Nigeria and other countries within the continent of Africa may lose approximately $116billion to Covid-19 pandemic at the end of 2020, the Chairman of African Tax Forum (ATAF), Mr. Muhammad Mamman Nami has said.
Nami made this revelation as part of his opening remarks at the 4th ATAF High-Level Tax Policy Dialogue during a Zoom conference under the theme, Taxing Righst for Africa in the New World and Effects of Covid-19: The Role of Tax Policymakers and Tax Administrators.
According to Nami, who also doubles as Executive Chairman, Federal Inland Revenue Service (FIRS), “An analysis shows that Covid-19 will cost the region between $37 billion and $79 billion in output losses for 2020 due to a combination of effects. They include trade and value chain disruption, which impacts commodity exporters and countries with strong value chain participation; reduced foreign financing flows from remittances, tourism, foreign direct investment, foreign aid, combined with capital flight; and through direct impacts on health systems, and disruptions caused by containment measures and the public response.”
The FIRS boss, while citing a recently published policy brief by ATAF on the effects Covid-19 on customs revenue showed that “Estimates during the period February – April 2020, revealed that customs’ revenue was down by $109 billion, or $326 million per month, and this is a cautious estimate.”
Growth in sub-Saharan Africa, he further said, “Has been significantly impacted by the ongoing coronavirus outbreak and is forecast to fall sharply from 2.4% in 2019 to -2.1 to -5.1% in 2020, the first recession in the region over the past 25 years, according to the latest Africa’s Pulse, the World Bank’s twice-yearly economic update for the region.”