EU to Nigeria: Expand tax base to diversify revenue

The European Union has warned the Federal Government to expand its tax base if it is determined to diversify its revenue.
The Head, Trade and Economics of the European Union Delegation to Nigeria and the Economic Community of West African States, Mr. Fillippo Amato, conveyed the message at the weekend.
Amato disclosed that the trade between Nigeria and the EU member states stood at 19.9 billion Euros in 2016, explaining that the government needed to diversify its revenue base as certain developments were bound to cut back the revenue from import tariffs.
According to him, the Nigerian economy is already diversified as the Gross Domestic Product of the country shows that oil, which is the major revenue earner for the government, now contributes less than 20 per cent of the GDP.
“The Nigerian economy is already diversified. What needs to be diversified is the exports of the country, which is dominated by oil. Secondly, government needs to diversify its source of revenue by expanding its tax base,” Amato added.
He noted that the success of the Economic Recovery and Growth Plan, launched by Nigeria in February 2017, depended on active private sector participation, which called for effective confidence-building, to attract
investors.
“On the other hand, creating jobs that will stimulate the economy and provide sustainable employment, particularly for young people, is crucial both for the present and future of Nigeria,’’ the EU envoy said.
Amato said the forthcoming EU-Nigeria Business Forum, which has as theme, ‘Youth as an Engine of Broad-Based Economic Transformation’, would focus on the role of the youth in ICT and agriculture, which are key sectors to support the growth and diversification of the Nigerian economy.
The envoy said that it would also give business leaders and policy makers from EU and Nigeria a platform to explore business openings and how to increase investment.
He added, “The forum will identify the key role of youths in the digital economy and potentials of ICT in cross-cutting themes and experiences shared from the EU.
“It will strengthen EU and Nigeria’s business relations through identification of opportunities in the agribusiness space, by creating jobs, boosting exports and addressing local food security
problems.”
He said the EU had in the last 40 years, been working towards the economic development of West African countries, adding that the Economic Partnership Agreement between the two regions was to further boost economic growth in the developing countries of West
Africa.
He added that the agreement would spur industrialisation in West African countries; and that it would increase foreign direct investments into the countries, thereby boosting their economies and tax bases.