Ijaw leader, Chief Edwin Clark, has urged President Bola Tinubu to summon the political will and restructure Nigeria, arguing it is the only solution to the ongoing debate on the Tax Reform Bills.
Clark said the issues raised for and against the reforms will be addressed if the country is restructured and produce a new constitution, or adopt the 1963 Republican Constitution.
The former national commissioner stated this as part of his contribution to the on the ongoing debate on the reform bills, which are before the National Assembly.
He said: “Today, some northern Governors are agitated because of the proposed tax reform bill, because they are feeling left out, if the policy will be on derivation. My appeal to President Bola Ahmed Tinubu and the 19 Northern Governors in particular is to handle this matter with utmost caution. Otherwise, the resulting consequence will not be favourable
“Mr. President, the on-going controversies around this tax reform, to me, highlights the need for a full and comprehensive constitutional review of the country’s fiscal federalism. This review should address amongst other things, the following:
“Equitable Revenue Sharing: Develop a more transparent and equitable revenue sharing formula that considers both the needs of the less economically advantaged states and contributions of high revenue generating states.
“In addition, there is need for political consensus building to foster dialogue among political stakeholders to ensure that tax reforms have broad-based support and are sustainable across political transitions.
“If we must live together as one country, Restructuring is a sine qua non.
“The issues raised for and against the tax bill, are all among issues which will be addressed if we restructure the country and produce a new constitution, or adopt the 1963 Republican Constitution.
“Giving priority to restructuring will give room for the overhauling of the tax system of the country. It is lack of restructuring that has led us to the quagmire we are today as a people; that is why we are here today. This brings to mind my usual slogan, that “except we restructure Nigeria, non-restructuring will kill Nigeria.”
He added: “Taxation is the sovereign-imposed, legally mandated financial obligation on individuals, entities, and transactions to fund public expenditures, redistribute wealth, and influence economic and social behavior. In Nigeria, this obligation is governed by a multi-tiered system of federal, state and local taxes, each with unique legal frameworks and administrative structures. The complexity of the Nigerian tax system arises from the interplay between constitutional mandates, legislative provisions, and the practicalities of revenue collection and allocation.
We can no longer tinker around the edges. The design of Nigeria’s tax system must prioritize incentives for collection and central remittance rather than emphasizing revenue sharing “fairness”. A focus on equitable sharing, without improving collection, creates perverse incentives – states can only share what is collected. Therefore, to boost overall tax revenue, emphasis must focus on improving the collection and remittance processes to ensure a social contract between the corporate and natural individuals for whom they are responsible. Sub-sovereign capacities to collect taxes must be enhanced.”
Going down memory lanes, Clark said taxation has always been an issue.
“Unfortunately, after all these periods, we have still not gotten our fiscal policies right. And the simple answer is because of inconsideration of the plights of others. Knowing that we are peculiar in line with our differences, it will do us much good if we can manage our diversity,” he added.
Expressing concern over colouration of the debate, stressed “The inequality, injustice and oppression of tribe against tribe and region against region, is not in any way abating despite efforts by well-meaning citizens insisting on equality.
“At the time of amalgamation of the northern and southern parts of the country into one entity called Nigeria, it was not stated, neither was it discussed, that one people should lord it over the other.”
He also blamed successive leaders for failing to manage the country’s diversity.
“The leaders of this country have stoutly refused to manage our diversity as a people, and use our diversity as a gain. Rather, they have instituted themselves as institutions, rather than ensuring that the nation’s systems are strong and are the grand norm of the country. “