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Nairaland Forum / Nairaland / General / Politics / Nigeria’s Tax To GDP Ratio,the Lowest Among Global Biggest Economies (583 Views)
Biggest Economies In Nigeria, GDP Of States / Nigeria’s revenue-to-GDP ratio lowest in the World – World Bank / Nigeria’s Revenue To GDP Ratio Hits 8%, Targets 15% 2023 (2) (3) (4)
Nigeria’s Tax To GDP Ratio,the Lowest Among Global Biggest Economies by GoodGovernance: 4:59pm On Feb 04, 2019 |
We need not look too far, to identify one of the major reasons why Nigeria ,the biggest economy in Africa,would continue to go a borrowing, to finance her critical infrastructural needs and also pay a living wage for the citizenry,unless very bold steps are taken to turnaround the tax revenue base. Financial Digest data analysis indicates that,with a meager Tax to GDP ratio of 6.1%,Nigeria ranks the lowest in the world,among all the top economies in six continents of the world. In Africa,Nigeria is below Algeria(64.07%),South Africa(26.9%) and Egypt(15.8%).The United States of America has the second largest ratio in the world at 59%,behind Algeria. Nigeria also has the lowest GDP Purchasing Power Parity at $5,861,among her global peers. In essence,Nigeria despite a huge population estimated at 190 million,is not collecting enough in tax revenue,relying on oil as the major source of revenue.This is in sharp contrast to Algeria,which despite being a major oil producer in Africa,has the highest tax to GDP ratio of a whopping 64.07%. Immediate and bold steps,including the deployment of technology, are required,to expand the tax net and lift the Tax/GDP ratio to at least 12%,in the short term. With this,Nigeria would be able to operate on a financial budget of about N16 trillion ,for a starter,without need for local borrowing. https://www.financialdigest.com.ng/blog/2019/02/04/nigerias-tax-to-gdp-ratiothe-lowest-among-global-biggest-economies/ 1 Like |
Re: Nigeria’s Tax To GDP Ratio,the Lowest Among Global Biggest Economies by Binikingdowm: 5:03pm On Feb 04, 2019 |
Lies Nigeria is cursed |
Re: Nigeria’s Tax To GDP Ratio,the Lowest Among Global Biggest Economies by Sirjamo: 5:10pm On Feb 04, 2019 |
Yet, Atiku of Yaounde and Obi of Beijing are planning to cut tax for billionaires and multi national companies! |
Re: Nigeria’s Tax To GDP Ratio,the Lowest Among Global Biggest Economies by Racoon(m): 5:16pm On Feb 04, 2019 |
Nothing new as a dullard that Does not know economy is ruling a country of 190M people that include first class economists as slaves. |
Re: Nigeria’s Tax To GDP Ratio,the Lowest Among Global Biggest Economies by Nfora: 5:28pm On Feb 04, 2019 |
A good evidence to show that the citizens too have a critical role to play in taking Nigeria to the next level. Have you paid your tax? |
Re: Nigeria’s Tax To GDP Ratio,the Lowest Among Global Biggest Economies by dominique(f): 5:39pm On Feb 04, 2019 |
Very few Nigerians pay taxes. I don't blame them though, not as if the tax money will be used for benefit of the masses. |
Re: Nigeria’s Tax To GDP Ratio,the Lowest Among Global Biggest Economies by Cletus77(m): 6:57pm On Feb 04, 2019 |
Sirjamo:Look at how daft someone can.. whether he is from Tokyo or Djibouti..or Obi is from Bamako or Tianjin... Nigerians has already decided |
Re: Nigeria’s Tax To GDP Ratio,the Lowest Among Global Biggest Economies by Sirjamo: 7:52pm On Feb 04, 2019 |
Cletus77:And by Nigerians you mean you and your fellow IPOB miscreants! 1 Like |
Re: Nigeria’s Tax To GDP Ratio,the Lowest Among Global Biggest Economies by Cletus77(m): 9:32pm On Feb 04, 2019 |
Sirjamo:Everyone not supporting failure is now IPOB abi? |
Re: Nigeria’s Tax To GDP Ratio,the Lowest Among Global Biggest Economies by grandstar(m): 10:27pm On Feb 04, 2019 |
Sirjamo: The tax cuts actually make fantastic economic sense. India found out that as it lowered taxes for instance, revenue increased as tax compliance increased. What matters most is the tax base and not the tax rate. Atiku plans to slash company taxes to the lowest in Africa. This will great fuel compliance but most importantly it will boost massive foriegn investments into Nigeria creating lots of lots and boosting economic growth. It also boosts investment by domestic investors. China, Singapore and Ireland we're very dependent on foreign investments to get to where they are today and they all used low taxes to varying degrees to lure them in. So, Atiku's tax reduction will greatly boost tax receipts and not reduce it as people will be readier to pay taxes than before. Less than 1% of Nigerian companies declare their true profits. They are unprepared to give 37% (if you include 2% education tax) of their profits to the treasury. Simply increasing compliance levels to 10% will great boost government's books. The main reason for the tax reduction is really to boost growth. Economic growth last year was a lamentable 1.81%. The country needs growth rates of 7% to create enough jobs yearly to absorb those entering the labour force yearly. The slash in company taxes and a merger of the exchange rates should achieve economic growth rates of up to 7% yearly . 1 Like |
Re: Nigeria’s Tax To GDP Ratio,the Lowest Among Global Biggest Economies by SternProphet: 10:32pm On Feb 04, 2019 |
When a party like PDP governs you for 16 years this is one of the things you see. They were giving tax breaks left and centre, especially with Dr Dumbo who was not qualified to be LGA chairman. Atiku will worsen things. That one is a crook. |
Re: Nigeria’s Tax To GDP Ratio,the Lowest Among Global Biggest Economies by urahara(m): 12:22am On Feb 05, 2019 |
grandstar: How is it that many African countries e.g Ghana have huge informal sectors but yet have a tax to gdp ratio of close to 20 percent or 15 percent ? |
Re: Nigeria’s Tax To GDP Ratio,the Lowest Among Global Biggest Economies by baralatie(m): 1:14am On Feb 05, 2019 |
there is employment ratio there is inflation rate there is GDP to health benefit relief there is GDP to higher education rate there is level govt owned enterprises to private owned enterprises rate |
Re: Nigeria’s Tax To GDP Ratio,the Lowest Among Global Biggest Economies by grandstar(m): 2:18am On Feb 05, 2019 |
urahara: Nigeria became very lazy collecting taxes because it had access to easy crude oil derived revenues. However, countries like Ghana, with no access to such easy funding were forced to go all out and collect taxes. That might explain things. However, I'm not sure if the tax collection rate is reflected when we can take in the size of the informal sector. Anyway, I need to research to reach the actual answer Blue3k omohayek 4play please help out 2 Likes |
Re: Nigeria’s Tax To GDP Ratio,the Lowest Among Global Biggest Economies by Blue3k(m): 2:27am On Feb 05, 2019 |
grandstar: The tax collection rate includes informal gdp. Nigeria has very low tax to GDP rate. Its less than 10% and they manage to waste it. Here's a chart to compare other countries.
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