October 24, 2018 8.00PM /Proshare WebTV
At the 24th edition of the Nigeria Economic Summit which focused on the theme “Poverty to Prosperity:Making Governments and Institutions Work” Dr Doyin Salami a notable economist and Chairman of the Nigerian Economic Summit Group Research Team, shared his perspective on “Fiscal Governance & Taxation in Nigeria”.
Speaking at the panel session which focused on “Leveraging Domestic Resource Mobilization on Sustainable Development”, Dr Salami asserted that Nigeria fared poorly in the area of revenue yields compared to its continental comparators.
While Nigeria was performing at 7.45%, the following African countries performed higher namely;
He noted that the African average was currently 22.37% in terms of revenue yields and Nigeria as a nation required capacity and efficiency to raise revenues that it can deploy for public expenditure.
According to him low revenues constrain spending, although spending levels are considerably higher than revenues.
Salami was of the view that Nigeria’s poor developmental outcomes undersored the importance of fiscal governance and the need for a proper fiscal arrangement in the country.
In the area of optimizing fiscal governance, the economist raised the following questions;
On Nigeria’s fiscal governance imperative Salami identified the two key issues for the nation to consider, which include;
“The Aspiration is to create a “fiscal virtuous cycle” in which optimal levels of revenue and spening are determined in a way that facilitates stimulation of growth, thus boosting revenues and affording the fiscus more space to drive even more growth and development”. He said.
The scholar harped on accountability and transparency on the part of government in managing and deploying the nation’s revenue, to incentivize the citizens to pay taxes.