The International Monetary Fund (IMF) has advised Nigeria and other African nations to improve their tax systems by widening the tax base and tackling tax evasion. The call was made by IMF Managing Director, Kristalina Georgieva, during a press briefing at the ongoing IMF-World Bank Spring Meetings in Washington, D.C.
Georgieva emphasized that these steps are essential to help countries in the region deal with global economic challenges. She noted that while some African nations have shown strong growth in recent years, many low income and fragile states are falling further behind due to economic shocks and slowing global growth.
Speaking specifically on Nigeria, she said the country must strengthen its financial buffers, especially in the face of falling oil prices, which pose a threat to government revenue. According to her, oil producers like Nigeria need to act fast, while oil importers might benefit from the price drop.
Georgieva stressed that there is room for countries to generate more income through taxes. She urged them to leverage technology to improve tax collection and reduce losses from evasion and avoidance.
She also called on African leaders to fight corruption and improve governance to reshape the continent’s image, warning that wrongdoings in one country can affect perceptions of the entire region.