In a bold speech, Federal Capital Territory (FCT) Minister, Nyesom Wike, shocked the nation as he declared that the Nigerian government is not backing down on its demand for money, and will no longer invest billions in failed partnerships with the private sector. Speaking at the Abuja Business and Investment Summit on Wednesday, Wike made it clear that the era of unprofitable collaborations is over.
Wike, the former Rivers State governor, addressed the summit with sharp words, stating that the government is done pouring billions of naira and prime land into ventures that yield no returns. He bluntly dispelled the widely-held notion that the government doesn’t need to make money.
“Who told you the government doesn’t need money?” Wike questioned, raising eyebrows in the audience. “If the government doesn’t make money, how can we provide services? The government needs money.”
This explosive statement came as the Federal Government gears up to enforce a 25% tax hike on wealthy Nigerians earning over ₦100 million per month. The move, aimed at boosting government revenue, is sure to ruffle feathers among Nigeria's elite, but Wike defended the tax as necessary for the nation’s progress.
Citing failed partnerships with private investors, Wike laid out a stark warning: the government will no longer invest in projects where “the government will not make a dime.” He highlighted instances where the government committed vast sums and land into ventures that didn’t yield returns.
“Why should the government bring in money and land, and at the end of the day, not make anything? It’s unacceptable,” Wike declared, hinting at a tougher stance going forward.
As the government looks to foster investment opportunities, Wike emphasized that paying taxes is non-negotiable. “That’s why the government says pay your tax; it’s very important,” he stressed, adding that the new 25% tax rate will ensure that both the government and investors reap their fair share.
Wike’s comments come hot on the heels of the government’s decision to impose a hefty 25% effective tax rate on high-income Nigerians. Wealthy individuals earning ₦100 million or more per month will be hit by the tax, a measure that the government argues is vital for funding public services and infrastructure development.
The minister’s remarks have sent shockwaves through the business community, sparking debate over the government’s aggressive revenue drive. “While we provide the enabling environment for businesses, investors need to get what they deserve, and the government needs to get what it deserves. That way, everyone goes home smiling,” Wike said, defending the tax hike.
