Soludo: Taxation and the burden of leadership in a challenging

I am writing this opinion as an honest member of the Solution Team and a supporter of Governor Charles Soludo, a leader who realised that doing business as usual is not an option at this time and that we need to do things differently if we must become a leading economy in Nigeria.  I am writing this opinion as honestly and objectively as possible. While proceeding, I’d venture to say that Professor Soludo is the most impressive and effective leader that the state has ever had as governor.

There is a national crisis in Nigeria that is greater than anything the country has faced since the end of the civil war. The complete breakdown of law and order has a devastating effect on the economy. Many citizens are so outraged and frustrated by the situation that they refuse to keep quiet as the ruling party’s presidential candidate has demanded they do until the upcoming 2023 election. And I’ll tell it again, we won’t be quiet. Nigeria cannot keep doing what it has always done, heading in the wrong direction.

Although the global economic catastrophe has been caused by the pandemic, and the war between Russia and Ukraine has disrupted supply lines around the world, this in no way excuses the theft of Nigeria’s natural resources, which are her livewire, by those who are ostensibly guarding them.

What took our Navy and our whole security services ad infinitum to  accomplish, a private security outfit did in two weeks. Tompolo and his security group uncovered multiple illicit crude oil pipelines via which our country’s oil was being stolen and exported. A private security firm has stopped a ship carrying stolen crude oil in our territorial waters. Approximately a million barrels of crude oil can be carried by the ship.

Indeed, Nigeria has become a major criminal hub. If this incident had occurred in another country, some individuals would already be arrested and sentenced to life in prison. The President of Nigeria, who also serves as the Minister of Petroleum, was busy bestowing national honours and decorations on the same officers he should have been prosecuting. I cried for my dearly cherished nation.  Who did this to us?

Corruption has prevented NNPC from depositing any funds into the federation account for almost six months. As a result, Nigeria is completely destitute and submerged in debt. Since federal, state and local governments are all financially strapped, taxing is a common means by which states meet their financial duties to the people. And this is despite the reality that taxes are what power governments everywhere.

One novel aspect of taxation in Anambra State, for example, is the state’s resolve to put tax money to work. All efforts are being made by the Soludo administration to make Anambra a prosperous and competitive state economically. The governor has a well-defined strategy to make the state a place where every resident can reach his or her full potential. He promised, when running for office, that his government will spur a dynamic decade of economic expansion and human resource development. He has been performing these things nonstop.

You can tell from reading his manifesto that he has concrete ideas about how to get the state back on track. He was the only candidate in that race who demonstrated a willingness to implement measures that would benefit the people, the economy, and the expansion of business. A more prosperous economy means more money for everyone: higher wages for workers, greater opportunities for entrepreneurs, and better public facilities and services for everyone. His dream of a peaceful, prosperous, and hospitable Anambra is becoming a reality before our eyes.

To help farmers in the state, Gov. Soludo’s administration has distributed enhanced palm seedlings, coconuts, cassava stems, and chicken products as part of their efforts to construct a new Anambra. Of note, this is the first time any state in Nigeria has undertaken concerted attempts to grow palm seedlings since the 1960s. It will take a few years, but eventually the state and its citizens will see a significant economic impact from this expansion plan.

Putting money into the well-being of the people and infrastructure is the smartest thing any government can do. The government has developed a number of youth empowerment initiatives with the goal of empowering young people with the tools they need to start their own businesses or find gainful employment.

A state-wide youth recruitment effort is underway to enrol young people in programmes where they can learn essential life skills. Also, the state is making concerted efforts to fulfil infrastructure promises. An initial goal of the administration is to build at least 250 kilometres of new roads within its first year in office. Over 150 kilometres of roads have been physically flagged off by the governor, including some in my own local government, Njikoka LGA. His assurances that the roads he constructs won’t fall apart in a year or two were a big selling point.

The governor is working with the populace to reduce crime and feel safer. There is optimism that the state’s economy will expand rapidly as a result of the restoration of public safety. But with less money coming in from the Federation Account, how can the government hope to do anything?

Anambra State’s new tax structure was necessary to prepare the state for a future without oil revenue. Nonetheless, the government’s tax policy has a human face and is not arbitrary, contrary to what some may believe.

About 2.1 million adult residents are subject to taxation in this state, which has a total tax liability of N513.9bn. Payments for social services, public advertising, and garbage collection are all covered by these levies. No government in its right mind, given the current condition of events, can ignore the tax issue, especially in cases when commitments must be met.

As an example of the problems caused by the current tax system, consider the state fee on tricycles. In the past, tricycle drivers would pay N2, 000 per day to shady tax collectors or proxy tax contractors. This sum is equal to about N60, 000 every month. But the Soludo government, upon taking office on March 17, 2022, sensibly did away with tax collection through proxies. Commercial vehicle operators who make daily payments will no longer be required to pay again in any public park, and the government has decided to end tax collection by proxy as part of the rollout of a new tax and levy framework across all markets, highways, and parks. Legal provisions mandate that the state take charge of all publicly-owned parks.

The government has authorized a monthly N15,000 payment to AIRS through the ANSID code for the tricycles. This is a fair arrangement in every respect, but the tricycle drivers aren’t having any of it. They failed to do the math and so gave in to incitement against the new policy.

The government’s stance and the tricycle drivers’ stance are both ones I’ve researched. Even though I think the operators would be fine with paying taxes, I don’t think they’d be happy with having to do it every month. They would prefer to pay N500-N1000 each day. The majority of those working in the industry are not the proprietors of the business, and they often suffer uncertainty in their employment situations. Their receivable income freezes the day they don’t work; therefore, they’d rather prefer that they paid every day than once every two weeks or once every month. Their argument is most compelling when you consider that they barely get by. This is an undeniable fact of their lives, as well as the lives of other craftspeople that live from hand to mouth. The government may always re-evaluate the new policy and figure out a way to make daily payments work.