Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has cautioned governments in opposition to introducing new taxes or growing current tax burdens on susceptible residents and productive sectors, warning that such measures may deepen financial hardship.
Oyedele spoke on the sidelines of the 2026 annual conferences of the International Monetary Fund (IMF) and World Bank in Bangkok, Thailand, the place he offered a communiqué on behalf of the Intergovernmental Group of Twenty-Four (G24), which he chairs.
“This is the wrong time to impose new taxes or increase the burden of tax, particularly on the vulnerable population and productive sectors of the economy,” he stated.
Responding to questions on how growing international locations may cut back debt-servicing prices with out slicing important public spending, Oyedele urged governments to determine waste, discover financial savings and enhance income assortment earlier than inserting further monetary strain on residents and companies.
He stated borrowing remained vital to finance financial development however harassed that governments should make sure that debt helps job creation and inclusive improvement.
“Borrowing and debt financing is a necessary condition for growth, and every country emerging, developing must be able to apply debt financing in a way that is overall of positive impact, particularly to stimulate job-rich and inclusive growth,” he stated.
The minister additionally referred to as for accessible public funds to be prioritised for important providers, together with healthcare and training, whereas personal capital may assist finance different areas of funding.
On the selection between taxation and borrowing, Oyedele stated each choices carried penalties and must be thought-about in the context of their impression on family welfare.
“If you collect taxes, you raise the money now, and that itself has a lot of trade-offs. What taxes are you collecting? You collect taxes from the most vulnerable, and this will deprive them of money to provide food, health, education,” he stated.
He argued that extreme taxation may depart low-income households with much less cash for fundamental wants, whereas borrowing additionally carried future obligations.
“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,” Oyedele stated.
