Nigeria’s vice president Professor Yemi Osinbajo has expressed a desire to see more Nigerians pay tax. He said this at the 40th anniversary public lecture of the Chartered Institute of Taxation on Tuesday. Vice President Osinbajo whose statement was read by his representative at the event by the Permanent Secretary, Federal Ministry of Finance, Budget and National Planning, Aliyu Ahmed, commended the Federal Inland Revenue Service for exceeding its tax collection target last year as it collected 6.405 trillion naira nationwide.
However, Osinbajo noted that the tax-to-GDP ratio in Nigeria was among the lowest in Nigeria. “Nigeria’s tax-to-GDP ratio is still one of the lowest in the world, at about eight per cent, while our contemporaries are in the neighbourhood of 16 to 25 per cent, even in Africa. We can surely do better,” he said.
He went further to explain that as the world reduces its dependence on fossil fuels which is the major revenue for the country, tax is an important tool and a more sustainable means of achieving national development: “A robust tax system is a prerequisite for an economy that is desirous and genuinely committed to growth and development.”
Continuing his submission, Osibajo said, “We are happy with the results of sustained efforts towards enhancing tax compliance despite the global economic challenges occasioned by COVID-19 as well as the disruption of business activities in 2020 by the nationwide protests.
“Nonetheless, tax administration has made significant improvement in collections as the Federal Inland Revenue Service was able to exceed its collection target for the year 2021 with a record collection of N6.105tn in both oil and non-oil revenue.
“This was achieved through strategic, administrative and operational reforms, shared hard work and political will, as well as the support to the FIRS, among other relevant revenue collection agencies. Government remains committed to the implementation of the strategic revenue growth initiative.”
