Renowned economist urges FG to improve tax collection efficiency instead of raising rates

Renowned economist and development consultant, Dr. Muhammad Sagagi, has urged the federal government to focus on improving the efficiency of existing tax collection rather than imposing higher taxes on citizens.

He made this statement on Wednesday during a public lecture organized by the Department of Economics, Faculty of Economics and Management Sciences, Bayero University, Kano.

SolaceBase reports that Dr. Sagagi emphasized that enhancing tax administration would generate more revenue without overburdening businesses and individuals with increased rates.

He noted that many developing countries, including Nigeria, face significant revenue losses due to inefficiencies and leakages in tax collection.

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“The government should focus on improving efficiency in the collection of existing taxes instead of increasing them,” Dr. Sagagi stated. He explained that a more transparent and effective tax system would encourage compliance and expand the tax base without discouraging investment and economic growth.

“It is not advisable for the federal government to increase taxes. I understand the need to generate revenue, but this is not the right time to do so. The government should focus on improving the efficiency of tax collection,” he added.

Dr. Sagagi further suggested that while increasing general taxes is not ideal, the government could consider levying higher taxes on specific products known as “sin goods,” such as tobacco, alcohol, and gambling.

“You can impose taxes on health grounds, for instance, on tobacco, alcohol, and gambling—things that society does not necessarily need. This can help discourage their consumption. However, increasing general taxes at this time is not advisable. There is a time for everything, and governments should not continuously overburden citizens with taxes,” he said.

In his welcome address, the Head of Economics Department, Professor Shehu Muhammad Tijjani, stated that the purpose of the public lecture was to enlighten the general public on critical economic issues affecting Nigeria.

He explained that the event aimed to bring experts from various fields to discuss pressing topics and enhance public understanding.

The theme of the lecture was “Fiscal Sustainability Amidst Economic Decline in Nigeria: Any Solution in Sight?”

Professor Tijjani assured that the department would continue organizing such lectures to facilitate discussions on important economic matters and contribute to policy solutions.

In his remarks, the chairman of the occasion and member representing the Kiru/Bebeji Federal Constituency, Abdulmumin Jibrin Kofa, commended the Department of Economics for organizing the lecture.

 He noted that such discussions are essential in addressing Nigeria’s economic challenges.

He further assured his continuous support for the department and expressed his willingness to honor future invitations for similar engagements.