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Nigeria facing existential threat, World Bank warns
In light of Nigeria’s dwindling revenue, the continued payment of trillions of naira on fuel subsidy by the government and the attendant economic challenges, the World Bank on Wednesday raised the alarm that the country might be facing an existential threat.
The international financial institution warned that if the country failed to optimise its tax system and focus on other areas to boost its revenue, the already low revenue would continue to drop. It noted that despite the rise in the price of oil in the international market, Nigeria had not reaped the benefits because of the huge amount spent on fuel subsidy.
The Senior Public Sector Specialist, Domestic Resource Mobilisation, at the World Bank, Mr Rajul Awasthi, said these at a virtual pre-summit, with the theme ‘Critical Tax Reforms for Shared Prosperity’, organised by the Nigerian Economic Summit Group on Wednesday. He insisted Nigeria would have to eliminate the subsidy regime eventually.
After the Federal Government earmarked about N4tn for subsidy payment in 2022, the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, said recently that government might spend a whopping N6.72tn as fuel subsidy in 2023 or pay N3.36tn up to mid-2023 if the subsidy regime would was to end in May 2023.
Also, the minister had consistently said the nation was battling with revenue problems, which had compelled the government to keep borrowing. The debt stock had risen to N41.6tn in the first quarter of 2022 with projections that it could peak at N45tn by the end of the year. Nigeria is rated the fifth on the list of the World Bank’s debtors, with $11.7bn debt stock as of June 30, 2021.
The International Monetary Fund had in March projected that Nigeria might spend 93 per cent of its revenue on debt servicing in 2022, but the minister disclosed a few weeks ago that about 119 per cent of the country’s revenue was spent on debt servicing. This implied that government had to borrow to meet its debt financing obligations, a development many economists had described as disturbing and unsustainable.
The virtual event, anchored by the PwC’s Fiscal Policy Partner and Thematic Lead, NESG Fiscal Policy and Planning Thematic Group, Mr Taiwo Oyedele, was attended by several stakeholders, including the representative of the Manufacturers Association of Nigeria and the Executive Secretary of the Joint Tax Board, Mrs Nana-Aisha Obomeghie.
Meanwhile, in a slide he shared during his presentation, which showed Nigeria’s Development Update, Awasthi explained that between 2015 and 2019, Nigeria’s non-oil revenues were among the lowest in the world and as a result the second lowest in spending, and that oil revenues were also falling even when oil prices were higher.
He stated, “Nigeria has the largest economy in Africa and the largest country in Africa by population, so it is critical to Africa’s progress. There is no doubt about that. But the government of Nigeria, from the public finance perspective, is really facing an existential threat. Let’s not downplay the situation. That is the actual reality.
Nigeria’s revenue
“Nigeria is 115th out of 115 countries in terms of the average revenue to Gross Domestic Product ratio. Despite the oil prices rising the way they have been, net oil and gas revenues have been coming down because of the tremendous impact of the subsidy.
“So, what is going to happen in 2022? The federation’s revenues are going to be significantly lower. They are already very low, and Nigeria is already the lowest in the world out of 115 large countries and this year, it’s really going to be lower than what it was in 2020 because of the debilitating impact of fuel subsidy.”
On the perennial low revenue from tax in Nigeria, a former Finance Minister and Ahmed’s predecessor, Mrs Kemi Adeosun, had in 2017 revealed that only 214 persons in Nigeria paid N20m and above as tax and that most active taxpayers in the country were people whose PAYE were deducted from source. She had also decried the low tax to GDP ratio at about six per cent, which she described as the lowest in the world and far below the 18 per cent average on the continent.
Speaking on how to get out of the woods, Awasthi stated that in the non-oil sector, Value Added Tax compliance gaps were immense and they needed to be breached as well as rationalise tax expenditures.
Citing the tax expenditure statement of the Budget Office in 2020, he said, “The VAT gap in 2019 was over N3.1tn whereas the collection was N1.2tn. Of that gap, about two-thirds, which is about N2tn, came from compliance gaps. That’s a serious issue that needs to be addressed. It’s because of this that we have a low tax base and a lot of people feel they are being overtaxed.”
He also stressed the need for technology deployment in tax administration and data sharing between the Federal Inland Revenue Service and the states’ Internal revenue services to boost the revenue from personal income tax. He also called for an increase in the tax levied on certain goods, like wine, cigarettes and beer.
He added, “Property taxes at the state and local government levels are also critical. Nigeria has a tremendous potential, with about 50 million households, taxable properties and there are many rich people who need to be paying property taxes. There is a tremendous opportunity there.
“Also, I think there is a huge opportunity to raise excise on goods like beer, wine, spirit and cigarettes. There is a very tiny tax that has been introduced on them and this could be higher. These are the kinds of things that across the world there is a consensus that these rates should be higher because they are supposed to attack and address negative externalities of these products.
“There is also a need to reform the fuel subsidy regime, moving towards its full elimination at least by 2024. Nigeria needs to roll back the PMC subsidies and adopt the free market price. This is critical for this country. There is also the need to improve revenue from cross-border transactions and other international tax measures.”
While calling for increased enlightenment of the taxpayers, which he said the World Bank was collaborating with the World Bank to achieve, he noted that tax laws needed to be modernised and strengthened for a better outcome.
He added, “Going forward, the approach to revenue mobilisation has to be more strategic. We need to be more strategic and it’s not just about taxing more, Nigeria needs to tax better. We need to review the collection system and not just about what to collect and from who. There have been discussions about how the tax system has to be progressive and efficient in terms of compliance and making sure we are targeting the right tax bases.”
In his submission, the Director-General of MAN, Mr Segun Ajayi-Kadiri, represented by the Director of Mr Oluwasegun Osidipe, said there was no doubt that the country needed money but that the government must exercise caution in introducing more taxes.
He tasked the government to expand the tax base, ensure the inclusion of more people in the informal sector and make the tax system progressive such that the rich would pay more than the poor.
MAN advises
He said, “MAN’s expectation is that, though we need more revenue, the tax system should be structured to take more resources from the rich than the poor. Also, more taxes should be targeted at ostentatious goods and luxury goods. Those who earn more income one way or the other should pay more.
“There is a need for us as a nation to sit at a table and agree that we need to develop a comprehensive and integrated framework that would facilitate the intentional movement of operators in the informal sector to the formal sector and that would make us bring in more revenue for the government through tax.
“Whether we like it or not, huge sums of money in transactions are taking place in the informal sector, and we need to integrate them into the tax system rather than overburden the already compliant companies. If you look at the gamut of taxes levied on companies, they are huge. There are over 12 and additional ones are still coming. There is a need for that framework.
“We need to widen the tax net rather than increasing the burden on existing taxpayers. We need to promote harmonisation of taxes and there is a need for more consultation among stakeholders. Nigeria is at a crossroads but all hands must be on deck, especially looking at Nigeria’s low tax to GDP ratio.”
Other participants at the event also demanded an improved tax system that would ensure that those outside the tax net were integrated into the net to avoid excessive burden on those in the net.
Commenting on the World Bank’s warning, an economist, Bismark Riwane, in an interview with The PUNCH, advised that the only way out of the economic crisis was to make people prosperous so that they will pay more taxes for the economy to grow.
“The Federal Government has come out clearly with the Gross Domestic Profit ratio. One is the number of taxes two is the effectiveness of the taxes. So the question is, are we collecting the taxes that are due, two are we collecting it efficiently and three, what are we using the tax revenues for? So there are questions there but to answer your question I do not agree with the World Bank that the best thing to do now is to start increasing taxes all over the places. The emphasis to me is to achieve growth, when there is growth companies will be doing well and people income increase and therefore the taxes people will pay become more.”
Also speaking, an Associate Professor at Pan-Atlantic University, Dr Olalekan Aworinde, said, “What the World Bank is proposing is what we call property right that has to do probably, it could be in terms of estate or building apartments that are owned by the rich. Well, there’s nothing wrong in that but my fear is that it could be a double taxation because if this is implemented at all, you know our local government always collect tenement rate and I know that also in Lagos State they are effective in terms of this collection.” (PUNCH)
An Ikeja Sexual Offences and Domestic Violence Court on Thursday sentenced a 63-year-old pastor, Chris Mcdouglas to life imprisonment for raping his 18-year-old church member’s daughter, (name withheld).
Justice Rahman Oshodi sentenced Mcdouglas, a pastor at the Peculiar Generation Assembly Church, Lagos, to life imprisonment after he found him guilty of rape.
The judge, however, discharged him of six-count-charge out of the nine-count-charge, bothering on defilement, sexual assault, indecent treatment of a child brought against him by the Lagos State Government.
Oshodi, in his judgment on Thursday, held that the prosecution had successfully proved the charge of rape against the pastor.
Oshodi described the offence as a grave betrayal of trust that left the survivor with lasting psychological trauma.
The court found that the cleric, regarded within his congregation as a “spiritual father” exploited his position of authority to sexually abuse the survivor.
According to the court, the abuse is not an isolated incident but part of a pattern of manipulation and coercion.
Evidence before the court showed that the survivor reported the incident to the police shortly after it occurred, leading to an investigation and eventual prosecution.
“The impact on the victim has been devastating, particularly given the trust reposed in you as a religious leader.
“This court reject any suggestion that the relationship was consensual as the victim was a minor at the time the incident happened and she cannot give valid consent.
“Testimony also revealed that the victim’s mother confronted the cleric at the church after learning of the abuse, further underscoring the breach of moral and spiritual responsibility,” Oshodi said.
During the trial, the court heard evidence of the devastating impact the abuse had on the victim.
She reportedly suffered depression and experienced recurring suicidal thoughts, pointing to the lasting emotional damage caused by the incident.
The court scrutinised testimonial, medical and electronic evidence presented by the prosecution, alongside objections raised by the defence under the Evidence Act 2011.
The defence had urged the court to reject a medical report and related police referral documents, arguing non-compliance with statutory provisions.
The court agreed in part, holding that certain documents were improperly admitted and should be discountenanced.
However, it ruled that the oral testimony of the medical expert remained admissible and could stand independently.
Citing precedent, the judge held that expert testimony may still carry weight even where accompanying documentation is flawed.
The court found credible and corroborated evidence supporting allegations of abuse at a family residence and a hotel between September and December 2017.
“The victim gave a detailed account of an initial incident in September 2017, describing how she was a drugged and raped by the defendant and her testimony was corroborated with her mother’s, who observed physical distress shortly after the incident.
“The defendant also confirmed to the court that he took the survivor to hotels on several occasions,” Oshodi said.
The court consequently convicted the pastor on the charge of rape and sentenced him to life imprisonment.
The court also ordered that the convict’s name should be written in Lagos State Sexual Offences Register.
The News Agency of Nigeria (NAN) reports that the prosecution, led by the Director of Public Prosecution (DPP), Dr Babajide Martins, called five witnesses while Defence Counsel, Mr Yusuf Nurudeen also called five witnesses during trial. (NAN)
…Mbah: Why we allocated 50% of Enugu budgets to health and education in 3 years
The Medical and Health Workers’ Union of Nigeria (MHWUN) has presented an Award of Distinguished Leadership and Outstanding Contributions to Healthcare Delivery to Enugu State Governor, Dr. Peter Mbah, describing him as a leader who has made “a real and measurable difference in the lives of health workers and the citizens of Enugu State.”
The award was presented to the Governor by the National President of MHWUN on behalf of the Enugu State Council of MHWUN and union representatives at Government House, Enugu, on Wednesday evening.
The Union predicated the award on what it described as massive infrastructural transformation in the health sector, including the construction of 260 Type 2 Primary Healthcare Centres across the 260 political wards of the state, the nearly completed 300-bed ultramodern Enugu International Hospital, and the revamping of secondary healthcare facilities.
They also hailed the governor for extensive reforms in the health sector and the turnaround in the welfare of health workers in the state.
“In the area of health workers’ welfare, which is of direct and critical interest to our union, Your Excellency approved the full, 100 per cent, implementation of the Consolidated Health Salary Structure (CONHESS) for medical and health workers, a long overdue step that has brought relief and dignity to our workers.
“Your government also approved a consequential adjustment for Enugu State workers, a gesture that has given our members the encouragement to be more productive and dedicated to their work.
“You recruited 2,500 health workers to address identified personnel deficits and have sustained training and capacity building programmes to sharpen the competences of existing staff.
“Equally noteworthy is the prompt and consistent payment of salaries, an act that may seem routine in an ideal world, but which, in the Nigerian reality, represents exceptional governance and compassion,” the Union stated.
The workers commended Governor Mbah for strengthening immunisation programmes, expanding antenatal and family planning services for women, and introducing free daily balanced meals for 300,000 schoolchildren in the Smart Green Schools.
They noted that Mbah’s “uncommon transformation” in the health and education sectors has attracted the partnership of the World Health Organisation (WHO), both of whom have publicly commended his commitment to health sector reform and investments.
“These are not merely domestic accolades; they are global endorsements of your leadership,” the Union added.
The State Chairman of the Enugu State chapter of MHWUN, Dr. Nnenna Oraedu, pledged the health workers’ continued partnership and cooperation with the Mbah administration in pursuit of a healthier, more prosperous Enugu State.
Speaking, Governor Mbah said his administration was well aware of the central place of a healthy population and workforce in his drive to grow Enugu State’s economy from $4.4 billion to $30 billion.
Consequently, he said the administration had budgeted/spent over 50 per cent of the state’s total budget in three budgetary cycles on education and health.
“We looked at our maternal mortality, infant mortality and under-five mortality rates, we knew immediately that we needed to address the preventive medical subsector aggressively, which was why we constructed 260 Type 2 Primary Healthcare Centres across the 260 wards.
“Just this morning, we approved a sum of about N4 billion to equip an additional 100 primary healthcare centres. We are going to add an additional 100 to what is currently operational, taking the number to about 200 fully operational primary healthcare centres. We hope that before the end of May, the 260 Type-2 Primary Healthcare Centres will be fully operational,” he stated.
He said that his administration was spending heavily on transforming the Enugu State University Teaching Hospital, Park Lane, the State University of Medical and Applied Sciences, the Colleges of Nursing, and the construction of the 300-bed Enugu International Hospital, because health is wealth.
“We are now attending to 54 general and cottage hospitals. We are upgrading some of the cottage hospitals to general hospitals,” he stated.
Mbah accepted the award with gratitude, dedicating it to his team, saying, “we are nothing without our team.”
“I want to, on behalf of my team, also assure you that this award will not make us rest on our laurels; it will rather spur us to work harder.”
Also, reacting to some of the major challenges listed by MHWUN Enugu State, Mbah donated an operational bus to the Union.
Award-winning Nigerian forex trader, Damilare Ogundare, has been hospitalized in Canada after a sudden medical emergency.
The trader, widely regarded as one of the highest-earning figures in Africa’s forex space, had reportedly left Nigeria just days earlier in good health before the unexpected incident occurred.
Sharing an update via his Instagram page on April 16, 2026, 25-year-old Habby Forex disclosed that he was feeling fine and active upon arriving in Canada when he suddenly developed complications that led to his admission into the emergency unit.
According to him, the situation escalated quickly, requiring urgent surgical intervention to save his life.
He revealed that he was taken into the surgical ward shortly after arriving at the hospital, where doctors carried out the necessary procedure.
Despite the scare, the forex trader expressed gratitude to God for his survival and also appreciated the Canadian healthcare team for their swift response and professionalism in handling the emergency.
HabbyForex informed his fans that he will be trading in Canada for a while now till he fully recovers.
He wrote; “I was fine and active as usual… suddenly in the ER needing emergency surgery to save my life ,Still unbelievable. I survived this , Thank you GOD & Thank you to the Canadian healthcare team 🇨🇦. Everything in life is a risk , trading from here for now stay active on telegram 📈🔐. Thanks to everyone checking up on me , ❤️❤️🙏.”
See the post below;
View this post on Instagram
A post shared by Damilare Ogundare (@habbyforex_)
His post has since drawn reactions from fans and celebrities, many of whom have taken to social media to wish him a speedy recovery.
Reacting, Don Jazzy wrote, “Ahh get well soon bro.”
goldtradernoelreys commented, “Thank you God, get well soon Ogo ❤️💪 You’re healed 🙏🏽.”
smart_money_rich shared, “God is GOOD. Your recovery is swift 💜💜.”
pickpipsfx shared, “The Lord Almighty is the strength of your life, @habbyfx_academy … Quick recovery Boss 💪💪.”
ganajoshua_danlami uttered, “By his stripes you are healed Brody 🙏🏽❤️ Thank God for life 🙏🏽.”
blaqmayor_ shared, “Quickest recovery biggest na star you be dem Dey shine forever 🙏🏽🙏🏽 God is the greatest.”
thetdo reacted, “God of mercy. Get well soon Fx prof.”
In similar news, A debate has erupted online after award-winning Nigerian forex trader, Habby Forex boasted about having more expensive wristwatches in Nigeria.
Don Jazzy challenged the claim and urged the trader to rank Afrobeats superstars Burna Boy and Davido ahead of him in terms of expensive wrist watches.
Don Jazzy’s reaction has since sparked widespread reactions, with many netizens echoing his stance and questioning the trader’s comparison, particularly highlighting Burna Boy’s global success and financial strength.
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