By Niyi Jacobs
Nigeria’s revenue crisis has been worsened by the tax evasion practices of the country’s super-rich, with a staggering 99% of high-net-worth individuals (HNWIs) failing to pay their fair share of taxes. According to a recent report, only 40 out of an estimated 115,000 HNWIs in Nigeria are tax compliant, resulting in a compliance rate of just 0.035%.
The report reveals that taxing just 4,690 wealthy individuals, those with a net worth of $5 million or more, could raise over N4.59 trillion ($6 billion) annually. This additional revenue could more than double the country’s health budget or reduce household health expenditures by 40%.
Furthermore, the report highlights that the Federal government is considering imposing a 25% tax rate on individuals earning N100 million and above monthly to address this issue. However, more needs to be done to ensure that Nigeria’s wealthy elite are held accountable for their tax obligations and contribute their fair share to the country’s development.
The alarming rate of tax evasion among Nigeria’s super-rich is a significant concern, and addressing it could make a substantial difference in the country’s revenue and economic development. It is essential that the government takes decisive action to ensure that all individuals, regardless of their wealth, contribute their fair share to the public purse.