Godwin Emefiele, governor of the Central Bank of Nigeria (CBN), says the plan to increase Value Added Tax (VAT) from 5% to 7.5% is in the right direction to improve the country’s income. Emefiele stated this while answering journalists’ questions after the Monetary Policy Committee meeting in Abuja.
Latest Nigeria newspaper report that the government had the responsibility to use each citizen by providing necessary infrastructure such as roads, electricity, and hospitals, among others.
He explained that the government only had two ways to finance such projects, which are through increased revenues and loan collection. According to him, the current government has been criticized by some people for the high borrowing rate incurred.
Unfortunately, the government has no other option, if you do not borrow, you must increase income, and you all agree with me that you have obligations to fulfill.
Latest Nigeria newspaper report that The VAT increase to 7.5 percent is low compared to other countries; with this increase, Nigeria has the lowest in the world. If the government can fulfill its obligation through this increase, it should be supported,” he said. He appealed to Nigerians to show understanding and support government policies.