Financing Development in Nigeria: Uplifting Nigerians From Poverty

Digital Artifact Project for Development Finance ImpactBy Abimbola Adewole-Oriade

Why Nigerians live in abject poverty when the country is richly blessed

Nigeria is a blessed nation, very rich in natural resources.

But the standard of living and quality of life of most Nigerians is in sharp contrast with the riches of the country

The biggest problems bedevilling the country is CORRUPTION

which breeds other societal evils such:

UNEMPLOYMENT

INSECURITY OF LIVES AND PROPERTIES

TERRORISM

And another PROBLEM….

The problems of poor tax administration in Nigeria cannot be overlooked.

Only 25% of registered small & medium enterprises are paying tax. Audits are taking too long, Companies are not filling returns

Nigeria can earn additional $1 billion per year from improvement in tax administration alone. The target for Nigeria is to reach the Tax/GDP ratio of 20% in the medium time.

This will invariable have a positive impact on the infrastructures, social amenities and growth of the economy if properly managed.

The 17 sustainable development goals (2016 – 2030) is comprehensive , far reaching, people centred and global goal, if achieved will move Nigeria forward from all the aforementioned setbacks.

Sustainable development goals will be achieved through National Development Plans (NDPs) which aimed at mobilizing all sources of finance at achieving the SDGs.

This plan will be implemented by public sector by• Prioritizing investment areas of an economy with the

highest development returns.• Establishing a more favourable investment climate to

attract private sector financing through:• Supportive governance structures• Competition policy• Local capital market development • Infrastructure, and• By supporting public-private partnerships.

Another strategic initiatives proposed to achieve the 17 sustainable development goals is Public finance through Official Development Assistance(ODA).ODA is also important because its leverages millions and billions of dollars in private finance. As a catalyst source of finance it needs to contain the three elements:• Undertaken by the official sector (official agencies,

including state and local governments, or their executive agencies)

• With promotion of economic development and welfare as the main objective; and

• At concessional financial terms (if a loan, having a grant element of at least 25 per cent).

The two pillars to achieve the official development assistance (ODA) are;• The public resources mobilization• The private resources mobilizationThe public resource mobilisation is financing from taxation while the Private resources mobilization also known as Domestic Resource Mobilisation (DRM) is the generation of savings from domestic resources and their allocation to economically and socially productive investments.

DRM constitutes the largest resources available for development. The role of DRM in financing sustainable developmental goals (SDGs) will be critically important in Nigeria. A strong push to strengthen tax administration will help improve the resources available domestically.

REFERENCES

• Ngozi Okonjo- Iweala (2015). World Bank Financing for development Program . A presentation on Public Finance - Official Development Finance (ODA).

• James Brumby (2015). World Bank Financing for development Program . A presentation on increasing domestic public

resources and improving public expenditure efficiency - Domestic Resource Mobilization (DRM).