Godwin Emefiele, Governor of Central Bank of Nigeria (CBN), says the plan to increase value added tax (VAT) from 5% to 7.5% is in the right direction to increase the country’s revenue.
Emefiele stated this in response to questions from journalists after the meeting of the monetary policy committee in Abuja.
NAN quoted him saying that the government had a responsibility to use every citizen by providing basic infrastructure such as roads, electricity and hospitals, among others.
He explained that the government had only two ways to finance such projects, which are through increasing revenues and collecting loans.
According to him, the current government has been criticized by some people for the high rate of debt incurred.
“Government unfortunately has no option, if it does not borrow, it must raise revenue and you all agree with me that it has obligations to meet up with.
”The increase of VAT to 7.5 per cent is low compare to other countries, in fact, with this increase, Nigeria has the lowest in the world.
“If the government can meet its obligation through this increment, it should be supported,” he said.
He appealed to Nigerians to show understanding and support government’s policies.