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Nigeria’s tax office reviews 2021 tax-to-GDP ratio

Published

2 years ago

May 31, 2023

Nigeria’s tax authority chief, Muhammad Nami has announced that the country has revised its tax-to-GDP ratio for 2021 to 10.86% from 6%.

Nami, who is the head of the Federal Inland Revenue Service, revealed that tax collection rates had hovered around 5%-6% of gross domestic product over the past 12 years.

Nami claimed that if tax exemptions and holes in its disjointed tax structure were closed, Nigeria’s tax-to-GDP ratio might be greater. A 2014 GDP rebasing, he continued, had made the tax ratio worse.

Expectations are high as a new administration was sworn in on Monday. The country has one of the lowest tax collection rates in the world, though tax receipts did rise by 56% in 2022 to a record 10 trillion naira ($22 billion).

During his inauguration address, the new president, Bola Tinubu, pledged to prioritize tax collection from the country’s digital economy and concentrate on non-resident companies that have a sizable economic presence and create revenue in Nigeria.

The nation is currently experiencing a number of economic challenges including, high inflation, a significant debt load, revenue shortfalls, and slow economic growth.

Related Topics:Economy Featured GDP Nigeria

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Moroccan annual inflation rises to 0.8% in November

Published

1 day ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”