Osita Chidoka, former minister of aviation says states and local government areas should be the focus of Nigeria’s clamoured restructuring.
Chidoka said this has become imperative to enable government at the two levels effectively deliver services to their citizens from the bulk of the revenue they earn.
The former minister spoke at the fourth plenary session themed ‘mobilising for political economy development at the ongoing 27th Nigerian Economic Summit in Abuja.
“The important taxes in Nigeria such as property taxes, personal income tax, sales taxes, market; state governments have all abandoned these,” Chidoka said
He further noted that the federal, state, and local governments were clearly defined in the constitution and that there was no point dwelling on devolution of powers. “The state government should roll up their shelves and get to work,” he said.
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Speaking further minister, the former corps marshal of the Federal Road Safety Corps (FRSC) said, “Having these work avoidance in Nigeria where states have refused to work. And having these systems where the federal government has acquired all the functions of the state and built bureaucracy to do them is the crossroad we are as a nation. And we need to block that hole to secure the future.”
The increasing level of insecurity, uneven distribution of natural resources, and increasing call for restructuring by ethnic groups have worsened the level of disunity in the country.
Also, over the past two months, the federal government has been locked in a legal battle with the Rivers and Lagos State governments over who should collect Value Added Tax (VAT). Other states in the country are also considering enacting their own laws to collect VAT.
According to Nyesom Wike, the Rivers State governor, VAT collection by a federal agency in Rivers and distribution of same to other states negates the principle of justice and fairness.
For example, in June 2021, VAT collected in Rivers State by FIRS was N15.1billion but the state was only given N4.7 billion from the taxes. Lagos accounted for N46.4 billion VAT collection in the same month but was only allocated N9.3 billion from the proceeds.
