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Nigeria’s Upward Revision of GDP Should Sound Alarm on Tax-to-GDP Ratio

The long-anticipated rebasing of Nigeria’s GDP series was finally made public on Sunday April 6, and the general media reaction has been cautiously celebratory. But the reaction has largely missed one big point: the rebasing establishes that the biggest economy in Africa has the lowest tax revenues of almost any country in the world.

African Regional Integration and the Fight Against Illicit Financial Flows

The African Development Bank estimates that illicit financial flows have drained in excess of a trillion dollars from Africa since 1980. These flows undermine the tax base, damage political institutions and exacerbate inequality. With major momentum behind global counter-measures, there are clear opportunities for progress at the regional level – including through stronger information exchange and cooperation, tax base harmonization and innovative uses of trade data.