Vice President Kashim Shettima has linked Nigeria’s persistently low tax-to-GDP ratio to a deeply rooted culture of hidden wealth, where many individuals, especially the wealthy, avoid declaring their full assets and income to the government.
Speaking during the 2nd Joint National Budget Workshop held in Abuja by the Association of National Accountants of Nigeria (ANAN) and the Chartered Institute of Taxation of Nigeria (CITN), Shettima said the nation’s economic progress is being hampered by non-disclosure of wealth and capital flight.
“Despite our abundant wealth, much of it remains hidden or is invested abroad, denying our country the resources needed to grow,” Shettima stated.
He emphasized the need for citizens, especially high-net-worth individuals, to invest locally and comply with tax obligations. A recent report highlighted that only 1% of wealthy Nigerians are tax-compliant, a statistic that significantly contributes to Nigeria’s low tax-to-GDP ratio—currently at about 6%.
The Vice President also reiterated the importance of the N54.99 trillion 2025 national budget, which prioritizes reducing leakages, expanding infrastructure, enhancing human capital, and addressing Nigeria’s growing debt burden. The budget includes a projected deficit of N13 trillion, to be financed through various revenue sources.
He called on stakeholders to lead public education campaigns on the benefits of tax compliance and the dangers of a culture that glorifies evading financial responsibility.
