Govs to FG: Raise VAT, pay off older civil servants to avert economic crisis
NIGERIAN governors have asked the Federal Government to raise value-added tax (VAT) to 15 percent and offer public workers older than 50 years a one-off retirement package to avert the looming economic crisis. The Federal Government raised VAT from 5 percent to 7.5 percent in 2020. According to Premium Times, the governors made the recommendations at a meeting with President Muhammadu Buhari in July. The proposal, according to the report, was part of coordinated efforts to instil fiscal discipline and prevent the nation from imminent economic collapse. The balance in Nigeria’s excess crude account had depleted significantly from $35.37m to $376,655, leaving the nation with no buffers to stabilise the economy. In the first four months of 2022, debt servicing also surpassed revenue. As part of the recommendations, they also urged the government to start implementation of the updated Stephen Oronsaye Report and reduce expenditure by eliminating petrol subsidy and NNPC-funded projects....