Nigeria’s National Fiscal Policy
Fiscal policy encompasses taxation, spending and borrowing to achieve key socioeconomic objectives. The policy outlines the fundamental principles, structures, guidelines, and approach for the design, implementation and evaluation of fiscal measures including revenue generation, public spending, and public debt management.
Rationale for the National Fiscal Policy
The National Fiscal Policy is necessary to set the broad parameters for taxation, borrowing and public spending, ensuring that our fiscal goals are aligned, properly coordinated and effectively harmonised across the tiers of government. It will serve as a guide and reference point for tax legislation, revenue administration, tax dispute prevention and resolution, expenditure and debt management.
Objectives of the National Fiscal Policy
The National Fiscal Policy aims to achieve the following specific goals:
- set out the overall direction for the Nigerian tax, spending and borrowing system
- promote fair taxation, responsible borrowing and sustainable spending
- provide a framework for the design, imposition and administration of taxes
- guide the drafting, amendment, and future review of tax and other fiscal laws
- provide guidance for the administration of taxes and dispute resolution
- provide a framework for collaboration among Ministries, Departments and Agencies (MDAs), national, and sub-national governments
- provide the benchmarks and minimum standard upon which stakeholders will be held to account
- outline the roles and responsibilities of key stakeholders in the fiscal system
- guide the interaction between Nigeria and the international community on fiscal matters
- provide a framework for effective implementation of the prescribed policies
You can read more from the Draft National Fiscal Policy here
