Nestlé Nigeria's income tax contributions rose from ₦5.6 billion in 2015 to ₦57 billion in 2024.
In 2024, the company saw an extraordinary 132% rise in taxes compared to the previous year.
Despite facing economic hurdles during the COVID-19 pandemic, Nestlé ensured that its tax contributions remained above ₦21 billion annually from 2020 to 2022.
The significant spike in 2024 was mainly due to a considerable loss before tax, driven by heightened finance costs stemming from the devaluation of the Naira.
Nestlé Nigeria's 144% income tax growth in 2016 is the highest in the past ten years.
Africa now spends 27.5% of revenue on interest payments, nearly 4 times higher than in 2008.
The debt burden is rising faster than economic growth as interest payments as a percentage of GDP grew from 5.4% in 2008 to 8.2% in 2024, showing increasing financial strain.
Effective interest rates have more than tripled from 1.4% in 2008 to 5.0% in 2024, making debt less affordable.
Between 2008 and 2019, the ratio of interest to revenue rose by 12.2 percentage points, and in five years (2019–2024), it surged by another 8.5 percentage points.
As borrowing costs rise, the risk of defaults and fiscal crises in African economies grows, making financial stability a concern.
More money spent on debt means less for roads, hospitals, and schools, slowing down long-term economic progress.
With a projected GDP of $80 million, Tuvalu ranks as the smallest economy globally, producing less in a year than many corporations earn in a day.
Even when put together, these small economies still fall far behind the economic output of many mid-sized countries or cities.
Nigeria’s $199.72 billion GDP overshadows the economies of these nations.
Many of the world’s smallest economies are Pacific and Caribbean island nations, which often depend on tourism, remittances, and international aid.
With limited industries and small populations, these economies are highly vulnerable to external shocks like climate change, supply chain disruptions, or shifts in global tourism trends.
