Debt servicing greatest risk to Nigeria- AfDB | The Nation Nigeria

Debt servicing greatest risk to Nigeria- AfDB

1/24/2021 4:33:00 PM

Debt servicing greatest risk to Nigeria- AfDB

The African Development Bank (AfDB) has cautioned Nigeria its current debt servicing obligations pose the greatest risk to the country...

By Nduka Chiejina (Assistant Editor)The African Development Bank (AfDB) has cautioned Nigeria, its current debt servicing obligations pose the greatest risk to the country.AfDB President Dr. Akinwunmi Adesina gave the caution at the First Annual National Tax Dialogue in Abuja organised by the Federal Inland Revenue Service (FIRS).

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According to Akinwunmi Adesina, “debt service payments pose the greatest risk to Nigeria”.To mitigate this risk, Adesina stressed that Nigeria’s economy shrank “by 3 percent in 2020 on account of falling oil prices and the effects of the lockdowns on economic activities, with shrinkage in oil revenues, taxes must form a significant percentage of government revenue”.

ADVERTISEMENTAfDB forecasts Africa’s loss of $409b to COVID-19 in two yearsTo get the best from taxation, he noted that “digitalization of tax collection and tax administration is critical to ensure greater transparency of the tax system, widening of the tax base, while mitigating compliance risks and encouraging voluntary tax compliance.” headtopics.com

Ekiti Governor Dr. Kayode Fayemi called for the interrogation of “how Nigeria can further deepen the use of technology to improve tax compliance nationally and across subnationals.“A significant proportion of our population will soon come into the workforce which is a golden opportunity to introduce first-time taxpayers to their civic responsibility, by adopting technology.”

Executive Secretary, African Tax Administration Forum (ATAF), Mr. Logan Wort, harped on the place of technology in generating revenue for the country in a post-COVID economy. Read more: The Nation Nigeria »