Vice President Kashim Shettima has offered an explanation for Nigeria’s exceptionally low tax-to-GDP ratio compared to other nations.
Speaking at a workshop in Abuja on Friday, he stated that Nigeria’s historical development has led to a situation where many citizens have become adept at concealing their wealth from governmental authorities.
Shettima’s remarks were delivered by his Special Adviser on Economic Affairs, Dr. Tope Fasua, at an event focused on the 2025 national budget and sustainable development.
Read Also: Things To Know About New NNPCL Boss, Ojulari
“As we all know, National budgets are easily the most important financial document in the lives of peoples who reside in countries all over the world. Businesses and households alike take a cue from the information provided in budgets, which signal the thinking of national governments and embed critical data and metadata which informs the direction of businesses, household budgets, and personal strategies.
“Nigeria is a great country with immense prospects for all. But over the decades we developed into a nation where many people perfected the art of hiding their wealth from government. This is the reason why we have one of the lowest tax to GDP ratio in the world,” Shettima said.
He, however, said there is great prosperity in the nation and that that prosperity must be deployed to further the greatness of the nation, as nobody will develop this nation except Nigerians.
“The challenge is that all stakeholders must educate our publics and open their eyes to the need to invest in their own country. Enough of sending hard-earned money from Nigeria to purchase all sorts of assets abroad when we have development to do in our country, and the rates of return that you can obtain here is much higher than most other places, plus the psychological advantage of having invested in your own.
“Enough of dodging around and involving in financial malpractices when our tax rates are being reduced and no one is going after your turnover, but a bit of your profits, after you may have backed out all your expenses. The government has been made into a bogeyman, when the opposite is the case,” he added.
He pointed out that the proposed N54.99 trillion budget for 2025 is designed to minimize financial losses and inefficiencies, ensure that public funds are well spent, and prioritize investments in essential infrastructure and the development of human skills.
Furthermore, he stated that the budget includes a focus on lowering the nation’s debt, with a N13 trillion deficit intended to be covered through a mix of public-private collaborations and borrowing from both domestic and international sources.
Join Informant Online WhatsApp Channel With Link Below: https://whatsapp.com/channel/0029VaihFajBadmT29ufud2
