PRIVATE SECTOR DEVELOPMENT THROUGH PUBLIC PRIVATE DIALOGUE. THE STAKEHOLDERS ENGAGEMENT WORKSHOP ON TAX HARMONIZATION IN PLATEAU STATE AND THE COMMUNIQUE ISSUED AFTER THE WORKSHOP.

By Nnabugwu Chizoba

The benefits of active Private Sector participation in the development of any economy can never be over emphasized. For Nigeria, where feelers from the government, and the governed reveal urgent need to diversify the economy, and stimulate economic and job growth, it can be reasoned that the basis is already established. 

Based on the opportunities that accrue from the multiplicity of innovative, creative and competitive efforts that different wealth generation activities that occur in an economic environment, due to the opening up of the economy, by the operations, of the Micro, Small and Medium Enterprises (MSMEs), opinion leaders, economic actors and development practitioners are in consensus that active Private Sector participation in the development effort of governments, in particular, Nigeria, will create strategies for taking adversity in stride.

The ingenuity, doggedness and creative disposition of the private sector practitioners, are major ingredients for developing the confidence, motivation and self-discipline that are always in demand to overcome uncertainty, fears, and self-doubts that separates the developed and successful economies from the under-developed and unsuccessful economies. They are valuable qualities for the creation of profitable, secure and enjoyable work and life style, in any economy. They are equally fundamental for any economy to swim through the ups and downs of laying the foundation for a self-reliant and sustainable economy; and for getting the world to take any economy seriously.

The consistent fall of crude prices at the international market, has more than ever necessitated the active involvement of the Private Sector, in the effort of government and her functionaries to develop the economy and expand opportunities for meaningful and gainful engagement of the unemployed in the society. Similarly, the role of Public Private Dialogue (PPD) in ensuring collective participation in the development process is enormous. This much has been emphasised by commentators and opinion leaders on economic and social development.

In our sustained efforts at to ensure economic growth and development, through active Private Sector participation and enhanced entrepreneurship activities, we have since recognised the importance of both parties (Public and Private sector) coming together on a round table to discuss and reach consensus on policy direction, implantation and administrative approaches. We cherish and extol the platform provided by PPDs, and always encourage, consistent and effective deployment of the platform. We consider it a driver, for development and good governance. It is key in reducing the conflicts that often arise from the neglect of one party by the other.

The twin-like nature of the Public and Private sector, with the attendant mutual interest and cross cutting issues are common knowledge. Thus, the benefits of reaching out regularly and/or as situation demands are visible and mutually benefiting. They include, but certainly not limited to the following:

• Collective participation in policy-making  
• Closer working relationships
• Increased understanding of how government works
• Better insight about policies and the intentions of government
• Direct access to information, including feedbacks
• Reduction of rumour mongering and bickering
• Enhanced Policy implementation and administration

 In Plateau state, and other stakeholders are determined to promote PPD as means of strengthening governance and development issues. We use this medium as always to call on all stakeholders, from the Federal, States and Local governments to embrace PPD as a tool to strengthen governance in the Country. In particular, we wish to draw the attention of Plateau State Government, under the amiable and enterprising Governor, Rt. Hon Simon Bako Lalong, to the Communique below. The Governor at different fora has promised to attract investors and increase investment in the State and also improve the lot of the citizens through good governance. We do not harbour any trepidations in our belief that the Governor will deliver on his promise to the people of the state.

At we promise to up-date you regularly on such developments and even more. Our self-imposed mandate to build public awareness, understanding and participation, on hand; and on the other to serve as the link between the Public and Private Actors on entrepreneurship and business development are issues we take seriously.

For the benefit of none Nigerian readers, and others who may not be very familiar with some of the terminologies used in the communique, that you are about to read, the key below will be very useful. 

KEY:

• IGR                 Internally Generated Revenue
• LGAs              Local Government Areas
• LGCs              Local Government Councils
• MDAs             Ministries, Departments and Agencies
• MLGCA          Ministry for Local Government and Chieftaincy Affairs
• PSIRS            Plateau State Internal Revenue Service

 COMMUNIQUE ISSUED AFTER A TWO-DAY STAKEHOLDERS ENGAGEMENT WORKSHOP ON TAX HARMONIZATION IN PLATEAU STATE HELD AT KINI HOTEL, AKWANGA, NASARAWA STATE FROM THE 30^TH NOVEMBER TO 1^ST DECEMBER, 2015

At the end of a two-day Stakeholders engagement workshop on tax harmonization between the State and LGCs, the following were resolved:

1. There is need to improve the Business Enabling Environment (BEE) for economic growth and improved IGR in Plateau State.
2. There is need to harmonize taxes, levies and fees collected by states and LGA’s to reduce incidences of unclear taxes and multiple taxation.
3. There is need for tax harmonization law and other relevant legislations to improve on the IGR of the state.
4. There is need for the Joint State Revenue Committee (JSRC) to come up with a method of funding the committee to enable it perform its statutory duties for improved IGR in the state.
5. There is need for the Joint State Revenue Committee (JSRC) to develop a compendium of tax laws relevant to LGCs relating to the Local Government revenues, fees and levies vis-a-vis the financial memorandum that is currently in use by the LGCs.
6. That there is need for a law towards tax harmonization, tax for service and electronic system of payment to check leakages, provide needed data for efficiency and effectiveness.
7. That there is a need to identify and concentrate on viable revenue heads and items looking at models from other states that have recorded successes in revenue generation.
8. There is need to harmonize the classification of LGAs according to economic viability so that agreed rates will not be a burden to less economically active LGAs.
9. That there is a need for consistent peer review of LGAs and the state MDAs on agreed steps towards harmonization processes in the state.
10.  There is need for continuous dialogue between state revenue MDAs/LGAs with the business community.
11.  PSIRS and MLGCA to communicate to all LGAs relevant sections of the Acts setting up LG Revenue Committee.
12.  PSIRS and all LGAs to agree on modalities of joint collections on certain levies i.e. signage and advertisement levy (work out MoU).

Note: Nasarawa State, is one of the 36 States in Nigeria. The Capital is Lafia.