Kingsley Moghalu, former deputy governor of the Central Bank of Nigeria (CBN), disagrees with the International Monetary Fund’s (IMF) call for Nigeria's government to increase taxes to generate more revenue and reduce the country's debt. Moghalu believes that Nigeria needs more efficient and widespread tax collection, spending cuts, and the end of waivers given to wealthy businesses.
He also suggests a wealth tax where the extremely wealthy pay their fair share, just as is the case in developed countries. The IMF had recommended that Nigeria increases income from taxes, particularly through ensuring compliance and expanding the tax net, to generate more revenue and cut burgeoning debt.
However, Moghalu argues that Nigeria has tax collection, revenue generation, and revenue allocation/spending problems, not tax increase problems. The IMF had also cautioned that Nigeria’s debt is projected to keep rising, and necessary steps must be taken to generate the needed revenues.
Share Your Thoughts