Needless tax incentives costing nigeria n580bn oxfam
A very specific and timely topic!
According to a report by Oxfam, Nigeria is losing a staggering N580 billion (approximately $1.5 billion USD) annually due to "needless tax incentives" that benefit a few individuals and corporations, rather than the majority of the population.
Here are some key points from the report:
- Tax incentives: The Nigerian government offers various tax incentives, such as tax holidays, exemptions, and deductions, to attract foreign investment and stimulate economic growth.
- Lack of transparency: The report highlights that these tax incentives are often granted without transparency, accountability, or public scrutiny, making it difficult to track their impact or effectiveness.
- Beneficiaries: The report suggests that these tax incentives primarily benefit a small group of wealthy individuals and corporations, rather than the broader population.
- Loss of revenue: The report estimates that these tax incentives result in a loss of N580 billion (approximately $1.5 billion USD) in revenue for the Nigerian government each year.
- Alternative uses: The report argues that this lost revenue could be used to fund essential public services, such as healthcare, education, and infrastructure development, which would have a more positive impact on the majority of the population.
Oxfam is calling on the Nigerian government to:
- Increase transparency: Make tax incentives more transparent, with clear criteria for eligibility and regular public reporting on their impact.
- Targeted support: Focus tax incentives on specific sectors or industries that benefit the broader population, rather than just a few individuals or corporations.
- Revenue generation: Use tax incentives to generate revenue, rather than simply giving away tax breaks.
The report highlights the need for a more equitable and transparent tax system in Nigeria, one that benefits the majority of the population rather than just a few privileged individuals and corporations.