General news

Experts urge FG to broaden tax net to reduce borrowings

Published

on

Experts urge FG to broaden tax net to reduce borrowings

By Simon Akoje

Finanical analysts have urged the Federal Government to broaden the tax net to boost revenue and reduce the country’s rising debt profile.

They gave the advice in separate interviews with the News Agency of Nigeria (NAN) in Lagos on Friday.

Sheriffdeen Tella, a Professor of Economics at the Olabisi Onabanjo University Ago-Iwoye, Ogun, said the Federal Government should broaden the tax net to improve its revenue and reduce new borrowings.

“The authorities should deploy technology so as to ensure that eligible Nigerians do not evade taxes particularly the elite.

“The payment of taxes is quite crucial to meet government statutory obligations to the people for the public good,” Tella said.

He suggested that the Federal Government should sell the country’s moribund assets to raise revenue and reduce the urge to borrow to meet its obligations.

He added that the political class must cut down the cost of governance to reflect the times.

“ Our political office holders must see the need to reduce the high cost of governance because the pandemic has led to a drop in government revenue.

“ The country’s economy is yet fragile and our office holders must live within the current economic realities,” Tella said.

Also speaking, Dr Titus Okunrounmu, a former Director, Budgeting Department of the Central Bank of Nigeria (CBN), said the Federal Government should manage its debt exposure by strengthening its diversification drive.

“ More emphasis ought to be given to the mining sector, among others to contribute adequately to government earnings.

“The sector should be enhanced through private investment to change the revenue position of the country,” Okunrounmu said.

NAN reports the World Bank listed Nigeria among the top 10 countries with high debt risk exposures.

It stated this in the financial statement for International Development Association (IDA), which was among the World Bank Fiscal Year 21 audited financial statements released on Monday.

The financial statement said, “IDA faces two types of credit risk: country credit risk and counterparty credit risk.

“Country credit risk is the risk of loss due to a country not meeting its contractual obligations; and counterparty credit risk is the risk of loss attributable to a counterparty not honoring its contractual obligations.

“IDA is exposed to commercial as well as noncommercial counterparty credit risk.”

Nigeria was rated fifth on the list with $11.7bn IDA debt stock, while India led the list with $22bn IDA debt stock, followed by Bangladesh with $18.1bn IDA debt stock, Pakistan with $16.4bn IDA debt stock, and Vietnam with $14.1bn IDA debt stock.

But the Debt Management Office (DMO), in a swift reaction, flayed media reports listing Nigeria as a “high-debt risk nation.”

The agency said such publications claiming that the classification came from the IDA Audited Financial Statement for the Fiscal Year 2021 (July 1, 2020 – June 30, 2021) were a misinterpretation of the report.

DMO stated: “The World Bank’s report was an assessment of the performance of IDA and not the performance of the IDA loans nor the debt repayment capacity of the beneficiaries of IDA loans.”(NAN)

Source: NAN

Short Link: https://wp.me/pcj2iU-3Bxa

NNN

NNN: :is a Nigerian online news portal that publishes breaking news in Nigeria, and across the world. Our journalists are honest, fair, accurate, thorough and courageous in gathering, reporting and interpreting news in the best interest of the public, because truth is the cornerstone of journalism and they strive diligently to ascertain the truth in every news report. Contact: editor @ nnn.ng

Recent Posts

CAS tasks troops on professionalism, discipline COVID-19: PSC issues revised international travel protocol into Nigeria World Food Day: Food waste, threat to food security – Minister NYSC tasks 5m ex-corps members on national unity Buhari congratulates newly elected NUJ Executives Hand washing can reduce infections by 50% – Minister Nigeria spends $300m annually on barite importation Agriculture lifts 4.2m Nigerians out of poverty in 2 years – Minister There is hope; Northeast is at turning point – UN Top 50 Women in African Businesses Revealed After Data-Driven Research New skeleton find could reveal more about Vesuvius eruption Insurgency: There is hope, Northeast at a turning point– UN UNMISS and Ministry of Gender, Children and Social Welfare organize workshop in Juba on service delivery to communities Agric sector has lifted over 4.2m Nigerians out of poverty in 2 years – Minister Unlocking the potential of the African free trade area for rural women Bitcoin tops $60,000 on US fund approval hopes Nigerian Army to detonate expired explosives, alert Calabar residents High Commissioner of Seychelles accredited to the Republic of South Africa Shun violence, embrace peace, group advises Nigerians Nigerian govt to pay gratuities of 102 ex-Biafran soldiers – Magashi UNDP Africa Director calls for increased investment in new approach to accelerate Nigeria’s development Nigeria’s inflation rate drops to 16.63% – NBS EU military training mission in Mozambique to start operations APC state congress: Bauchi stakeholders reject Adamu Adamu’s anointed candidate TİKA Landscapes Tomb of Ottoman scholar Abu Bakr Effendi in Cape Town Nigerian Army buries Artillery School commandant in Abuja Arrest warrants issued for over 200 terrorism suspects in Turkey Hatch to Showcase Canada-Africa Solutions at Africa Accelerating 2021 Free movement of people a top priority, according to West African nations Italy not harassing law-abiding Nigerians – Unions Coronavirus: Peace Corps helps launch vaccination campaign in Mantasoa commune Eid-ul-Maulud: Nigerian govt declares Tuesday as public holiday Earned Allowances: Nigerian govt to pay varsity workers N22bn October ending – Ngige Nigerian govt flags-off distribution of Agric inputs to 7,386 Borno farmers Food ration cuts loom for those affected by crisis in northeast Nigeria as famine hits highest level in five years 9 out of 10 schools in Nigeria have no hand-washing facility for children – UNICEF Oyo Govt Set to Revoke contracts from 22 Firms COVID-19: 19 months after restriction, India reopens for foreign tourists Centre for Ethics rewards commissioner, others for Sterling performance Chinese yuan strengthens to 6.4386 against USD Friday Britain: Over 43,000 may have been given wrong COVID test results UK, Nigeria hold Sixth Ministerial Meeting for Economic Development Wema Bank Hosts High Net-worth Customers in Northern Nigeria, Reaffirms Commitment Teenager in court for alleged N2,000 phone robbery Douglas Ryder: Team Update Akeredolu backs constitutional roles for traditional rulers Valedictory Service: Follow footprints of remarkable predecessors — FCE (Technical) tasks graduating students Excellence NCPWD urges government, private organisations to consider employment of PWDs Lagos PDP state congress should be family affair – Spokesman UK Conservative MP David Amess stabbed ‘multiple times’ — News — – Nigeria and World News