According to the World Bank Group, Nigeria currently ranks 145 out of 190 economies on the ease of doing business and 171 on Paying Taxes Indicator.
The tax-to-GDP ratio in Nigeria is estimated at 6% compared to an average of 17% for sub-Sahara African countries. The main deduction from this low ratio is that tax revenues do not play any significant role in funding government projects.
The dire need to change this negative situation became more urgent when oil price fell from the high of USD120 per barrel to USD30 or thereabouts. Given the low revenue from oil (as a result ofshut-in production arising from the activities of Niger Delta Militants, the Government had to resort to massive borrowings to fund both recurrent and capital expenditure.
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