Oh God, when are we going to be free from all these World Bank & IMF loans?

Tinubu, see your junior. 👇🏾👇🏾

A townhall clown 🤡 raping the country

adenigga:



Source: https://punchng.com/FG-to-receive-$2.25bn-World-Bank-loareceive-3

What happened to the subsidy removal money that they told us would be used to develop the country?
Incurring over 2 billion dollars loan at a time our purchasing power is weak, our economy is in shambles with high inflation, with all heaven and earth that was promised with the removal of fuel subsidy is insensitivity to our suffering and very poor economic decision.

dedonfranco:


You're still borrowing money after everything you put us into.

What does Tinubu want?

Generational wealth. They will soon say the loan is not start being repaid now ... maybe until 2029 ... when he's long gone. Buhari did same.... took massive loans .... now we're servicing those debts with almost all our income .... now he takes a bigger loan ... how will it be serviced? The World Bank and IMF will always give whatever we ask for .... knowing full well we can't service those loans. The FG should say what are the conditions .... maybe this one is for a foreign company to be in control of all our lithium resource. And we wonder why the Naira keeps free falling. Nigeria is being sold.

DatNiggaDaz:

World worst prolific failures in Black & white

The two slowpoke spotted

Just like Lagos Template, una go dey hear money, money everywhere, but it won't reflect on the lives of the people.

It's all about Debts, Debts, Over Taxations... If only people know how INDEBTED Lagos State is. You then ask: how about the revenue/IGR, et al.

Steal Kill Destroy (SKD): Tri-fold ministry of BATeria!

In case you don't understand, let me break it down in simple English:

1. The World Bank is lending the government $2.25bn.

2. Interest is 1% or $22.5m a year.

3. Duration: To be paid in 2064.

4. Purpose of the loan: To assist the government increase the lamentable tax collection rate by 2.8%.of GDP.

Nigerias tax collection is 9.4% of GDP. Ivory Coast is 26%. Soludo said a country should colleet at least 22%.

ONE HOPES LOANS WONT SEND NIGERIA INTO OBLIVION!LAST ADMINISTRATION HAS COLLECTED HERS THIS ONE IS ON HERS TOO!NAWA OOOOOO......

Nawaooo which kind government b dis.... U tax ur citizen for much con still add borrow join.... Those people dat vote apc...it shall never b well with u...

Wait oo abi them don sell Nigeria already?

grandstar:
In case you don't understand, let me break it down in simple English:

1. The World Bank is lending the government $2.25bn.

2. Interest is 1% or $22.5m a year.

3. Duration: To be paid in 2064.

4. Purpose of the loan: To assist the government increase the lamentable tax collection rate by 2.8%.of GDP.

Nigerias tax collection is 9.4% of GDP. Ivory Coast is 26%. Soludo said a country should colleet at least 22%.

So we borrow money so that we can collect more taxes from the people?

dedonfranco:
You're still borrowing money after everything you put us into.

What does Tinubu want?

He came to kill and destroy

Joey4321:



So we borrow money so that we can collect more taxes from the people?

Basically yes.

grandstar:


Basically yes.

Higher taxes will be a drag on an already depressed economy. You trust Nigerian government officials with money? We already know what will happen to the loan. Do you think this is a good move?

The REAL SOLUTION that will make the Nigerian economy better is LESS GOVERNMENT, but this is actually INCREASING government.


https://www.youtube.com/watch?v=MmO4-npyLOo?si=zNc05MTGv5JlFBKK

Well, time will tell. My prediction - FAILURE, because Nigerians are very good at protecting their PERSONAL interests and STEALING public money

Good Luck to Nigeria.

ceejay80s:

They are getting something in return...crude oil

yes I said that .....they like giving us loans bcus of our natural resources they like taking in return

We're paying more for subsidy. Forget the agbado propaganda

OkpaNsukkaisBae:
So where is the money from subsidy removal

OkpaNsukkaisBae:
So where is the money from subsidy removal

There was no subsidy removal. Tinubu has destroyed Nigeria.

The funding will be received via two major development projects. The first project is the Nigeria Reforms for Economic Stabilization to Enable Transformation Development Policy Financing, which is set to receive $1.5bn.

This is what a debt trap looks like. The West has convinced the fool running Nigeria to destroy the economy and is now big for aid and loads. The next thing they will force Nigeria to accept foreign bases and support Western interests.



Nigeria need to get rid of Tinubu now

IbeOkehie:


Higher taxes will be a drag on an already depressed economy. You trust Nigerian government officials with money? We already know what will happen to the loan. Do you think this is a good move?

The REAL SOLUTION that will make the Nigerian economy better is LESS GOVERNMENT, but this is actually INCREASING government.

Well, time will tell. My prediction - FAILURE, because Nigerians are very good at protecting their PERSONAL interests and STEALING public money

Good Luck to Nigeria.

Higher tax rates aren't really necessary. The real problem in Nigeria is the tax base. Most people do not pay taxes.

This government is not pro-business enough and it's disappointing. They seem to be managing the centre the same way they managed Lagos. Tax , borrow and spend. As long as the debt is sustainable, all is good. Their economic policies aren't far reaching enough.

If I were the government, I'd slash corporate tax to no more than 13%. India discovered in the 1990s that any time it reduced taxes, tax revenues increased. People are more readily to pay their taxes if it is low. The tax base increases. In Russia, when personal incomes taxes were slashed to 13%, tax collection picked up and many employees wanted their employers to formalize their operations so they could access consumer loans from banks.

If I were the government, I'd slash corporate tax to no more than 13%. This would not only boost investment, but also tax compliance. It would trigger an investment boom, especially Foreign Direct Investment. The federal government has no business with personal income taxes, so I won't discuss that. That is in the hands of the states.

Also end petrol and kerosene subsidies. This would reduce the size of the budget deficit. Replace it by lifting the ban or the huge protective walls on agricultural commodities the country lacks competitive or comparative advantage and place low import duties on them such as rice, wheat and poultry. Simply taxing these products (import duty) would yield at least $500m a year.

In addition, launch a massive privation programme. Privatize all international airports and seaports. It is a shame all privatization and commercialization would be postponed to Tinubu's presumed second term. I doubt whether any privatization will be free and fair, which will be troubling. One just has to look at the PHCN partial privatization programme which brought in some undercapitalized and inexperienced companies. This will leave a bad taste with the global community.

Corruption may be a big problem in this country but one must not throw the baby out with the bathwater. That is actually what many opponents of increased tax revenues focus on.

Imagine if 2024, tax revenues equals 10% of GDP and government spending is 15% of GDP leaving a deficit of 5% of GDP. By 2030 revenues increase to 15% of GDP, the deficit has been closed. Those who want to steal will do so within the 15% of GDP that accrues to the government, and not outside it.

What is important here is fiscal discipline defined by low budget deficit, or zero deficit or even a budget surplus as a percentage of GDP. Poor fiscal discipline does far more damage than corruption.

Russia for instance is a very corrupt country but it had fiscal discipline. Ghana under Rawlings had tolerable levels of corruption but it had poor fiscal discipline exposed by its high levels of budget deficits which caused the Cedi to disastrously lose its value year after year.

If Jonathan had won a second term, he would have run a more prudent economy rather than the absolute mess Buhari did. Buhari was just a complete disaster.

Zooposki:
Tinubu, see your junior. 👇🏾👇🏾

I just hope this Traore knows what he is doing. Simply strutting up and down does not mean he understands market forces.

He may be no different from Buhari who many hailed as a hero but basically left a bankrupt and tattered economy.

Has this man employed competent technocrats to man the ministries or fellow 'strutters' like him- 'Mr I know everything'

See Tinupoo's supporters below.

Dullards who keep following their clueless drug_zombie

grandstar:


Higher tax rates aren't really necessary. The real problem in Nigeria is the tax base. Most people do not pay taxes.

This government is not pro-business enough and it's disappointing. They seem to be managing the centre the same way they managed Lagos. Tax , borrow and spend. As long as the debt is sustainable, all is good. Their economic policies aren't far reaching enough.

If I were the government, I'd slash corporate tax to no more than 13%. India discovered in the 1990s that any time it reduced taxes, tax revenues increased. People are more readily to pay their taxes if it is low. The tax base increases. In Russia, when personal incomes taxes were slashed to 13%, tax collection picked up and many employees wanted their employers to formalize their operations so they could access consumer loans from banks.

If I were the government, I'd slash corporate tax to no more than 13%. This would not only boost investment, but also tax compliance. It would trigger an investment boom, especially Foreign Direct Investment. The federal government has no business with personal income taxes, so I won't discuss that. That is in the hands of the states.

Also end petrol and kerosene subsidies. This would reduce the size of the budget deficit. Replace it by lifting the ban or the huge protective walls on agricultural commodities the country lacks competitive or comparative advantage and place low import duties on them such as rice, wheat and poultry. Simply taxing these products (import duty) would yield at least $500m a year.

In addition, launch a massive privation programme. Privatize all international airports and seaports. It is a shame all privatization and commercialization would be postponed to Tinubu's presumed second term. I doubt whether any privatization will be free and fair, which will be troubling. One just has to look at the PHCN partial privatization programme which brought in some undercapitalized and inexperienced companies. This will leave a bad taste with the global community.

Corruption may be a big problem in this country but one must not throw the baby out with the bathwater. That is actually what many opponents of increased tax revenues focus on.

Imagine if 2024, tax revenues equals 10% of GDP and government spending is 15% of GDP leaving a deficit of 5% of GDP. By 2030 revenues increase to 15% of GDP, the deficit has been closed. Those who want to steal will do so within the 15% of GDP that accrues to the government, and not outside it.

What is important here is fiscal discipline defined by low budget deficit, or zero deficit or even a budget surplus as a percentage of GDP. Poor fiscal discipline does far more damage than corruption.

Russia for instance is a very corrupt country but it had fiscal discipline. Ghana under Rawlings had tolerable levels of corruption but it had poor fiscal discipline exposed by its high levels of budget deficits which caused the Cedi to disastrously lose its value year after year.

If Jonathan had won a second term, he would have run a more prudent economy rather than the absolute mess Buhari did. Buhari was just a complete disaster.

Now you're talking. So it's the tax base you're really after. Good, haba, I was shocked to read YOU advocating for more taxes. All that stuff up there about increased revenue accruing from lower tax rates is the Laffer Curve in action. Every government official should be required to read up and master the principles.

https://www.investopedia.com/articles/08/laffer-curve.asp

As for tax rates, my stance is that ALL INCOME, PROPERTY & CORPORATE TAXES and also import/export tariffs SHOULD BE ABOLISHED and replaced with a flat consumption or VAT of 9% or less TOTAL for all levels of government. If God gets 10% tithe, 9% should be sufficient for the government. The Federal, State and LGs can figure how to divide it up among themselves.

The only people that should pay income and property tax should be Federal Employees, including the armed forces. This will discourage government employment as a career. There should also be laws that once you choose to work for government, if you ever reach a decision making level like Director or whatever, you can NEVER work for any other employer. If you do it, the punishment is life in prison.

I like VAT or sales tax because it discourages consumption and promotes savings.

None of this will work, none of YOUR ideas will work until the naira is COMPLETELY FLOATED or bitcoin is adopted as national currency. You talk of fuel subsidy, well it's officially abolished but being done via forex subsidy. Getting monetary policy right is key to all these things, without it NOTHING WORKS, nothing at all. In fact I will take a complete free float backed by Constitutional Amendment in place of EVERYTHING else, let everything continue as it is right now if we can get a free currency float.

Thanks, you're always a good one to read. FYI, Argentina just announced their first budget surplus, I think on a monthly basis.

Good Luck to Nigeria.

Stanleymaster1:
World Bank even join dey kill nigeria.

Walahi!

IbeOkehie:


Now you're talking. So it's the tax base you're really after. Good, haba, I was shocked to read YOU advocating for more taxes. All that stuff up there about increased revenue accruing from lower tax rates is the Laffer Curve in action. Every government official should be required to read up and master the principles.

https://www.investopedia.com/articles/08/laffer-curve.asp

As for tax rates, my stance is that ALL INCOME, PROPERTY & CORPORATE TAXES and also import/export tariffs SHOULD BE ABOLISHED and replaced with a flat consumption or VAT of 9% or less TOTAL for all levels of government. If God gets 10% tithe, 9% should be sufficient for the government. The Federal, State and LGs can figure how to divide it up among themselves.

The only people that should pay income and property tax should be Federal Employees, including the armed forces. This will discourage government employment as a career. There should also be laws that once you choose to work for government, if you ever reach a decision making level like Director or whatever, you can NEVER work for any other employer. If you do it, the punishment is life in prison.

I like VAT or sales tax because it discourages consumption and promotes savings.

None of this will work, none of YOUR ideas will work until the naira is COMPLETELY FLOATED or bitcoin is adopted as national currency. You talk of fuel subsidy, well it's officially abolished but being done via forex subsidy. Getting monetary policy right is key to all these things, without it NOTHING WORKS, nothing at all. In fact I will take a complete free float backed by Constitutional Amendment in place of EVERYTHING else, let everything continue as it is right now if we can get a free currency float.

Thanks, you're always a good one to read. FYI, Argentina just announced their first budget surplus, I think on a monthly basis.

Good Luck to Nigeria.

Argentina has its first budget surplus! My Jesus is Lord! The perennial basket case! Something Menem could not achieve! My eyes are seeing my ears.

Your tax policies are revolutionary. I have always been a fan of Hong Kong. It's a lean and mean machine. That's what you get when an economist runs the government and has been given a free hand. Cheers to John James Cowperthwaite. 15% personal income tax, 16.5% corporate tax, zero percent duty on basically all imports. There is a tax on gambling. It also makes money selling land.

Your 9% VAT I repeat is radical. My worry is whether it would yield enough revenue for government to run. I would suggest 15%.

I have always said that if there was a zero percent import duty on goods, one would feel the economy move under one's feet. Imports are very good for an economy. Your import policy will do wonders for the economy and force businesses to focus on where the country has competitive or comparative advantage than this backward policy of import substitution. Though Hong Kong runs a trade deficit, it enjoys a massive current account surplus. It also has the most advanced economy in the world, with services accounting for over 90% of GDP.

There is another worry apart from if it would generate enough revenue. What should be done regarding mining for instance? If there were no taxes, these guys would generate monstrous windfall profits year after year, even after paying royalties on mineral mined. Anyway, Ghana charges 10% company tax on mining firms and it has not been the worse off for it.

I would suggest a 10% social security tax on the wages on personal income and paid by the employer.. This, however, will lead to its abuse as government can continue adding to it whenever they want government to get bigger.

Your idea is still very good. I have long felt that the manipulated tax policies are the root cause of many bubbles and bust. Countries are notorious for using tax incentives to encourage citizens to invest in real estate, piling up mountains of unpayable mortgage debt. It encourages overinvestment in one sector to the detriment of the entire economy. Hong Kong for instance has low government, corporate and personal income debts. This is not by accident. The free market and its tax system does not "unjustly" place one sector above the other. This is not by accident. If a sector booms, it is because it has earned the right to do so.

Let me pause for now and continue tomorrow

omohayek, blue3k do you support a flat 9% VAT policy?

grandstar:

omohayek, blue3k do you support a flat 9% VAT policy?

It would certainly make a lot more sense than the current jumble of high taxes on companies and high tariffs on imports. The basic problem I foresee is one of collection - so much of the Nigerian economy is in the informal sector, and until that changes any VAT will fall primarily on the already small section of the economy that already pays most of the taxes.

This is one reason why any policy which discourages the pace of digitization is such a terrible idea (e.g. the "cybersecurity levy" ). Cash needs to be phased out as the primary vehicle for carrying out transactions, and this requires that digital payments be as quick and low-cost as possible, so that even roadside hawkers won't hesitate to take electric payments on their phones for the smallest purchases. The beneficial side-effect of this would be to make VAT collection almost automatic (and definitely unavoidable), and in a manner much less amenable to petty corruption (since such transactions would be fully automated).

Stanleymaster1:
World Bank even join dey kill nigeria.

What an incredibly stupid thing to say! The loan has been made on exceedingly generous terms, well beyond what even top-rated OECD countries like the USA or Germany could get on the international markets. There is zero interest due for the first 10 years, and even after that, the interest rate is only 1%, even as current US inflation is running above 3% (with the Federal Reserve aiming for a long-term rate of 2%). Do you know what this means in financial terms? Let me spell it out for you: the World Bank is essentially giving money away to Nigeria!

I'm honestly sick and tired of loud-mouthed imbeciles like you spouting your paranoid rubbish about institutions like the IMF and the World Bank, even as you betray your lack of understanding of basic concepts like inflation-adjusted rates of interest.

Naira about to appreciate!!! If u knw u knw

omohayek:

It would certainly make a lot more sense than the current jumble of high taxes on companies and high tariffs on imports. The basic problem I foresee is one of collection - so much of the Nigerian economy is in the informal sector, and until that changes any VAT will fall primarily on the already small section of the economy that already pays most of the taxes.

This is one reason why any policy which discourages the pace of digitization is such a terrible idea (e.g. the "cybersecurity levy". Cash needs to be phased out as the primary vehicle for carrying out transactions, and this requires that digital payments be as quick and low-cost as possible, so that even roadside hawkers won't hesitate to take electric payments on their phones for the smallest purchases. The beneficial side-effect of this would be to make VAT collection almost automatic (and definitely unavoidable), and in a manner much less amenable to petty corruption (since such transactions would be fully automated).

You're spit on. If taxes can't still be collected, it would still be in vain.

I agree 100% on the need to digitalize payments. To copy China won't be bad. Sadly, the uneducated North may frustrate the policy.

Funny thing is that a point would come when there'd be no option. Many Hausa black marketers now prefer to pay using bank transfer rather cash. It makes sense as one need not carry bundles of worthless Naira to exchange for just $500.

I had to log in to like your comment. I agree with most of your suggestions except the last (bolded) part. GEJ was absolutely fiscally irresponsible. The only thing that administration had going for it was the oil price. GEJ was such a lucky man (no pun intended), oil price started rising immediately upon his swearing in until he was about to exit the position in 2015. At a point it rose to $140PB. No other administration has ever had it so good but apart from putting cash directly and indirectly into the pockets of a number of Nigerians, he and his team did very little to develop the economy with a long term sustainable plan. They were wasteful and saved nothing. Look at how much he squandered on the 2015 election alone. Yet he left owing civil servants up to 5 months salary.
We Nigerians are very emotional rather than rational.
PMB is the best president this country has ever had. He paid off all the back salaries owed to civil servants by GEJ and even gave the state governments the Paris money to use to pay the back salaries. Between 2016- 2022, global oil price never reached $100PB. In fact in 2020 Nigeria practically earned zero dollars from oil. Oil prices dipped as low as $20PB and they weren't even buying. The PMB administration was so proactive that during the pandemic lockdown, we were one of the first developing countries to borrow money, by the time other countries tried to borrow money to keep their economy going, IMF and WB said they had none to give anymore. The PMB government was Nigerians centric and that's why I am happy that Bola Ahmed Tinubu is showing them shege.
PMB is a real statesman and posterity will judge him right and Nigerians are paying the price of his vilification.

Modified

The lowest oil price under GEJ was $100PB and the lowest oil price under PMB's first term was $30PB.

Go figure!

grandstar:


Higher tax rates aren't really necessary. The real problem in Nigeria is the tax base. Most people do not pay taxes.

This government is not pro-business enough and it's disappointing. They seem to be managing the centre the same way they managed Lagos. Tax , borrow and spend. As long as the debt is sustainable, all is good. Their economic policies aren't far reaching enough.

If I were the government, I'd slash corporate tax to no more than 13%. India discovered in the 1990s that any time it reduced taxes, tax revenues increased. People are more readily to pay their taxes if it is low. The tax base increases. In Russia, when personal incomes taxes were slashed to 13%, tax collection picked up and many employees wanted their employers to formalize their operations so they could access consumer loans from banks.

If I were the government, I'd slash corporate tax to no more than 13%. This would not only boost investment, but also tax compliance. It would trigger an investment boom, especially Foreign Direct Investment. The federal government has no business with personal income taxes, so I won't discuss that. That is in the hands of the states.

Also end petrol and kerosene subsidies. This would reduce the size of the budget deficit. Replace it by lifting the ban or the huge protective walls on agricultural commodities the country lacks competitive or comparative advantage and place low import duties on them such as rice, wheat and poultry. Simply taxing these products (import duty) would yield at least $500m a year.

In addition, launch a massive privation programme. Privatize all international airports and seaports. It is a shame all privatization and commercialization would be postponed to Tinubu's presumed second term. I doubt whether any privatization will be free and fair, which will be troubling. One just has to look at the PHCN partial privatization programme which brought in some undercapitalized and inexperienced companies. This will leave a bad taste with the global community.

Corruption may be a big problem in this country but one must not throw the baby out with the bathwater. That is actually what many opponents of increased tax revenues focus on.

Imagine if 2024, tax revenues equals 10% of GDP and government spending is 15% of GDP leaving a deficit of 5% of GDP. By 2030 revenues increase to 15% of GDP, the deficit has been closed. Those who want to steal will do so within the 15% of GDP that accrues to the government, and not outside it.

What is important here is fiscal discipline defined by low budget deficit, or zero deficit or even a budget surplus as a percentage of GDP. Poor fiscal discipline does far more damage than corruption.

Russia for instance is a very corrupt country but it had fiscal discipline. Ghana under Rawlings had tolerable levels of corruption but it had poor fiscal discipline exposed by its high levels of budget deficits which caused the Cedi to disastrously lose its value year after year.

If Jonathan had won a second term, he would have run a more prudent economy rather than the absolute mess Buhari did. Buhari was just a complete disaster.

Blessedarethepe:
I see the economy of Nigeria going back to stone age in the future.

During the stone age in Africa ( different from the stone age in Icy Europe and Asia), there was:-

- wild games ( animals), fruits and vegetables everywhere; free food

- no taxes on humans
- free movement of ppl from one continent to another; no passports or visas ( infact Africans moved from Africa to Europe, Asia, Americas)

- there was arguably more peace in the world, as humans ( black ppl) were discovering creativity.


So, this age in reality is worse than the stone age.