ICAN Western Conference
March 14, 2018
Introduction
The Global COVID 19 pandemic has impacted severely on Governance and administration at Federal and State Levels. Principle of Federalism as entrenched in the constitution is being practised partially to the benefits of all and sundry. In the Fight against COVID 19, the Federal Government’s role has been limited to providing general guidelines and supports while Governors adopt strategies best suited for their owns state without rancour. State Governments are in the forefront of fighting the pandemic within their State, increasing resources for public health efforts, imposing various forms of curfews and lockdowns which resulted in the closure of schools, religious places, markets, businesses. Contributions of individuals and organised private sector toward fighting the Pandemic have been considerable and extraordinary. COVID 19 being health crises that affect all, stimulates public participation in governance and deliberation on solutions. Governors rightly devote more of their executive time to fighting
the pandemic.
Winter is Here
As states relax curfews, lockdowns and open for business, State governors will have to come up with means of generating sustainable revenue to meet the ever-increasing demand for non-revenue generating social service delivery. Unbudgeted but substantial investment in Health Sector across the states is the order of the day. Methods and means of conducting government businesses have to be remodelled against the background of physical distancing. Palliatives are also being distributed to ease the burden of ‘stay at home’ on the most vulnerable members of the public. Considerable resources must also be deployed in enforcing public health laws and regulations.
However, the drop in prices of crude oil has resulted in a reduction in allocation from the Federation Accounts to states. Staff layoffs, decrease in salaries and income also impact negatively on Personal Income tax which forms the bulk of most states’ IGR. With the drastic reduction in revenue, the temptation might be to borrow to finance budget and embark on aggressive tax collection. At this time, it’s going to be very difficult for states to raise needed finance through borrowings. Likewise, Taxpayers will resist any form of aggressive tax collection. This is the time Government is expected to show empathy and support businesses to weather the storm.
New IGR Architecture; COVID 19 Template
COVID 19 pandemic provides an opportunity for governors to build sustainable revenue architecture for their states. The efforts of our governors in effectively and efficiently managing COVID 19 are commendable. As incident Managers, Governors are leading the fight from the war front. They receive daily briefings on COVID 19, immediate and needed executive decisions taken. Most states have in place Inter-ministerial Taskforce made up of professionals with proven track records in their chosen field.
Up to date information are provided to the populace. Organised private sectors are brought on board in the fight against COVID 19. Where and when necessary, appropriate laws are enacted and assented to with dispatch. State Government have been firm in applying enabling law on COVID 19 without fear or favour; no sacred cow. There is an unimaginable collaboration amongst Ministries, Departments and Agencies of Governments in the Fight against the pandemic and service delivery improved upon greatly. Government and majority of the populace are on the same page for the first time in several years. Generally, the public perception of Federal and States Government has been positive.
It is a known fact that 90% of Nigerian States depend on Allocation from the federation accounts to the tune 85% to finance their budget. One of the principal reasons for this pathetic situation is the disconnect between the Government and taxpayers. To survive the winter, Government must build on the goodwill occasioned by their proactive management of COVID 19, sustain connection with the public at large and adopt same template and energy used in dealing with COVID 19 pandemic in the IGR drive. Internally Generated Revenue drive of the state must be a front-burner issue for the Executive Governor as demonstrated in the fight against the scourge of COVID 19. Revenue process and management should in the hands of tested professionals within proven records. Revenue leakages must be blocked immediately. As IGR incident managers, our Excellencies must continually engage the populace on the need to pay taxes and take full ownership of IGR process. COVID 19 pandemic has demonstrated beyond any doubt the importance of Government. Our Governors must also ride on the Goodwill and positive public perception to demand payment of taxes as sustainable means of financing quality public service delivery. It must be emphasised that this is not the time to increase the tax rate or introduce new taxes.
