Addressing The Current Economic Challenges Confronting Nigeria
A former deputy chairman of the Indian Planning Commission, Mr. Montek Singh Ahluwalia, has recommended certain measures to address the current economic challenges confronting Nigeria.
He said, “I would say that in order to make recommendations, you need to be an expert on Nigeria. I am not an expert on Nigeria. But I have tried to suggest things based on my own experience in India. One thing is very clear: the oil price collapse has led to a very big decline in growth in Nigeria…we should not rely on oil as if it is everything. So, the highest priority from a microeconoic point of view will be to develop the non-oil revenue base. I feel that the Value Added Tax (VAT) that the Nigerian government has introduced is at a very low rate… So, I think the top priority should be to modernize and improve the VAT so that it becomes a bigger source of revenue in the days ahead. I think that is possible. I also feel that one of the ways is to generate revenue is to reduce energy subsidies. Nigeria has very high energy subsidies. They should be reduced.”
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