Chartered Tax Professional, Dr. Francis U. Ubani, has expressed the need to accelerate Nigeria’s development by unlocking the Eastern Nigeria corridor economically.He pointed out that this would create a third trade route within Nigeria’s Eastern flank and Central African countries.
According to him, Central Africa includes eleven countries, namely Angola, Chad, Equatorial Guinea, Gabon, Cameroon, Central African Republic, Democratic Republic of Congo, the Republic of Congo, Rwanda, and Sao Tome and Principe.
Ubani, who is also a tax consultant, added that the overall economic benefits to the Eastern Nigeria Corridor states would be substantial.
According to him, the Tax Reform Bills currently mostly benefit the Western Nigeria Economic Corridor states.
Ubani said: “There is a quiet and deep message presented to us within the bills. Many are unaware or not paying attention to understand the inherent things embedded in the bills. There are main facts that people need to know and understand about the bills.
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The current “Distribution Method” being used by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), and Federal Account Allocation Committee (FAAC) are that all revenue generated by the Nigerian federation is sent to the Federation Account and distributed monthly.
“These funds are distributed based on the Value Added Tax (VAT) distribution formula, which is the Federal Government 15 per cent; state governments 50 per cent; local council 35 per cent.
“The Federal Government uses this formula to calculate what each state government share of the 50 per cent would amount to.”
For example, assuming that N100 billion is generated, the Federal Government takes 15 per cent (N15 billion); state governments share 50 per cent (N50 billion), and local councils share 35 per cent (N35 billion).
“In the light of the foregoing analysis, it is obvious states and regions would benefit most from the new tax reform bills.”
According to him, it is germane at this point to bring attention to the fact that Nigeria’s economic policies since after the civil war have largely been designed in favour of the “Western Nigeria Economic Corridor,” and carefully and tactically preventing the “Eastern Nigeria Economic Corridor” from performing.
“This calculated and well-crafted strategy automatically compels most Nigerians to depend solely on the Western Nigeria Economic Corridor for most economic activities in Nigeria to the detriment of the Eastern Nigeria Economic Corridor,” he added, stressing that changing and balancing the trend would lead to even development of the country.
