Nigeria is said to be losing $2.9 billion annually to tax incentives and waivers granted to multinational companies operating in the country.
Binta Masi Garbi, senator representing Adamawa North Senatorial District of Adamawa State, said this Wednesday in Abuja while addressing a crowd of activists led by ActionAid for a campaign in commemoration of the Global Action Week for Education, which began April 24 and will run till the end of the month.
In attendance were Patricia Donli, the board chairperson of ActionAid, and Ifeoma Charles-Monwuba, the deputy country director of ActionAid, among others.
“In 2015, UNESCO figures showed that 10.5 million Nigerian children were out of school, yet we are giving away $2.9 billion annually by way of tax incentives and waivers despite evidence that such waivers are not necessary to attract investors,” she said.
This amount of money, according to her, could help pay for all the children who are currently out of school to receive many years of quality education.
She reiterated that the issue of adequate funding for quality education for our children must receive urgent government attention, and the federal and state governments cannot keep talking about empty treasuries.
According to her, “We must fund our children’s futures through having a fair tax system, a tax system that is not hampered by restrictive tax treaties or unfair incentives and waivers.”
Across the world, campaigners are focusing on the theme of “Education Financing” and advocating for better funding to guarantee quality education for all.
“We in Nigeria cannot fold our hands when we all know that we, more than any other nation, have major challenges surrounding funding for education in our country,” the senator said.
ActionAid had earlier drawn attention to the challenges posed by unfair tax practices of foreign multinational companies in developing countries through its reports “Leaking Revenue” and Mistreated: How Faulty Tax Treaties, Excessive Incentives and Tax Avoidance Practices by Multinationals are Fuelling Inequality and Poverty.”
Along with ActionAid, the senator called on the Federal Government to stop granting harmful corporate tax incentives, excessively restrictive tax treaties, and put in place relevant mechanism for curbing tax avoidance practices of multinationals and large corporations, and spend increased tax revenue on financing quality public education, especially for girls.
“In the wake of the Panama Papers scandal, which revealed the outrageous scale of global tax avoidance problem, making sure that global companies doing business in Nigeria are paying their fair share would give a desperately needed boost to our education budgets and to the futures of our girls,” she said.
