Restructuring as a Foundation for Tax Reform
Elder statesman and Ijaw leader, Chief Edwin Clark, has highlighted the importance of restructuring as a prerequisite for meaningful tax reform in Nigeria. In a statement on the ongoing debates surrounding President Bola Tinubu’s Tax Reform Bills, Clark asserted that comprehensive constitutional restructuring is essential to resolve fiscal issues. “Restructuring is not optional; it is the only path to resolving the controversies surrounding tax reform,” he stated.
Fiscal Federalism at the Core
Clark pointed out that Nigeria’s fiscal federalism needs urgent review, emphasizing the necessity of decentralizing powers to states to enhance revenue generation and collection. He suggested adopting a new constitution or reverting to the 1963 Republican Constitution to address structural imbalances. According to him, these changes would provide a solid foundation for overhauling the tax system, ensuring fairness and efficiency.
Challenges in Revenue Allocation
The elder statesman criticized the current revenue-sharing framework, arguing that it prioritizes distribution over collection. “States can only share what is collected,” Clark noted, advocating for reforms that focus on improving tax collection and remittance processes. He stressed that a stronger emphasis on sub-sovereign tax collection capacities would enhance overall revenue and foster accountability.
Building Consensus for Reform
Clark urged political stakeholders to engage in dialogue to create a broad consensus on tax reforms. He emphasized the need for sustainable policies that transcend political transitions, stating, “A unified approach is crucial to ensure tax reforms are effective and enduring.” He called for a comprehensive review of fiscal policies to align them with the realities of Nigeria’s diverse socio-economic landscape.
Failures of Past Leadership
Blaming past administrations for mismanaging the country’s diversity, Clark remarked that successive leaders failed to strengthen national systems. He criticized the tendency of leaders to prioritize personal interests over institutional development, which he believes has hindered meaningful reforms. “Our leaders must focus on managing our diversity as a strength rather than a liability,” he added.
Path Forward for Nigeria
Clark reiterated that restructuring is indispensable for Nigeria’s survival and development. He warned that failing to address structural issues could derail the country’s progress. “Restructuring is the only way forward; without it, Nigeria risks stagnation,” he concluded, urging the government to prioritize constitutional reform as the foundation for economic transformation.
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