Leveraging the justice system to grow subnational IGR

Leveraging the justice system to grow subnational IGR

Most citizens of society crave order, peace and equity and finance their ancillary architecture and infrastructure through their tax obligations. For many, it seems like an aberration to consider the deliberate deployment of this justice ecosystem, namely the judiciary, the police, special order and peace task forces and the prison institution for revenue generation. Champions […]

Reinforcing SNGs’ non-tax revenue strategy

Leveraging the justice system to grow subnational IGR

In the 2020 IGR data of 36 states of Nigeria, the tax revenue component was 76.6 percent, while the share of non-tax revenue was 23.4 percent. As of the half-year of 2021 non-tax revenue component of aggregate subnational IGR was 25.2 percent. Non-tax revenue sources are a veritable complement enabling the government to achieve its […]

Enhancing the tax compliance of HNIs and VIPs

Leveraging the justice system to grow subnational IGR

The progressive tax system, based on taxpayers’ ability to pay, imposes higher tax rates on those with higher incomes. The Nigerian tax system is quite progressive, with gradatory rates increasing with income and wealth. Lower-income earners and those who spend a sizeable proportion of their income on necessities ideally should benefit more from progressive taxation. […]

Ethical issues in SNG-IGR growth 

Leveraging the justice system to grow subnational IGR

Effective human interactions are often contingent on principles of proper conduct. It becomes even more pronounced with the exchange of money or other things of value. That is why businesses with solid reputations thrive much better than the ones without them. In the same vein, it is difficult for subnational governments to expand their internally […]

Designing an effective subnational IGR expansion strategy (2)

Leveraging the justice system to grow subnational IGR

The medium-term revenue strategy (MTRS) is tax dominant and narrowly focuses on tax reforms over the medium-term. The subnational government (SNG) internally generated revenue (IGR) expansion strategy is more broadly focused, covering virtually all non-tax revenue sources and revenue collection institutions. The IGR expansion strategy also avoids a puffy fixation on the medium-term but gives […]

Designing an effective subnational IGR expansion strategy (1)

Leveraging the justice system to grow subnational IGR

  Like many other economic and financial variables, the internally generated revenue expands in response to three underlying core parameters: economic growth, citizens’ trust in the government, and the strength of revenue-collection institutions. Economic growth provides income for taxes and other payments collectable by the government. Citizens’ trust shows how willing they are to entrust […]

Economic transformation for subnational IGR growth

Leveraging the justice system to grow subnational IGR

A simple formula for solid IGR performance is to consistently grow the economy at a robust rate and strengthen the institutions for revenue mobilisation for effectiveness and efficiency. It is a no-brainer as every progressive leader ideally should know this. However, if we know the ingredients for sustainably growing the IGR, why does financial distress […]

Compliance costs and subnational IGR expansion

Leveraging the justice system to grow subnational IGR

In 2021, in one of the states in Southeast Nigeria, most taxpayers in three local government areas paid up to N1,000 as transport fares to file tax returns between N300 and N650. This tax compliance cost experience is not unique relative to what obtains across many parts of the country, particularly at the subnational level. […]