abusesaffiliationarrow-downarrow-leftarrow-rightarrow-upattack-typeburgerchevron-downchevron-leftchevron-rightchevron-upClock iconclosedeletedevelopment-povertydiscriminationdollardownloademailenvironmentexternal-linkfacebookfiltergenderglobegroupshealthC4067174-3DD9-4B9E-AD64-284FDAAE6338@1xinformation-outlineinformationinstagraminvestment-trade-globalisationissueslabourlanguagesShapeCombined Shapeline, chart, up, arrow, graphLinkedInlocationmap-pinminusnewsorganisationotheroverviewpluspreviewArtboard 185profilerefreshIconnewssearchsecurityPathStock downStock steadyStock uptagticktooltiptwitteruniversalityweb
Article

9 Mar 2016

Author:
Premium Times (Nigeria)

Nigeria: Public revenue lost from corporate tax breaks could be used to alleviate poverty

"How curious $3.3 million tax holiday to Shell, Total, Eni, is killing Nigerians – Report", 23 Feb 2016

...All across Nigeria, even in the oil-rich south-east, there are dedicated teachers like Dafe struggling passionately to educate the country's children with little or no provisions from the government.

But this need not be the reality. Billions of dollars in public revenue can be saved if the Nigerian government stopped the granting of harmful tax incentives to foreign investors.

An exceptional 10-year tax holiday offered to three of the world's largest oil and gas companies, Shell, Total and ENI, cost the public purse US$3.3 billion alone. In a country where 10.5 million children are out of school, this is an amount greater than the 2015 federal education budget...

...[W]hile the country is building its economy, Nigeria also has the third largest population of extreme poor in the world.42 More than 60% of the population lives in extreme poverty...

Even businesses themselves say that tax incentives are not key deal-breakers. Investment decisions depend more on factors such as stable economic and political conditions...

Investors attach great value to factors such as good infrastructure, security, a stable energy supply and not least a healthy and well-educated work force. Tax revenue is a prerequisite for the existence of these public goods, and businesses may make higher profits if they contribute their fair share of taxes and get public goods in return...