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Okonjo-Iweala Faults Tax To GDP Ratio

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The Coordinating Minister for Nigeria’s Economy, Dr Ngozi  Okonjo-Iweala, says the nation’s tax to Gross Domestic Product (GDP) ratio of 7 per cent of GDP Is not sufficient to build a strong economy..

Okonjo-Iweala disclosed this during a presentation at the Spring meeting of the World Bank Group and the International Monetary Fund (IMF) in Washington DC.

The minister spoke on the topic “Fiscal Policy, Equity and Long-Term Growth in Developing Countries”.at a forum of the World Bank.

“In my own country, Nigeria, tax to GDP ratio is an unacceptable 7 per cent of GDP as we depend mostly on government’s direct share of oil revenue.

“This has to change,’’ she said.

According to her, the fundamental observation is that for low-income countries, more resources need to be mobilised from domestic sources given the anticipated decline in Official Development Assistance (ODA).

She noted that the IMF estimates that many low-income countries still have tax revenues which fall below the generally accepted threshold of 15 per cent of GDP.

“For example, low-income countries in Africa are below the 15 per cent of GDP.

“Overall, we know that a further increase in tax revenues of about 2-4 per cent of GDP is attainable in many low-income countries.

“Interestingly, investing ODA in building strong tax systems in developing countries can yield excellent returns.

“Some research by the OECD indicates that one dollar of ODA spent on building tax administration capacity results in another 350 dollars in increased tax revenues,’’ she added

Okonjo-Iweala said that in developing countries, policy-makers must first take responsibility for reviewing how resource mobilisation in their economies would be improved.

She said that a complete diagnostic had been carried out, with the help of McKinsey consult, to see how to improve compliance in the tax system.

She noted that about 75 per cent of registered firms were not in the tax system.

“When we looked more closely at our tax payers’ database, we discovered that about 65 per cent of registered

tax payers had not filed their tax returns in the past two years.

“The main culprits tend to be this intermediate group of medium-sized professional service providers, contractors, and landlords.

“This non-compliant group fall in the grey area between the informal sector and large companies and I think, from an enforcement viewpoint, we can get a good ‘bang for the buck’ by focusing on this sector,’’ she said.

Okonjo-Iweala said that the estimated tax leakages due to unpaid real estate rentals in Nigeria amounted to about 250 million dollars per annum.

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NPA Assures On Staff Welfare 

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The Managing Director, Nigerian Ports Authority (NPA), Dr. Abubakar Dantsoho, has said the management will continue to accompany its port infrastructure  and equipment  modernization drive  with the development of the welfare of its personnel.
Dantsoho made the disclosure recently while responding to the commendation by the Maritime Workers Union (MWUN) and the senior Staff Association of Statutory Corporations and Government-Owned Companies (SSASGOC) on the  clearing  of the age-long problem of employee stagnation, when the union paid him a courtesy visit at the Authority’s headquarters in Lagos.
A Statement by NPA’s General Manager Corporate & Strategic Communications, Mr. Ikechukwu Onyemekara, quoted Dantsoho as saying,  “our Port infrastructure and equipment modernization drive will go hand-in-hand with continuous staff welfare improvement”.
The NPA MD disclosed that human capital development constitutes the key strategy for creating and sustaining superior performance under his watch, adding that “talent development constitutes a critical success factor for the actualization of the big hairy audacious goals we have set for ourselves especially in the area of Port competitiveness.
“The only way we can meet and indeed exceed stakeholders’ expectations is to deepen the competencies of our human resources assets and boosting their morale.”
Speaking further, Dantsoho commended the Honourable Minister of Marine & Blue Economy, Adegboyega Oyetola, for approving the strategic proposal of the Dantsoho-led Management team that solved the over a decade-long problem of lack of promotion that had fuelled industrial disharmony.
“I must specially appreciate our amiable Minister for graciously approving the multi-pronged stratagem we deployed that cleared all outstanding cases of employee stagnation by conducting examinations in one fell swoop and instituted timelines to forestall a recurrence of such anomaly”, he sad.
Speaking on behalf of the joint maritime labour unions, the President  of Senior Staff Association of Statutory Corporations & Government-Owned Companies (SSASCGOC), Comrade Bodunde stated, “In addition to clearance of the backlog of stagnated promotions, we also wish to express our appreciation for the increase in productivity bonuses, provision of end-of-year welfare packages for staff, and the revision of the Financial Guide to the Condition of Service, which now addresses our members’ concerns about inflationary pressures.”
Nkpemenyie Mcdominic, Lagos
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ANLCA Chieftain Emerges FELCBA’s VP

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National Secretary of the Association of Nigerian Licensed Customs Agents (ANLCA), Elder Olumide Fakanlu, has been elected Vice President of the Federation of ECOWAS Licensed Customs Brokers Association (FELCBA).
The election took place during the FELCBA Congress, held from Tuesday, June 17th to Thursday, June 19th, 2025, in Freetown, Sierra Leone.
Fakanlu’s emergence as Vice President marks a significant achievement for Nigeria within the regional customs brokerage community.
Apart from Fakanlu, Secretary of the Seme Chapter of ANLCA, Austin Nwosu, was also elected, securing the role of Secretary of Relations with Institutions.
The Nigerian delegation played an active role in the congress, with Michael Ebeatu nominated as a member of the electoral officer team, ensuring a fair and transparent election process.
The three-day congress concluded with delegates undertaking a visit to the Sierra Leone Port, offering insights into the host nation’s maritime operations, followed by a recreational trip to the Tokeh Beach.
The newly elected executives are expected to lead FELCBA in its efforts to harmonize customs brokerage practices, promote trade facilitation, and advocate for the interests of licensed customs brokers across the ECOWAS sub-region.
Nkpemenyie Mcdominic, Lagos
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NSC, Police Boost Partnership On Port Enforcement 

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In a bid to enhance more enforcement in the nation’s Port, the Nigerian Shippers’ Council (NSC) has reaffirmed its commitment to stronger inter-agency collaboration with the Nigeria Police Force (NPF).
The Council said the collaboration is aimed at enhancing stronger enforcement, compliance and improve operational efficiency across Nigeria’s ports.
Executive Secretary/Chief Executive Officer of  NSC, Dr. Pius Akutah, made this known during a visit to the  Inspector-General of Police, Dr. Kayode Adeolu Egbetokun, at the Force Headquarters, Abuja.
The visit, which he said, focused on strengthening institutional synergy, comes in the wake of growing responsibilities for the NSC under the newly created Ministry of Marine and Blue Economy.
Akutah emphasized the critical role of security agencies in supporting port operations and ensuring regulatory compliance.
He called for the posting of police officers to assist the Council’s monitoring and enforcement teams at key port locations including Lagos, Warri, Onne, Port Harcourt, and Calabar.
“The posting will complement the activities of our revived task teams and enhance our ability to enforce standards across the maritime logistics chain”, he said.
Earlier, the Inspector-General of Police, Dr. Egbetokun, assured the Council of the Force’s readiness to continue supporting the growth of the maritime sector.
The IGP acknowledged that compliance enforcement is essential to the successful implementation of Nigeria’s Blue Economy objectives.
“The NSC and NPF are expected to deepen collaboration in the months ahead, with a shared focus on building a secure, efficient, and competitive port environment”, to the IGP emphasized.
Chinedu Wosu
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