Nigeria Ranks Among World’s Lowest Tax Collectors at 3.4% of GDP

Nigeria recorded tax revenue equal to 3.4% of GDP in 2024, placing it seventh among the lowest-tax-collecting countries in an IMF-based global comparison. Denmark ranked highest at 45.3%, while Libya, Kuwait and Iraq recorded the lowest shares. The figures do not necessarily mean Nigerians face low taxes. They measure the tax revenue government collects relative to the size of the economy. A large informal sector, weak compliance, exemptions and limited tax administration can all reduce collections. Oil-producing countries can also rely on resource income rather than conventional taxes. Nigeria’s position raises questions about how to widen the tax base, support businesses and ensure public revenue translates into better services.

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