Chief Edwin Clark, a prominent South-South leader and former Federal Commissioner for Information, has called for a redesign of Nigeria’s tax system that prioritizes effective collection and central remittance, rather than focusing solely on the fairness of revenue sharing. His comments, issued in a statement from Abuja, come in response to the controversial tax reforms presented by President Bola Tinubu before the National Assembly.
Clark, who is also the leader of the Pan Niger Delta Forum (PANDEF), emphasized that simply ensuring equitable revenue sharing without improving the collection systems could lead to negative consequences. He argued that states would only be able to share the revenue that is actually collected, so strengthening collection mechanisms must be the priority.
In addition to improving tax collection, Clark highlighted the importance of building the capacity of sub-national governments to manage and collect taxes. He urged President Tinubu and the 19 Northern Governors to approach the tax reform issue with caution, warning that mishandling it could result in unfavorable outcomes for the country.
Clark also pointed to the need for a restructuring of Nigeria’s fiscal federalism, suggesting that this would help overhaul the tax system. He stated, “The ongoing controversies surrounding the tax reforms highlight the need for a full and comprehensive constitutional review. This review should address equitable revenue sharing and develop a transparent formula that balances the needs of economically disadvantaged states with the contributions of higher-revenue generating states.”
For any reform to be successful, Clark stressed the importance of building political consensus. He emphasized that a broad-based agreement is essential to ensure that tax reforms are sustainable and effective across political transitions. He also argued that restructuring the country is crucial for national unity, noting that “If we must live together as one country, restructuring is a sine qua non.”
Drawing from Nigeria’s history, Clark reflected on past resistance to taxation, including notable protests like the Aba Women’s Riot of 1929 and Funmilayo Ransom-Kuti’s anti-tax protests in the West. He also addressed the persistent inequality faced by the Niger Delta region, which, despite contributing significantly to the country’s oil revenue, remains marginalized and deprived of benefits.
In closing, Clark reiterated his call for a restructuring of Nigeria’s systems to ensure that all regions have equal opportunities. He argued that without addressing inequality, injustice, and oppression based on tribe and region, these issues would continue to persist. He also expressed concern over the prevalence of nepotism in Nigerian politics, where political appointments disproportionately favor certain regions.
Clark’s statement came in response to four tax reform bills transmitted to the National Assembly by President Tinubu on October 3, 2024. These bills are part of the recommendations from the Presidential Committee on Fiscal and Tax Reforms and include the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill.
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