Nigeria has one of the lowest tax-to-GDP ratios in the world, as explained by Vice President Kashim Shettima. This was what he said on Friday in Abuja at an event that was put on by the Chartered Institute of Taxation of Nigeria and the Association of National Accountants of Nigeria. Shettima, who is in Senegal for the country’s Independence Day celebrations, was represented by the Special Adviser to President Bola Tinubu on Economic Affairs (Office of the Vice President), Dr. Tope Fasua. Shetima said that Nigeria has one of the lowest tax-to-GDP ratios in the world because many people have perfected the art of hiding their wealth from the government over the years. He said, “As we all know, National budgets are easily the most important financial document in the lives of people who reside in countries all over the world.
Businesses and households alike learn from the information in budgets, which show how national governments think. They also embed critical data and metadata, which inform the direction of businesses, household budgets, and personal strategies.
“Nigeria is a great country with immense prospects for all. However, over the course of a number of decades, we evolved into a nation where numerous individuals perfected the art of concealing their wealth from the government.
We have one of the lowest tax-to-GDP ratios in the world as a result of this. He, on the other hand, stated that the nation enjoys a great deal of prosperity and that this prosperity must be utilized to advance the nation's greatness, as Nigerians alone will develop the country.
The difficulty is that all stakeholders must educate the public and convince them of the importance of investing in their own nation. Enough of sending hard-earned money from Nigeria to purchase all sorts of assets abroad when we have development to do in our country, and the rates of return that you can obtain here are much higher than most other places, plus the psychological advantage of having invested in your own.
“Enough of dodging around and involving in financial malpractices when our tax rates are being reduced and no one is going after your turnover, but a bit of your profits, after you may have backed out all your expenses. The government has been made into a bogeyman, when the opposite is the case,” he added.
Shettima said that the budget for 2025, which is worth N54.99 trillion, aims to cut waste and leaks, ensure value for money, and prioritize investments in critical infrastructure and human capital development. It also aims to reduce the country's debt, with a deficit of N13 trillion that will be paid for with a combination of public-private partnerships, local borrowing, and borrowing from abroad. Samuel Agbeluyi, President and Chairman of the Council of the CITN, mentioned earlier the significance of professional institutions working together to shape Nigeria's fiscal policies.
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