Tinubu: Accounting Profession Crucial for Inclusive Development

•Madein, Bagudu insist macroeconomic policies must address inclusivity   •Oyedele reiterates FG’s drive towards major tax reforms, says country not attracting foreign investments, business environment still hostile

James Emejo in Abuja

President Bola Tinubu, yesterday, said the accounting profession bore enormous responsibilities of ensuring that the financial system is not only robust and transparent but also contributes to inclusive development in the country.

The president noted that as custodians of fiscal integrity, guardians of financial transparency and architects of financial systems, accounting practitioners must support the drive for equitable growth going forward.

Speaking while declaring open the 53rd annual conference of the Institute of Chartered Accountants of Nigeria (ICAN) with the theme: “Nigeria: Imperatives for Inclusive Development”, Tinubu however, commended ICAN for its efforts in promoting accountability and transparency in public finance management through the ICAN Accountability Index (ICAN-AI).

Represented by the Minister of Power, Mr. Adebayo Adelabu, the president said the index, which assesses accountability and transparency in the three tiers of government, had continued to play a crucial role in fostering good governance and inclusive development in the country.

Tinubu also expressed appreciation to ICAN for its unwavering commitment to the growth and development of the nation adding “your contributions are invaluable to us and your dedication is commendable.”

This was as the Accountant General of the Federation (AGF), Mrs. Oluwatoyin Madein, also said inclusive development remained a commitment to leave no one behind in ensuring that the fruits of progress are shared by all irrespective of their background and circumstance.

She said as financial custodians and managers, accountants are saddled with a unique responsibility to drive the conversation forward.

Speaking in her goodwill remarks, Madein said, “We must then see accounting as more than numbers on the balance sheet but as a tool in measuring the heartbeat of a nation.”

She said integrity and purpose were key to helping to create an environment for inclusive growth and development.

Specifically, the AGF said fiscal policy must be designed with inclusiveness in mind.

“They should address the needs of marginalised communities, provide opportunity for economic empowerment and promote sustainable growth that benefits all,” she said.

Also, speaking at the event, Minister of Budget and National Planning, Senator Abubakar Bagudu, commended the institute for hosting a conference which seeks to address inclusivity was not a luxury particularly given that the social contract between the ordinary Nigerian and society was broken down.

The minister declared that as such, macroeconomic policies are being designed by the current administration to ensure inclusive growth at the grassroots.

However, in his keynote address, Chairman, Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, emphasised the federal government’s plans to harmonise existing taxes among the tiers of government as well as achieve a single digit tax regime to serve as incentive for voluntary compliance among others.

Oyedele blamed the multiplicity of taxes and revenue agencies for the poor compliance, stating that over 62 taxes currently exist at different layers of government across the country.

He also expressed worry that amid the current fiscal constraints, the country has found it difficult to attract foreign investment, adding that those already doing business are beginning to have a rethink.

He also expressed concern over the increasing numbers of people leaving the country for greener pastures.

He said part of the current initiatives was to reduce the number of taxes to about 10 from 70 and achieve single digit taxation.

The presidential tax reforms chairman said unprofessional means of tax administration, low tax morale and taxpayer apathy as well as the largely manual processes of tax regime continued to negatively impact collection and posed a burden on business operators.

He further stressed the need for single digit taxes, clarification of taxing rights, integration of tax collection functions, and harmonisation of revenue administration as well as a simplified approach to tax compliance.

Oyedele said to comprehensively effect the desired tax reforms, there was need for administrative interventions, constitutional amendments/legal changes, the use of technology and vertical and horizontal coordination as well as revisit the concept of fiscal federalism.

Among other things, he said, he expressed concerns over the several informal taxes being collected across the country.

He said, “The story is incomplete until you add the over 108 informal taxes collected all over the place -sometimes by non-state actors that have been empowered, either passively or actively by the government.

“In fact, we have bicycle tax, and wheelbarrow taxes in Nigeria. I think if you’re looking for the definition of wickedness, it will be to find a man who is struggling to make ends meet by pushing their wheelbarrow in the sun and say, ‘you have not paid your tax.”

According to him, “What I want and hope to achieve is the reduction of the number of taxes to less than 10; yes we want a single digit, and also we want to cut down revenue collection agencies to one for each tier of government.

“With this, the federal government has one revenue collection agency, same for state and local government, so that they can focus on their primary mandate of making life easier for citizens.”

 “We have widespread poverty, the government’s revenue is low and as a consequence, public debt is high. And the debt service to revenue ratio is one of the highest we’ve seen anywhere in the world.”

Continuing, he said, “Investment is declining and you cannot have economic growth without investments. Whether they are domestic or international, we’re not attracting foreign investment, and we’re not mobilising domestic investment enough.

“Many of the existing investors are leaving and those who are left are asking questions; can we continue?

“So, these are fundamental issues we must address. Our people are also leaving. My view is that even if it’s only one per cent, to the extent that they are leaving because they feel frustrated, then we should be concerned.”