Business
‘200,000 Wealthy Nigerians, Biggest Tax Evaders’
A former Director General, Budget Office, Mr Bode Agusto, has said 200,000 wealthy Nigerians are the biggest tax evaders in the country.
Agusto stated this last Tuesday at the 17th Annual Aret Adams Memorial Lecture in Lagos, with the theme, ‘Nigeria’s economy after oil: How prepared are we?’
He said there was a need to increase non-oil tax revenues in the country, adding that non-oil taxes collected by all tiers of government in Nigeria averaged four per cent of national income in the past five years.
He said, “In Angola, it was eight per cent; Ghana, 16 per cent; Kenya, 18 per cent; South Africa, 24 per cent, and in the OECD countries, 32 per cent. The World Bank says a nation cannot grow meaningfully if tax revenue is less than 15 per cent of national income.
“Why is Nigeria generating significantly lower tax revenues than other key economies in sub-Saharan Africa? In my opinion, it is largely due to poor tax compliance in Nigeria.
“What if Nigeria were able to increase non-oil tax revenue to 15 per cent of national income? This means that Nigeria will generate an additional N14.4 trillion in revenues every year.”
Agusto said it also meant that total government revenue would be 20 per cent of national income or N28.8 trillon per annum compared to the current figure of N10.4 trillion.
He said to raise the level of non-oil tax revenue, the government should focus on Personal Income Tax, Value Added Tax and Companies’ Income Tax, and make tax laws simpler.
He said the government should show willingness to enforce tax laws, adding, “I believe the government should focus on PIT, forgive all past sins and thus look forward and not backwards.
“The next step is for Mr President to make his PIT returns public annually, then make it obligatory for all those want to work for him to do the same. He should then look at all of us in the face and say, ‘Woe betides you if you don’t comply going forward!
“The biggest culprits with respect to tax evasion are the wealthy 0.1 percent of the population (or 200,000 individuals) who ought to self-assess themselves to tax but fail to do so. The focus should be on them, not businesses and those in employment who are already largely compliant.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
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