Economy

The Federal Government has proposed requiring major economic policy changes to undergo an impact assessment before implementation to reduce policy uncertainty, improve investor confidence, and create a more predictable business environment. The proposal is contained in the Nigeria Economic Policy Framework presented by Taiwo Oyedele, Minister of Finance and Coordinating Minister of the Economy, at the opening of the 32nd Nigerian Economic Summit. The framework proposes a Policy Impact Statement, which would require government to explain the problem a proposed intervention seeks to solve, the evidence supporting it, who would benefit, who would bear the cost and the conditions under which the policy would end. The proposed requirement would cover major economic interventions, including tax adjustments, tariff changes, regulatory restrictions,s and incentives. Presenting the framework, Oyedele said frequent policy changes, weak impact assessments and inadequate consultation had made it difficult for businesses to plan and investors to commit capital. “Policy uncertainty is an invisible tax on enterprise. And unlike most taxes, it generates no revenue for government—it only destroys value and discourages investment,” he said. He argued that Nigeria’s challenge was not a lack of economic plans but the failure to maintain a consistent policy direction and implement reforms in a disciplined manner. According to him, policies introduced by one administration are often undermined by subsequent decisions, leaving the country without an enduring economic philosophy. The framework seeks to establish common principles for economic policymaking that would remain in place beyond individual administrations and electoral cycles. Oyedele said the document …