The Minister of Finance and Coordinating Minister of the Economy, Olawale Edun on Tuesday, February 6, disclosed that the tax to GDP level in Nigeria is 10%, with states included it rises to 13% making it one of the lowest in the world.
He noted that the tax-to-GDP ratio in other African countries is close to 25%.
In the developed world it is over 50% in ways of tax collection which facilitates investment in social infrastructure, social services, welfare, and a whole lot more.
The minister disclosed this 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, stating 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. Issues of rising prices are also a concern to the government and all Nigerians.
“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.
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.
[TheNtaion]