Nigeria plans to boost its tax-to-GDP ratio to at least 18 percent in three years, part of a push to curb its reliance on borrowing to finance public spending, its presidency said in a statement on Friday. Africa’s largest economy has embarked on its boldest reform agenda in decades, including the removal of a popular but costly petrol subsidy and restrictions on foreign exchange trading, a gamble by President Bola Tinubu to boost sluggish growth and reset the economy. The government has set up a committee to reform Nigeria’s tax system, which suffers from high levels of evasion, enhance collection efficiency and remove barriers impeding business growth as it tries to widen the tax base and achieve the target. Some of the challenges hampering tax collection include multiple taxes and revenue collection agencies, high prevalence of tax evasion, a complex tax system, and poor accountability in the use of tax revenue.
Nigeria has One of the World’s Lowest Tax Collection Rates it Wants to Change That
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