“Jimoh Ibrahim Advocates for Luxury Tax as a Solution to Boost Nigeria’s Economy”

Senator Ibrahim believes that during economic downturns, it is common for governments to implement higher taxes on affluent citizens to support recovery efforts.

Sen Jimoh Ibrahim

Jimoh Ibrahim, the senator for Ondo South, has advocated for imposing taxes on the wealthier individuals in Nigeria.

During a briefing with the Senate Press Corps after a session on December 3, he noted a general trend where extra taxes are levied on the rich during economic crises to aid national recovery.

Ibrahim elaborated on his comments made during a legislative session concerning the review of the Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) for 2025-2027.

This proposal would mark a significant shift in Nigerian tax policy, as he asserted that effectively taxing the wealthiest citizens could boost the country’s revenue.

“I am concerned that the affluent in Nigeria are not contributing sufficiently in taxes to support the less fortunate,” he stated.

He emphasized that in other countries, taxation often targets various transactions, suggesting that Nigeria needs to enhance tax collection from wealthier populations to bridge its economic disparities.

“There should be regulations in place for luxury taxes, and we must consider creating a framework for taxing financial transactions of the wealthy,” he commented.

For this initiative to be successful, he recommended establishing “a comprehensive database of taxable wealthy individuals.”

He highlighted that Nigeria’s tax to GDP ratio stands at 18%, and worryingly, 72% of citizens remain untaxed.

“It’s economically unfortunate that a significant portion of the Nigerian populace is outside the tax system,” he concluded.