Selected Issues Papers

Nigeria’s Tax Revenue Mobilization: Lessons from Successful Revenue Reform Episodes: Nigeria

Author/Editor:

Il Jung

Publication Date:

March 6, 2023

Electronic Access:

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Summary:

This paper has identified four episodes of large and sustained revenue mobilizations in Sub-Saharan Africa (SSA) and found common lessons from the episodes. Although there is no one-size-fits-all strategy, we can find a tax reform path suitable to Nigeria’s circumstances. Based on these cross-country experiences, this paper recommends: (i) implementing a package reform of tax administration and tax policy measures; (ii) focusing mainly on indirect tax (VAT and excise) reforms and tax incentive rationalizations; (iii) undertaking tax administration measures for improving compliance by strengthening taxpayer segmentation and automation; and (iv) launching social dialogue with key stakeholders as well as high-level political commitment.

Series:

Selected Issues Paper No. 2023/019

Subject:

International organization Monetary policy Revenue administration Taxes

Frequency:

Regular