Opinion
TAXES AS KEY TO NIGERIA’S ECONOMIC AND INFRASTRUCTURAL DEVELOPMENT
BY MUSA ILALLAH
To begin this discussion, it is imperative that we attempt to understand what taxes are all about.
Taxation is defined as the imposition of compulsory levies on individuals or entities by governments across the world. Taxation is used primarily to raise revenue to finance government expenditures among other reasons.
The Nigerian government is primarily reliant on taxes as they are a significant source of revenue and a major source of income to the government to discharge its responsibilities.
No one doubts the fact that the country today falls short of infrastructural development despite the unprecedented turn around on revenue generation and collection courtesy of the country’s Federal Inland Revenue Service, FIRS under the leadership of its Executive Chairman, Muhammad Nami.
The FIRS in Nigeria is the agency of the Federal Government Agency statutorily charged with the responsibility and powers to assess, collect, account and enforce payment of taxes accruable to the Government of the Federation.
It is commonly said that taxation is a contribution individuals and corporate entities make towards national development. Many see this as their obligation under the social contract where they contribute to enable government provide social amenities, welfare services and infrastructural development among others.
It is not in doubt that the FIRS has been up and doing in significantly and substantially improving revenue generation and collection in the country in the last few years. In return, the country’s infrastructural development has steadily improved across the length and breadth of the country.
Since Government cannot provide these resources if citizens do not reciprocate by paying their taxes as at when due as an obligation, citizens must assist government to provide it with resources to fund development of the country.
Visible and noticeable key projects government has executed with taxes across education, roads, health, power, agriculture, and other key sectors have dotted the country. Examples abound in the construction of the Loko-Oweto Bridge; the Second Niger Bridge, construction and equipping of Primary Health Care Centres, building and equipping schools with the necessary infrastructure among many others.
Records show that TETFUND has disbursed over N2 trillion financed through the 2.5% education tax from the assessable profit of companies operating in Nigeria.
The government needs taxes as sustainable sources of funding social programmes like health, education, infrastructure and other services which are important to achieve the common goal of a prosperous, functional and orderly society and most importantly to foster the country’s economic growth and development.
One can confidently say that governments raise revenues so as to pay for public goods and services. The commitment of the FIRS leadership in pursuing taxes generation and collection is very encouraging.
Undoubtedly, taxes are key to Nigeria’s survival, economic and infrastructural development and FIRS is at the centre of it, while doing the country proud.
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Heineken Lokpobiri, minister of state for petroleum resources, says the federal government plans to commence implementing the drill-or-drop provisions of the Petroleum Industry Act (PIA).
Section 94 of the PIA gives operators a period of three years to begin oil production or relinquish the assets to the federal government.
Speaking during the Cross Industry Group (CIG) meeting held on Tuesday in Florence, Italy, Lokpobiri said it is in the best interest of the country that all inactive wells go to work.
He said the federal government, under the leadership of President Bola Tinubu, has provided every necessary incentive to ensure international oil companies (IOCs) in Nigeria run smoothly and profitably.
“Now, it is imperative for these industry players to match the government’s efforts with increased investment by announcing final investment decisions (FIDs),” he said.
Furthermore, Lokpobiri discussed “the challenges, expectations, and measures to enhance the sector’s contributions towards domestic energy needs and regional expansion across Sub-Saharan Africa”.
He emphasised that while IOCs have highlighted engineering, procurement, and construction (EPC) contractors as a challenge, “EPCs will not come unless they see strong commitments from industry players”.
“The government has done its part to provide the requisite and investment-friendly fiscals, the ball is now in the court of the IOCs and other operators to make strategic investment decisions that will drive increased production and sustainability in the sector,” he said.
“We must also recognise that domestic crude supply is essential to national energy security. The best solution to this challenge lies in increasing production, which will ensure a balance between domestic supply obligations and external commitments.”
The minister further urged industry players to explore collaborative measures, such as shared resources for contiguous assets and the release of underutilised assets to operators ready to invest in production.
The Progressive Students Movement (PSM), a leading Pan-African student body, has commended the leadership of the Nigeria Police Force (NPF) in Ogun State under Commissioner of Police (CP) Lanre Ogunlowo, PhD, for its commitment to security and community engagement.
In a statement released on Thursday, the President of PSM Nigeria, Comrade Ambassador Okereafor Bestman, highlighted the CP’s efforts in strengthening collaboration between the police, stakeholders, and other security agencies to maintain peace and stability in the state.
“It is worthy of note that CP Lanre Ogunlowo, PhD, has further fostered a harmonious working synergy between the police, stakeholders, and other security agents aimed at ensuring peace and tranquility in Ogun State,” Okereafor said.
The student leader expressed confidence in CP Ogunlowo’s leadership, stating that Ogun State is on track to becoming one of the most peaceful states in Nigeria under his administration.
He also praised the professionalism and dedication of the Ogun State Police Command in tackling crime, regardless of its scale.
Additionally, PSM acknowledged the Ogun State government’s continued support for security agencies, particularly in providing mobility and logistics to enhance their operational efficiency.
The commendation comes at a time when security remains a top priority for residents and authorities in the state, with ongoing efforts to curb crime and ensure public safety.
BY ABUBAKAR YUSUF
On assumption of duty in January, 2025 , the new Universal Basic Education Commission, UBEC, Boss and well grounded World Bank expert , Aisha Garba envisaged the need to reposition the Basic Education through interfacing with the critical stakeholders.
Amongst them is the office of the National Security Adviser , NSA, led by Malam Nuhu Ribadu whose achievements in the last few years in the area of security has become distinct and outstanding.
Therefore, seeking to cooperate and collaborate with the office became germane and needful particularly the protection of lives and properties of actors in the promotion of Basic Education ranging from the pupils , teachers , workers and facilitators to enable it drive the new wave to curb Out of School Children OOSC in the country.
Aside providing the basic security arrangements for schools , the need to engage the security apparatus at the level of National Security Adviser NSA became needful, so as to address the sophistry of security problems in the country, to nip in the bud any unforseen circumstances.
With the high rates of kidnappings, abduction , banditry, cattle rustling, ritual tendencies among many other vices, the idea of bringing on board , the security architecture of the country in all ramifications will assist the commission to consolidate the implementation of Basic Education policies and programs, also introduce new ones .
Since pupils at the Primary, Junior Secondary and Secondary Schools are prone to such ugly development and security issues , the need to be proactive on the part of the commission became timely and desiring.
This led to the success story of the bilateral interface between the management of the commission and NSA, to streamline, perfect and chart a new course on the issue of security of actors in the Basic Education.
The visit described as timely and long overdue, discussed fruitfully the way forward and the immediate and long term intervention of both agencies in the area of collaboration.
According to the Executive Secretary, Universal Basic Education Commission UBEC, Dr Aisha Garba she stated by discussing” strategic initiatives aimed at enhancing educational access and security in Nigeria. ”
She further said” the engagement focused on strategies to address challenges such as the safety of schools, particularly in vulnerable regions, and the promotion of equitable education for all children.”
“the meeting highlighted the critical intersection between education and national security and the need for collaboration between UBEC and Office of the National Security Adviser (ONSA), on improving access to basic education and safety of safety schools across the nation. ”
“This collaboration underscores the government’s commitment to fostering a secure and inclusive learning environment as part of its broader agenda to strengthen the nation’s educational framework,” it added.
“UBEC boss had pledged to engage critical stakeholders to break down barriers to education and create inclusive learning opportunities for children across the six geopolitical regions of the country.”
“She said: “My goal is to deliver on this mandate which includes strengthening collaboration, partnerships and institutional learning for effective service delivery. ”
“Together, we will work to increase access, improve quality, provide conducive and safe learning environments, supply adequate teaching and learning materials, and adopt the concept of ‘best fit’ in addressing specific basic education challenges, state by state and region by region”.
Highlights of the program which included the engagement of both bodies with a commitment to ensure the introduction of security architecture in schools in Nigeria is achievable.
Written BY ABUBAKAR YUSUF on yus.abubakar3@gmail.com.