The Federal Government is aiming to achieve an exchange rate of N650 to the dollar by December this year, as per the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, who disclosed this in an interview with Bloomberg.
Oyedele, a tax expert, predicted that by December, the actual value of the naira would be reflected. To achieve this, the government plans to introduce new foreign exchange rules, including a crackdown on illegal currency trading, to help the naira reach a “fair price” of N650-750 to the dollar by the end of the year. The government also aims to clear a backlog of dollar demand, strengthen the naira forward market, and establish transparent rules for the official market. The objective is to expand the official market to include all legitimate transactions while eliminating the illicit “black market” for foreign currency.
During his presentation on “Building Resilience Through Domestic Revenue Mobilization” at the African Tax Administration Forum (ATAF) meeting, Oyedele called on African countries to adopt a robust tax system to deal with the constantly evolving global economic landscape. He stressed the importance of designing an efficient tax system that offers stability and adaptability to help nations navigate uncertain times. Oyedele outlined key approaches to building a tax system that can withstand challenges, including the necessity of modernization and technology utilization to improve tax collection and administration. He emphasized the importance of aligning tax policies with the ever-changing global economic landscape.
According to Oyedele, “A resilient tax system should possess flexibility and agility to respond to changing circumstances and global shifts. It should be grounded in principles of transparency, fairness, and efficiency.” He also advocated for international collaboration and the sharing of information to address tax-related issues in an increasingly interconnected world.
Oyedele concluded by reiterating that a resilient tax system isn’t just a means of revenue collection but is a fundamental pillar for a nation’s economic resilience and sustainable growth.
