Nigeria states of Ogun, Oyo, Ondo move to boost tax revenue

Nigerian states hit by dwindling revenues as a result of falling global oil price have intensified efforts to increased Internally Generated Revenue (IGR) to boost their finance and escape the impact of the fall in allocations from the federation accounts.
In a series of newspapers adverts on Monday, states of Ogun, Oyo and Ondo in the south western Nigeria called on all tax payers to submit returns and make payment of their taxes in line with the law.
Nigeria revenue has dwindled in the wake of falling oil price, leading to some states inability to pay wages of their work forces.
Many of them have to approach the central government for a bail-oil last year to enable them clear the arrears of unpaid salaries of workers to avert industrial action from the labour union.
In spite of the bail-out fund provided by the federal government and the conversion of many of the states indebtedness to banks to 10-year bonds, some of the states are still unable to meet their obligations as at when due.
Nigeria based its 2016 budget on $38 per barrel of oil, but as at Jan. 11, price of Nigerian crude is selling at $32.32 per barrel at the international market, a situation that may further worsen the financial conditions of many of the states.
During her visit to Nigeria last week, managing director of the International Monetary Fund (IMF), Christine Lagarde advised that Africa’s biggest economy should widen its tax base by raising the Value Added Tax (VAT) to around 20 percent from the present five percent to improve revenue.
The Fund ceo also counsel on the need to remove fuel consumption subsidy and block revenue leakages to further boost income and reduce budget deficit by top Africa’s oil exporter.
How much the state can generate from income tax in a bid to boost revenue would depend largely on the willingness of gradually eroding workforce to comply with the directive, as unemployment rate continue to grow due to poor economic conditions of the country.