The Hunt for Taxes is Unleashed in Africa

Nigeria has begun the hunt for taxes as they target 700,000 firms as the country is desperate to look for more revenue as its income from oil has collapsed. Nigeria is Africa’s biggest economy and it has entered its first recession in more than 20 years as overspending produces only higher taxes, not economic reform. The current President is Muhammadu Buhari, since 29 May 2015. Politics began to change in Nigeria also going into 2015.75 turning point for government worldwide. The 2015 election marked the first time in the history of Nigeria that an incumbent president actually ever lost to an opposition candidate in a general election. So the ECM is truly a global model and not based solely upon a single country or trend.
Africa was the fastest-growing continental economy on the planet going into 2015. However, the one thing that was growing faster than the economy was of all is debt in every category from personal and corporate in the private sector to government. In 2015 Africa’s debt reach an untenable level and not the hunt for taxes has begun. In 2014 countries such as Senegal, Cte d’Ivoire (less than five years after a previous government-debt default), and Zambia all placed bonds worth as much as $1 billion into the market and these issues were oversubscribed because of the collapsing interest rates in developed countries. Kenya’s record-breaking sale of $2 billion in debt back in 2014 was also oversubscribed four times over.

This post was published at Armstrong Economics on Sep 24, 2016.