Leader, Abia State Amalgamated Traders Association (ASMATA), Chief Alphonsus Udeigbo, has blamed nonpayment of taxes by private sector individuals and organizations, on high corruption in public funds management leading to poor development of the society.
Speaking with OGBONNAYA NDUKWE in Aba, Udeigbo said public perception and action ought to change to support governments that are doing well.
Abia traders and stakeholders, especially in Aba, are said to evade tax payment, yet they continue demanding quality infrastructure from government. What can you say to this argument?
The truth is not hidden. In Nigeria, people shy away from paying taxes due to certain ills they have over the years observed in the hands of those that collect and ought to make use of such funds for development. To this end, Aba, as it were, is not exempted. I listen to leaders of organisations and groups, be they business associations or otherwise, stand in public to say their members are paying taxes. Having been involved in leadership of such groups, I always say that they are not 100 per cent truthful in making such claims. As individuals and business bodies, yes we strive to grow and consolidate the growth of our endeavours. However, there are prices to pay which includes tax, to build and maintain government infrastructure in the areas we live. These are what the tax monies are used to do. When those in the government begin to siphon the funds being paid, engaging them into personal pockets and coming out to abandon public infrastructure, people will begin to ask questions about the monies they pay annually. A situation that sees a collector of revenue for the government living above his salary level, owning properties he cannot lay claim to the money to acquire being worked for, that’s what we are talking about. When the person we give money to, to build our society cannot account for its positive use, the people will refrain from giving more until former ones are accounted for before continuing.
Coming closer home to Abia, where many businesses refuse to pay, two reasons may have been responsible. One is the receipt that had been used by previous governments who after winning positions with promises to develop infrastructure and make living conditions better for the people, abandon them to wait for another election. Also, when people pay and they do not get carried along in governance, they tend to feel neglected. I think that is why many of them resolved not to pay.
Does this have any relationship with poor turn out to vote during elections?
Yes, in a situation in which people we cast our votes for in elections are not the ones declared as winners, people will see elections as uncalled for. In our clime, majority of the people stay away from casting their ballots on election days and if you ask them the reason, they will boldly say their votes don’t count. This is due to the corruption in the system. When the right persons are chosen and given official mandate, you will see them perform to the wellbeing of the people. Such beneficiaries would be willing to honour their societal obligations. They won’t wait to be forced. You see today, like in tax collection, governments now use private collectors who engage touts to bully and force unwilling payers. So it is also in elections. The authorities declare no outing, block roads, just to intimidate the poor masses to the polling stations. Had those involved been following laid down regulations, using approved funds to build our communities, people will willingly come out to pay their taxes, engage in public activities and participate in elections. People are not paying taxes and shy away from participating in the processes because of lack of trust in anything governnent in Nigeria. Look at a situation in which an Accountant-General of the government steals over N90 billion, collected from the taxpayers, money that would have been deployed towards alleviating the suffering of the masses. These activities of those that did not mean well for the country is having a bandwagon effect on our development. It is disheartening that it is becoming a spill-over on new administrations that have started making a turnaround from the former lack of working for the people.
For instance, here in Abia, while previous governments refused to look into problems facing the society and its people, the Alex Otti administration, is working hard to rebuild dilapidated state of infrastructure, repositioning those that were destroyed and reigniting the hope that life needs to move forward. The problem here is that those persons and groups that refused to pay taxes are sticking to their guns to continue evading payment. Instead of paying what is due, they would rather hobnob with touts going about with fake receipts who they tip to obtain such papers as evidence for payment.
We are currently sanitising our members to follow due process and pay to enable the government utilize the money for the projects. Dr Otti has changed the narrative from the money sharing formula to political party stakeholders, to using the money for development. Our roads are now better, health facilities and schools are being scheduled for rehabilitation. Government needs our contributions to move the state forward.
Landlords and property owners in Aba, are protesting that they paid about N16.3 million between 2015 and 2022 to government, which was said to have gone into a private account in a particular bank. What is the position now?
Yes, they have refused to pay until the matter is resolved. To know where the money is, we wrote a petition to the state government and it is currently being investigated to determine who took the money. Abia, in the past, had several accounts for various payments, but it has now reverted to operating a treasury singular account (TSA), which means that all revenue accruing to the government go into it. As it stands, no one will claim that he or she paid money into any other account. For us traders, like I said earlier, not all of us have been willing to pay and I see it as sabotaging the economy of the state. During a meeting with the authorities, it was emphasised that payments to the state revenue service be monitored to identify and call out defaulters for reprimand. As traders’ representatives, we have no legal power to either apprehend or punish defaulters. It’s true that we suffered in the hands of some past governments during which period taxes paid by traders, landlords and property owners got diverted into personal pockets. However, we are being constrained to push hard on some of them to pay. We are rather asking the government to come out quickly with its findings on who diverted the monies we paid into the bank as taxes and property rates. We want them rediscovered and regularized.
Earlier in the year, Gov Otti, said his administration was bent on restructuring all major markets in the state. We are yet to see that put into action…
The delay may be connected with the fact that some big time traders and former caretaker committee members with multiple shops in the markets are kicking against it for selfish reasons. Their protests are borne out of greed with the unfounded fear after that restructuring and reconstruction, they may be stripped of some of them. As have been identified, many of them build shops on unauthorized places, parks, access roads, conveniences and even added multiple storeys on structures meant for single floors. For us in ASMATA, we have engaged with and assured every shop owner that after reconstruction, he or she will get back his or her shop. The government has expressed its willingness to improve the lot in our markets in line with current growth and development in society. All the market structures were erected in the 1970s, soon after the Nigeria/Biafra war. Government is engaging contractors to rebuild the structures, most of which are over four decades old, to create access to better and conducive environment while trading is going on. It is our responsibility to monitor the realisation while it has not fallen to destroy human and material resources. It was God’s benevolence that saved those in the one that collapsed in Ekeoha Shopping Centre last year, and we don’t want to wait for another to happen before coming to terms with the situation. In that market, many of the shops that were erected as single line structures have been elevated into two, three storeyed buildings without fortifying their foundations. That’s why we are agreeing with the government that they be pulled down and restricted with original plans conducive for human stay. We believe that those protesting the proposal are politically being motivated to oppose government’s good intentions.
There are allegations that your leadership is taking sides with the government and perfecting plans to strip genuine traders/owners of their shops after reconstruction?
Our office hasn’t got any sort of report on that nor has anyone confronted me personally about it. You see, they may approach the government to say all sorts of things but one thing I know is that having been a trader, I know every of their tricks. In 2018, I personally approached former governor, Okezie Ikpeazu, begging him to stop market caretaker committee members from erecting shops in already congested markets in Aba. He said we were approaching the 2019 election year and promised to do so, and even pull down structures so erected after the polls. He never did that until he left office in May, last year.
There’s been opposition parties attacks on Gov Otti’s style of management of the state …
Wait, let me tell you. Attacks from opposition parties and groups are healthy for good governance. It makes the incumbent to sit up, plan and test his policy stance before coming out to the public with them. I see it as a healthy development for one in pursuit of success. I was recently accused of diverting N44 million, from the accounts of the Eziukwu Road market, Aba, by certain individuals in the market. I wondered how the money was made and what I did with it. I am happy the allegation is being probed and will come to light soon. There will always be detractors that will want everyone holding public office to fail. Even at home, in the family, not every of one’s relations prays for one to succeed as head. There’s always envy and it is not a problem. Rather, when one loses focus and fails, that’s when he or she will get blamed.
The perennial poor power supply in Aba was supposed to have been over with the coming on stream of Geometric power but it has persisted….
Though I am not directly involved in the company’s activities, I led Aba landlords and other stakeholders, to enter into an MoU with the company last year, to provide the people with electricity and made a pledge that consumers will always pay their bills. They’ve started supply, but are having problems with gas supply to their turbines. At the commencement of its activities, the Geometric, had paid the owners and managers of the Owaza gas plant in Ukwa West, for the supply of gas to power its turbines. But last year, Shell Petroleum, which had been managing the project, was refused licence renewal by the federal government, under the Muhammadu Buhari regime. The plant was acquired by a Nigerian company which has been unable to supply needed gas to power the turbines. That is the problem with poor supply in Aba Ring Fence area. We are not happy with the way the company with experts in the field got stripped of its business. Though Shell fought till the Supreme Court, to retain the business, the apex court ruled in government’s favour, which made it to leave the country. Now, we are suffering the ineptitude of the new management. The indigenous company that took over the gas supply station, to us, does not have the capacity to run.
What’s your impression on the Supreme Court recent ruling in favour of local government funds being sent directly to them from the federation accounts committee?
It’s a good development but I would suggest that state governments be given oversight functions of monitoring and checkmating them in projects sponsoring and implementation. If not, many if the chairmen, will embark on gathering with top staff of their councils, to share the funds and disappearing to wait for another allocation. In the absence of that, communities and traditional rulers could be involved with specific development projects for which they would be held accountable. This will bring development to all nooks and crannies of our land. Allowing local government autonomy is quite commendable but, those handling the funds ought to be checkmated for prudent spending and accountability.