Former Ogun State Commissioner for Finance, Mrs. Morenike Babington-Ashaye, has cautioned the Federal Government against implementing the newly proposed 10% Value Added Tax (VAT), warning that such a move would exacerbate economic challenges for Nigerians.
Speaking at the launch of her book, Natural World Restoration, Babington-Ashaye urged the government to focus on alleviating citizens’ financial burdens, stressing that the VAT increase would show insensitivity to the plight of the people, especially since the current 7.5% VAT is already problematic.
Babington-Ashaye further called on the government to stop borrowing to fund development projects, advising that Nigeria should harness its natural resources for sustainable growth.
She emphasized that Nigeria’s tax system needs reform, as it was inherited from colonial times without proper adaptation. In her view, taxes should not solely serve as revenue for the government but should also be designed to benefit and provide relief to the populace. She also urged the abolition of certain import duties to encourage local manufacturing.
In her book, Babington-Ashaye outlined God’s plan for the restoration of the natural world and advocated for equitable distribution of wealth, suggesting that 50% of earnings from natural resources should be shared among households monthly.
She also emphasized the importance of investing in human resources and called for the International Monetary Fund (IMF) and World Bank to cancel Nigeria’s debts. Additionally, she highlighted the need for public spending to be aligned with the people’s needs, and for the government to address corruption and economic inequality.