Madrid, Spain – Nigeria’s Minister of Foreign Affairs, Ambassador Yusuf Tuggar, has reinforced the country’s dedication to financial inclusion, economic empowerment, and global financial transparency during the Fourth International Conference on Financing for Development (FFD4) in Spain.
Speaking on behalf of President Bola Ahmed Tinubu, Tuggar outlined Nigeria’s strategic initiatives to strengthen development finance, combat illicit financial flows, and implement progressive tax reforms—key pillars in the nation’s economic transformation agenda.
Empowering MSMEs and Tackling Illicit Financial Flows
The Minister highlighted Nigeria’s efforts to expand access to funding for micro, small, and medium-sized enterprises (MSMEs), particularly those led by women and youth, through institutions like the Bank of Industry and Bank of Agriculture.
He also addressed the $88.6 billion lost annually in Africa due to illicit financial flows, calling for stronger global cooperation.
“Nigeria has taken decisive steps, including digitalizing revenue systems and launching a Beneficial Ownership Register to enhance transparency,” Tuggar stated. “We urge all nations to adopt open registers and support a global financial transparency framework.”
Bold Fiscal Reforms Yielding Results
Tuggar detailed Nigeria’s tax reforms, including:
✔ Raising the tax-to-GDP ratio to 18% by 2025
✔ Introducing a global minimum tax for multinationals
✔ Increasing VAT to 12.5% by 2026
He credited fuel subsidy removal and exchange rate unification for boosting economic growth, noting:
“These tough but necessary reforms have already improved Nigeria’s credit rating and GDP growth, which hit a decade high in 2024.”
Advocating for Fair Global Tax Policies
Nigeria has been a vocal proponent of the UN Tax Convention, which Tuggar described as a fairer alternative to the OECD’s Two-Pillar Tax Initiative.
“Developing nations deserve a stronger voice in global financial governance,” he asserted. “We must also address unsustainable debt burdens crippling poorer economies.”
