Governor El-Rufai raises alarm, says Nigeria reaching maximum capacity to borrow

Governor El-Rufai raises alarm, says Nigeria reaching maximum capacity to borrow

- Governor El-Rufai is concerned about unnecessary borrowing by the federal government and has issued a warning

- The minister of finance, budget and national planning, Zainab Ahmed, had hinted that the country is proposing to borrow N1.2bn from Brazil

- El-Rufai, however, urged the government to create an effective tax system that influences structural change

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As the federal government prepares to seek a N1.2 billion loan from Brazil, the governor of Kaduna state, Mallam Nasir El-Rufai, has raised the alarm that the country has almost reached its maximum capacity to borrow.

The Guardian reports that the governor said with the collapse of the crude oil prices, the nation should be more proactive to avoid external shocks.

Legit.ng gathered that El-Rufai, made the disclosure on Thursday, November 5, at the 22nd Annual Tax Conference of the Chartered Institute of Taxation of Nigeria (CITN) held in Lagos.

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He said the country should start developing tax extraction capacity and create an effective tax system that influences structural change.

Governor El-Rufai raises alarm, says Nigeria reaching maximum capacity to borrow

Governor Nasir El-Rufai visits his counterpart from Lagos state, Babajide Sanwo-Olu. Source: The Guardian.
Source: UGC

El-Rufai noted that poor administration, sub-optimal collection of taxes, low accountability, corruption and high tax rate, among others, were factors and major challenges hindering tax growth in the country.

The governor commended Sanwo-Olu on managing the affairs of Lagos and the effort to rebuild the state after the massive destruction that marred the peaceful protests organised by the youth recently.

He said:

“Whatever happens in Lagos concerns everybody because it is the economic hub of the country while Kaduna state is the political hub. I can assure you that all the 35 governors will support your rebuilding the Lagos project."

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Meanwhile, Legit.ng had previously reported that Governor Sanwo-Olu advised his counterparts across the country to look into their expenditure profile and do away with unnecessary spending.

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It was reported that he made the call on during the 22nd annual tax conference of the Chartered Institute of Taxation of Nigeria (CITN) held at Victoria Island, Lagos.

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Source: Legit.ng

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