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John Makina, country director for Oxfam International in Nigeria, said Nigeria could raise more than $7.5 billion a year with the introduction of a progressive wealth tax.
He made the remarks at the launch of two Oxfam reports in Abuja on Tuesday, highlighting growing wealth inequality in the country.
In his speech, Mr. Makina pointed out that millions of Nigerians have fallen into poverty while a small elite continues to accumulate wealth without paying commensurate taxes, calling for tax reform. emphasized the urgent need for
“A progressive wealth tax could generate more than $7.5 billion a year in revenue, which would either double the government’s current health budget or reduce out-of-pocket health costs for households,” he said. That’s enough to reduce the cost by 40 percent, significantly easing the economic burden on millions of Nigerians.”
He further explained that Nigeria’s complex tax laws and lack of transparency contribute to this inequality, depriving the country of vital revenue needed for social protection and poverty reduction efforts.
Oxfam’s new report, Income and Wealth Inequality in Nigeria: Trends, Drivers and Taxation of the Wealth: Fair Tax Monitor, reveals Nigeria’s deepening inequality.
Despite being Africa’s fourth-largest economy, economic growth has mainly benefited a small elite, leaving millions of people in poverty.
He said that according to the Federal Inland Revenue Service and John Bean Technologies Corporation, only 40 of the richest Nigerians are compliant with their tax payments, with a compliance rate of just 0.035 per cent. He pointed out that more than 99 percent of the country’s wealthiest people have avoided or avoided paying taxes. tax.
Makina said, “According to the Federal Inland Revenue Service and John Bean Technologies Corporation, only 40 Nigerians were the richest taxpayers, which translates to a compliance rate of just 0.035%. This means that more than 99% of Nigeria’s wealthiest citizens avoid or avoid paying taxes.”
Nigeria’s Gini coefficient of wealth, a measure of income inequality, is 35.1, placing it 11th out of 16 West African countries, highlighting severe economic disparities.
Makina highlighted that the introduction of a progressive wealth tax could help solve these problems, estimating that it could generate $7.5 billion annually.
This revenue would be enough to double the government’s health budget or reduce households’ out-of-pocket health costs by 40 percent, providing much-needed financial relief to millions of Nigerians. Become.
The report also noted that Nigeria is on the brink of a fiscal crisis, with a large portion of the national budget allocated to debt servicing instead of funding essential public services.
Henry Ushie, Responsible Governance Program Manager at Oxfam Nigeria and lead author of the report, called for immediate reform.
Mr. Oushie advocated increased social spending, tax reform and investment in human capital as solutions to reverse current trends.
Oxfam’s recommendations to the Nigerian government include increasing social sector spending such as health, education and agriculture to at least 10% of the national budget and introducing a 1% wealth tax on individuals with a net worth of more than $1 million. It is.
Other recommendations include improving human capital development, supporting smallholder farmers, reforming land policies, and working with civil society organizations to advance pro-poor policies.
