International Monetary Fund boss, Christine Lagarde has called on Nigerian lawmakers to ensure that Nigerians pay more taxes.
Lagarde also said subsidies must be removed so as to increase the revenue base of the country and reduce leakages.
“Hard decisions will need to be taken on revenue, expenditure, debt, and investment going forward,” she said in a speech to lawmakers in the capital, Abuja, on Wednesday. The government must “act with resolve by stepping up revenue mobilization,” she said, including possibly raising the VAT rate from the current level of 5 percent, which is among the lowest in the world.
“I firmly believe that Nigeria will rise to the challenge and make the decisions that will propel the country to greater prosperity,” she is quoted as saying according to The Cable.
“As the great Nigerian novelist Chinua Achebe once said: ‘If you don’t like someone’s story, write your own.’ This is exactly what you are doing right now.
“And let me assure you that, as you go forward, as you develop your story, the IMF will support your efforts. Today, I would like to offer my perspective—on your story and punctuate it with three R’s: resolve, resilience, and restraint.
“Today policymakers have the opportunity to address near-term vulnerabilities and medium-term challenges—with resolve, resilience, and restraint. Today the ‘Giant of Africa’ is walking with a spring in her step—inspiring others in the region and across the world.