Lagos contributes 70% of tax in Nigeria: SWIT

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The Society for Women in Taxation(SWIT) has stated that 70 per cent of the tax remitted to the Federal government is coming from Lagos State. In 2018, Nigeria collected N5.2 trillion, which means Lagos alone must have generated around N3.64 trillion.

This development shows a lopsided tax base, and also an indication that the long four-year tax reforms and campaign have little impact in the remaining 35 states in Nigeria.

The Chairperson of SWIT, Mrs Justina Okoror, said it is worrisome that 35 states and the FCT contributed a paltry 30% of the total. She also said that to broaden the nation’s tax base, there was the need to expand tax collections into the interior parts of Nigeria, to increase the number of people in the tax pool.

“For instance, out of the trillions of naira generated by the Federal Inland Revenue Service (FIRS), 70 per cent came from Lagos, which means that 35 states plus FCT contributed only 30 per cent.” It means that there are so many states with nearly no productive activities happening, and by implication are not paying tax. If Lagos decides to become a sovereign state, Nigeria will not be able to generate any revenue from tax, she said. It’s mostly in the cities that there is a record of organisations paying tax, but in suburbs and local councils, there are no tax collections.

She however, called on the Federal Government to engage governors on how to make their states viable, to attract investors and create more productive activities that would increase the tax base and revenue generation.
Furthermore, the incoming National Chairperson of SWIT, Kudiirat Abdulhamid, queried government’s increased borrowing, when potential revenue generation is lying idly, saying the increasing obligations is tying the nation’s resources to payment and servicing of the loan that is being taken.

She said that revenue generation through taxation is more sustainable, especially when such resources are judiciously tailored towards development projects that would benefit the people. It is the responsibility of government to provide basic amenities for the comfort of the citizens, while the citizens have the responsibility to pay directly or indirectly for it, she said the present situation in the country is not inspiring.

“I agree with people complaining over government borrowing, but if citizens pay taxes and it is judiciously utilised for provision of this services, people will be eager to pay more. But when government borrows money without providing infrastructures, citizens would become angry,” she said.

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