April 25 2023

International Monetary Fund Advises Nigeria to Broaden Tax Base and Reduce Debt Burden

Source: IBFD Tax Reaearch Platform News

On 13 April 2023, the International Monetary Fund (IMF) reiterated its advice to Nigeria to broaden the tax base (i.e. expand taxable persons and raise taxes) and cut borrowings to reduce its debt burden. The IMF has also advocated for the removal and reallocation of the fuel subsidy to the health and education sectors.

The IMF's Division Chief, Fiscal Affairs Department, stated that Nigeria needs a medium-term plan to reduce debt vulnerabilities. Tax hikes would facilitate the country's ability to manage debt and reprioritize its expenditure.