Not less than $13 billion can be raked as additional revenue, but only if Nigeria could use digital ID to expand the tax base, a report by Mc Kinsey Global Institute has revealed.
The report, also, showed that the use of digital ID will be helpful in including informal income and reduce fraud and errors in tax filing.
Governments and businesses, according to the report, are implementing digital identification programmes with mixed results and adoption levels.
The report further stated that good use of digital ID programmes can help people participate more fully in their economy and society, which will lead to a bounteous economic value and inclusive growth.
The new Mc Kinsey Global Institute report explains further that, with the adoption of digital ID and the right principles, Nigeria can be helped to unlock 3 per cent economic value equivalent of Gross Domestic Product(GDP) in advanced economies and 6 per cent in emerging economies.
The report, which X-rayed seven economies – Nigeria, Ethiopia, Brazil, China, the United Kingdom and the United States, analysed almost 100 ways digital ID can be used, helping countries on its radar to understand the economic benefits of proper deployment of the digital ID.
According to Rogerio Mascaren has, Managing Partner, Mc Kinsey, Nigeria office, three-quarter of the potential economic value accrue to individuals in Nigeria, making it a powerful key to inclusive growth, noting that the rest flows to the private sector and government institutions.
He added that Nigeria’s unmet financial needs are huge as 64.5 million individuals are unbanked and therefore may be cut off from access to credit or the ability to deposit income.