There are hidden economic opportunities in taxation which government should explore by brining more people into the tax net, the Executive Vice Chairman, Alpha African Advisory, Mustapha Chike-Obi has said.

Speaking yesterday at the Finance Correspondents Association of Nigeria (FICAN) Bi-Monthly Forum, with theme: Repositioning Nigerian Economy for Sustainable Growth, he said Nigeria’s tax rate at 30 per cent is one of the highest in the world, adding that multiple taxation should be discouraged.

Chike-Obi, who was former Managing Director/CEO Asset Management Corporation of Nigeria (AMCON), also  spoke on intervention funds, and why adequate infrastructure is needed to stimulate the economy instead of relying solely on intervention funds.

He also spoke on the need to lend at lower interest rate at around 12 to 15 per cent per annum and considerations by foreign creditors in lending to emerging markets.

He also spoke on the foreign lenders look out for in lending to developed markets, arguing that borrowing in dollar may not be cheaper in the long-run.

He that even when one borrows borrow dollar at eight per cent for instance, the creditors will be looking at the exchange at at the time of repayment, which is unlikely to remain at N360/$. He said the foreign creditors also consider borrowers that have the capacity to generate needed funds for repayment of loans.

“The reason why they are lending money at eight per cent, instead of 16 per cent, is because they know that by the time that money matures, your Naira will not be exchanging at N360/$. This is because the Naira always depreciated by approximately 50 per cent in every five years,” Chike-Obi said.