Last month, the Minister – Nigeria’s Ministry of Finance, Budget and National Planning, Mrs Zainab Ahmed, said the Federal Government will henceforth accompany its annual budget with finance bills. The 2020 Appropriation bill currently under review of the National Assembly, was presented on the 8th of October 2019, By President, Muhammadu Buhari with a Finance Bill.
The Bill aims to – raise government revenues, reform our tax laws to align with global best practices, create incentives for investment and support medium and small scale enterprises.
Analysts say Nigeria has a complex tax system and a low tax to GDP ratio of 6% resulting in unsustainable fiscal deficits and a heavy debt burden. The Minister of Finance, Mrs Zainab has also said that Federal Government is targeting a tax to GDP ratio of 15% by 2023, implying additional annual revenues of over $45B in just four years. Well Emeka Onwuka, Partner and Head of Private Clients and family wealth at Anderson Tax LP will join us as we look at the implications of this bill and what it portends for the Nigerian economy