Begin Q3 2014, with oil prices crashing from average $120 down to $40. Nigeria, a country with 90% dependence on crude oil as foreign exchange suffering heavily as its ability to import majority of its basic needs (raw materials and finished goods) and maintain currency stability has been reduced significantly.
From this period in 2014 till date, the reaction from majority of leaders were initially:
A. Some panicky cries about zero funds available to pay salaries, complete projects and maintain government.
B. Finally some new progressive ideas on increasing Internally Generated Revenue mostly by strengthening tax agencies.
The second occurrence while progressive goes completely against the efforts of the government to boost the economy by encouraging start-ups and existing businesses boom in diverse sectors aside crude oil. It is a well known fact that new businesses thrive in environments with high Ease of Doing Business indices such as Low taxes, tax holidays for new companies and presence of necessary infrastructure. Hence the drive by the government to promote economic diversification and massive job creation stands to be hindered by the same government’s position on increased taxation and the already existing multiple taxation challenge faced by businesses. New businesses are faced with a scenario in which its the ‘tax-heavy (IGR Policy) of Nigerian government Vs the Tax holiday (Tax incentive Environment) necessary for ‘’Ease of Doing Business’’ and subsequent Economic boom

New businesses are faced with a scenario in which its the ‘tax-heavy (IGR Policy) of the present Nigerian government Vs the Tax holiday (and other tax incentive) Environment necessary for ‘’Ease of Doing Business’’ and subsequent Economic boom

As at this point in 2016, start-up/entrepreneurship culture is growing rapidly – with a significant portion of the more than 200,000 graduates trained in entrepreneurship by the National Youth Service Corp. yearly, added to the already existing Non-Graduate business people also practicing one form of self-employed venture or another – one would expect this to translate to significantly increased numbers of new business registrations… but that is not the case! New businesses try to evade already existing high taxes, by simply avoiding registration. But new policy direction shows tax systems will have increased coverage, without provisions to allow new businesses to survive the pressure being created. I view this as simultaneously suffocating recently created business who need to build solid foundations before being subjected to similar conditions as big experienced corporate (often foreign) competition.
source;http:///2ctq5V5