It's no secret that I am a doctor and public health expert, not an economist. As such, I have mostly steered clear of engaging in discussions about economic policy. However, I have been fortunate to have some family and close friends who are economic experts, and through discussions with them over the years, I have come to appreciate the nuances of fiscal policy and the weighty implications of decisions such as the proposed tax reform bill currently stirring debate in Nigeria.
The tax reform package that the Tinubu administration proposed consists of a number of bills intended to overhaul the nation's system of taxation. Admittedly, while I have yet to thoroughly engage with the bills line by line, I watched the viral video by Bulama Bukarti giving extensive details on some of the reforms and their implications of essence in Northern Nigeria. This understanding, coupled with extensive conversations with those versed in the dynamics of economic matters, has prompted me to share my thoughts.
The proposed tax reforms cover a broad spectrum of measures to improve government revenue, simplify the tax code, and improve compliance. While these goals are laudable, there is no denying the diverse impacts these reforms may have across Nigeria's regions. For instance, Northern Nigerians express concerns that these reforms could potentially strain their relatively undiversified economy.
From my discussions with economic experts, it is clear that while the bill is packed with changes that are necessary and in the best interest of Nigeria's fiscal health, it also contains some elements that need to be reassessed, considering the regional divide. Critics further argue that the reform package, in its present form, may deepen the already widening disparities between the North and the South due to significant differences in economic diversification between the regions, which only means that such broad tax policy reforms are likely to have disproportionate impacts. This concern has fueled the fears that the reforms could further entrench poverty rather than alleviate it in the North.
In light of these concerns, I recommend a two-pronged approach:
- The government should go ahead and implement those parts of the tax reform bills that are not opposed. This will be some sort of a phased implementation, allowing the benefits to start accruing while providing a buffer period for more contentious issues.
- The controversial sections, especially those deemed anti-North, should be shelved for the time being to allow further consultations and fine-tuning. This would provide space for further debate and scrutiny to ensure that the concerns of all stakeholders are taken into consideration.
One glaring shortcoming of the present administration, including in this instance, is its failure to sensitise the public. Most Nigerians, especially in rural areas, hardly get to understand in detail, policy changes that have direct impact on their lives. The government needs to adopt a more inclusive and grassroots-oriented communication strategy in the dissemination of reforms. Town hall meetings, radio talks, and community engagements in local languages will be fundamental in bridging this gap. The government must ensure that information is couched in a manner understandable to all Nigerians, irrespective of their educational backgrounds.
It is this communication gap that is providing fertile ground for misinformation to thrive and further deepening public resistance to the government's new policies. Honestly, the government needs a serious shift in its approach to policy implementation with more sensitisation and public awareness. We saw the pitfalls of poor public engagement during the rollout of the cybersecurity levy. Similarly, the administration needs to proactively engage the public on the tax reform bills and explain the benefits and address concerns. Effective communication is key to gaining public trust and support.
Considering that these tax reform bills have taken one year and four months in formulation, and the government stating that it conducted extensive consultations with representatives of various sectors, it is distressing that the common man remains largely uninformed. What this means is that the government needs to really reach out to the grassroots to ensure that the ordinary man understands what the implication of these tax reforms will be. This involves all manner of communication, from social media to traditional media, and leveraging respected and reasonable influencers who command large followings across different demographics.
The tax reform process should be underpinned at every turn by transparency. For us, the citizens, this would entail seeing the data, understanding the rationale behind reforms, and comprehending how these reforms will benefit us in concrete terms. For example, how does the reform create jobs or reduce poverty or bring infrastructural development to Northern Nigeria? Unless those are clear, skepticism would continue, and implementation of such a reform would face extreme resistance.
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The government must also display willingness to listen and adapt. Policy-making is not a one-way street. When people raise concerns, those must be met with more than mere dismissive assurances. They have to be responded to with concrete actions that reflect the commitment to fair governance.
This debate on tax reform provides the Tinubu administration with another opportunity to change the trajectory of public policy in a manner that is inclusive, transparent, and responsive to the needs of all Nigerians. As necessary as reforms may be for economic growth, they must be implemented in a manner that empowers and does not alienate vulnerable regions like Northern Nigeria.
Coupled with robust sensitisation, the gap between government intention and public acceptance could be bridged by selective implementation or reevaluation. It is my hope that this administration will rise to the challenge to make every Nigerian, irrespective of region or socioeconomic status, feel seen, heard, and valued in the process of nation-building.
Dr. Halimah wrote from Kano and can be reached via [email protected]
