IMF Urges Nigeria to Boost Tax Revenue and Fight Tax Evasion
The International Monetary Fund (IMF) has called on Nigeria and other African nations to intensify efforts to increase tax revenue by broadening their tax bases and addressing persistent issues of tax evasion.
This appeal was made on Thursday during a press briefing at the ongoing IMF/World Bank Spring Meetings in Washington, D.C. The Managing Director of the IMF, Ms. Kristalina Georgieva, emphasized that strengthening fiscal capacity through enhanced domestic revenue mobilization is essential for African countries to weather current global economic headwinds.
Ms. Georgieva acknowledged the continent’s notable economic progress over recent years but highlighted the stark disparities between emerging economies and low-income or fragile states.
“We have seen over the last years the African continent having some of the fastest-growing economies,” she said. “But we have also seen low-income countries, especially those impacted by conflict, falling further behind. This is a major concern.”
While the direct effects of global trade tariffs may be minimal for most African nations, Georgieva warned that the broader impact of a slowing global economy poses significant risks to the continent’s development prospects. According to her, the IMF has already revised downward its growth outlook for Africa due to these global pressures.
Focusing on Nigeria, Georgieva pointed to the dual challenge of falling oil prices and fiscal strain. “For oil-producing countries like Nigeria, lower oil prices create additional pressure on government budgets. Conversely, oil-importing countries might feel some relief,” she noted.
She urged African countries, including Nigeria, Egypt, Ghana, and Côte d’Ivoire, to build financial buffers and improve domestic revenue generation.
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“There’s still a lot that can be done on the fiscal front,” Georgieva advised. “Countries must resist the temptation to avoid difficult reforms. Expanding the tax net and using technology to track and curb tax evasion are steps in the right direction. Countries like Nigeria should not use the excuse that it’s too difficult to raise more taxes because it is possible.”
Beyond taxation, the IMF chief also challenged African leaders to tackle corruption head-on and reshape the narrative surrounding the continent.
“More importantly, let us work to change the perception of Africa,” she added. “Corruption or conflict in one country often casts a shadow on the entire region. The image of the continent suffers when wrongdoing is left unaddressed.”
The call from the IMF underscores the urgency for structural reforms and transparent governance as African economies continue to navigate complex global realities.
Content credit: Oyedepo Oluwafifedoyinsola
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