It came as a surprise to laymen like yours truly to learn that the Western world, which established the World Bank to prescribe stringent tax regimes for poor countries—especially where their puppets or compromised individuals serve as leaders—does not itself believe in excessive taxation as an economic panacea for struggling nations.
This reality became evident when Margaret Thatcher, the former Prime Minister of the United Kingdom (UK), famously known as the Iron Lady and a strong advocate of the World Bank’s extreme economic policies for poor nations, made a profound assertion about taxation. As Prime Minister, she stated:
“No nation ever grew more prosperous by taxing its citizens beyond their capacity to pay.”
Similarly, a prominent United States (US) Senator, speaking during an NBC television talk show titled “Tax Hikes Create Endless Cycles of Debt,” echoed Thatcher’s sentiments. In a candid discussion, he argued that more taxes would not lead to economic recovery but would instead impoverish a nation further. When asked what the solution was, the Senator responded unequivocally: “Tax cuts,” eliciting laughter and applause from the audience.
The Senator elaborated:
“The poor can never repay their debts, and debt forgiveness by developed countries will not help much. What will help is reducing taxes. Many African countries have some of the highest tax rates in the world. For instance, in Tanzania, the 30% tax rate applies to incomes as low as $475, plus a 20% Value Added Tax (VAT) on nearly everything you buy. These exorbitant rates make it impossible to build capital. As a result, nothing gets built—not factories, not roads, not infrastructure of any kind.”
He went further to explain:
“Despite having the lowest-wage workers in the world, companies like Nike cannot set up factories in African countries because of these oppressive tax rates. High taxes stifle economic development, perpetuate poverty, and force nations into dependency on charity and loans.”
The Senator attributed this crisis to the pressure African nations face to demonstrate to their creditors, particularly in the West, that they can raise enough revenue to repay their debts:
“But taxes cannot raise revenue if they destroy the economy. This tragic cycle, born out of well-intentioned but flawed policies, locks these countries into perpetual economic depression. Without urgent tax reform, these nations will remain mired in unemployment, disease, poverty, and hunger.”
Hypocrisy in Economic Policy
It is ironic that the very nations that created the World Bank and preach austerity to developing countries do not themselves adhere to these prescriptions. Instead, they advocate economic measures in Africa that they know will fail. Leaders in African nations, either compromised or blackmailed, implement these policies with a zeal that belies their catastrophic consequences.
This is the situation Nigeria finds itself in today, burdened with a leadership that seems to delight in exacerbating the hardships faced by its citizens. Efforts such as Nigeria’s alleged attempt to join BRICS or its attendance at the recent Riyadh meeting of the Organisation of Islamic Cooperation (OIC) appear to be mere distractions designed to placate public suspicion.
A Nation in Crisis
Just as I was about to publish this article, two notable pieces of news came my way. The first was the announcement of Mr. Daniel Bwala as the new Special Adviser on Media and Public Communications to the President. My reaction was a silent, “Good luck to him.” The second, however, was an allegation that the Nigerian President was once a Central Intelligence Agency (CIA) agent. This claim, while weighty, brought to mind a Hausa proverb: “Mutum yayi kama da biri”—loosely translated as, “A person begins to resemble a monkey when imitating one.”
It is disheartening to witness the suffering of Nigerians under a government that appears indifferent to their plight. The pervasive poverty and hardship suggest a leadership that is not only detached but also complicit in the nation’s decline.
As a former Vice President and 2023 presidential candidate, Alhaji Atiku Abubakar, once made a grave but the unrepeatable allegation against the President, one cannot help but wonder if there is more to Nigeria’s current predicament than meets the eye.
May God, in His wisdom, deliver Nigeria from the clutches of its traducers, wherever they may be.
Labaran wrote from Katsina.
