Obasanjo made the call on Tuesday in Abeokuta while addressing members of the Joint Tax Board who paid him a courtesy call at his Hilltop residence.
The former president said that government needed to block all forms of financial leakages due to the dwindling revenue.
He also advised that the various states should increase their revenue generating drive and ensure that taxpayers money were utilised to provide necessary infrastructure for benefit of all citizens.
“When times are hard, that is when governments need increased drive for internally generated revenue.
They have to look into ways of becoming slimmer and also bring together establishments or institutions which cannot continue to exist separately.
They should also ensure that the funds generated from taxes are well utilised.
I think these are some of the things we have to do to get us out of the tight situation that we are all in,” he said.
Babatunde Fowler, Chairman of the Joint Tax Board noted that tax earnings available to the Federal Government had increased through a renewed drive by the board.
He gave assurance that Nigerians would continue to benefit from the laudable projects financed through funds from taxes.