Vice President Kashim Shettima recently addressed the issue of Nigeria’s low tax-to-GDP ratio, a key concern for the nation’s economic health.
Speaking at an event organized by the Association of National Accountants of Nigeria and the Chartered Institute of Taxation of Nigeria, Shettima highlighted that the country’s historical issues with tax collection stem from a culture of wealth concealment and tax evasion.
Shettima pointed out that Nigeria has one of the lowest tax-to-GDP ratios globally because of a long-standing trend where many individuals and businesses hide their wealth from the government, reducing the country’s ability to generate tax revenue.
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Despite this, he remains optimistic about Nigeria’s prospects, emphasizing the importance of citizens investing in their own country’s development instead of diverting their wealth abroad.
He urged Nigerians to focus on the nation’s growth and prosperity, stressing the higher rates of return on investments available locally compared to international markets. The Vice President also urged for an end to financial malpractices and tax evasion, calling on citizens to support the country’s development rather than evade taxes.
Shettima also touched upon the 2025 national budget, which is valued at N54.99 trillion, outlining its goals of reducing financial leakages, ensuring value for money, and focusing on critical infrastructure and human capital development. The budget, he said, would prioritize reducing Nigeria’s debt burden, with a N13 trillion deficit expected to be financed through public-private partnerships and borrowing.
