to capital expenditure in critical infrastructure backed by a cost benefit analysis,” Onyekpere said.

“The federal government should implement schemes requiring the conversion of tax concessions into refundable tax credits. Tax expenditures should be capped as a percentage of overall actual and collectible tax. It is recommended that not more than 20 percent of the available tax revenue be foregone as tax expenditure,” he added.

He said the opportunity for the review of extant tax expenditure was provided by the annual Finance Act, adding that the 2021 Finance Act should be prioritised.

“Urgent measures are imperative for the recovery of sums due to the Federation Account and the federal government as reported in annual reports of the Auditor General of the Federation. Special procedures and court proceedings leading to the recovery of these outstanding sums should be devised,” Onyekpere said.

About IWIN

The Independent Energy Watch Initiative (I-WIN), an enterprise of Energy ConServ and the Roundtable for the Growth and Development of Power (RODEP), is an online/web based power sector portal that strives to engage stakeholders and the Nigerian public on topical issues in the power sector.

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