The directive by the Federal Government that all ministries, departments and agencies (MDAs) should effect an automated channel for remitting all revenues from commercial banks to the Consolidated Revenue Account of the government is welcome. It is in line with Nigerians’ quest for a transparent system of capturing all payments and expenses.
There have been suggestions in recent years that commercial banks have been playing games with deposits with them. The huge profits declared by the banks and the unrealistic emoluments paid out to their executives have been hinged mostly on such deals. It has affected the structure of the economy, as core banking duties, including lending to the real sector, have been neglected.
Despite guidelines on loans to the agriculture sector, for example, many banks prefer to pay the penalty than adhere to the rules. Enforcement of the e-collection mode is likely to instill discipline in commercial banking in the country. It has also been demonstrated that efficiency and effectiveness are enhanced when electronic platforms are engaged for such transactions. This has been the experience with the Lagos State government which has adopted the method for more than 10 years. It is one of the secrets behind the enhanced internally generated revenue of the state government.
We find it difficult to understand why it took the Federal Government so long to realise that over-dependence on oil revenue could only spell disaster for the country. Had taxes, rates and fees been efficiently collected before the recent slump in oil prices, the effect on the economy would probably not have been so devastating. We also call on the Accountant-General of the Federation, the Federal Ministry of Finance and the Central Bank of NIgeria to be more vigilant in monitoring the use to which the e-platforms are put by the commercial banks.
We are constrained once again to point out that there are many countries that depend absolutely on taxes and non-oil receipts. One primary duty of governments in meeting the welfare needs of their citizens is ensuring that the tax net is wide and resilient enough to capture as much revenue as needed to bridge the gap between the rich and the poor.
At this point that all the indices indicate that tougher times could be ahead for the country, we call on the Federal Government to think out of the box to lead the nation out of the wood. Youth unemployment is at all-time high; the exchange rate keeps threatening to move up inflation rate; public service workers are no longer guaranteed regular payment of salaries and there are threats that institutions of state may collapse if the needful is not done to seal up leakages that have kept funnelling public funds into private accounts of the over-protected super rich.
The Federal Government should revisit the recommendations of panels set up to streamline revenue generation and collection. The loud silence on the reports suggests to the outside world that Nigeria is unwilling to effect changes in the process of governance. This has adversely affected its image.
This is the age of technology and digitalisation, Nigeria must not be portrayed as an analogue country that has no use for the electronic device. Just as the Independent National Electoral Commission (INEC) has insisted on enforcing electronic accreditation of voters this year, we support the move to get all government money deposited with the Central Bank. Although it has come so late in the day, it is a step in the right direction.
