Nigeria Needs Tax Reform

The International Monetary Fund directed Nigeria to begin new tax reforms that will enable it improve revenues and wriggle out of the economic crisis triggered by crash in crude oil prices, AllAfrica reported. Speaking during a press briefing on Sub-Saharan Africa at the IMF/World Bank Spring Meetings in Washington on Saturday, IMF director for Africa department, Abebe Selassie, said the economic circumstances in Nigeria remain difficult. He said government has to reform its tax system but reduce the impact of such reforms on the poorest. Selassie said the government has to quickly decide on the particular tax handle it wants to use but must ensure the poor are protected from the impact of such policies. He said that without such reforms and huge investment in infrastructure, government’s objective of addressing poverty will not be achieved. “Government needs to build more schools, invest more in health and education. All of this requires resources,” he said.