For some strange reasons, I just believe the much touted Nigeria's Tax to GDP ratio of 6% is not correct. Then I tried searching the web to see if I could find any basis for this figure. The only thing I found were just quotes and statements made by Mr Fowler and @HMKemiAdeosun.
No report or calculations to substantiate the figure being bandied around. (It could be that I didn't search well though)
So I decided to calculate the tax to GDP the way I understand it. See below:
So I decided to calculate the tax to GDP the way I understand it. See below:
Tax to GDP ratio increased from 4.96% in 2016 to 5.25% in 2017. the ratio is not up to 6% for the two years.
In my view, I think the tax to GDP ratio is just like the much touted Nigeria housing deficit number which has been 17 million units for about 10 years now.
In my view, I think the tax to GDP ratio is just like the much touted Nigeria housing deficit number which has been 17 million units for about 10 years now.
I also observed that states IGR grew by 12.03 % while nominal GDP grew by 12.05%. Is this this just a mere coincidence?
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