Economic Outlook: Why Nigeria is struggling to exceed 5% GDP growth rate – Taiwo Oyedele

Taiwo Oyedele, Fiscal Policy Partner and Head of Africa Taxation at PwC, said the reason Nigeria was struggling to surpass a 5% GDP growth rate.

He urged the government to explore an inclusive economic growth rate that will focus on taxes, reduce the economic burden of SMEs and increase the tax net of non-paying upper middle class institutions, especially MDAs.

Oyedele revealed this during the Nairametrics Economic Outlook Webinar held on Saturday, July 16.

What Oyedele says

Responding to a question on why Nigeria’s GDP growth rate has remained below 5%, he said: “GDP growth is less than 2% in ten years, and population growth has remained at 3%. This means that every day more people are falling into poverty. The growth rate is not inclusive.

He also mentioned that rising inequality must be taken into account, warning that if left unchecked, Nigeria could end up like Sri Lanka.

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He warned that some employed households are spending most of their income on food as the rate of food inflation continues to rise.

“What we need to do is make the country work for everyone. Nearly 100 million people live in poverty,” Oyedele said, insisting government social protection policies must have more impact because sharing 5,000 naira with the poorest will not go. far.

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He said FG needs to focus on:

  • Tax policy interventions: He said the FG was essentially taxing poverty at current rates, warning that if the poverty line is $2.15 and the average household size is 5, that means we are taxing poverty when the people can’t feed themselves.
  • SMEs: He urged the FG to reduce overregulation and stop being a burden by bringing tax coordination as well as coordination and improvement of the exchange rate regime.

Oyedele also insisted that other means of increasing FG revenue must be more efficient with tax collection for the upper class, citing that tax funds cannot come from the poorest, as the top 5% the wealthiest in a population are generally responsible for most taxes in developed countries.

He urged MDAs to put taxes back on staff and the FG to harmonize taxes by reducing tax agencies which should work in tandem with blocking leakages.

In case you missed it

  • Nairametrics earlier reported that Mr. Dayo Obisan, the representative of Securities and Exchange Commission (SEC) Director General Lamido Yuguda during the Nairametrics Economic Outlook Webinar, said that focusing on the implementation stage by stage of Nigeria’s national development is one of the keys to economic growth in Nigeria
  • Obisan, who is the Executive Commissioner (Operations) at the Securities and Exchange Commission of Nigeria, said Nigeria’s national development plan already has six goals that touch on different sectors.
  • Mr. Obisan, who said that productivity would reduce poverty, noted that in Nigeria, many policies have been put in place, but the problem is usually the implementation of those policies.

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