The International Monetary Fund (IMF) on Monday urged Nigeria and other African countries to tax the private sector more in order to grow the economy.
In a report titled: “How to Attract Private Finance to Africa’s Development, IMF said large public investment programs have been limited by high public debts and uncertain outlook for international aid.
The report was written by IMF’s Director of African Department, Abebe Aemro Selassie; Advisor and Mission Chief in the IMF’s African Department, Luc Eyraud; and IMF Deputy Director, African Department, Catherine Pattillo.
The Bretton Wood institution charged African governments need to look at the private sector for funds needed to finance the growth of the economy.
It urged the continent to focus on infrastructure, electricity, health and education.
The report said: “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.
“Africa’s infrastructure development needs are huge–in the order of 20 percent of GDP on average by the end of the decade.
“All else equal, the main source of financing would be more tax revenue collections, something which most countries are working towards.”
The report, however, stressed that new financing sources are needed from the international community and the private sector to support the tax revenue approach.