₦airaland Forum

Felicity0001:
Why is BAT not using this guy has one of his ministers

He might not accept such appointments. Guys like this live with integrity.

prophetwis:
Maybe you need to go and listen to Adeshina's speach before leaving office,one of the things he harped on,was that Africa pays the highest implicit tax rate in the world(85%) and need not to tax their people further ,rather improve Government efficiency.

Okay, let's break what he said down

The president of the African Development Bank, Akinwunmi Adesina, has urged the Nigerian government to improve governance and reform its tax system, saying Nigerians pay one of the highest implicit tax rates in the world

Okay, here is where you are right..

He acknowledged that conventional tax rates are low in the country, but distinguished those from “implicit tax”, which are “borne but are not seen nor recorded”

In other words, conventional, or proper taxation, which is what I am referring to, is low.

.

“

Truth be told, Nigerians pay one of the highest implicit tax rates in the world — way higher than developed countries,” Mr Adesina said Thursday at the Federal Inland Revenue Service Tax Dialogue, attended virtually by President Muhammadu Buhari.

“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!”

The above is largely because we don't pay enough conventional tax, AND also, in the case of electricity, because most of us underpay and don't pay for power, so the electric companies don't have enough cash to pay for good enough power supply.

The rest is due to low conventional tax rates(only ten million nigerians overall pay conventional tax...), low revenues from oil(oil money, even if we remove corruption , has never been enough, even if we reach tinubu's promised 4million bpd..we need somehting like 20-30million bpd), massive corruption(which this government hasn't dealt with, and before you accuse me of defending corruption...and again, it makes our funding worse), and bad government. ANd decisions like ending tolling of roads...which reduced governemt income there for road funding...and so forth.

Our tax to gdp is 13%. We need it to be as high as 25% before we can talk. We also need to diversify our income sources and so forth.

This is not excusing any government, just showing even that government under tinubu is not very good at raising money,...even the tax they are doing doesn't go far enough, and is being done because oil revneues have bene chronically low for over 10 years, and IMF won't lend us more money again.

But your comment mixes up conventional tax with implicit tax. DIfferent things entirely.


(Anectdote: I went to a private primary school, where the fees cost five times what the government school was paying. I got books, desk, clean classroom, textbooks, etc from the private school, whereas in the government school, I got nothing. That's because even back then, income from tax was low as well as fees in the government school was low...add corruption, and you can see why the government shcool was bad).

People like this man and Osinbajo Dey na someone like Tinubu una prefer to represent una

Omase ooo

Renaming the University of The Gambia’s School of Agriculture and Environmental Sciences after Dr. Akinwumi Adesina recognises his transformational leadership in African agriculture and food security during his decade as President of the African Development Bank Group. Under his tenure, initiatives like the Feed Africa Strategy and the wider High 5s agenda helped boost food production and economic development across the continent, positively impacting millions of people. The gesture by The Gambia also aims to inspire students to emulate his vision and commitment to development — a powerful message for future leaders.

Odidigboigbo:
Removing the subsidy is not the issue but what do have on ground to cushion the effect? Have you ever asked yourself what the money that was realised for subsidy removal has been used for or how does the removal benefit common man or affected our economy? These are simple question to ask

There was nothing to 'cushion the effect' , and there never was...because thanks to decades of oil dependency, and thanks to APC not diversifying the economy since 2015, as well as massive debt taken up because of the crash of oil prices since 2014 forcing us to borrow and borrow to keep head above water...and corruption...massive corruption...there wasn't enough money.

Keep in mind that any cushioning would have cost in the hundreds of trillions of naira to cover anyone. And because of oil dependency, all our alternative sources of income had dried up over time. That's why

And subsidy should have gone since 1993, that is my belief self. Even since 2012.

You pay implicit tax rate as a result of the failure of the government to provide the basics,if you go further on where he emphasized on the issue of African countries re -basing their the GDPs and the nature services that were brought in,juxtapose with his arguments with the implicit tax rates, you will understand that was was talking about includes what you refer as conventional tax rates.

nairalanda1:
Okay, let's break what he said down



Okay, here is where you are right..



In other words, conventional, or proper taxation, which is what I am referring to, is low.

.

“

The above is largely because we don't pay enough conventional tax, AND also, in the case of electricity, because most of us underpay and don't pay for power, so the electric companies don't have enough cash to pay for good enough power supply.

The rest is due to low conventional tax rates(only ten million nigerians overall pay conventional tax...), low revenues from oil(oil money, even if we remove corruption , has never been enough, even if we reach tinubu's promised 4million bpd..we need somehting like 20-30million bpd), massive corruption(which this government hasn't dealt with, and before you accuse me of defending corruption...and again, it makes our funding worse), and bad government. ANd decisions like ending tolling of roads...which reduced governemt income there for road funding...and so forth.

Our tax to gdp is 13%. We need it to be as high as 25% before we can talk. We also need to diversify our income sources and so forth.

This is not excusing any government, just showing even that government under tinubu is not very good at raising money,...even the tax they are doing doesn't go far enough, and is being done because oil revneues have bene chronically low for over 10 years, and IMF won't lend us more money again.

But your comment mixes up conventional tax with implicit tax. DIfferent things entirely.

nairalanda1:
If they appointed Adesina as president, he would do more than remove subsides on petrol, even subsidies on electiricty would go AND there would be massive cuts in the civil service and an even wider ranging tax law , more wide ranging than tinubu's own, and also cashless policy would be ruthlessly ensured. And nothing like cheap universites again...and absolute meritrocracy would be introduced...and it won't just be hausas affected by the way.

Something you should realize about Adeshina and Ngozi Okonjo-Iweala is that they are proper economists, not politicans. And proper economists take hard decisions most people don't like. If GEJ had followed Adeshina, NOI and SLS to the letter in 2012, by now you would be calling them wicked and evil people.

Really?

1. What's wrong with strict cashless policy implementation? Country like Sweden has over 90% adoption of cashless policy and the citizens are not crying. I bet you are comfortable with many banks ATM not working, for instance.
2. Nigeria does not need cheap universites, we need well funded quality universities. All countries with good educational system from Finland to Sweden to Singapore, subsidizes education for her citizens.
3. Absolute meritrocracy is a virtue not a vice. The mess we have today is because misfit are handling highly technical sectors. Imagine a secondary school holder being in charge of the nations defense ministry.
4. Everyone knows that the Nigerian civil service needs to be overhauled and professionalized for productivity.

Things that the likes of Adeshina and Ngozi Okonjo-Iweala will not do:
1. Constantly increasing the tax burdens on the citizens.
2. Excessive borrowing even after removing petrol subsidies.
3. Overseeing widespread corruption in the government.
4. Writing off trillions of unaccounted debt incurred by NNPC.

Nigeria has not fared well in the hands of these "professional politicians". We need technocrats to be in the top affairs of the nation.

nairalanda1:
Tinubu has made the civil service meritocratic, and removed all subsides on electricity?

Really?

How many times will you remove electricity subsidy? So after removing every subsidy and increasing taxes what is the benefit of government to citizens? Subsidy has been removed for almost 3 years now. In what way have you benefitted as a citizen?

Every government in the world have one form of subsidy or another. In UK it's healthcare and education. You don't pay fees until your child enters university. In US it's petrol, foodstamps, medicaid, unemployment allowance etc. These are the countries APC supporters mention when they defend high tax rate yet they will never mention the benefits that those countries get after paying high taxes

prophetwis:
You pay implicit tax rate as a result of the failure of the government to provide the basics,if you go further on where he emphasized on the issue of African countries re -basing their the GDPs and the nature services that were brought in,juxtapose with his arguments with the implicit tax rates, you will understand that was was talking about includes what you refer as conventional tax rates.

And why do you think that governments are not providing basic services..?

Let's look at electricity which has been in private hands since 2014, except for transmission which relies on what it gets from gencos and discos anyway.

Only Band A people, 20% of total consumers, pay cost reflective tarrifs. Everyone else pays subsidsied prices, yes, including estimated billing, and at least 40% of consumers do not pay at all. At least 60% of metered consumers bypass their meters.

(Band A profits were not meant to subsidise everyone else...by the way)

The result is that the sector cannot earn enough profit..(it is earning one trillion naira at most, meanwhile we need 15 trillion naira annually for ten years to fix power. 15 trillion every year. Itrillion no fit cover am)...because it isn't getting enough money

That is where implicit tax comes in .

(Discos and gencos also engage in things like ripping off customers through overbilling and estimated billing...because if they don't they would lose even more money.).

Same thing with government

Only 10 million people pay conventional tax
Most of our revenue is dependent on oil revenue
ANd finally, corruption at all levels...plus it can take decades to recover stolen money...

means that government services are bad at the end.


Meanwhile, GSM providers pay cost reflective tarrifs...all of them. When last did you pay implicit tax in the form of paying for GSM generator, diesel for gsm generator and GSM antenna?

Saner climes collect half or nearly half their citizens income and fight corruption like madt...when last did you hear of them paying for good roads for eg.


We have to stop excusing corruption and excusing underpaying the government and discos in the name of they will steal money..coded word for we are too lazy to do the hard work of holding government to account...before we see improved revenue, and improved services.

Which is why more nigerians should pay tax. Tell me, would any otondo steal money easily if 90% of government revenue came from conventional tax? Tell me?

Iamzik:
How many times will you remove electricity subsidy? So after removing every subsidy and increasing taxes what is the benefit of government to citizens? Subsidy has been removed for almost 3 years now. In what way have you benefitted as a citizen?

Electricity subsidy was only removed for band A users in 2023. It was kept for the rest of the 80% of consumers who use power on bands b TO e at varying levels.

Every government in the world have one form of subsidy or another. In UK it's healthcare and education. You don't pay fees until your child enters university. In US it's petrol, foodstamps, medicaid, unemployment allowance etc. These are the countries APC supporters mention when they defend high tax rate yet they will never mention the benefits that those countries get after paying high taxes

1. All those governments also collect more than 40% of your income in form of tax...that's how they can pay for subsides

2. All those governments tax far more of their gdp than nigeria. As for GDP...their gdp is high because they run diversified economies based on a wide varieity of industrial, and other products, as well as selling a variety of raw materials, and using them

3. Food stamps, and petrol stamps, and medicaid and unemployment allowance are for people that qualify for them in the USA...which isn't everyone. You want everyone in Nigeria to be subsidised. Doing that is part of why we have a severe debt, and a awful economy.

tarboshi:
Really?

1. What's wrong with strict cashless policy implementation? Country like Sweden has over 90% adoption of cashless policy and the citizens are not crying. I bet you are comfortable with many banks ATM not working, for instance.
2. Nigeria does not need cheap universites, we need well funded quality universities. All countries with good educational system from Finland to Sweden to Singapore, subsidizes education for her citizens.
3. Absolute meritrocracy is a virtue not a vice. The mess we have today is because misfit are handling highly technical sectors. Imagine a secondary school holder being in charge of the nations defense ministry.
4. Everyone knows that the Nigerian civil service needs to be overhauled and professionalized for productivity.

Nothing wrong with the above. I only mentioned them because most nigerians are opposed to doing such things.

Things that the likes of Adeshina and Ngozi Okonjo-Iweala will not do:
1. Constantly increasing the tax burdens on the citizens.

Seriously man, we need to tax more of our gdp. Our tax to gdp is 13%, and our gdp is even very low self. Ghana , which is slightly better than us, taxes 24% of its gdp. It's not like they love it.

2. Excessive borrowing even after removing petrol subsidies.

We borrow not because subsidies, we borrow because oil prices have been too low for donkey years to enable the country have a sustainable income AND because tax income comes from only ten million nigerians AND Because oil dependency for over 50 years has dried up alternative sources of income. Especially industries.

Subsides even worsened the debt because we were not funding it with tax, we were funding it with oil revenue (limited because of low oil prices for years...even before 2015) and borrowing and ways and means being recklessly applied.

Corruption only makes matters worse.

Your country needs a leader who will diversify the economy.

3. Overseeing widespread corruption in the government.

Ha, I know they won't support corruption

4. Writing off trillions of unaccounted debt incurred by NNPC.

They would even let NNPC crash and burn appropriately, as it should have ages ago.

NNPC's problems were caused by the price controls implicit in subsidy. This was already kind of foreseen in the 1990's, and we were warned, but we told those warning us that they wanted to make us suffer, and thus kept it.

Nigeria has not fared well in the hands of these "professional politicians". We need technocrats to be in the top affairs of the nation.

We do. But it would rightly get worse before it gets better. Fixing economy no be beans. But we need technocrats.

But one thing I know, Nigerians do not like good things. Just see how people in Aba protested the tarrifs brought in by Prof Nnaji's power company, despite the fact that those high tarrifs were why the company could afford to give them 24 hour power.

nairalanda1:
If they appointed Adesina as president, he would do more than remove subsides on petrol, even subsidies on electiricty would go AND there would be massive cuts in the civil service and an even wider ranging tax law , more wide ranging than tinubu's own, and also cashless policy would be ruthlessly ensured. And nothing like cheap universites again...and absolute meritrocracy would be introduced...and it won't just be hausas affected by the way.

Something you should realize about Adeshina and Ngozi Okonjo-Iweala is that they are proper economists, not politicans. And proper economists take hard decisions most people don't like. If GEJ had followed Adeshina, NOI and SLS to the letter in 2012, by now you would be calling them wicked and evil people.

Yes Adesina would have done that but improved the standards of living of Nigerians. You see Nigerians don't have an issue with subsidy removal but what the money realized from it is used for. This would have been the difference between Adesina and Tinubu. While Tinubu loots the subsidy money and shares amongst his cronies, Adesina would have channeled this to the economy and improved standard of living. Today in Nigeria, even with subsidy removal govt still borrows endlessly, even way more than what buhari borrowed (mind you, under buhari subsidy was still in place yet he didn't borrow as much as Tinubu is doing today). This should tell you that subsidy money is being relooted. Same applies to the issue of taxation. Once the citizens can feel the benefits of these stuffs, they would support it wholeheartedly. So the issue is not about subsidy removal or taxation, but about how such monies are used, which is where Adesina would outclass Tinubu.

nairalanda1:
Electricity subsidy was only removed for band A users in 2023. It was kept for the rest of the 80% of consumers who use power on bands b TO e at varying levels.





1. All those governments also collect more than 40% of your income in form of tax...that's how they can pay for subsides

2. All those governments tax far more of their gdp than nigeria. As for GDP...their gdp is high because they run diversified economies based on a wide varieity of industrial, and other products, as well as selling a variety of raw materials, and using them

3. Food stamps, and petrol stamps, and medicaid and unemployment allowance are for people that qualify for them in the USA...which isn't everyone. You want everyone in Nigeria to be subsidised. Doing that is part of why we have a severe debt, and a awful economy.

Chief I don't know about you but I've been paying huge taxes to government at every level. Yet what benefits do I qualify for?

You can't just pass a tax law to collect without tying the tax to social benefits. It is the social benefits that will encourage citizens to pay willingly

This idea that we are not paying enough taxes is a lie. If government has not made judicious use of the taxes we have been paying what magic do you think will happen overnight to suddenly make them responsible? I ask again where is the much touted savings from subsidy removal? And how was it spent? Who benefitted from it

This government through it's policies has increased price of fuel, tuition, electricity, immigration duties, vehicle insurance, bank charges, and now taxes. This is apart from the fact that the government has borrowed more money in 2 years than buhari borrowed in 8 years. All to make more money available to government that is not accountable to citizens.

You can't tax a nation with irresponsible leaders into prosperity

nairalanda1:
There was nothing to 'cushion the effect' , and there never was...because thanks to decades of oil dependency, and thanks to APC not diversifying the economy since 2015, as well as massive debt taken up because of the crash of oil prices since 2014 forcing us to borrow and borrow to keep head above water...and corruption...massive corruption...there wasn't enough money.

Keep in mind that any cushioning would have cost in the hundreds of trillions of naira to cover anyone. And because of oil dependency, all our alternative sources of income had dried up over time. That's why

And subsidy should have gone since 1993, that is my belief self. Even since 2012.

Removing the subsidy is not my problem; I supported it wholeheartedly. My issue with the present government lies in its economic management. There is no basis for comparing the present government with Adesina and Iwela in terms of economic management. The economy should have improved drastically since the removal of the subsidy and the implementation of one revenue-generation measure or another, but instead, the economy keeps dwindling with no hope in sight.

Omoluabi

Iamzik:
Chief I don't know about you but I've been paying huge taxes to government at every level. Yet what benefits do I qualify for?

You can't just pass a tax law to collect without tying the tax to social benefits. It is the social benefits that will encourage citizens to pay willingly

This idea that we are not paying enough taxes is a lie. If government has not made judicious use of the taxes we have been paying what magic do you think will happen overnight to suddenly make them responsible? I ask again where is the much touted savings from subsidy removal? And how was it spent? Who benefitted from it

This government through it's policies has increased price of fuel, tuition, electricity, immigration duties, vehicle insurance, bank charges, and now taxes. This is apart from the fact that the government has borrowed more money in 2 years than buhari borrowed in 8 years. All to make more money available to government that is not accountable to citizens.

You can't tax a nation with irresponsible leaders into prosperity

It's because most people in this country don't pay tax that you don't see benefits.

drstranged:
Yes Adesina would have done that but improved the standards of living of Nigerians. You see Nigerians don't have an issue with subsidy removal but what the money realized from it is used for. This would have been the difference between Adesina and Tinubu. While Tinubu loots the subsidy money and shares amongst his cronies, Adesina would have channeled this to the economy and improved standard of living. Today in Nigeria, even with subsidy removal govt still borrows endlessly, even way more than what buhari borrowed (mind you, under buhari subsidy was still in place yet he didn't borrow as much as Tinubu is doing today). This should tell you that subsidy money is being relooted. Same applies to the issue of taxation. Once the citizens can feel the benefits of these stuffs, they would support it wholeheartedly. So the issue is not about subsidy removal or taxation, but about how such monies are used, which is where Adesina would outclass Tinubu.

Nigeria is borrowing because our revenue depend on oil and oil prices have been very low for over a decade.

And also because ten million pay tax in a country of over 200 million people

That's the main reason why we borrow. And why tinubu is failing us by not diversifying income streams

Subsidy removal was because subsidy was eating most of our available revenue. It was not meant to increase overall revenue

nairalanda1:
And most of you will call him evil within five months

When economists run a country, they take hard decisions. Not political decisions.

Just as your drug lord is taking hard decisions on you

Realmssss:
Just as your drug lord is taking hard decisions on you

Sorry, I don't support apc, or pdp, or obi, or atiku. If you think I do, you don't have the intellect to grasp what I am saying...so adieu.

Absolutely well-deserved💯

Very worthy.

nairalanda1:
If they appointed Adesina as president, he would do more than remove subsides on petrol, even subsidies on electiricty would go AND there would be massive cuts in the civil service and an even wider ranging tax law , more wide ranging than tinubu's own, and also cashless policy would be ruthlessly ensured. And nothing like cheap universites again...and absolute meritrocracy would be introduced...and it won't just be hausas affected by the way.

Something you should realize about Adeshina and Ngozi Okonjo-Iweala is that they are proper economists, not politicans. And proper economists take hard decisions most people don't like. If GEJ had followed Adeshina, NOI and SLS to the letter in 2012, by now you would be calling them wicked and evil people.

There is no subsidy left in Nigeria Tinubu has removed everything are you not aware, from education to forex to fuel, gas, kerosene etc nothing is left

surgical:
There is no subsidy left in Nigeria Tinubu has removed everything are you not aware, from education to forex to fuel, gas, kerosene etc nothing is left

He hasn't removed corruption or made the civil service more efficient and meritocratic

Also if you are not on band A, your power is still subsidized

I ain't supporting any useless government.

nairalanda1:
Nigeria is borrowing because our revenue depend on oil and oil prices have been very low for over a decade.

And also because ten million pay tax in a country of over 200 million people

That's the main reason why we borrow. And why tinubu is failing us by not diversifying income streams

Subsidy removal was because subsidy was eating most of our available revenue. It was not meant to increase overall revenue

You have still not made the point. Buhari didn't remove subsidy but yet still didn't borrow in his whole tenure as much as Tinubu has borrowed in his three years in office. Despite still paying for subsidy Nigerians were better off with buhari than they are right now. It stands to reason that if subsidy is removed there'd be more money available (in trillions per month), and the standards of living of ordinary citizens would improve because these now available money should expectedly be channeled into improving the economy. But yet, the economy is worse off than when subsidy was still in place. Average spending power of a citizen has dropped significantly compared to when buhari was in power
and subsidy was in place. So please don't give excuses for failures. Even a fool knows that the subsidy money is being looted brazenly by Tinubu and his cronies that's why he has to keep borrowing to cover up the deficit left by the looted subsidy monies. It goes without saying. And don't bring up the oil price logic because that's the same format or dumb excuses buhari sold to Nigerians as to why he couldn't perform as much as Jonathan did. Oil prices in Tinubu's tenure is way better than what obtained in buhari's time, so that shouldn't even be a factor to bring in!

nairalanda1:
He hasn't removed corruption or made the civil service more efficient and meritocratic

Also if you are not on band A, your power is still subsidized

I ain't supporting any useless government.

Tinubu is about profit he cannot subsidise anything, he is not subsidising any electricity he is just tonning down profit according to affordability
Are you aware that he collects after removing subsidy about 310 per litre for every litre of petrol sold by dangote, I gave this example for you to know he rather increase people's yoke than give them respite

drstranged:
You have still not made the point. Buhari didn't remove subsidy but yet still didn't borrow in his whole tenure as much as Tinubu has borrowed in his three years in office. Despite still paying for subsidy Nigerians were better off with buhari than they are right now. It stands to reason that if subsidy is removed there'd be more money available (in trillions per month), and the standards of living of ordinary citizens would improve because these now available money should expectedly be channeled into improving the economy. But yet, the economy is worse off than when subsidy was still in place. Average spending power of a citizen has dropped significantly compared to when buhari was in power
and subsidy was in place. So please don't give excuses for failures. Even a fool knows that the subsidy money is being looted brazenly by Tinubu and his cronies that's why he has to keep borrowing to cover up the deficit left by the looted subsidy monies. It goes without saying. And don't bring up the oil price logic because that's the same format or dumb excuses buhari sold to Nigerians as to why he couldn't perform as much as Jonathan did. Oil prices in Tinubu's tenure is way better than what obtained in buhari's time, so that shouldn't even be a factor to bring in!

More available revenue not overall revenue

There is a difference after all

simpleseyi:
Ariwo ko ni Music.

Where are the chest beaters that developed Europe, America and Asia but can’t develop their ancestral home?

Hate didn't even allow you to congratulate the man who was honoured. Is this how you will continue in 2026?

prophetwis:
Maybe you need to go and listen to Adeshina's speach before leaving office,one of the things he harped on,was that Africa pays the highest implicit tax rate in the world(85%) and need not to tax their people further ,rather improve Government efficiency.

do Nigerians really pay Tax?

go and check very well ..... the only tax we get are from companies and not the whole population, even many companies don't remit such taxes

Unityestate:
Why are you talking like a kidooo

If itel you say most Nigeria politians Nokia about the citizens you go ask me how I Tecno...

I see what you did there. But how you Tecno true true?😂😂😂