Taxing the Informal Economy in Nigeria: Issues, Challenges and Opportunities
Joseph E. Udoh (ACTI) Introduction The recent global economic challenges as a result of the fall in oil prices and the weak value of the Naira in the global economic market have raised many critical issues and economic questions, as to how the three tiers of governments in Nigeria, will financed their budgets, in the coming years. The shortfall from oil revenue accruing to government in recent years, have negatively affected the economy with many implications as well as evoking the questions of whether taxing or not taxing the informal sector for revenue and for economic reasons should be undertaken. Three important issues have influenced this thinking. They are: (1) how to create additional sources for more revenue generation; (2) how to improve upon economic growth and (3) the quality of governance. Taxing the informal economy or Informal sector in recent times have received greater economic attention and occupies an important domain in revenue generation among developing economies. Informal economy or informal sector is that part of economic unit which is not officially registered and monitored by any form of government regulations (Calbreath 2010).

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