To make the local government areas which are closer to the people make meaningful impact that will eliminate crime and lead to prosperity of Nigeria, 43 per cent of revenue generated from their locality should be given to them.
Alter Consult gave the suggestion at a Technical Session on An Alternative Model on Restructuring Taxation Tool For Economic Diversity And Good Governance, held on Saturday October 24, 2020 in Kaduna.
Presenting a paper on the above theme at the session, an expert, Friday A. Agbo argued that every local government area is unique and has something to offer if allowed to develop its potentials.
He further insisted that 43% of VAT or revenue should go to the local government areas.
Agbo argued that if that is done, the management and staff of LGAs would be more committed and ensure the businesses are thriving.
“33% of the VAT and revenue collected from LGAs should go to State goverment, while the FG should get 23 per cent, with one per cent for the CBN.
“On the other hand, 23%, 33% and 43% should be allocated for VAT and revenue collected at Federal Level for LGAs, states and FG respectively,” he suggested.
He argued that LGAs should benefit from any activity in its area, in spite of where the head office of the business outfit is located.
The expert who has authored the content rich book, “Political Economy & Taxation as a Practical Systemic Platform For Good Governance,” said that looking inwards can make local government areas self sufficient.
He said the state government can harmonise the resources from all the local government areas to make them unique.
Speaking further, he was optimistic that local government areas can on their own survive by developing resources in their areas.
He suggested that synergy should be in place between the LGAs, states and Federal Government’ as well as the CBN in terms of policies and procedures.
Agbo explained that such synergy will lead to reduction of costs of running goverment by eliminating duplication of parastatals or ministry, through reducing size of goverment.
He said there are 774 LGAs and each has a particular area that it is good at.
“Such synergy will ensure that the products in Nigeria can get to the end of the world without the producers being multinationals.
“The North produces water melon what stops the product from reaching US?
“The technology used should be developed locally. If you import technology, it might not be compatible,” he stressed.
The expert warned that government.has no business in doing business, but provide conducive environment for private investors to do business and tax them.
“Nigeria should adopt mix economic system and unified tax system to maintain seperation of powers and at the same time, create synergy among the direct levels of goverment.
“All goverment parastatals and enterprises should be commercialized and privatized respectively to produce conducive environment,” he stated.
Alter Consult is a financial and management consulting firm with membership drawn from across Nigeria.