By Aloysius Umalo, Makurdi
Professor Wilfred Uji of the Department of International History at the Federal University Lafia, Nasarawa State, has advocated support for President Bola Tinubu's new tax policy, asserting that it is essential for promoting Nigeria's economic growth and equity.
He also emphasized its potential to revolutionize the country's revenue generation framework adding that that when fully operational, Nigerian states could reap significant benefits from the revamped tax regime, which promises to improve checks and balances across the system.
The University don stated this while sharing his insights on the new tax policy introduced by President Bola Ahmed Tinubu, which has generated so much controversy and arguments in many quarters.
Professor Uji highlighted one of the primary advantages of the new tax framework, the opportunity it creates for Nigeria to obtain accurate data regarding its total annual revenue generation.
He expressed optimism that the new tax policy could help reconcile existing disparities and eliminate the contradictions associated with multiple taxation, thereby fostering a more equitable and fair distribution of resources among the country’s federating units.
The Professor of International Diplomacy, Security and Strategic Studies who is also a public affairs analyst noted that the ongoing debates surrounding the tax reform stems from constitutional issues central to the nature of Nigerian federalism.
Reflecting on the implications of President Tinubu's tax reforms, Uji argued that many Nigerians misconstrue the proposed tax reforms, which, if properly implemented, could effectively tackle revenue leakages.
While acknowledging the uneven economic footing of Nigerian states, Uji pointed out that first generation states like Lagos and Kano, which have historically served as commercial hubs before and after the colonial era, enjoy significant advantages in terms of industrialization and tax revenue generation.
"These first-generation states have a financial status that vastly outstrips that of their younger counterparts, contributing to disparities within the tax system".
He underscored the importance of establishing a level playing field among Nigerian states, particularly in addressing the fiscal disparities stemming from historical economic legacies.
He emphasized the need for a balanced approach to taxation that promotes economic growth while addressing the financial imbalances among different regions.
Professor Uji acknowledged the challenges associated with relinquishing some state control over fiscal matters but remained optimistic about the transformative impact of President Tinubu's tax policy on infrastructure development and overall economic progress across Nigeria.
While the new tax regime may come with disadvantages, such as denying states absolute control over resources and taxation unlike the models in the United States and other in climes, i believe it offers promising opportunities for infrastructural development and economic growth nationwide.
