The International Monetary Fund has backed policies promulgated by the Bola Tinubu-led administration to expand the tax base and intensify the enforcement of tax in Nigeria.

This is despite the hardships faced by citizens due to the removal of fuel and electricity subsidies, the floating of the naira, and inflation, which has led to an astronomical increase in the prices of goods.

The IMF said this in its ‘2024 Article IV Consultation’ report on Nigeria.

The global financial institution outlined the outcome of its executive board’s consultation with Nigerian officials on economic developments and policies that ended on February 23, 2024, after consideration of its staff report on April 29, 2024.

Welcoming the “bold reforms” implemented by the Nigerian government, the IMF commended the “authorities’ focus on revenue mobilisation, governance, social safety nets, and upgrading policy frameworks in the face of Nigeria’s significant economic and social challenges.”

The IMF stated that given the downside risks, its directors “stressed the importance of steadfast, well-sequenced, and well-communicated 

reforms to restore macroeconomic stability, reduce poverty, support social cohesion, and pave the way for faster, inclusive, and resilient growth.”

It hailed the President Bola Tinubu administration’s “work on a comprehensive revenue mobilisation strategy including boosting tax enforcement and broadening the tax base.”

According to the international body, “mobilising revenue and reprioritising 

expenditure, including phasing out costly and regressive energy subsidies, are critical to creating fiscal space for development spending and strengthening social protection while maintaining debt sustainability.”