Reason behind Nigeria’s lowest GDP ratio globally – Shettima
Vice President Kashim Shettima [Credit: X | #stanleynkwocha_]
Reason behind Nigeria’s lowest GDP ratio globally.
Vice President Kashim Shettima has given reason why Nigeria has one of the lowest tax-to-GDP ratios in the world.
He said this on Friday in Abuja at an event organised by the Association of National Accountants of Nigeria and the Chartered Institute of Taxation of Nigeria.
Shettima, who is in Senegal for the country’s Independence Day celebrations, was represented by the Special Adviser to President Bola Tinubu on Economic Affairs (Office of the Vice President), Dr. Tope Fasua.
Shetima stated that Nigeria has one of the lowest tax-to-GDP ratios globally because, over the decades, it developed into a nation where many people perfected the art of hiding their wealth from the government.
He said, “As we all know, National budgets are easily the most important financial document in the lives of people who reside in countries all over the world. Businesses and households alike take cues from the information provided in budgets, which signal the thinking of national governments. They also embed critical data and metadata, which inform 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 the government. This is the reason why we have one of the lowest tax-to-GDP ratios in the world.”
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 public 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 are 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.
Shettima noted that the 2025 budget, valued at N54.99trn, aims to reduce leakages and wastages, ensure value for money and prioritise investments in critical infrastructure and human capital development and that the budget also focuses on reducing the country’s debt burden, with a deficit of N13trn to be financed through a combination of public-private partnerships, local and foreign borrowing.
Speaking earlier, President and Chairman of Council of the CITN, Samuel Agbeluyi, noted the significance of collaboration between professional institutions in shaping Nigeria’s fiscal policies.
