By Olusegun Obisanya
The Chartered Institute of Taxation of Nigeria (CITN) has join the growing list of institutions, political class, corporate leaders and notable elites that have applauded the landmark judgement delivered by the Nigeria’s highest court, Supreme Court recently.
Nigeria’s apex court had ruled that the 774 local government areas (LGAs) be given full financial autonomy across the federation by a seven-man panel of Supreme Court Justices led by Justice Garba Lawal who delivered the ruling on Thursday, July 11, 2024.
The Chartered Institute of Taxation of Nigeria, in a statement on Monday signed by the Ag. Registrar/Chief Executive, CITN, Mrs Afolake Oso, and obtained by our correspondent welcomed with delight the recent Supreme Court ruling affirming the financial autonomy of local governments in Nigeria.
She said, “CITN commends the Federal Government led by President Bola Ahmed Tinubu, GCFR through the Attorney-General and Minister for Justice, Lateef Fagbemi, SAN, FCTI for the bold step taken towards instituting the court action which underscores its commitment to ensuring that all tiers of government are empowered to perform their statutory roles and responsibilities as provided by the constitution.
“The ruling of the Apex Court which is a positive development must be commended because it holds a lot of promise for improved governance and development at the grassroots level.”
She noted that the positive judgment is a “call to service for leadership at the various local Councils” now that they will have greater control over the resources of the local government, adding that the councils should be transparent and prudent in the use of the resources at their disposal.
“More than ever before, more accountability, prudence and transparency is required from the players at the local level, toward ensuring judicious use of resources for prompt payment of salaries of workers, provision of health and social services, educational facilities, infrastructural development amongst others.
“The financial autonomy for local government including appropriate reforms would enhance economic activities leading to improved employment generation, reducing rural-urban migration and level of criminality at sub and national levels.”
According to the Ag. Chief Executive, the local government autonomy will promote fiscal federalism and true autonomy at the subnational level thereby enhancing delivery of democratic dividends to the populace.
“As an Institute devoted to promoting a professionalised tax system, we expect that this development will curb the unwholesome and uncivilised practice of touting and using non-state actors in revenue collection at the local governments, which arises from an unstructured political and ineffective tax system,” Oso posited, adding, “this practice, although aimed at augmenting poor revenues, leaves the system very inactive.”
The Institute urged Chairmen of local governments to commit themselves to ensuring civil approaches in the collection of taxes and levies due to the local government within the confines of the laws of the land and to allow the proper functioning of the Local Government Revenue Committee.
She stated further, “The rule of law must be upheld in the collection of these levies and taxes including the need to deploy technology and well-trained officers for greater accountability and enhanced collection.
“CITN thus requests the cooperation of local government chairmen and officials in the implementation of the yet-to-be-released tax reforms being proposed by the Presidential Committee on Tax and Fiscal Policy Reforms headed by Taiwo Oyedele, which have great promises for all the tiers of Government,” she said.
Oso held the view that if the councils’ chairmen upheld the principles of transparency and accountability, Nigerians would ultimately be better off when there is development in every segments of society as a result of reforms.
