Finance minister urges governments to explore savings and improve revenue collection without putting additional pressure on households and productive sectors…..
Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has cautioned governments against introducing new taxes or increasing existing tax burdens, warning that such measures could worsen the financial pressure on vulnerable populations and businesses.
Oyedele made the remarks on the sidelines of the 2026 annual meetings of the International Monetary Fund (IMF) and the World Bank in Bangkok, Thailand, where he presented a communiqué on behalf of the Intergovernmental Group of Twenty-Four (G24).
The minister, who chairs the G24, said governments must find a balance between generating revenue and protecting citizens and businesses from additional financial strain, particularly at a time when many are struggling with rising costs.
He maintained that increasing taxes should not be the immediate response to fiscal challenges, urging governments to identify alternative ways of strengthening public finances.
According to him, countries should first examine their spending, identify areas where costs can be reduced and improve revenue collection without placing further pressure on vulnerable households and productive sectors.
Oyedele spoke in response to a question on how developing economies could reduce the cost of servicing their debts without compromising essential public expenditure.
He said governments needed to adopt financing strategies that support economic growth while ensuring that the burden of raising revenue did not undermine citizens’ access to basic necessities.
The finance minister also defended borrowing as a necessary tool for economic development, arguing that developing countries must ensure that loans are directed towards investments capable of generating jobs and promoting inclusive growth.
He said debt financing should deliver positive economic outcomes, particularly by supporting activities that create employment and expand opportunities for more people.
Oyedele further stressed the need for governments to prioritise limited public funds for critical sectors such as healthcare and education, while encouraging private capital to support other areas of investment.
On the choice between taxation and borrowing, the minister said neither approach should be considered independently of its broader economic consequences.
He explained that although taxes provide governments with immediate revenue, excessive taxation could leave vulnerable citizens with less money to meet essential needs, including food, healthcare and education.
“Debt is future taxes, so it’s not one or the other. It’s to strike a balance, bearing in mind ultimately that the essence of tax and of debts is to cater for the people,” he said.
Oyedele’s position underscores the need for governments to pursue revenue-generating policies without undermining household welfare, business activity and the broader objective of sustainable economic growth.
