Elder statesman and Ijaw leader, Chief Edwin Clark, has stated that the ongoing debates around President Bola Tinubu’s Tax Reform Bills will only be resolved through a comprehensive restructuring of Nigeria.
Clark argued that the disagreements regarding the tax reforms could be addressed if the country underwent restructuring, adopted a new constitution, or returned to the 1963 Republican Constitution.
In a statement released on Wednesday, the former National Commissioner for Information emphasized that the controversies surrounding the tax reforms underscore the urgent need for a full and detailed review of Nigeria’s fiscal federalism.
He called for political consensus-building among stakeholders to ensure that tax reforms are not only widely supported but also sustainable across political transitions.
Clark highlighted that the current issues with the tax system are symptomatic of a broader problem caused by Nigeria’s failure to restructure. He reiterated his belief that restructuring is essential for the nation’s survival, stating that “except we restructure Nigeria, non-restructuring will kill Nigeria.”
He contended that many of the issues raised in the ongoing tax debates, including the challenges of revenue collection and allocation, would be resolved through a restructuring process.
The Ijaw leader further explained that the complexity of Nigeria’s tax system stems from a mix of constitutional mandates, legislative provisions, and the practical realities of revenue collection. He stressed that for the system to work effectively, there must be an emphasis on improving the collection and remittance processes, rather than focusing solely on equitable revenue sharing.
“A focus on equitable sharing, without improving collection, creates perverse incentives – states can only share what is collected,” he noted, advocating for a system that strengthens sub-sovereign tax collection capacities to boost overall tax revenue.
Clark also criticized past leaders for failing to manage Nigeria’s diversity effectively, which he believes has contributed to the country’s fiscal and governance challenges.
He suggested that instead of using the nation’s diversity as a source of strength, successive administrations have focused on consolidating power, leading to systemic weaknesses.
In his view, prioritizing restructuring would allow for a reworking of Nigeria’s fiscal policies, creating a more balanced and sustainable approach to tax collection and distribution.
