The Minister of Finance and Coordinating Minister of the Economy, Wale Edun yesterday disclosed that the tax to gross domestic product (GDP) level in Nigeria is 10 percent, adding that when that of states is included, it rises to 13 percent making it one of the lowest in the world.
He noted that the tax-to-GDP ratio in other African countries is nearly 25 percent. In the developed world, it is over 50 percent by way of collection which facilitates investment in social infrastructure, social services, welfare, and a whole lot.
The minister disclosed this during the bilateral inter-ministerial meeting with the German Minister of Economic Development and Cooperation Svenja Shulze and the Minister of Industry Trade and Investment, Doris Uzoka Anite in Abuja. He said the government needed these tax funds to carry out its responsibility, so there is no escaping from the fact that adequate tax must be paid.
“There is need to grow the economy and increase productivity, create jobs, reduce poverty as these can only be done by having a successful and thriving private sector. Issue of rising price is also a concern to the government and to all Nigerians.
“Some of the major steps taken is on demand and supply especially in the area of agricultural products. President Ahmed Bola Tinubu has intervened in that sector by providing grains and fertilizer to farmers. He also intervened in the area of rice, maize, wheat, cassava production, these all will bring down inflation very soon.
Also speaking, Shulze 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.
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 Micro, Small, and Medium Enterprises (MSMEs).
She said the signing of a Memorandum of Understanding (MoU) will take place to streamline planning and decision programs.