The Nigerian Economic Summit Group (NESG) has said weak policies and intractable reforms including poor public awareness of the nation’s tax system is hindering the realization of the full potentials of tax to development in Nigeria.
NESG Board member, Frank Aigbogun made the remarks at the NESG and the Federal Ministry of Finance, Budget and National Planning pre-28th Nigerian Economic Summit event with the theme ‘Critical Tax Reforms for Shared Prosperity’ last week.
“Policy weaknesses, lack of reforms, and public understanding prevent taxes from playing a significant role in development,” Aigbogun said while addressing stakeholders at the event that was held in Abuja.
Aigbogun stated that the introduction of a yearly finance act has supported tax legislation and encouraged policy implementation, which can be strengthened by addressing issues related to tax compliance, taxation and support to households and enterprises.
Nigeria suffers from low tax compliance and that the country’s tax to GDP ratio stands at 6 per cent, which is significantly lower than the average across African countries, which stands at 18 per cent.