Wale Edun: 90% of Nigeria's Tax Revenue Derives from Just Nine Taxes

Wale Edun: 90% of Nigeria’s Tax Revenue Derives from Just Nine Taxes

///
1 min read

At the ongoing Spring Meetings of the International Monetary Fund (IMF) and World Bank in Washington DC, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, revealed a striking statistic: approximately 90% of the tax revenue collected by the government comes from just nine tax heads.

Despite the existence of around 80 different taxes and levies across the country, Wale Edun emphasized that the overwhelming majority of revenue vital to the Gross Domestic Product (GDP) is derived from a select few sources. This revelation underscores the need for a more streamlined and efficient tax collection system.

The Minister outlined the government’s strategy to optimize tax revenue without increasing tax rates. This strategy involves leveraging technology to enhance tax collection efficiency while reducing the multitude of taxes burdening individuals and businesses. By focusing on the nine tax heads that contribute the most revenue and employing technological solutions, Edun believes that tax revenue could potentially double within three years.

Edun addressed the issue of excess liquidity by announcing the Federal Government’s decision to temporarily suspend the use of ways and means from the Central Bank of Nigeria (CBN). This move aims to foster closer collaboration between fiscal and monetary authorities to combat inflationary pressures and stabilize the currency exchange rate. By aligning fiscal and monetary policies, the government aims to lower inflation, stabilize prices, and reduce interest rates to stimulate economic growth.

In addition to tax reform and monetary policy adjustments, Edun highlighted the government’s efforts to address food security challenges. He emphasized initiatives to ensure farmers’ access to their fields, particularly in regions affected by insecurity, and the establishment of agro clusters in collaboration with the African Development Bank to boost domestic food production.

ALSO READ  Naira Holds Steady on the Black Market Despite Mixed U.S. Economic Data

The Minister’s remarks underscore the government’s commitment to implementing comprehensive strategies to enhance revenue generation, stabilize the economy, and promote sustainable development.

Present at the meeting were other key government officials, including the former Minister of Finance, Zainab Ahmed, and the Governor of the CBN, Mr. Olayemi Cardoso, demonstrating a coordinated approach to addressing Nigeria’s economic challenges on the global stage.

Leave a Reply

Your email address will not be published.

Previous Story

Sanwo-Olu Celebrates Tunde Onakoya, Chess Master, for Achieving New Guinness World Records

Next Story

First Bank Appoints Olusegun Alebiosu as Acting MD/CEO

Latest from Business