FG should create enabling environment for informal sector — Expert

August 22, 2024

A financial expert and fellow of the Institute of Chartered Accountants of Nigeria (ICAN), Tominiyi Fagbuyi has urged governments at all levels to create an enabling environment for the informal sector to thrive.

Fagbuyi, who spoke exclusively with Nigerian Tribune on Thursday, emphasized on the imperativeness of the sector and the need for governments to integrate them into the system especially with the mobile technology.

According to him, the tax revenue that can be generated from the informal sector is huge and that governments should educate the informal sector on maximizing technology.

This was just as he pointed out the need to leverage on technology in order to transform the accounting profession in Nigeria.

He noted that the transformation would be beneficial to governments in the area of tax advancement.

“Federal, State and Local Governments should make it easier for the informal sector to want to grow their businesses. If it is easier for them to grow their businesses, they can expand and in turn pay taxes.

“The Informal Sector is so important in Nigeria and as such critical for the governments at all levels to integrate them with the existence of mobile technology.

“The Tax revenue that can be generated from the informal sector is really huge. It would also go a long way if the government can educate the informal sector on how to leverage on technology. By doing so, the businesses will grow and the economy will grow too.

“We need to leverage more on technology to transform accounting profession in Nigeria. Nigeria will benefit a lot because every accountant is talking about leveraging on the tax system and you know tax is an aspect of accounting, where we are talking about revenue generation.

“And when you look at revenue generation in the United Kingdom for instance, everything is so automated.

“You can do a self-assessment at the tip of a button. Which i think the Federal Inland Revenue Service and others at the State level are also going into at the moment,” he said

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