Tax reform bills: Restructuring will enhance unity — Clark

Amid escalating tensions over the proposed tax reform bills, Chief Edwin Clark, has restated his call for a fundamental restructuring of the country to address inequities in resource allocation and promote national unity.

In a statement on Wednesday, he emphasized the need to manage Nigeria’s diversity effectively, describing it as the nation’s greatest strength when harnessed properly.

Recall that President Bola Tinubu recently forwarded four tax reform bills to the National Assembly, sparking debate between the federal government and the 36 state governors.

While governors and Vice President Kashim Shettima have urged the president to delay the legislation for broader consultations, Tinubu remains resolute in pushing the bills forward.

Chief Clark argued that the tax reform saga is a symptom of a deeper structural issue.

He asserted that the current centralized revenue-sharing framework fosters inefficiency and inequity, calling for a return to a restructured federal system that prioritizes derivation and decentralisation.

Tracing the evolution of Nigeria’s fiscal policies, the prominent South-South elder statesman pointed out that taxation has historically been a contentious issue.

From the Aba Women’s Riot of 1929 to regional protests against inequitable tax practices, fiscal policies have often exposed fault lines in Nigeria’s political and economic systems, he observed.

The Niger Delta leader highlighted the derivation principle from the 1960s, under which regions retained 50% of revenue generated from their resources.

He contrasted this with today’s centralized model, where the region that produces over 90% of Nigeria’s oil is marginalized in resource allocation.

The former federal commissioner for information lamented the neglect and environmental degradation faced by the Niger Delta, calling it a stark example of the failure to manage diversity.

He criticized the exclusion of Delta and Bayelsa States from significant appointments in the Nigerian National Petroleum Company Limited (NNPCL) board, despite their status as top oil-producing states.

“The ecosystem of the Niger Delta is despoiled; fishes and other aquatic lives die. There is no water to drink. Crops cannot grow on our land because it is polluted as a result of oil exploration,” he said.

For him, restructuring is the solution to Nigeria’s recurring governance and economic crises.

He advocated for a return to a federal system that respects regional autonomy and ensures equitable revenue sharing.

Clark proposed the development of a transparent formula that balances the needs of less advantaged states with the contributions of high-revenue-generating states.

He called for the strengthening of sub-sovereign tax collection and remittance capacities to ensure efficiency.

Also, advocated for the fostering of dialogue among stakeholders to create sustainable tax reforms.

Chief Clark emphasized that Nigeria’s diversity can be a source of strength if managed effectively. He urged leaders to move away from nepotism and regional bias, advocating for strong institutions over strong individuals.

“Nigeria today is a divided country, especially during the eight years of President Muhammadu Buhari. Nepotism attained an inexplicable high dimension… Unfortunately, President Bola Tinubu is also indulging in nepotic acts,” he said, referencing appointments in key sectors.

As debates over tax reforms rage, Clark warned against decisions that could deepen divisions, urging President Tinubu and northern governors to handle the matter with caution.

He called for humility, justice, and inclusivity to foster national unity.

“If we must live together as one country, restructuring is a sine qua non. Let us allow democracy to shine all over the country and give Mr. President the support his government deserves until 2027,” he added.

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