Akinwumi Adesina: Despite paying high taxes, Nigerians still provide water, electricity for themselves

Akinwumi Adesina, president of the African Development Bank (AfDB), has condemned a situation where Nigerians do not enjoy basic infrastructure that should be provided by government despite paying taxes.

Speaking at the first national tax dialogue organized by the Federal Inland Revenue Services (FIRS), Adesina said Nigerians are among top implicit tax payers in the world. Implicit taxes are levies that are borne but are neither seen nor recorded.

He said residents provide their own electricity, road, security, water, among others, adding that the government must rise to its duty rather than allowing citizens bear such burdens.

“We must also distinguish between nominal taxes and implicit taxes — Taxes that are borne but are not seen nor recorded. Truth be told, Nigerians pay one of the highest implicit tax rates in the world — way higher than developed countries,” he said.

“Think of it: they provide electricity for themselves via generators; they repair roads to their neighborhoods, if they can afford to; there are no social security systems; they provide security for their own safety; and they provide boreholes for drinking water with their own monies. That in incredulous in itself. Boreholes are not the way to provide water in the 21st century. Every household should have pipe borne water!

“Take for example that 86% of small and medium sized enterprises in Nigeria spend $14 billion annually on diesel for generators. Nigeria’s companies lose on average 10% of sales because they do not have access to reliable and affordable electricity.

“Governments, over time, have simply transferred their responsibility to citizens. When governments or institutions fail to provide basic services, the people bear the burden — a heavy implicit tax on the population.”

He said Africa’s gross domestic product (GDP) growth declined in 2020 by 2.1 per cent, the worst in two decades, while the cumulative loss to Africa’s GDP is estimated at $173-236 billion for 2020 and 2021, respectively.

“The (Nigeria) economy shrunk by 3% in 2020 on account of falling oil prices and effects of the lockdowns on economic activity. The pandemic has impacted on budgetary balances and increased debt burdens,” he said.

“Nigeria’s Debt-to-GDP ratio will push debt service payments beyond more than 60% of federally collected revenues. With shrinkage in oil revenues, debt service payments pose the greatest risk to Nigeria.

“To put a human face on the pandemic effects, we estimate that 28-40 million people in Africa are projected to fall into extreme poverty, and 30 million jobs would be lost due to the pandemic.

“We project that Nigeria’s economy is poised to recover to growth of 1.5% in 2021 and 2.9% in 2022, according to the African Development Bank’s soon to be released African Economic Outlook.”

Adesina said building back will require a lot more resources, adding that taxes form a significant part of government revenue.

He urged the federal government to focus on corporate taxes and ensure full compliance.

The AfDB president added that small and medium enterprises should be supported through tax exemptions or tax deferments.

“It is crucial to ensure that the tax base expands. Given that over 60% of Nigerians are in the informal sector, priority should be to support measures to move a large part of this from informal to formal sectors,” he said.

“The Government should focus a lot on corporate taxes, and ensure full compliance. But it is important to ensure that such taxes do not discourage investments

“Profit shifting, base erosion and tax avoidance by multinational corporations form a huge part of “Africa’s missing taxes”; and account for a large share of the over $60 billion illicit capital flows that Africa loses annually.

“If a company works in Nigeria, benefits from Nigeria, it should pay taxes in Nigeria. Small and medium sized enterprises should be further encouraged and supported, as they are the lifelines of earnings and the creators of jobs. Tax exemptions or tax deferments can be used to support their growth.”

https://www.thecable.ng/akinwumi-adesina-despite-paying-high-taxes-nigerians-still-provide-water-electricity-for-themselves

I can't wait to hustle out of this country

Why u no talk am before ur reelection...na dat time nigerians for know u're speaking for them.

Too bad, especially here in Lagos.
Even women hawking on the streets of Lagos pay taxes.
For the taxes we are paying here in Lagos, we provide our security, pay for water, pay almost everything.

i pay for vigilante

Na dat one dey pain person pass... U provide ur own water, provide ur own power by buying cables, poles and even contributing for transformer after which u begin to pay bills monthly, U provide ur own security and still d govt want to kill d ppl with all sorts of taxes

We are used to everything na even we dey block the pot hole in our street the Chairman is useless...

And we keep on with the muteness and still wait to vote for the same system..Nigeria is in a vicious loop that surely is heading for self annihilation. I have never seen a country and its citizens like Nigeria and Nigerians before. My Father once told me that the government should be paying us (citizens) taxes as we provide every single basic amenities for ourselves.

Static country with brain dead leaders.

Am just tired of this nonsense country called Nigeria

I get charged #100 daily for stamp duties from account, I wonder if i am the one paying buhari.

ijustdey:
Akinwumi Adesina: Despite paying high taxes, Nigerians still provide water, electricity for themselves



https://www.thecable.ng/akinwumi-adesina-despite-paying-high-taxes-nigerians-still-provide-water-electricity-for-themselves

No be tax money the useless leaders dey take flex

Indirectly Nigeria is a failed state. We pay tax, yet we still provide ourselves with the basic amenities the government is supposed to provide us.

Yeeaahh.. That's the Change! ! !

Matters relating to Nigeria always leaves me speechless.
That said, even though you pay taxes in developed countries does not mean you don't pay for those services like light, water, etc. In my opinion, having your own borehole as we do in Nigeria is far cheaper than paying for water as done in developed countries.
However, there are some places where government stilk provides water like some parts of abuja like Jabi, Lugbe, Maitama, Utako, Wuse, etc.
Government also provides other amenities just that it is not enough and the services are nothing to write home about. E.g sale of ordinary train ticket.

Adesina is IPOB

Bola146:
I can't wait to hustle out of this country

If you can, do......it is not a crime

Favt

Still affirming the failure of governance because these are services government is constitutionally empowered to provide.What an irony of a country.

true talk.
despite earning less, we paying huge for everything and get less for services in return.

They haf started

True. Those who can afford it. Most cannot and do without. Recently someone asked to buy power worth n500.00 only to be told that the minimum available is n1,000.00!

CRN

Cruise Republic of Nigeria

Despite the fact Nigerians provide almost all the basic amenities by themselves, yet they are been taxed left, right and centre.

And all this to fund their wastefulness. Imagine #3.4 billion was budgeted for feeding the president and his vice.

Being a Nigerian forces one to provide his basic and other needs and still suffer to sponsor knowingly or unknowingly the expensive lifestyle of our tormentors and their families whom we call leaders instead of calling them their true name which is parasites.

Oh so dem know

Na lie joor

That's why I stop voting

This Adesina is playing to the gallery... nonsense post.. are Nigerians complaining? Why don't you mind your business sir, and concentrate on ADB and Agriculture

Same old Story since 19 gogoro...

I wonder what the taxes are even for

High taxes,we dey pay.

China,our FG dey borrow from

Even death body accounts,them wor still borrow from

Chaii,I think say na only nepa and NPF be our only problem not until harmattan wey suppose appear during December appear for January... APC,una strong abeg