Amidst shrinking income of the working population arising from the nation’s current economic recession, Nigerians have been advised to prepare to pay more taxes to help the Federal Government shore up its declining revenue from the plunging oil prices.
The International Monetary Fund (IMF) gave this as part of the conditions to support the Federal Government’s Economic Recovery and Growth Plan (EGRP), the flagship programme designed to pull Nigeria out of its current economic quagmire.
Speaking at a press briefing of the ongoing Spring Meetings of the IMF/World Bank, in Washington DC, the Director of African Department at the IMF, Mr. Abebe Aemro Selassie, described Nigeria’s economic circumstances as quite difficult and urged the federal government to find a way of mitigating the impact of the harsh situation on the poor in the country.
He stressed the need to implement a broad range of tax reform as part of strategies to raise funds to finance its Economic Recovery and Growth Programme (ERGP).
Although IMF had earlier endorsed the ERGP as a credible roadmap to lift Nigeria out of its current recession, it however noted that the 50 per cent crash in oil price from over $100 in 2014 to about $50 per barrel at present could hurt the implementation of the programme and financing unless government develops alternative revenue stream to mitigate the shortfalls.
“Nigeria has moved from a period when price of oil was $100 for over six years or more to where it is now. It’s a huge hit on the income of the country and government revenue which has a lot of goods and services to provide.
So, Nigerian government must find alternative sources of financing. But which particular tax handle to be used is up to the government. Without that, government’s objectives of addressing poverty will be difficult. Abebe said.
He therefore said it was imperative for the Buhari administration to address its long term development agenda by developing new tax handles to be able to generate enough revenue to finance its development programmes including social safety nets, without which the country may not be able to achieve the development goals and objectives it seeks to have.
Abebe said Nigeria needs a broad range of policies and reforms to address the tremendous shock its revenue has had from crash in oil prices.
He said, “What Nigeria needs is a broad set of policies and reforms to try to address the tremendous shocks that have been affecting its economy. Commodity price crash, insurgency in the North-east and from time to time militancy in the Niger Delta as well as depleting foreign reserves are some of the immediate challenges that the government needs to urgently address.
“There is therefore, a need to find and adjust domestic policies in a more robust manner, most importantly with fiscal policies.
There is a big gap arising from Nigeria’s traditional extensive reliance on oil revenue. Yes, I really want to see more exchange rate flexibility to try to absorb the shock in income but how to do that is entirely left to the government,” he said.
On exchange rate of the Naira, the IMF director said the global body is of the view that in the face of depleting reserves, the Nigerian government should allow its currency exchange rate to float and find its level in a free market environment.
Meanwhile, the Fund has lamented that 2016 could pass as the most difficult year for sub-Saharan Africa, as estimates for its economic growth attained only 1.5 percent of projection, the worst in 20years.
It noted that the economic slowdown in the continent affected about two -third of African countries, accounting for four-fifth of the continents’ GDP.
These developments, it explained, gave rise to high levels of inflation, widening macroeconomic imbalances, currency depreciation and food challenges in some cases.
more at http://www.akelicious.com/2017/04/fg-may-raise-tax-rates-as-imf-insists.html

Amidst shrinking income of the working population arising from the nation’s current economic recession, Nigerians have been advised to prepare to pay more taxes to help the Federal Government shore up its declining revenue from the plunging oil prices.
The International Monetary Fund (IMF) gave this as part of the conditions to support the Federal Government’s Economic Recovery and Growth Plan (EGRP)

Raiding taxes during recession. That's odd why. Should the be reducong burden to spur business growth. E.g Keynesian economics. I don't think Nigerian pay too much in taxes since alot skip out. The two biggest taxes come from oil, then import tarrifs.

The source get as e b. If it true,wetin consign IMF with Nigeria's economy? I weak oo.

I trust FG, they won't do that for political reasons.

Our tax laws are not bad, we have the population to our advantage, we only need more efficient tax collection system.

When you increase the rate without increasing the efficiency, it's just like taxing the faithful payer more to cover up for the one that won't pay.

Must IMF dictate to us

IBB's friends are here again.
This looks like Dejavu between 83 and 85 Buhari resisted them till IBB came and accepted to dine with them using a short spoon.