Without Restructuring, Nigeria’s Tax System Will Remain Broken – Edwin Clark Tells Tinubu

Elder statesman and Ijaw leader, Chief Edwin Clark, has emphasized that restructuring Nigeria is the only viable solution to the ongoing debates surrounding President Bola Tinubu‘s Tax Reform Bills.

In a statement addressing the contentious nature of the reform bills, Clark argued that adopting a new constitution or reverting to the 1963 Republican Constitution would resolve the issues at hand.

He insisted that restructuring the nation would provide a framework for more effective tax reforms.

Clark stressed that political consensus must be built among stakeholders to ensure that tax reforms are sustainable and enjoy broad-based support across political transitions.

The former National Commissioner for Information maintained that restructuring is a “sine qua non” for Nigeria’s progress, reiterating his long-held stance that “non-restructuring will kill Nigeria.”

“Mr. President, the ongoing controversies around this tax reform, to me, highlights the need for a full and comprehensive constitutional review of the country’s fiscal federalism.

“In addition, there is need for political consensus building to foster dialogue among political stakeholders to ensure that tax reforms have broad-based support and are sustainable across political transitions.

“If we must live together as one country, Restructuring is a sine qua non. The issues raised for and against the tax bill, are all among issues which will be addressed if we restructure the country and produce a new constitution, or adopt the 1963 Republican Constitution. Giving priority to restructuring will give room for the overhauling of the tax system of the country.

“It is lack of restructuring that has led us to the quagmire we are today as a people; that is why we are here today. This brings to mind my usual slogan, that ‘except we restructure Nigeria, non-restructuring will kill Nigeria,’ the statement partly read.

He further explained that the complexity of Nigeria’s tax system stems from the intersection of constitutional mandates, legislative provisions, and the realities of revenue collection and allocation.

According to him, focusing on revenue sharing without improving tax collection creates counterproductive incentives for states.

“A focus on equitable sharing, without improving collection creates perverse incentives – states can only share what is collected.

“Therefore, to boost overall tax revenue, emphasis must focus on improving the collection and remittance processes to ensure a social contract between the corporate and natural individuals for whom they are responsible. Sub-sovereign capacities to collect taxes must be enhanced,” Clark stated.

He advocated for the enhancement of sub-sovereign capacities to collect taxes and stressed the importance of building a social contract between corporate entities, individuals, and the government.

Reflecting on Nigeria’s fiscal challenges, Clark criticized successive leaders for failing to harness the country’s diversity for the greater good.

Instead, he accused them of prioritizing personal power over strengthening the nation’s institutions.

“The leaders of this country have stoutly refused to manage our diversity as a people, and use our diversity as a gain. Rather, they have instituted themselves as institutions, rather than ensuring that the nation’s systems are strong and are the grand norm of the country,” he concluded.

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