THE CIVIL Society Legislative and Advocacy Centre (CISLAC), Oxfam, Tax Justice Network Africa and other stakeholders on Tuesday unveiled the Income and Wealth Inequality in Nigeria and the Nigerian Fair Tax Monitor Thematic report.
The two comprehensive studies: ‘Income and Wealth Inequality in Nigeria: Trends and Drivers’ and ‘Taxing the Rich Nigerian Fair Tax Monitor’ conducted by Oxfam, exposed the deepening inequality crisis.
Unveiling the report in Abuja, Mr John Makina, Country Director, Oxfam in Nigeria, said in spite of being ranked fourth largest economy in Africa, the benefits of economic growth in Nigeria had largely been concentrated in the hands of a few elite.
He said that millions of Nigerians were trapped in poverty, describing the menace as a social bomb, adding that the two studies exposed a staggering wealth gap in the country.
“99 per cent of the wealthiest evade tax while millions go hungry; the richest Nigerian can spend N1 million daily for 42 years without exhausting his wealth.
“We urge the adoption of progressive wealth taxation and increased social investment to bridge the growing economic and social divide before a social bomb explodes.
“Only 40 of the wealthiest Nigerians are found to be compliant taxpayers according to the Federal Inland Revenue Service (FIRS) and John Bean Technologies Corporation (JBT).
“This represents a compliance rate of just 0.035 per cent; meaning that over 99 per cent of Nigeria’s wealthiest citizens avoid paying taxes.”
Makina described the country’s tax reform situation as alarming, stating that while millions struggle to afford their next meal, the super-rich continue to amass riches without paying their fair share of taxes.
He blamed the situation on complexities in tax laws coupled with lack of transparency, depriving the country of crucial revenue needed to invest in social protection and initiatives aimed at reducing inequality.
“We can no longer accept this scenario if we are genuinely committed to building a more equitable society.
“Nigeria ranks among the countries with the highest levels of income inequality in sub-Saharan Africa, with a small fraction of the population controlling the majority of the nation’s wealth.
“The country’s wealth Gini coefficient, a measure of income inequality, stands at 35.1, placing it at 11th position out of 16 West African countries and highlighting Nigeria’s severe economic divide.
“The economic situation is critical; with millions struggling to make ends meet as prices rise faster than wages, leaving many hungry and desperate.”
The county director explained that no fewer than 133 million people approximately seven to 10 are facing hunger, with women and girls disproportionately affected.
He described the figure as accounting for 63 per cent of the hungry population.
“In rural areas, less than 40 per cent of households have access to electricity, severely limiting educational opportunities and access to healthcare.
“Women and girls bear a heavier burden of poverty with 35 per cent literacy rate compared to 59.5 per cent for men and they have limited access to education and land ownership,” he said.
CISLAC’s Executive Director, Awal Musa Rafsanjani, called for drastic action and legislative measures to address inequality in the country.
Rafsanjani said such measures would bridge the widening poverty, insecurity and dilapidation of social status.
“This gesture is just a contribution towards our nation-building and developmental challenges in the country. We present this report to the public so that they can serve as advocacy tool to demand responsible governance, responsible taxation and to address the inequality that has continued to be a serious burden to us,” he said. (NAN)
