•Laws hindering call for reforms
The assertion by the Chief Executive Officer of the Nigerian Economic Summit Group (NESG), Dr Tayo Aduloju, that the group has “identified about 115 legislations that have been hindering the capacity of the country to grow” may not be far from the truth. After all, the tax reform bills still pending at the National Assembly are touted as the first major tax reform bills since Nigeria’s independence. So, when it comes to law reforms, Nigeria appears too steeped in the past.
Also, his assertion that the NESG is “addressing these legislative barriers with a focus on creating a clear pathway for economic revitalisation” is welcomed. After all, the NESG is one of the preeminent economic think tanks in the country, and such an august body should not only complain about the state of things but also proffer solutions to the existing problems.
The Tinubu-led Federal Government has, no doubt, shown itself to be a reformatory administration. It has taken bold economic initiatives which past administrations had shied away from. Take the removal of fuel subsidy, for example. The subsidy regime which past administrations claimed was a drain on the national economy remained intractable, until the Tinubu administration squarely slayed the tiger. The same is applicable to the multiple foreign exchange platforms, which became a Pandora’s box of corruption, as former Central Bank of Nigeria (CBN) governor Godwin Emefiele’s saga has overwhelmingly confirmed.
The tax reform bills are also indicative of the bold determination of the Tinubu administration to change the country’s economic narrative. Senate President Godswill Akpabio said as much concerning the bills: “This initiative marks the first comprehensive tax reform since Nigeria’s independence, presenting a transformative opportunity for rejuvenating small and medium enterprises and enhancing the livelihoods of ordinary Nigerians.” He added: “These reforms will not only improve Nigeria’s revenue profile but also create a more conducive and internationally competitive business environment, transforming our tax system to support sustainable development.”
While the NESG has not listed the 115 anachronistic legislation hindering economic development, on our part we can list a few of them. Some of the most intriguing provisions of the 1999 Constitution (as amended) include the provisions which more or less bar savings relating to the income accruing to the federation account, but for the bold initiative to create Sovereign Wealth Fund and other similar initiatives to compel national savings. There are also laws that hitherto centralised the provision of social and physical infrastructure, like electricity production, railways, waterways etc., which requires decentralisation, if the economies of the nation and its subnational units are to make significant progress.
Sadly, the need for reforms is not felt across the board. The tax reform bills, for instance, have stalled in the National Assembly, despite the high praise from experts, because some legislators, state governors and other entrenched interests have continuously denounced the bills. The Director-General, Nigeria Employers’ Consultative Association (NECA), Adewale-Smatt Oyerinde, in a recent interview said: “The issue of tax reform has been controversial and the reason is that many people did not go through it thoroughly. For us, it is a good thing. We were happy when the committee was set up… But it is very unfortunate that some people are kicking against it at this time.” He concluded: “We should not allow any interest beyond the national interest to dictate the direction where we should go.”
Indeed, the national interest should dictate the direction of law reforms. The Federal Government should pay serious attention to the NESG’s call for urgent law reforms to strengthen Nigeria’s economic framework. Importantly, Aduloju stated that NESG’s Ernest Shonekan Centre for Legislative Reforms and Economic Development is actively reviewing and proposing corrective versions of the laws hampering the country’s economic performance. We expect this to bring about the needed economic revitalisation.
