Monday, October 29, 2018
5.40PM / Proshare WebTV
From the just concluded 24th edition of the Nigeria Economic Summit in Abuja, we bring you some key highlights of the panel session “Leveraging Domestic Resource Mobilization For Sustainable Development” which was moderated by Mr Olufemi Awoyemi, FCA the CEO of Proshare Nigeria Limited.
It was an opportunity for seasoned panelists to explore how Nigeria can rework its revenue model in a robust and sustainable manner.
Nigerian economist Dr Doyin Salami giving his perspective at the session shared that the debate in the country, should be around how the revenue generated is deployed for the benefit of citizens.
Salami was of the view that the conversation should from the focus on revenue collections, to what it is used for which is key to encouraging citizens to pay their taxes.
He agreed that revenue was quite urgent for the nation and getting the system to mobilize resources is very important, but argued that the point of expenditure cannot be ignored.
According to him “The object is not raising revenue in itself, that’s not the endgame. It’s raising revenue to a purpose and one of the things I fear we may inadvertently set ourselves up for, is the scenario where revenue rises but inefficiency of spending continues”.
“The challenge that already exists around trust in whether or not revenues are being deployed to the benefit of taxpayers will simply intensify, and at the earliest opportunity people will simply not pay taxes” He said.
On his part the IMF Resident Representative to Nigeria Dr. Amine Mati said the Economic Recovery and Growth Plan(ERGP) of the Federal Government had a projection to grow its revenue to GDP, from 5% to 15% annually.
Mati said at the time it was initially released the whole plan was not laid out but acknowledged a committee has been set up to explore the possibilities of driving the tax policy.
He stressed that the potentials of all the taxes were clear, from the company income tax, value added tax and property tax which are accessible to states and in need of reforms.
Dr Mati said the ERGP priority on Tax administration was good but takes time for it to yield revenue for the country.
The IMF representative believed through the ERGP, the FG should reform the excise duties and in the area of tax administration, focus on compliance and the widening of the tax base to bring in the non-tax payers.
He advised the Nigerian government to work on its non-oil revenue particularly this period the oil price is at a favorable level, so as to build a robust revenue base in the event of external shocks.
In the area of deploying revenue and mobilizing resources for expenditure, Mati was of the view that the government should do a lot in the area of publicizing how it is executing the budget and various projects of national interest.
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