THE IMPACT OF COVID-19 ON STATE TAXES

Abstract

The COVID-19 pandemic is transforming the role of government in Nigeria. Unlike the 2008/09 and 2014/16 crises which were triggered by the financial and oil sector shocks respectively, the 2020 pandemic came with a human cost. The pandemic gave way for greater concerns about the stability of the economy and the country's socio-political structure. The pandemic did not only underscore the economy's fragility from the reliance on the global demand for oil; lockdown and social distancing measures brought devastating impact on State budgets. As the world changes and as economies adapt, governments will require better capacity to use available information to steer recovery for households who continue to face loss of livelihoods, businesses that are recording losses, and financial networks that have collapsed. The recent crisis has provided another opportunity for collective action on previously underutilized fiscal reforms. These actions now recognise the risk of data deprivation, long term resilience for the health sector and business continuity.