Managing director of the International Monetary Fund (IMF), Christine Lagarde, has advised the Nigerian Senate to support a raise in Value Added Tax payable by Nigerians.
Lagarde said this while meeting with senators in Abuja, today.
The IMF boss hinged her call on the fact that Nigeria’s VAT is the smallest in the west African region, appealing to the senate to work out the modalities for improving tax revenue.
Speaking, Lagarde said: “At the same time, public finances can be bolstered further to meet the huge expenditure needs. For example, the current VAT rate is among the lowest in the world and well below the rates in other ECOWAS members—so some increase should be considered.”
Lagarde who is on a three days visit to Nigeria expressed hope that Nigeria will be great again.
“I firmly believe that Nigeria will rise to the challenge and make the decisions that will propel the country to greater prosperity,” she said.
“As the great Nigerian novelist Chinua Achebe once said: ‘If you don’t like someone’s story, write your own.’ This is exactly what you are doing right now.
“And let me assure you that, as you go forward, as you develop your story, the IMF will support your efforts. Today, I would like to offer my perspective—on your story and punctuate it with three R’s: resolve, resilience, and restraint.
Lagarde will end her visit to West Africa with a visit to Cameroon held meetings with Buhari, Finance Minister Kemi Adeosun and Central Bank Governor Godwin Emefiele on Tuesday.