• Hausa Edition
  • Podcast
  • Conferences
  • LeVogue Magazine
  • Business News
  • Print Advert Rates
  • Online Advert Rates
  • Contact Us
Tuesday, July 1, 2025
Leadership Newspapers
Read in Hausa
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us
No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us
No Result
View All Result
Leadership Newspapers
No Result
View All Result

Don’t Fund Budget With Ways & Means, IMF  Warns CBN

by Bukola Idowu
2 years ago
in Business
IMF
Share on WhatsAppShare on FacebookShare on XTelegram

The International Monetary Fund (IMF) has warned against funding the nation’s budget with funds from the Central Bank of Nigeria (CBN), with the apex bank having funded the government with more than N22 trillion in Ways and Means.

Advertisement

This is as the Fund stressed the need for revenue mobilisation through taxation, saying there is a potential for the country as well as others with low tax to GDP rate to add up to four percent to GDP with the removal of tax exemptions.

Speaking at the Fiscal Monitor press conference at the ongoing 2023 IMF/World Bank Annual Meetings in Marrakech, Morocco, the IMF director, Fiscal Affairs department, Vitor Gaspar, called on governments to cut down on tax concessions to meet up with revenue potential.

He said, “We find that many countries have huge numbers of tax concessions. They have an income tax, they have a VAT but they provide so many tax concessions – exemptions for certain industries and certain commodities – and the revenue foregone from these measures is between 2 and 5 per cent of GDP.

“So, there’s a lot of potential. There is a lot of tax evasion, as relates to the failure to register failure to remit tax, underreporting on the income, false claims for refunds, all these issues together add up to two to four per cent of GDP.

RELATED

Kiss918 Table Games: A Chill Malaysian Guide To Winning Big

Kiss918 Table Games: A Chill Malaysian Guide To Winning Big

2 hours ago
External Reserves Decline $3.5bn In 6 Months

External Reserves Decline $3.5bn In 6 Months

2 hours ago

“And this is a matter of good enforcement – a good revenue administration can go a long way in mobilising revenue.”

On her part, IMF assistant  director, Fiscal Affairs Department, Era Dabla-Norris, whilst speaking on policies for growth, said: “Having appropriate monetary policies in place, doing away with any kind of central bank financing of the budget, and ensuring that policies are working in the same direction to bring inflation down are needed.

“In the case of Nigeria, the revenue-to-GDP ratio is quite low relative to other emerging markets and developing countries. So, efforts will need to be made to increase revenue collections and to mobilise revenue collections in an inefficient manner.”

According to her, IMF’s research shows that countries like Nigeria have a large untapped tax potential.

“This is not something that can be done magically overnight, but definitely, over the medium term, expanding tax base by reducing exemptions in value-added tax is reducing tax expenditures, rationalising other types of taxes, and strengthening the quality of your tax institutions – are all steps that can be taken to effectively mobilise revenues in a progressive manner. And then channel that for priority spending,” she said.


We’ve got the edge. Get real-time reports, breaking scoops, and exclusive angles delivered straight to your phone. Don’t settle for stale news. Join LEADERSHIP NEWS on WhatsApp for 24/7 updates →

Join Our WhatsApp Channel

BREAKING NEWS: Nigerians can now earn US Dollars from the comfort of their homes with Ultra-Premium domains, acquire them for as low as $1700 and profit as much as $25,000. Click here to learn how you can earn US Dollars consistently.


Tags: CBNIMF
SendShareTweetShare
Previous Post

HURIWA Seeks Review Of Enugu Gov’ship Election Tribunal Verdict

Next Post

Improving Women’s Health

Bukola Idowu

Bukola Idowu

You May Like

Kiss918 Table Games: A Chill Malaysian Guide To Winning Big
Business

Kiss918 Table Games: A Chill Malaysian Guide To Winning Big

2025/07/01
External Reserves Decline $3.5bn In 6 Months
Business

External Reserves Decline $3.5bn In 6 Months

2025/07/01
Nigeria Suffers Large Drop As OPEC’s April Output Down By 440,000bpd
Business

OPEC Plans Production Increase In August To Regain Market Share

2025/07/01
State Of Emergency In Rivers: Way Forward
Business

RMAFC Lauds Tinubu For Signing Tax Reform Bills

2025/07/01
Equities Extend Losses By N345bn
Business

Stock Market Ends June Trading With N11bn Decline

2025/07/01
Nigeria-China Summit: 216 Chinese Investors Target Oil, Agric, ICT, Other Sectors
Business

Nigeria-China Summit: 216 Chinese Investors Target Oil, Agric, ICT, Other Sectors

2025/07/01
Leadership Conference advertisement

LATEST

Gov Aliyu Unveils Water Project

FUTA, JAMB At Odds Over Students’ Status After 6 Years Of Study

Nigeria Is In Our DNA, Says Lucian PM

ECS: NSITF Compensates 2 Beneficiaries With N23m

DSP Barau, Ganduje, Others Arrive Madina For Dantata’s Burial

IDP’s Corpse Exhumed, Burnt To Ashes In Taraba

Sultan, Ihejirika To Grace NDA’s Course 18 Golden Anniversary

Wamakko Sponsors Free Eye Care For 5,000

Bauchi Man Jailed 1 Year For Stealing Water

Group Applauds Faleke For Fighting Insecurity In Kogi

© 2025 Leadership Media Group - All Rights Reserved.

No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us

© 2025 Leadership Media Group - All Rights Reserved.