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Business News of Tuesday, 15 June 2021

Source: www.legit.ng

Nigerian govt advised by IMF to increase company tax

President Muhammadu Buhari President Muhammadu Buhari

Nigeria and other African countries have been told by the International Monetary Fund (IMF) to increase taxes on the private sector, as high public debt affect government intervention.

IMF said the private sector will play a key role in the recovery of Africa's economy which was affected by the COVID-19 pandemic in 2020 and is still experiencing an aftermath shock.

The private sector is the solution to the finance problem.

With high public debt blocking international aid, the international financial institution said Nigeria and its counterparts will have to squeeze the funds from companies.

IMF made this known in the report titled, "How to Attract Private Finance to Africa’s Development".

It said the private sector should be used to grow the economies in the sub-Saharan continent.

IMF said in the statement:

"The private sector will have to play more of a role in economic development if countries are to enjoy a strong recovery and avoid economic stagnation."