Vice President Kashim Shettima has spoken on why Nigeria has one of the lowest tax-to-GDP ratios in the world.
He spoke on Friday in Abuja at the 2nd Joint Workshop on 2025 National Budget organised by the Association of National Accountants of Nigeria (ANAN) and the Chartered Institute of Taxation of Nigeria (CITN).
According to him, Nigeria has one of the lowest tax-to-GDP ratios globally because over the decades Nigeria developed into a nation where many people perfected the art of hiding their wealth from the government.
Shettima was represented by the Special Adviser to the President on Economic Affairs (Office of the Vice President), Dr. Tope Fasua, at the event themed, ‘2025 National Budget: A budget for Restoration and Aligning Resources for Sustainable National Development’.
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“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.
“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.
