BusinessDigestWithDrEIS

On BU$I₦£$$ DIG£$T this morning, October 26, 2023

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SHOULD A NATION CONTINUE TO BORROW FOR THE RIGHT REASONS AND APPLY THE LOANS ON THE WRONG PURPOSES?

The above is a pertinent question we must pose to our political and economic leaders.

What is Debt Burden? A debt burden is a large amount of money that one country or organization owes to another and which they find very difficult to repay.

A Nation so blessed with both human and natural(God’s Given) resources, yet cannot apply itself to be resourceful enough to make judicious use of these resources.

One of the areas we are shedding light on today is the need to improve on the Internally Generated Revenue(IGR) of the States and Federal Government.

As at end of 2022, Lagos State alone generated ₦651billion in IGR, that is in excess of ₦632billion which is the IGR of 25 States in Nigeria put together under thesame period.

For all the States 90% of the IGR is from PAYE-Pay As You Earn which is statutorily deducted from workers both public sector and organised Private Sectors.

If the IGR must increase as a state or nation we must do the following:

•Deemphasize earnings from oil. Nigeria is an oil producing nation but not an oil rich nation.

•Create more economic and beneficial services that can be taxed to increase the IGR

•Increase the tax net, rather than increase taxes. Very many Nigerians involved in legitimate businesses are not paying taxes at all and Government know. Their businesses aren’t registered, they are in the informal sector, yet these people still benefit from the infrastructure provided by the little paid by others to keep the State or Nation going.

•Stop the over dependence on allocation from the Federal Government. I tell you for 🆓 many States will not survive the next month should FAAC stop from the centre.

•Ensure that massive tax awareness and tax amnesty is done and granted respectively. This is alot of mistrust on Government and its officials by the citizens.

Then we can operate within the CANONS of Taxation as propounded by Adams Smith.

The points vide supra and many more will shore up the IGR of States apart from PAYE which most salary earners cannot escape it being deducted.

The Federal Government Economic Team should as a matter of urgency address the exchange rate and inflation issues especially Consumption Inflation as the end of year approaches and going forward. The lifting of the ban of 4⃣3⃣ items by the CBN is not a good one at all. The negative effective are being felt already, yet the FGN is still borrowing from the World Bank, IMF, China et al

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Yours-In-Entrepreneurship
Dr. Emmanuel Idenyi Shaibu
animn, ace, f.hcd, f.dss, m.frcn, fimc, cmc, cms, FAiPA, DPA, FCCFI
The Millennium Entrepreneur!
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