The International Monetary Fund (IMF) has called on the Federal Government of Nigeria to broaden its tax revenue base and curb tax evasion, as part of sweeping fiscal reforms aimed at strengthening the country’s economic resilience.
Speaking at a news conference in Washington, D.C., on the sidelines of the 2025 IMF Spring Meeting, IMF Managing Director Kristalina Georgieva emphasized the urgency for Nigeria—and other African economies—to boost domestic revenue mobilisation, adopt technology-driven solutions in tax administration, and plug leakages in public finance systems.
Georgieva pointed out that the continuous decline in global oil prices has created significant pressure on the budgets of oil-exporting nations like Nigeria, thereby underscoring the need to reduce overdependence on oil revenue.
“Countries like Nigeria must broaden their tax revenue base. It is essential not just for short-term budget support, but for building long-term economic resilience,” she said.
The IMF boss encouraged African governments to leverage digital tools to reduce tax evasion and improve compliance. “Technology offers tremendous opportunities to strengthen revenue collection. When deployed effectively, it can reduce leakages, increase efficiency, and promote fairness,” she stated.
On monetary policy, Georgieva urged African central banks to chart home-grown paths rather than mimic policies from other regions without considering domestic realities.
“We are no more in a place where you can look at the book of the Central Bank of the neighboring country and say, ‘Oh, they are doing this, I will do the same.’ You have to really assess domestic resource mobilisation, your inflationary pressures, and do the right thing for your country,” she cautioned.
IMF stresses need for transparency
Georgieva further advised Nigeria and its continental peers to focus on transparency, fight corruption, and prioritize sound economic governance. She maintained that effective monetary and fiscal policies must go hand-in-hand to ensure sustainable growth across Africa.
- In terms of trade, the IMF chief stressed the need for African nations to deepen intra-regional trade and eliminate obstacles that limit economic integration. Drawing lessons from the Association of Southeast Asian Nations (ASEAN), she encouraged African countries to scale up collaborative frameworks that enhance regional supply chains and shared infrastructure.
“Sometimes there are infrastructure obstacles. The World Bank is working on reducing those infrastructure bottlenecks that impede growth and trade. If Africa can remove these hurdles, it can unlock massive economic opportunities,” Georgieva noted.
She highlighted Africa’s enormous economic potential, citing its vast mineral and natural resources and a growing, youthful population. “Africa has so much to offer the world. The continent’s youthful energy, combined with innovation and sound policy, can drive transformative growth,” she said.
- Specifically, Georgieva recommended that countries like Nigeria, Egypt, Ghana, and Côte d’Ivoire continue efforts to build economic buffers and fiscal space. She explained that these buffers are crucial for absorbing shocks from global economic downturns or commodity price volatility.
“I think a more unified, more collaborative continent can go a long way to becoming an economic powerhouse,” she added.
Georgieva also touched on the ripple effects of global tariffs on African economies, warning that while the impact might not be immediate or direct, the indirect consequences could significantly hamper growth.
FG to exempt real estate from tax
Earlier, Nairametrics reported that the Federal Government had said that the Tax Reform Bill, once enacted, will exempt real estate transactions from Value Added Tax (VAT), a move aimed at reducing the cost of building materials and housing.
This reform is expected to ease the financial burden on low-income earners and stimulate growth in the construction and real estate sectors.
