Edun bemoans Nigeria’s tax to GDP ratio of 10%, says it’s lowest in the world

The Minister of Finance and Coordinating Minister of the Economy, Olawale Edun on Tuesday, February 6, 2024 lamented that Nigeria’s tax to Gross Domestic Product (GDP) level currently at 10%, is one of the lowest in the world.

He noted that the tax-to-GDP ratio in other African countries is close to 25% while it is above 50% in developed countries.

He disclosed that at over 50% in ways of tax collection, it facilitates investment in social infrastructure, social services, welfare, and a whole lot more.

The minister said these during the bilateral inter-ministerial meeting with the German minister of economic development and cooperation Svenja Schulze and the minister of Industry Trade and Investment, Doris Uzoka Anite in Abuja.

He further noted that the government requires these tax funds to carry out its responsibility, so there is no getting away from the fact that adequate tax must be paid.

He said: “There is a need to grow the economy and increase productivity, create jobs, and reduce poverty as these can only be done by having a successful and thriving private sector.

Edun also disclosed that the issues of rising prices are also a concern to the government and all Nigerians.

READ ALSO: IMF warns on Africa’s rising debt to GDP ratio, offers five key decisions to be made

“Some of the major steps taken are on demand and supply, especially in the area of agricultural products. President Ahmed Tinubu has intervened in that sector by providing grains and fertilizer to farmers. He also intervened in the area of rice, maize, wheat, and cassava production, these all will bring down inflation very soon.

Reacting, the German Minister of Economic Development and Cooperation, Svenja Schulze said there is a need to promote a bilateral relationship between the two countries as Nigeria has so many creative young people.

She also noted that jobs, food security, and education must be addressed. Germany she said is looking forward to deepening the relationship between both countries.

The Minister of Industry Trade and Investment, Doris Uzoka Anite said the German government is interested in building skills and ensuring education for artisans, these are areas where both countries can conveniently partner under the MSMEs.

The signing of the Memorandum of Understanding MOU will take place to streamline planning and decision programmes.

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