IGR : Most states lack ‘tax space’ – Adeosun

The Minister of Finance, Kemi Adeosun has said that most States of the federation lack tax space for private investors, for them to generate reasonable Internally Generated Revenue (IGR), to fund the states.

Apart from Lagos state where she describes as a major commercial hub in the country, Adeosun however noted that Kebbi state, rather than adopt the generally known IGR, adopted “I Grow my Rice (IGR)” initiative which has led to the production of some metric tonnes of rice per annum.

Her reaction was premised on how the states could generate more funds, rather than running to the Federal Government for bail out funds, in which she complained about the lack of tax spaces in these states for investment opportunities.

While fielding questions during a session of the 10th annual conference of the Nigerian Bar Association (NBA) Section on Business Law (SBL), Adeosun also pointed out that the Federal Government has tried fiscal sustainability plan to answer some of the outstanding salaries owed workers nationwide.

On why the government has not been partnering with Nigerians in diaspora, she stated that there will be a natural relationship with the diaspora and Nigerians at home, but the government still has to improve on the climate and business environment, alongside its unwavering fight against corruption.

“It is Nigerian investors first that draws in foreign investors and diasporans, if we Nigerians cannot make ourselves invest, how can we bring in foreigners to invest in Nigeria.

“On the need to diversify… we need to invest in things that will diversify the economy. To do that, we have to be very disciplined about how we spend our money, and then we will be able to diversify our economy and rediversify our revenue”, she said.

On the policy framework being adopted by the present administration, she however affirmed that the government has not been good in communication, but that it was proactive towards diversification of the economy and fight against corruption.