How the US Funds Its Government—and What Nigeria Can Learn

I came across official fiscal data that made me reflect on Nigeria’s economic challenges. Every election season, we argue about tribe, religion and slogans such as moving from consumption to production. But the harder question is where government revenue will come from. The United States funds much of its federal budget through taxes paid by citizens and businesses. Individual income and payroll taxes account for 63.4% of its funding pool. Corporate taxes contribute 7.5%, while tariffs, excise duties and other revenue provide 3.7%. Newly issued debt makes up 25.4%. This means that, for every $100 spent by the US federal government, about $74.60 comes from taxes and other internally generated revenue, while $25.40 is financed through borrowing. When citizens directly fund government, they have a stronger basis to demand accountability. Nigeria needs a more serious debate about taxation, public spending, debt, oil dependence and other sustainable sources of revenue. These are the economic questions political leaders, including Atiku Abubakar and Peter Obi, should address clearly.

Use The App To Win ₦1m

Stories are shared by community members. This article does not represent the official view of NaijaWorld — the author is solely responsible for its content.