At a high-level policy forum in Abuja, Nigeria’s Vice President Kashim Shettima shed light on one of the country’s most persistent economic challenges—its chronically low tax-to-GDP ratio.
Speaking through his Special Adviser on Economic Affairs, Dr. Tope Fasua, at the 2nd Joint Workshop on the 2025 National Budget, Shettima addressed a packed audience of professionals from the Association of National Accountants of Nigeria (ANAN) and the Chartered Institute of Taxation of Nigeria (CITN).
His message? It’s time to change how Nigerians think about tax, wealth, and national development.
According to Shettima, the issue isn’t just policy—it’s people. For years, a significant number of citizens have gone to great lengths to hide their income and assets from the government, depriving the country of much-needed revenue.
“Instead of reinvesting in Nigeria,” he noted, “many prefer to channel their funds abroad or into questionable ventures, weakening our local economy.”
He called on economic stakeholders and thought leaders to educate the public on the value of domestic investment, stressing that national growth depends on it.
Unveiled earlier this year, the ₦54.99 trillion 2025 national budget is more than just numbers on paper. According to Shettima, the focus is clear:
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Cut financial waste
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Build infrastructure
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Invest in human capital
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Tackle Nigeria’s debt burden
A large part of the plan involves bridging a projected ₦13 trillion budget deficit, which is expected to be funded through a mix of domestic and international financing instruments.
This strategy, Shettima emphasized, is about creating sustainable economic conditions rather than temporary fixes.
Also speaking at the event, Minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu, echoed similar sentiments.
He acknowledged the backlash surrounding recent economic reforms, including fuel subsidy removal and the unification of the exchange rate. Still, Bagudu insisted these measures are crucial for correcting the country’s economic distortions.
Despite being Africa’s largest economy by GDP, Nigeria’s public spending remains low relative to the size of its economy. Bagudu believes macroeconomic mobilization—or efficiently gathering and deploying financial resources—is key to achieving inclusive and sustained growth.
Shettima’s remarks serve as a wake-up call not just to policymakers, but to everyday Nigerians. As the country navigates its complex fiscal landscape, bridging the gap between potential and performance will require more than reforms on paper.
It demands a cultural shift—one where transparency, local investment, and trust in public systems become the new normal.