Tinubu lacks the will for national consensus building

Nigerian President Bola Ahmed Tinubu’s administration has recently faced scrutiny over its handling of key tax reform bills, with critics arguing that the president lacks the political will to build national consensus on crucial economic policies. In an op-ed, prominent Nigerian economist Olu Fasan criticized Tinubu’s approach to tax reforms, stating that his failure to garner support across political and social spectrums could undermine the country’s long-term economic growth. Fasan’s commentary sheds light on the broader implications of the administration’s reluctance to engage in consensus-building, especially as Nigeria grapples with fiscal challenges.

Tax Reform Bills: A Critical Issue for Nigeria’s Economy

Tax reform has been a major topic of debate in Nigeria for years. With the country’s tax revenue as a percentage of GDP significantly lower than the African average, there is widespread agreement that reform is crucial for the nation’s economic stability. The government has long been aware of the need to diversify its revenue base, given Nigeria’s over-reliance on oil exports. However, attempts to reform the tax system have met with resistance, and the current administration has struggled to push through the necessary changes.

The proposed tax reforms are intended to improve efficiency, broaden the tax base, and increase revenues. These goals are particularly important given Nigeria’s persistent fiscal deficit, high inflation, and growing debt. However, while the need for tax reform is clear, the political landscape in Nigeria is complex, and implementing such sweeping changes requires a nuanced, inclusive approach.

Tinubu’s Challenges in Building Consensus

In his op-ed, Olu Fasan argues that President Tinubu has failed to engage effectively with key stakeholders and political actors in the push for tax reforms. He points out that Tinubu’s government, so far, has struggled to build a national consensus around tax policies, which has hampered their chances of success. Fasan stresses that without buy-in from various segments of Nigerian society, particularly the political elite, the reforms are likely to face strong opposition, reducing their effectiveness and impact.

Fasan further notes that Tinubu’s approach has been top-down rather than inclusive. He contends that while top-level reforms may seem attractive in the short term, they are unlikely to succeed without broad consultation with lawmakers, business leaders, and civil society organizations. In Nigeria’s political climate, any policy that is perceived as being imposed without sufficient discussion and collaboration risks being viewed as illegitimate and could lead to significant pushback from key stakeholders.

A Long History of Tax Reform Challenges

Nigeria’s tax system has long been criticized for inefficiency, low compliance rates, and the absence of a robust infrastructure for collecting taxes. Previous governments have attempted tax reforms, but the results have been limited. A major reason for this failure has been the lack of political will and insufficient efforts to build consensus. In a country like Nigeria, where political allegiances are often defined by ethnic, religious, and regional factors, securing broad-based support for reforms requires a delicate balancing act.

Moreover, Nigeria’s informal economy — which constitutes a significant portion of its GDP — makes it difficult to bring many businesses and individuals into the tax net. This creates an additional layer of complexity for any tax reform efforts, as the government must find ways to integrate these informal sectors without stifling economic growth.

The Need for National Consensus

Fasan’s critique of Tinubu’s approach underscores the importance of consensus-building ineffective governance. In Nigeria’s diverse political and social landscape, any major reform — whether in tax policy, education, or health — requires broad support across party lines, regions, and social groups. Without this support, reforms risk becoming politically contentious and may fail to gain the traction needed for long-term success.

Building consensus in Nigeria involves engaging with key stakeholders in meaningful ways. It means not just holding meetings with political allies but also reaching out to opposition parties, business leaders, labor unions, and civil society organizations. By involving these groups in the policymaking process, Tinubu could foster a sense of ownership and collaboration, making it easier to implement difficult policies like tax reforms.

Fasan argues that a more inclusive approach would also help to ensure that the tax reforms are designed in a way that is equitable and addresses the concerns of all sectors of society. For example, policies that disproportionately affect certain groups or regions could be met with resistance and even civil unrest. Therefore, a transparent and consultative process is essential to crafting tax policies that are fair, effective, and sustainable.

The Political Implications of Tax Reform

Olu Fasan’s critique also touches on the political implications of the tax reform debate. He suggests that Tinubu’s failure to build consensus on such a critical issue could erode his political capital, particularly with opposition parties and important interest groups. If the government is perceived as unwilling or unable to engage in meaningful dialogue, it risks alienating both its allies and adversaries. This could have serious consequences for Tinubu’s broader agenda, making it more difficult to push through other reforms or secure political stability.

Furthermore, the absence of a strong political consensus on tax reform could damage Nigeria’s international standing. As a member of the global community, Nigeria is often required to demonstrate fiscal discipline and sound governance to secure international loans, attract foreign investment, and maintain its credibility in the eyes of international financial institutions. The failure to enact meaningful tax reform could undermine Nigeria’s economic prospects and limit its ability to access crucial funding.

Cooperation and Dialogue

Looking ahead, Olu Fasan emphasizes that the only way forward for Nigeria’s tax reform agenda is through cooperation and dialogue. Rather than imposing reforms unilaterally, the Tinubu administration must work to bring all stakeholders on board. This includes engaging with opposition parties, understanding the concerns of businesses, and listening to the voices of ordinary citizens. A broad-based consensus on tax reform would not only ensure the reforms’ success but would also strengthen the democratic process and improve the government’s legitimacy.

In conclusion, while tax reform is essential for Nigeria’s long-term economic health, President Tinubu’s failure to engage in national consensus-building could undermine its success. The ability to work collaboratively with all stakeholders is crucial to ensuring that tax policies are fair, effective, and widely accepted. As Nigeria faces significant fiscal challenges, the need for unity and cooperation has never been more important. Tinubu must learn from past mistakes and prioritize consensus-building to secure the future of the nation’s economy.