DR. DORIS OCHEI TO STATE GOVTS: TACKLE CORRUPTION IN TAX COLLECTION; BALANCE REVENUE GENERATION WITH ECONOMIC GROWTH
By Oki Samson, Trek Africa Newspaper
Founder/President, Doris Amaka Ochei (DOA) Foundation, Dr. Mrs. Doris Ochei
In their drive for internally generated revenue, the Executive Governors of the 36 states of Nigeria have been urged to prioritise economic growth and strengthen public financial management so that the citizenry and the International community can have robust confidence and enjoy a better policy environment to do business in Nigeria. This was part of the submission of the philanthropist and entrepreneur Founder of Doris Amaka Ochei (DOA) Foundation, Dr. Mrs. Doris Ochei in a lecture she delivered recently in Delta state. The Lecture series organised by the Delta Online Publishers Forum (DOPF) was held at the prestigious Golden Tulip Hotels, Asaba, Delta State.
Dr. (Mrs) Doris Amaka Ochei addressing the audience at the 2023 Convention and Lecture series of the publishers’ association noted that ‘balancing revenue generation and economic growth is an art and a science, requiring careful planning, sound economic principles. Effective fiscal policy is countercyclical, efficient, and equitable. It should be adaptable to changing economic conditions and designed to foster sustainable and inclusive growth.’
The event had in attendance the Delta State Governor, Rt. Hon. Sheriff Oborivwore as represented by Secretary, Uvwie Chieftaincy Council, Chief Samuel Eshenake; member, Delta State House of Assembly, Hon. (Barr) Bridget Anyafulu; the Director of Operations, Delta State Inland Revenue Services (DSIR), Dr. Frank Nwugo, among other leading government officials across the country.
Trek Africa Newspaper can report that Ochei identified corruption as a major challenge for economic growth for Nigeria as it undermines tax collection. She pointed out that when perceptions of corruption are high, residents will be less willing to pay taxes, fearing that their taxes will be misused or misappropriated. According to the DAO Foundation President, Strengthening public financial management and enhancing the efficiency and equity of public spending will build trust in the system and improve compliance and revenue collection. While the increase in government spending can lead to increased economic growth, an increase in taxation may hamper economic growth, which besides reducing people’s purchasing power during recessions and less revenue for businesses, as well as leads to greater unemployment and an even greater reduction in spending and economic activity.’
‘There is a strong need for government at all levels to balance revenue generation and economic growth, which is what this presentation seeks to address. Expanding the tax net would help generate more revenue, which must be utilized productively through transparent and accountable means. The government needs to ensure that the tax collection process is efficient, transparent, and accountable to promote trust and confidence in the system’, Trek Africa Newspaper can report.
As advocated by the Institute of Taxation, Dr. Amaka Ochei is in support of the fact that while tax mobilization is important for revenue generation, it must be done in a way to expand the tax net and does not overburden existing taxpayers. ‘Thus, the government needs to balance revenue generation with promoting economic growth and development, without harming the economy or specific sectors.’
Speaking directly to the economic growth in Delta State, Dr. Doris Amaka Ochei acknowledged that there is an abundance of revenue sources at the disposal of the State Government because the taxes collectable by the State are enormous. Against this background therefore, she averred that to balance fiscal policy and taxation for economic growth in the State, Delta State Government needs to be careful about Debt and Deficits as excessive debt can lead to financial instability, higher inflation, higher interest rates, and high debt servicing costs; grant Incentives for Investment because high taxes on capital gains, dividends, and business income can discourage investment and entrepreneurship. Also government should adjust fiscal and tax policies to respond to economic downturns or overheating; promote equity and fairness as policymakers strike a balance between taxing the wealthy and corporations and the need to avoid negative economic consequences; and prioritize spending on areas that have the most significant impact on growth, such as education and infrastructure.
