Nigeria dey face big economic challenges, and according to World Bank, dey need to sustain reforms for at least 15 years to see any real impact. This advice come as Nigeria prepare to implement new Economic Stabilisation Bills (ESB) aimed at amending 15 tax, fiscal, and establishment laws to foster economic stability and inclusive growth.
The World Bank analysis show that the poorest economies, including some in Africa, are deeper in debt than at any time since 2006 and are increasingly vulnerable to natural disasters and other shocks. For Nigeria, this means that just changing tax policies alone no go be enough; dey need long-term commitment to economic reforms.
The ESB aims to consolidate taxes, lower business costs, spur investment, and promote price stability. However, historical examples like Reaganomics in the U.S. show that immediate results may not always be positive. In the U.S., the initial implementation led to a recession before eventual recovery.
Nigeria’s current economic challenges include high food inflation, standing at 37.52 percent as of August 2024, which disproportionately affects the most vulnerable segments of society. The ESB proposes suspending certain taxes on small businesses and vulnerable groups to ease their financial burden, but regulatory capture and institutional inefficiency could hinder the effectiveness of these reforms.
The World Bank emphasizes that low-income economies, including Nigeria, need to accelerate investment at an unprecedented pace to meet key development goals by 2030. This includes broadening the tax base, simplifying taxpayer registration, and improving the efficiency of public spending).
