On this episode of Talknomics with Ugodre, Amaka Nku, Africa lead at Eurasia Group, delivers a sobering analysis of Nigeria’s fiscal challenges and economic reforms.
Nku reveals a striking issue with tax compliance in Nigeria, stating, “You barely collect any tax. You’re not collecting taxes from everybody who can pay taxes. Even politicians who run farms, are they paying taxes? I wouldn’t know who’s collecting taxes from them.”
She highlights Nigeria’s low tax-to-GDP ratio, which is below 10 percent, significantly limiting government revenue needed for infrastructure and development, and points out that many wealthy individuals and entities who should be paying taxes are not doing so.
Addressing currency reforms, Nku emphasises that liberalising the naira is not a standalone solution. “There was a big misconception that all Nigeria had to do was just liberalise its currency, but the problem is productivity, you have to earn the dollars; the Central Bank is not going to print dollars for you.”
On improving investor confidence, she calls for stronger government coordination and clearer communication, emphasising the need for a vision that everyone sees and believes in as the driving force.
For a comprehensive breakdown of Nigeria’s economic landscape and the path ahead, watch the full episode of Talknomics with Ugodre on Nairametrics TV on YouTube.
