Governor Nasir El-Rufai has raised the alarm about the debt of Nigeria, which he says is getting out of reach.
The Kaduna State Governor, speaking at a World Bank Nigeria virtual function, said that the domestic debt was hitting its debt limit in terms of liquidity and there is no need to pretend that the debt-to-Gross Domestic Product Ratio of Nigeria is still poor.
If you cut spending on other ministries, departments, and agencies, you can’t finance defense more than you are now doing.
The wide-ranging manner in which the Central Bank is involved in everything, I believe, needs to be discussed and addressed. And we must look at our handling of domestic debt and do something about it.
It is getting out of control and as far as liquidity is concerned, we are getting to our debt ceiling. And I don’t think the answer to that question is to pretend that our debt-to-GDP ratio is still low.
El-Rufai, commenting on tax collection, reported that most wealthy Nigerians do not pay income tax.
It is a travesty that as in 2018, only about 20 persons in the entire country paid more than N20m in income tax in Nigeria. It is a travesty and there should be nothing to do.
I don’t think that rich Nigerians are paying taxes. They live in enormous homes, drive costly vehicles, but when you see their tax return, you know that grade 12 civil servants pay more income tax than they do.