Nigeria’s National Fiscal Policy

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