- Safiu Kehinde
Socio-Economic experts have, on Tuesday, converged at the 2024 NPO Reports Annual Dialogue to proffer solutions to challenges facing Nigeria’s revenue generation and infrastructural development.
The one-day event chaired by former Postmaster General of the Federation, Dr. Ismail Adewusi, was held at Banquet Hall of Merit House, Maitama Abuja with professionals and officials from government parastatals, agencies, media industry, economic sector and the
academic sector in attendance.
Speaking on the theme ; ” Revenue Generation and Infrastructure Progress in a Challenged Economy.” Adewusi lamented over Nigeria’s over-reliance on the oil sector.
He highlighted several strategies to expand the country’s source of revenue generation which include improvisation of tax compliance, digitization of tax registration process, and establishment of strong Public-Private Partnership (PPPs) synergy amongst others.
“Broadening our tax base is essential. – We must improve tax compliance by leveraging digital tools and simplifying the tax registration process.
“The Finance Act 2020 is a good example of progress, it expanded the tax net by introducing VAT on digital services and optimizing tax collection mechanisms.
“However, this is just the beginning. We need to deepen reforms to ensure all eligible citizens contribute fairly to national development.
“With limited public funds, Nigeria must tap into private-sector resources through Public-Private Partnerships (PPPs). – For example, Kenya’s Nairobi Expressway was financed via a PPP, reducing congestion while minimizing the government’s financial burden.
“Nigeria can replicate this model to fund critical projects, such as modernizing rail networks and expanding power generation capacity. Strong PPP frameworks, underpinned by transparent policies, are key to attracting long-term investment.
“Technology offers innovative ways to address our challenges: Investing in renewable energy can help close electricity access gaps sustainably and developing smart infrastructure will improve service delivery and efficiency.” He said
Adewusi also called for the prioritization of high-impact sectors such as transportation, energy, and digital connectivity, while citing the Abuja-Kaduna railway project as an instance of such initiative.
The ex-Postmaster General who also served as Lagos Commissioner for Finance and later Budget and Economic Planning under the state’s governorship administration of Bola Tinubu, called for balance between the ongoing economic reforms and social equity.
The event also featured panelist discussion moderated by the Executive Director of Sustainable Gender Action Initiative, Dr. Mufuliat Fijabi.
The panelists include the Executive Director of Upshot Media, Mojeed Jamiu, and Senior Research Fellow from the Nigerian Institute of Social and Economic Research (NISER), Dr. Hakeem Tijani.
In his argument, Dr. Tijani warned against the impact of an increased tax rate on the Nigerian populace, stressing that an increase in tax rate as a means of revenue generation, will lead to an increase in the poverty of the people.
“When we are collecting tax, what type of tax are we collecting? I’m not an economist, I’m a political scientist. But I know that there two approaches of generating revenue.
“There is increased tax rate. If you increase tax rate, you may indirectly increase poverty. Already, people are pushed to the wall. If you increase tax rate, you are increasing the poverty of the people.” He said.
Tijani, however, suggested the extension of taxation to other legible firms and individuals.
“An option is that you can increase the tax rate by widening it. I think that is most appropriate.
“Now that we are in this economic downturn, let us widen the tax rate. Let us include those who are not paying. Let them pay instead of increasing the tax rate that can bring more hardship to the people.
“Nigeria is a big market. We are not capitalizing on that largeness, We have very large informal market.
“We can formalize that informal market and ask them to pay more. There are goods. Those goods can be formalized and taxed.” Dr. Hakeem Tijani.
On his part, Mojeed Tijani called for correlation between increase in revenue generation and the increase in livelihood of an average Nigerian.
“There should be correlation increase in revenue generation, increase in our external reserves, and the livelihood of an average man on the street.
“It is very important. How can do this? Improving private enabling environment that can assist us in increasing local productivity”
“Yes government have subsidized electricity for those who are in Band B and below. But how many hours of electricity are they getting?
“A man who runs a barber shop for example, if he is not careful, he might not make ends meet if he spends more money in buying fuel to run his business.
“We need to find a way to subsidize these people more so that they can also say that this is my own gain from government.” Mojeed said.
Prior to the panelists discussion, the Federal Inland Revenue Service (FIRS) Chairman, Zacch Adedeji, called for improved tax administration and public-private synergies to increase Nigeria’s revenue generation.
Represented by the Service’s Director of Intergovernmental Relations, Dr. Umar Ahmed, the FIRS boss, in his keynote address, recommended that an improved tax administration will enhance tax collection efficiency, reduce corruption, and increase transparency.
While stressing on the pivotal roles the revenue generation and infrastructural development played in overcoming economic challenges, Adedeji also suggested public-private synergies through the establishment of clear frameworks for Public-Private Partnership (PPP).
This, according to him, will attract private investment in infrastructure.
“Revenue generation and infrastructural development are pivotal to overcoming the challenges of a constrained economy.
“By adopting the transparent, inclusive and efficient strategies, government can unlock economic potential, foster innovation and improve public services.
“Improve Tax Administration: Enhanced tax collection efficiency, reduce corruption, and increase transparency.
“Enhance Public-Private Synergies: Establish clear frameworks for PPPs and encourage innovative financing to attract private investment in Infrastructure.” He said.
Also present at the event was Kogi state governor, Usman Ododo, who was represented by the state’s Commissioner of Information Hon. Kingsley Femi Fanwo.
While commending the organizer of the event and publisher of NPO Reports, Mr. Semiu Okanlanwon, the governor described the theme of the event as crucial and important to the development of Nigeria.
Fanwo, however, pointed out to one of the discussants statement on agriculture which he disagreed with.
He revealed that Kogi state government have invested N9 billion in agriculture between January to October 2024.
Fanwo disclosed the state government’s plan to work on improving the value-chain which is considered as a very key factor in job creation and enhancing industrialization.
“To the publisher of NPO, this is very wonderful.This year’s event centres around something that is very crucial and important to the development of our dear nation which has to do with revenue generation and infrastructural development.
“I strongly disagree with one of the discussants when he was talking about agriculture.
“But think that we that question, he brought out the intent.
“We have to invest very heavily in agriculture. Between January and October this year, Kogi state have invested N9 billion Naira to boost agriculture across the 21 local government area of the state.
This is also very deliberate. We are also looking at the direction of value-chain improvement. We are the biggest producer of cassava and cashew.
“We cannot just ship out cashew and then buy the product from abroad.
“We are looking at the value chain which is very key.
“With the value-chain, we will be able to create more jobs. We will be able to attract a lot of industrialization into the state and lots of investments.
“And like I said, good infrastructure will be birth more infrastructure. What to do when you improve infrastructure is to create an environment where more people will be able to pay their taxes. This is very crucial and this is one of the things that agricultural value-chain can bestow on our nation.” Fanwo said.
Other dignitaries present at the event include former Ogun state commissioner of information, Alhaji Yusuf Olaniyonu, Yomi Odunuga, Justice Oluwakemi Ariwoola, and members of the Guild of Corporate Online Publishers amongst others.