On Friday, the chairman of the Federal Inland Revenue Service, Mohammed Nami, lamented Nigeria’s low tax income and blamed it on lack of willingness by many Nigerians to pay income tax.
He disclosed that Nigeria has 41 million personal income taxpayers compared with the four million in South Africa but total amount of the country tax income remains low compared with South Africa’s figure.
While Nami may be right in his lamentation against the abysmal performance of Nigeria in terms of tax payment and collections, he should rather look beyond the surface and situate it within the prevailing economic conditions in the country.
Though Nigeria has the largest economy on the continent and by virtue of that, the country is regarded as the richest country in sub-Saharan Africa, the reality is much more than that because the economic outlook bleaks.
Nigeria with a Gross Domestic Product of $514.05 billion…