Download TIME TO ACT IS NOW - Nigeria Labour Congress

TIME TO ACT IS NOW
On the occasion of the commemoration of the Public Service Day, Thursday,
June 23, 2016, we at the Nigeria Labour Congress, congratulate workers,
especially the public sector workers to whom this day is dedicated, for their
commitment, devotion and sacrifice and without whom there would be no public
service or programmes.
Whereas the State along-side its core development partners is the instrument for
transforming the life conditions of the people, the Public Service is the
infrastructure for service-delivery, and accordingly is the soul, the conscience,
the memory, the unseen force in the projection of national sovereignty and power
and the preserver and furtherer of core national values and interests.
In order for it to deliver on its mandate, we need a strong and professional Public
Service, fully equipped and alive to its responsibilities. The commemoration of
Public Service avails us the opportunity of re-stating that one of the effective and
genuine ways of tackling poverty, inequality, want, deprivation and misery in
Africa is to consciously and consistently implement state-driven public services
delivery programmes and not to privatize them.
Accordingly, we call on the Nigeria government to scale down, halt and reverse
where possible, the decision to privatize public services. According to the 1999
Constitution (as amended), the state still remains the driver of the commanding
heights of the economy, and the provider of jobs and services.
Congress holds the strong view that aggressive privatization should not be an
excuse for failing to stem illicit financial flows(IFF) from Nigeria in particular and
Africa in general.
The case for serious, aggressive, brave and sustainable inward looking cannot
be more urgent now that the country is confronted by near-unprecedented
economic challenges to the extent that the performance of basic and
fundamental state duties such as payment of salaries and pension as when due
is under real threat.
We note with concern that 16 months after the African Union-Economic
Commission for Africa (AU-ECA) report on Illicit-Financial Flows (IFF) from Africa
was adopted by the AU Heads of State in Addis Ababa, no action has been taken
by the Africa Heads of State even when the report pointedly said $50billion is
1
lost to Africa annually through IFF activities. The report had noted that IFF
activities in Nigeria, especially in the oil sector is “humongus and ravenous”.
The need for action is underscored by the increasing poverty and social
discontent in the land. Congress is concerned that little or no progress has been
made with regard to the implementation of the recommendations in the Mbeki
Panel Report. The recent Panama Papers leak further exposes the depth of the
financial hemorrhage to which Africa is exposed as asset theft and tax evasion
schemes and activities go unchecked.
Congress is not in doubt that these lost revenues would boost and complement
finances necessary for achieving the roll-out of social services that could
considerably alter the quality of life of the citizenry.
Rather than commit the same zeal and attention to dealing with these
criminalities and their perpetrators for which Congress will ever be ready to
support the government, we are not amused that government has chosen to
pursue tax policies such as increasing Value Added Tax, raise the pump price of
petroleum products, devalue the Naira and other policies that will punish the poor
and exacerbate the hardship and miseries of indigent households.
In light of the foregoing, we find it important and necessary to restate some of the
urgent and cardinal thrusts of the report’s recommendations and call on our
government to without further delay undertake the necessary implementation of
the following:
1. African countries should seek and pursue effective cooperation with
themselves and other developing countries, particularly in terms of tax
policy, practices and information-sharing.
2. African governments should strive to eliminate undermining and damaging
tax competition with and amongst them. In essence, tax concession in
relation to attracting Foreign Direct Investment should be critically
rethought.
3. African governments should seek cooperation with other developing
countries to enforce multilateral adoption and implementation of measures
to end financial and corporate secrecy jurisdictions which have contributed
in major ways to the fledging of tax havens and thus loss of revenues to
African governments. The revelations from the Panama Papers leak
2
speak eloquently to this fact and the need to scale up preventive actions
against secrecy tax jurisdictions.
4. On the strength of new revelations in terms of how Multinational
Corporations have undermined revenue prospects of Africans countries,
particularly in the extractive industry, Africa should commence processes
to re-negotiate existing mining and exploration contracts as well as take
other anti-mineral revenue theft measures.
5. African governments must commit to train and retrain personnel with the
view to build, improve and deepen the skills, competences and knowledge
needed for effective tax administration.
6. Importantly, tax regimes that place heavy burden and responsibilities on
the working poor should be readjusted progressively, whilst sanctions
should be improved to rein in the rich and corporate entities that have
continued to evade tax payment.
Nigeria must stand up as a strong and resolute voice in this struggle to stop the
bleeding of Africa, as well as work to use tax revenues to finance social services
delivery and not to continue to privatize public services to the detriment and
exclusion of the poor and needy.
Comrade Ayuba Wabba, mni.
President.
3