Former Senate President, Dr. Bukola Saraki, has said Nigeria’s low tax-to-GDP ratio remains one of the country’s biggest barriers to sustainable development, warning that continued dependence on foreign aid and external borrowing could weaken the nation’s economic sovereignty.
![](https://thenigerialawyer.com/wp-content/uploads/2026/06/ELLAN.png")
![](https://thenigerialawyer.com/wp-content/uploads/2026/05/2026-Summer-IDRI-Masterclass.jpg")
Saraki stated this on Tuesday while speaking at the Global Strategic Advisory Group meeting in Villa La Collina, Lake Como, Italy, where he participated in a panel discussion on “Development Policies—Withdrawal of the U.S. from International Development: Opportunities and Challenges.”
Reflecting on his tenure as President of the Senate between 2015 and 2019, Saraki said the Eighth National Assembly placed strong emphasis on fiscal accountability, budget transparency, revenue oversight and reforms in the petroleum sector.
According to him, the legislature introduced open budget hearings, questioned unremitted revenues held outside the treasury system and pushed for stronger governance in the petroleum sector as part of efforts to reduce waste and strengthen public finance.
“During my tenure as Senate President, we placed strong emphasis on fiscal oversight, introducing open budget hearings, confronting the issue of unremitted revenues held outside the treasury system, and working on petroleum sector governance reform,” he said.
“These were not easy fights. But they were necessary ones, because the alternative is permanent external dependency.”
Saraki also recalled challenging the executive arm of government over foreign loan requests, saying the National Assembly had a duty to scrutinise the purpose, terms and expected impact of every borrowing proposal.
“I experienced this firsthand when, as Senate President of Nigeria, I challenged the executive on foreign loan approvals and received significant political push-back because the system was not designed to support proper scrutiny of purpose or impact,” he said.
“Many of these loans were accepted as if they were free gifts, yet repayment obligations remained.”
The former Kwara State governor said Nigeria’s tax-to-GDP ratio, estimated at about six per cent, is among the lowest in the world for an economy of its size.
He noted that while Sub-Saharan Africa averages about 15.6 per cent and the OECD average stands at about 34 per cent, Nigeria continues to generate far less domestic revenue than it needs to fund development.
“Tax-to-GDP ratios across Sub-Saharan Africa average approximately 15.6 per cent, compared to an OECD average of 34 per cent,” Saraki said.
“Nigeria’s is approximately six per cent, one of the lowest in the world for an economy of its size.
“This is a political choice. And political choices can be changed by political leadership.”
Saraki argued that African countries must strengthen domestic resource mobilisation and build stronger institutions rather than depending on development assistance.
He said the reduction in United States development assistance, though capable of creating immediate humanitarian and financing challenges, also presents Africa with an opportunity to rethink its development model.
According to him, the continent must move away from donor dependency and embrace genuine partnerships based on trade, industrialisation, value addition, innovation and institutional development.
He urged African countries to leverage growing relationships with Europe, China, India, the Gulf states and other emerging economies in a manner that serves Africa’s long-term interests.
Saraki warned, however, that the continent must avoid replacing one form of dependency with another, stressing that strategic partnerships should be negotiated on the basis of mutual benefit.
The former Senate President also called on African governments to prioritise transparent budgeting, stronger legislative oversight, judicial independence, credible elections and fiscal accountability.
He described strong institutions as the foundation for sustainable economic growth, saying countries that fail to build accountable systems will continue to struggle with weak public finance and poor development outcomes.
Saraki further urged African leaders to accelerate implementation of the African Continental Free Trade Area, increase investment in youth, education and innovation, and mobilise domestic and diaspora capital to drive development.
He said Africa must seize the current geopolitical shift to build a development architecture driven by production, innovation, self-reliance and strategic partnerships instead of aid dependency.
LAWBREED — Equipping You For Greater Success!
_______________________________________________________________________
“Order Justice Omolaye-Ajileye’s Electronic Evidence Books Now” — Essential Guides On Evidence Act, Case Law And Digital Proof
As an added bonus, every purchase comes with a FREE ebook titled: “How to use the AI in Legalpedia and Law Pavilion.”
Ohio Books Ltd praises the publication, stating:
"....this is the only Nigerian book I know of on the topic."
How to Order:
📞 Call, Text, or WhatsApp: 08034917063 | 07055285878
📧 Email: benadigwe1@gmail.com
🌎 Website: www.benadigwe.com
Ebook Version: Access it directly online at https://selar.com/prv626
Authored by Ben Ijeoma Adigwe Esq., ACiarb (UK), LL.M, Dip. in Artificial Intelligence, Director at the Delta State Ministry of Justice, Asaba, Nigeria.
______________________________________________________________________
[A MUST HAVE] Evidence Act Demystified With Recent And Contemporary Cases And Materials
Interested buyers are encouraged to place their orders and enquiries via:
0704 444 4777, 0704 444 4999, 0818 199 9888
Website: www.alexandernigeria.com
