The federal government of Nigeria is keen on making more money even as the country appears to need more revenue streams. Due to sustained shortfalls in revenue and an increase in government spending there is a need to find ‘innovative’ ways to scale up revenue.
The country’s finance minister introduced the strategic revenue growth initiative last Wednesday. By increasing VAT from 5% to 7.5%, the government hopes to make a little more than 2 trillion naira in 2020. This is the government’s way of increasing non-oil revenue.
Do you think this move is an innovative one or a desperate one? Please share your thoughts.