As global economic headwinds intensify and domestic fiscal pressures mount, emerging economies are being compelled to reassess the sustainability of their revenue systems and the efficiency of public spending. Nigeria is no exception.
Despite its vast economic potential and population, the country’s tax revenue remains alarmingly low. In 2023, Nigeria’s tax-to-GDP ratio stood at just 9.4 percent, one of the lowest globally and significantly below the 15 to 20 percent benchmark typical of countries with comparable economies, which has constrained the government’s ability to invest meaningfully in infrastructure, healthcare, education, and social services.