Nigeria Needs 30% More Tax Revenue To Cushion Ailing Economy, Debts Servicing – Expert

The Executive Chairman, Initiative for Leadership and Economic Watch in Nigeria (ILEWN), Ambassador Splendour Agbonkpolor, has said if Nigeria’s revenue base is expanded by 30 per cent through tax collection, it will robustly cushion the effects of Nigeria’s debt servicing which has risen to 91 per cent.

He said this in a statement on Wednesday in Abuja ahead of the Civil Society Tax Compliance Advocacy Workshop 2021 on Thursday next week.

The workshop has: “Expanding the nation’s tax base through increase in citizens tax compliance and concerted efforts from tax stakeholders for the nation’s economic growth amidst Covid-19 pandemic challenge” as its theme.

According to him, the workshop is strategically billed to drum tax compliance awareness among citizens, x-ray areas of challenges and pattern practical ways of strengthening revenue generation in the country.

Agbonkpolour said the workshop would also advocate for rural financial inclusion and how to further harness more revenue for rapid economic growth for the Federal Government.

The statement reads: “The workshop would also focus on mass mobilisation on tax compliance.

“One of the key aspects of the workshop is tax revenue expansion, looking at more opportunities to grow the nation’s economy through tax collection, so that tax collected can continue to yield more profit for the nation.

“The workshop aims to build citizens trust and confidence in government over the use of taxpayers’ monies for the nation’s economic development which we believe will stimulate more citizens’ participation in tax payment to the government.

“If Nigeria’s revenue base is expanded by 30% increase in tax collection, it will robustly cushion the effects of Nigeria’s debt service, which has risen to 91%, while it will raise the 9% left over after debt servicing to 39%, which will trigger rapid growth of the nation.

“The workshop discussion is structured to pattern ways forward on how to improve tax remittance, proffer measures on how to reduce tax loopholes in order to cushion the effects of tax evasion, increase revenue generation for the nation, advocates for unified tax monitoring system and payment evaluation, to emplace robust tax management system in Nigeria and also advocate for informal sector taxation which will be an added advantage for government to generate more tax revenue as veritable opportunity to expand Nigeria’s tax base for economic growth.

“We believe that the outcome of the workshop will constitute sound policy formulation to stimulate excellence in tax management in Nigeria to engender national productivity.”

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