A/HRC/43/43/Add.1 burden on poorer persons and companies, while big profitable corporations receive generous tax incentives.16 The impact of corruption is such that reducing it to the levels of “other peer countries” would boost annual economic growth by 0.5 to 1.5 per cent.17 13. Social expenditure – key to tackling inequality – is among the lowest in the world and, with only 6 per cent of registered corporate taxpayers currently active, tax revenue is far too small to address the critical needs of the country’s population.18 The Government’s announced budget to be spent on housing projects for 2020, 60 billion Naira (165 million US$),19 amounts to approximately 0.04 per cent of GDP. Large amounts of illicit funds are widely reported to be diverted to the real estate sector as a means of money-laundering, despite prevention initiatives by the developers’ association and government agencies. 20 14. The Government has taken steps to strengthen tax enforcement and combat corruption in tax offices, including by launching the Strategic Revenue Growth Initiative. However, a more ambitious and comprehensive reform is required according to the International Monetary Fund (IMF), which recommends increasing the tax-to-GDP ratio by at least 8 per cent in order to augment social spending. 21 15. Under its international human rights law obligations, Nigeria is obliged to spend the maximum of its available resources towards the progressive realization of economic, social and cultural rights, 22 including the right to housing. This means, among other things, collecting and imposing taxes and preventing money gained through corrupt practices from landing in residential real estate or other assets held either domestically or internationally. Until Nigeria can multiply its public revenue through tax reform and greatly increase its social spending, it is not meeting this standard. IV. A housing sector in crisis 16. The housing sector in Nigeria is in complete crisis. The Federal Mortgage Bank of Nigeria estimated in October 2018 that the country had a deficit of 22 million housing units. 23 This figure is steadily rising as urban populations continue to grow at alarming rates: according to the World Bank, the need for housing is increasing by 700,000 units every year, with the formal market providing only around 100,000 units per year. 24 Even if the unrealistic commitment to building 1 million housing units per year was fulfilled by the Government,25 with housing needs growing at the current rate it would take 55 years to tackle the housing deficit. 17. There is currently no national housing action plan or strategy. According to interviews held with government officials during the visit, there is insufficient coordination and communication between federal and state governments. 18. One of the greatest challenges for the implementation of the right to housing is the extreme shortage of affordable housing. The cheapest houses built by private developers cost about 31,250 US$ in Lagos and 15,600 US$ outside Lagos (13 and 6 times the 16 17 18 19 20 21 22 23 24 25 OXFAM, Inequality in Nigeria: Exploring the Drivers (2017), pp. 5–6. International Monetary Fund (IMF), “Nigeria: selected issues”, IMF Country Report No. 19/93 (April 2019), p. 5. IMF, “Nigeria: mobilizing resources to invest in people” (3 April 2019). http://africahousingnews.com/2019/10/24/housing-sector-to-get-n60-87-billion-allocation-in-2020budget/. www.pressreader.com/nigeria/the-guardian-nigeria/20191014/281891595037524. IMF, “Nigeria: mobilizing resources to invest in people”. International Covenant on Economic, Social and Cultural Rights, art. 2 (1). https://thenationonlineng.net/housing-deficit-now-22-million-says-fmbn/. http://documents.worldbank.org/curated/en/278041531299329812/pdf/Concept-Project-InformationDocument-Integrated-Safeguards-Data-Sheet-Nigeria-Affordable-Housing-Project-P165296.pdf. https://constructionreviewonline.com/2019/08/nigeria-to-deliver-one-million-affordable-housesevery-year/. 5