In an insightful lecture delivering milestone marked by scholarly discourse and national importance, Wellspring University held its first inaugural lecture centering on the critical theme: “Rethinking & Repositioning Nigeria’s Tax System: Panacea for Nigeria’s Public Debt Time Bomb”.
The event which took place at the University’s multipurpose hall, located in Benin City, the Edo State capital, witnessed a gathering of esteemed academicians across the nation, members of the Institute of Chartered Accountants of Nigeria (ICAN), dignitaries and students eager to delve into the pressing issue of Nigeria’s fiscal sustainability.
Delivering the lecture, Prof. Enyinna Okpara, a distinguished Professor of Accounting and Finance, an Associate Member of ICAN, and current Dean of Social and Management Studies of Wellspring University, captivated the audience with his insightful analysis and bold propositions. Drawing from years of research and experience, Prof. Okpara articulated the dire need for a paradigm shift in Nigeria’s approach to taxation.
Highlighting the looming threat of the country’s escalating public debt, Prof. Okpara emphasized the urgency for proactive measures.
“I wish to state that the problem of Nigeria’s Public Debt Time Bomb remains threatening as the current state of Nigeria’s indebtedness does not call for cheer. This is based on the existential reality that as at second quarter of 2023, external and domestic debt stood at N87.38 trillion ($113.42bn).”
According to Prof. Okpara, “The Key component of any tax reforms hinges on the level of awareness and education of tax matters on the part of those whose obligation it is to pay tax.”
“An effective tax reform is a good and effective tax structure that clearly defines who pays what tax and at what period as well as an enduring tax culture that encourages citizens to file their tax returns in an effort to fulfill their obligations,” he added.
The crux of Prof. Okpara’s argument lay in the inefficiencies and loopholes pervasive within Nigeria’s current tax framework thus advocating for a comprehensive overhaul that prioritizes equity, efficiency and effectiveness.
“We need to remove tax waivers on import duties. The current Controller of Customs said that they recorded low income because the government gave N1.26tr as waivers and when you discover the people enjoying these waivers, you see that they are the big multinationals,” he explained.
Speaking further, he highlighted the need for improving ideas on generating internal revenues sources of the states, building applications for e-revenue, re-introduction of toll-gates, elimination of multiple taxation as ways to get out of the nation’s current debt situation.
In his closing remarks, Prof. Okpara underscored the benefits of rejigging the economy rather than relying on debt.
“Rejigging the economy by creating avenues for employment of people creates opportunities for extra revenues through taxation. There is the danger that Nigeria is veering dangerously to debt default to her creditors and this portends grave danger to Nigeria’s economic independence,” Prof. Okpara remarked.
“One of the surest ways to addressing the debt burden is by generating all-inclusive tax revenue through a rigorous and realistic tax reforms and restructuring,” Prof. Okpara added.
The Vice Chancellor of the Institution, Prof. Isaac Rotimi Ajayi, as well as the Founder of the University, Ambassador Daniel .C. Isimoya, commended the inaugural lecturer on his insightful lecture delivered and challenged other academics of the university to follow in his steps, with assurance of support from the institution’s management.
Also present at the event was Chief Oye Akinsulire, member, Governing Council of ICAN ably representing the President of the association.
While commending Prof. Okpara, Chief Akinsulire expressed appreciation to the institution’s management for honoring the association, as their associate becomes the first to deliver the maiden inaugural lecture in the school.
“As the founder has honored us ICAN, we shall do our possible best that Wellspring University feels the impact of ICAN positively from this moment forward,” Chief Akinsulire noted.
Chief Akinsulire also presented to the inaugural lecturer, Prof. Okpara a cash prize of one million naira on behalf of ICAN.
Academicians and colleagues of Prof. Okpara shared congratulatory messages and applauded the precise delivery of the inaugural lecture.
While applauding the inaugural lecturer, Dr. Joy Ihegbuniwe, Head of Department of Business Administration, Wellspring University also spoke on the relevance of the topic to the present society.
“Even if it just to hear where Nigeria is in the Map of the world in debt, it has a lot to do with us. Some of us don’t even know what is happening but when you come to a place like this, you hear that as rich as we are as a country, we are borrowing, it’s disheartening.
“We thank God somebody has made us to see and know what is going on. It is very relevant to the country. We can’t say a better time than now and I hope Nigerians will hear and do something about it,” Dr. Ihegbuniwe stated.
