Nigeria, Feb. 10 -- The international development establishment has a favourite prescription for Nigeria, raise tax-to-GDP ratio. The IMF says it, the World Bank echoes it. Every visiting economist and policy consultant repeats the mantra, Nigeria's 9-10% tax collection is too low, a sign of state weakness that must be corrected. They point to successful economies with ratios of 20%, 30%, even 45%, and insist we must follow Olugbenga Jaiyesimi jerry3jaiye@gmail.com 08123709109suit.They are catastrophically wrong. Nigeria's low tax-to-GDP ratio isn't a bug in our system, it's a feature and perhaps our saving grace.
Let's start with an inconvenient fact. Nigeria experienced its most impressive period of economic diversification and growth...
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