The Nigeria Governors’ Forum declared that the worsening insecurity in the country and currency depreciation were taking a toll on the business environment with the attendant negative impact on productivity and taxable income.
The NGF also alluded to the perceived weak social contract between citizens and the government, saying it continues to threaten the legitimacy of taxation.
The Director-General, NGF, Mr Asishana Okauru observed that Nigeria was still recovering from a combination of adverse fiscal and macroeconomic conditions which had exerted strong pressure on the fiscal sustainability of governments at national and sub-national levels.
Okauru stated that the adverse fiscal pressure had been primarily due to over-dependence on Federation Accounts Allocation Committee transfers which are constantly threatened by the increasing volatility in oil prices and mounting subsidy payments.