less than 30 percent of Nigeria pay taxes – Christian aid UK

Following the economical crisis, the Christian Aid UK Nigerian Programme said less than 30 percent of taxable citizen pay tax in the country.

This was revealed while a media engagement event organised by the Civil Society Legislative Advocacy Centre in partnership with Christian Aid UK Nigerian Programme, on the presentation of research on tax expenditures and debt management in Nigeria recently held in Lagos.

However, Victor Arokoyo, the Head of Programme, Christian Aid UK Nigerian Programme stated that if the government could raise more revenue, that would reduce the country’s debt.

He said, “We are partnering with CISLAC to see how we can galvanise the civil society to begin to talk about issues on tax expenditure and what would flow in terms of incentives to organised private sector. Maybe Nigerians are not so angry with the government because many people do not pay taxes; because less than 30 per cent of tax-payable citizens pay tax.

So, instead of increasing tax for those that pay, the government should also widen the net of those that are not paying.”

Also speaking, Auwal Musa, the Executive Director of CISLAC stressed that Nigeria’s fiscal woes were significant revenue losses attributed to tax expenditures, encompassing incentives, exemptions, credits, and waivers.

He declared, “According to the 2021 Tax Expenditure Statement, revenue foregone due to tax expenditures accounted for approximately four per cent of GDP, equating to N6.8tn. This substantial leakage of revenue underscores the urgency of addressing tax expenditure and debt management issues with the utmost priority

“In response to these multifaceted challenges, the Civil Society Legislative Advocacy Centre and the Tax Justice and Governance Platform with support from Christian Aid Nigeria through an ongoing Debt Justice campaign, have undertaken several sensitisation engagements with civil society and media as well as policy engagements with relevant state actors, most of which have been informed by our research on tax expenditures and their implications on debt management and sustainability in Nigeria.

We believe that governments at all levels need to acknowledge the critical importance of formulating, implementing and monitoring fiscal policies that are technically sound, widely acceptable and administratively feasible.

According to Musa, with a focus on tax expenditures, debt management, revenue mobilisation reforms, and the prioritisation of spending, the government should be committed to enacting measures that promote fiscal transparency, accountability, and sustainability.

He also noted that there was a pressing need for a comprehensive review of existing tax incentives to ensure their effectiveness, efficiency, and alignment with national development priorities.

He appealed, “The conduction of thorough assessments of existing tax incentives to identify areas of inefficiency, duplication, or inequity, engagement of stakeholders, including government agencies, private sector representatives, and civil society organisations, to solicit input and expertise in the reformulation of tax policies.

“In addition, the promotion of transparency and accountability in the administration of tax expenditures, including regular reporting and evaluation mechanisms to assess the impact of revenue-generating organisations and their economic outcomes.”

Musa emphasized that the government must demonstrate commitment to addressing Nigeria’s pressing fiscal challenges, encompassing tax expenditure, debt management, revenue mobilisation, and the prioritisation of spending.

By harnessing the collective expertise and insights of all relevant stakeholders, we are confident that we will navigate the complexities of Nigeria’s fiscal landscape and chart a course towards sustainable economic growth and development with transparency, accountability, and fiscal prudence as guiding principles,” he enthused.

Zainab Odunayo
Zainab Odunayo
Zainab Odunayo is a News Reporter at Wakadaily News, specializing in politics and current affairs. With a strong passion for storytelling and a keen interest in social issues, Zainab brings insightful perspectives to her reporting.

Popular Related

Govt plans forensic audit in mining sector

Dele Alake,  the minister of solid minerals development, says the federal government is working on a forensic audit of the mining sector as part...

Invest in agriculture, Obi urges FG

Peter Obi, the former Governor of Anambra State and 2023 Labour Party presidential candidate, has urged for increased investment in agriculture as a solution...

Lagos mandates tax clearance for housing transactions

The Lagos State Government has mandated that tax clearance will now be an essential document for any housing transactions within the state to prevent...

LIRS chairman receives honorary doctorate

The Executive Chairman, Lagos State Internal Revenue Service (LIRS), Mr. Ayodele Subair, has been conferred with a doctorate degree in Business Administration (honoris causa)...

LASG, FAAN sign MoU on 28km road project

The Federal Airport Authority of Nigeria has signed a Memorandum of Understanding with the Lagos State Government under the Office of Public-Private Partnerships and...

FG has rescued over 1000 abducted victims without paying any ransom- Ribadu

The Federal Government, led by President Bola Tinubu, has so far freed over 1,000 abduction victims without having to pay a ransom, according to...

Currency in circulation rises to N3.87tn – CBN

Following the value of Nigeria's currency in circulation, which has increased to N3.87tn at the end of first quarter in 2024. This is according to...

Niger Civic Servants sets to begin strike 

The Niger Civil servants have declared an indefinite strike following the failure of the government to meet their request. The union under the umbrella of...

Sanwo-Olu, Abiodun to attend architects’ conference

According to Lagos State chapter of the Nigeria Institute of Architects, Babajide Sanwo-Olu, the Governor of Lagos State, and his counterpart, Dapo Abiodun, the...

Tinubu’s administration committed to combating insurgency – Defence Minister

Mohammed Abubakar, the Minister of Defence, has assured the Nigerian military and other security agencies of President Bola Tinubu’s unflinching commitment to their welfare...