Showing posts with label Buhari government. Show all posts
Showing posts with label Buhari government. Show all posts

Thursday, May 2, 2024

Nigeria’s Low Tax Intake: Blame Weak Economy, Breach Of Social Contract

 By Olu Fasan

Recently, the International Monetary Fund, IMF, lamented Nigeria’ low tax revenues. Two weeks ago, when launching the IMF’s Regional Economic Outlook for Sub-Saharan Africa, the Fund’s Director for Africa, Abebe Selassie, said: “For a country like Nigeria, Africa’s most populous country, with all those development spending needs, we think it is problematic that the tax revenue to GDP is only 8-9 per cent when it should be a lot higher.”

A few years ago, in its 2019 Article IV Consultation with Nigeria, the IMF made the same point. It said Nigeria suffered from “low tax mobilisation”, adding: “The revenue base is simply too low to address the current challenges”. Compared with the sub-Saharan African average of 18.6 per cent, Nigeria’s 8-9 per cent is minuscule and truly shocking. Like the IMF, successive Nigerian governments have fretted about it.