The Country Director of Oxfam International in Nigeria, John Makina, announced that implementing a progressive wealth tax could generate over $7.5 billion annually for the country. He made this statement during the launch of two Oxfam reports in Abuja on Tuesday, which highlighted the growing wealth inequality in Nigeria.
Makina emphasized the urgent need for tax reform, pointing out that while millions of Nigerians live in poverty, a small elite continues to amass wealth without contributing their fair share in taxes. He noted that the potential revenue from a wealth tax could double the government’s health budget or reduce household health expenditures by 40%, significantly alleviating financial burdens for many Nigerians.
Oxfam’s reports revealed that Nigeria’s tax laws and lack of transparency contribute to inequality, depriving the nation of essential revenue for social protection and poverty reduction initiatives. Despite being Africa’s fourth-largest economy, much of Nigeria’s economic growth benefits a small elite, leaving millions impoverished.
Makina also stated that only 40 of Nigeria’s wealthiest individuals comply with tax regulations, representing a compliance rate of just 0.035%, which means that over 99% of the country’s richest evade taxes. He stressed that a progressive wealth tax could help mitigate these issues and proposed increasing social spending to at least 10% of the national budget for health, education, and agriculture.
Oxfam’s recommendations include implementing a 1% wealth tax on individuals with net worths exceeding $1 million, improving human capital development, supporting smallholder farmers, reforming land policies, and collaborating with civil society organizations to promote pro-poor policies.