Nigeria’s Tax Revenue Mobilization: Lessons from Successful Revenue Reform Episodes

Abstract

This paper has identified four episodes of large and sustained revenue mobilizations in SubSaharan Africa (SSA) and found common lessons from the episodes. Although there is no one-size-fits-all strategy, we can find a tax reform path suitable to Nigeria’s circumstances. Based on these cross-country experiences, this paper recommends: (i) implementing a package reform of tax administration and tax policy measures; (ii) focusing mainly on indirect tax (VAT and excise) reforms and tax incentive rationalizations; (iii) undertaking tax administration measures for improving compliance by strengthening taxpayer segmentation and automation; and (iv) launching social dialogue with key stakeholders as well as high-level political commitment. RECOMMENDED CITATION: Il Jung, 2023, “Nigeria’s Tax Revenue Mobilization: Lessons from Successful Revenue Reform Episodes”, IMF Selected Issues Paper JEL Classification Numbers: E62, H20