Video - Nigeria expects to raise over $1 billion in tax amnesty program

The Nigerian government expects to raise more than 1 billion dollars in a tax amnesty program that encourages individuals and companies to clear unpaid bills by the end of this year. The funds raised will enable the West African country to reduce its borrowing needs, allow investment in vital infrastructure and spur development according to the government. Nigeria plans to increase spending this year by 21% to 22.8 billion dollars. The fiscal plan requires funds to help the oil producer plug a deficit the government expects will amount to about 2.2% of GDP. Tax evaders in the country are subject to imprisonment of up to five years, payment of penalties of up to 100% of tax owed, plus a compound interest rate of 21 percent per year as well as forfeiture of assets.