In a bold call to action, the International Monetary Fund (IMF) has urged Nigeria and other African nations to urgently boost domestic revenue by expanding their tax base and confronting the persistent menace of tax evasion. This was revealed during a high-level press briefing at the ongoing IMF-World Bank Spring Meetings in Washington, where IMF Managing Director Kristalina Georgieva addressed the press on the state of the global economy and Africa’s fiscal trajectory.
Georgieva stressed that despite Africa being home to some of the world’s most dynamic and rapidly growing economies, low-income countries and those affected by conflict—such as some regions in Nigeria—remain dangerously behind. She noted that these nations face intensified economic headwinds from a combination of slowing global growth and dwindling oil prices, conditions which directly threaten Nigeria’s revenue inflows and fiscal health.
“There is still room to strengthen fiscal buffers,” Georgieva asserted. “Don't make excuses. More can be done to expand the tax base and tackle tax evasion, including leveraging technology.”
Her message was a wake-up call to policymakers across the continent, particularly in Nigeria, where a large informal sector, widespread tax evasion, and institutional weaknesses have long undermined revenue collection. Despite Nigeria's relatively low tax-to-GDP ratio—one of the lowest globally—efforts to reform tax policy have often been bogged down by political inertia and weak enforcement mechanisms.
Georgieva called for not just an increase in tax collection but a fundamental shift in the public sector’s accountability. She emphasized the importance of transparency, digital tools, and anti-corruption reforms as pillars for restoring public trust and improving tax compliance. “Africa must rise beyond the narrative of corruption. One country’s wrongdoing can tarnish the entire continent’s image,” she added.
Her remarks resonate strongly as Nigeria, Africa’s most populous nation, battles a swelling debt profile and rising inflation, alongside shrinking oil revenues—a critical lifeline for the country. With the government already implementing subsidy reforms and grappling with a fragile economy, the IMF’s recommendation adds to the pressure to find sustainable ways to improve fiscal resilience.
Experts argue that with the right political will, Nigeria can bridge its revenue gaps through improved tax administration, digital compliance systems, and broader civic education to highlight the value of taxes in building infrastructure and delivering social services.
As the Spring Meetings continue, Georgieva’s message stands clear: the road to economic stability in Africa runs through good governance, bold reforms, and an uncompromising stance against tax evasion and corruption.