Why The Niger Delta Should Support The New Tax Reform But With Some Caution–Prof. Okaba

Being my response to questions raised on the above subject matter from journalist at the Gatwick Airport London

The issue of the new tax reform in Nigeria in the context of the agitations for resource control and management is not only complex but also has serious implications for addressing the core demands of equity, justice and prosperity of the people who have suffered despicable conditions in spite of being the major source of the oil and gas wealth that sustains the Nigerian State. Beyond these natural resources, the region boasts of other valuable agricultural and eco-tourism resources that have provided diverse industrial support to humanity.

The proposed tax reform which by all intent and purposes is driven by the desire to improve the tax collection mechanism, reduce tax evasion and other related forms of economic sabotage, targeted at Tax Relief for small scale businesses to stimulate production, simplifying the VAT with exemption of basic food and health items, combat illicit financial flows etc has the potentials of transforming the entire nation.

Niger Delta people should support this reform because if implemented accordingly it will also impact on how revenues from natural resources are to be allocated between the different levels of government and the local communities in the context of resource control.

In addition to promoting Fiscal Federalism, the proposed tax reforms can impact on who owns and controls natural resources. For the reforms to be beneficial, states should own these resources and pay appropriate taxes to the centre.

The control of resources by the constituents will guarantee effective investment in critical infrastructure, education, health care, better environmental management. In turn, this will help to tackle the menace of mass poverty, inequality, marginalization and exclusion from the benefits of oil and gas extraction in the Region.

In the midst of these opportunities, we need to be cautious of the inherent challenges and imperatives of balancing divergent interests across various sections in the spirit of equity, justice and transparency.