By Sheriffdeen Tella
The current issue between the legislative tax document and the executive tax document can be referred to as tax padding, in the absence of a new lexicon. Through ingenious actions and activities of our politicians, a new addition has been made to our political lexicon. During my years of studying economics, I had never encountered budget padding until Nigerian politicians introduced it a few years ago. If K.O. Mbadiwe were around, he would have adorned these new words with appropriate adjectives.
Real budget padding started during President Goodluck Jonathan’s days, where legislators started adding items not included in the draft budget submitted by the executive, but it was not so much revealed as it was part of the Peoples Democratic Party spirit of corruption. The Muhammadu Buhari government was welcomed with massive budget padding from the legislature, led by Bukola Saraki, a chieftain of the PDP who defected, temporarily, to the APC, and imported the budget padding emblem of the PDP. Buhari’s shocked government had to return the budget for cleaning up before the President could assent to it. Since then, budget padding has become a regular feature of our budgets.
To a large extent, we are used to legislative padding of documents, particularly the budgets, but it seems the executive’s surreptitious padding is coming into the open. The desperation to meet up with proposed revenues in the 2026 budget has exposed the Federal Government’s hitherto hidden intentions, which invariably and undoubtedly affect the way the citizens will see their government henceforth. The executive tampering activities were not amendments but fraudulent acts and do not deserve papering over but adequate exposure for public appreciation. And that is what the legislature did in this case.
The legislature accused the executive of altering some of the provisions in the finally approved tax documents. That is, the content in the gazette on the tax reform document is significantly different from what was passed by NASS! There were alterations in the form of substantive provisions that were inserted, some deleted or modified after passage by NASS; several oversight, accountability, and reporting mechanisms were reportedly removed; new coercive and fiscal powers appeared without legislative approval; Sections 4 and 5 were allegedly removed to give the executive overarching power on tax matters over and above the legislative authority.
These are weighty allegations that deserve serious punishment for whoever tampered with the original document authorised by the legislature should be exposed and punished for bringing the name of the entire executive into disrepute. Why would the executive arm of government think that the legislative arm would not go back to check on what was in the gazette? More so, there were overwhelming arguments against the document since it was first presented and before the President sent his men out to debrief the legislators and the public. Matters relating to tax anywhere in the world are naturally controversial, and those involved in tax issues must be careful with documentation, conduct, and pronouncement. The exposé in this case has compelling negative effects or perception on the government. The executive action definitely violates ethics in political economy. Albeit I don’t subscribe to the suspension of the document, but to the immediate substitution with the original one.
But lying has always been part of the art and science of governance in politics. If we start from home, we often say that politicians make mostly unfulfilled promises. That is, you can’t trust them on their words. And, they act true to those colourations. The government told us that the poor Nigerians will be favoured in the current tax reforms, but the least paid civil servant who earns N70,000 will pay tax! Those who earn a maximum of N800,000.00 annually will be exempted from paying tax.
But, if you earn N70,000 per month, the annual income is N840,000.00, so the N40,000 will be taxed at 15 per cent! That is, even if that aspect of the tax document has not been fraudulently adjusted in the gazette provisions, to take more from these poor citizens.
We were told around September that government reform policies have yielded more revenues from non-oil sources and widened tax net has led to higher returns or achieving over 80 per cent in eight months, only to turn around at the end of the year to state under revenue realisation, possibly to justify the inability to fund developmental projects and programmes or justify the need for heavy borrowing, in the year, to bridge revenue gap. A few of the legislators are seen using their constituency allowances to execute constituency projects, while many others claimed that their allowances were yet to be released due to a shortage of funds. Is there discrimination in the release of constituency funds? Lies!
Many of the current governors openly promised to pay above the minimum wage and earned undeserved accolades from the unsuspecting public. In some states, the governors just gave a directive on the token to add to the existing wage, which, in most cases, does not add up to the promised minimum wage. That is why I have often asked the labour unions and related NGOs to assist in exposing which States are paying below their promised wage rate so that we can withdraw our applause.
The regular frictions between labour and the government are always the result of a trust deficit. The government would make promises upon which labour calls off an ongoing strike action, only to find that the latter has been stabbed in the back. It makes it difficult to believe government pronouncements regarding information on economic performance. The government would tell you the nation is making progress economically; that its policies are yielding fruits and citizens just need some patience to enjoy dividend of democracy, when they are sure the benefits will accrue to politicians only!
Truthfulness in governance is important. Governments should uphold the ethics of political economy and earn the respect of their citizens. Nigeria is in trouble. The legislature is padding budgets, the executive is fraudulently tampering with legislative documents at the point of delivery, and the judiciary is giving contradictory judgments on the same or related cases. Do we need special delivery from the devil?
