The National Bureau of Statistics, NBS, has announced an upward review of the country’s tax-to-Gross Domestic product, GDP, ratio to 10.86 percent for 2021.
The upgrade represents 4.86 percentage points increase from 6.0 per cent earlier reported by the NBS. The bureau disclosed this yesterday in the Tax-to-GDP Ratio revised computation report for 2010 to 2021 noting that the revised computation took into account wider coverage of data at the Federal, State, and Local Government levels, and revenue items not previously included in the computations.
The NBS said: “The revised computation took into account wider coverage of data at the Federal, State, and Local Government levels, and revenue items not previously included in the computations, particularly, relevant revenue collected by other agencies of government. At the end of 2021, the tax-to-GDP ratio stood at 10.86 percent for Nigeria compared to an estimated 6.0 percent previously reported.
“The new figures are revised and updated numbers to reflect better data sources and improved estimation using the Organisation for Economic Co-operation and Development (OECD) manual. “The OECD manual is an improvement over the System of National Accounts (SNA 2008) classification of taxes.”