Nigeria needs cash fast, but new taxes are falling short

By Ken Ikeh
Posted on Wednesday, 18 January 2023 17:27

A sign advertising instructions on tax payment is seen on a billboard on the Lagos-Ibadan expressway, Nigeria August 3, 2017. REUTERS

Nigeria’s tax revenue edged up last year, yet in economic terms it remains inadequate for Africa’s most populous nation to alleviate its mounting financial pressures.

The West African nation’s annual tax revenues have been hovering between 3%-6% of its N200trn ($455bn) GDP. Its tax-to-GDP ratio is low when compared to other African economies, with Nigerian authorities struggling to ramp it up despite the introduction of new taxes in recent years.