How can the government increase tax revenue?
Hiking tax rates is not enough to boost tax revenue.

Did you know that 12 out of 33 Nigerian states have a monthly per capita income above ₦30,000? So, if you're selling something that isn't a mass-market product, few Nigerian states would qualify as an attractive market because the residents don't earn enough.
 

Key takeaways:

  1. Nigerian states currently struggle to earn taxes internally. The average income in at least 21 Nigerian states is below the income tax liability threshold, making them heavily reliant on the federal government for revenue. 

  2. To improve its non-oil revenue, the federal government has increased tax rates on corporate and consumption taxes. However, increasing tax rates does not always equate to increased tax revenue; sometimes, it even reduces tax revenue. 

  3. Therefore, the government must attempt to implement efficient tax administration by setting up a reliable tax structure and implementing fiscal discipline (transparency and accountability) in how taxes are spent.

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This data point is not just

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Gbemisola Alonge

Gbemisola Alonge

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