Removing Barriers to Fiscal Federalism, Sub-national Growth
Naija News • Feb 21
**Breaking Down Barriers to Nigeria's Growth**
Nigeria's growth trajectory has been a subject of interest for economists and policymakers alike. In a bid to unlock the country's potential, the National Economic Council recently gathered to discuss ways to enhance fiscal federalism and drive growth at the subnational level. The council, chaired by Vice President Kashim Shettima, identified several key areas that need attention to ensure the country's economy is inclusive and sustainable.
The council meeting, which had President Bola Tinubu in attendance, highlighted the need for states to pass the harmonized tax law to address multiple taxation and complement the new tax reform laws. Currently, some states have passed the law, while others are still in the process or have yet to start. The council urged those that have not passed the law to expedite the process, as it promises to bring prosperity to the people.
However, the council also noted that the existing constitution has inconsistencies that hinder the effective implementation of fiscal federalism. To address this, they recommended an expedited amendment to the constitution to enable the rollout of the tax regime at the federal and subnational levels. This is a significant step towards creating a more conducive environment for growth and development.
Another crucial aspect of the meeting was the importance of interstate collaboration and cooperation. The council emphasized the need for states to institutionalize joint planning, share resources, and harmonize policies. This would not only address shared challenges but also promote balanced development across the federation.
To achieve this, the council recommended regular intergovernmental engagements, capacity-building programs, and conflict-management frameworks to address issues such as insecurity, infrastructure gaps, and economic disparities. Strong partnerships between the federal and state governments, private sector, civil society, and development partners are also crucial to achieving inclusive and sustainable national development.
President Tinubu hailed the council's efforts, saying it reflects a collective dedication to national progress. He commended the council for providing a platform for policy coordination and strategic dialogue, which is essential for Nigeria's growth and development.
In conclusion, the National Economic Council meeting was a significant step towards enhancing fiscal federalism and driving growth at the subnational level. By addressing the inconsistencies in the constitution, promoting interstate collaboration, and fostering strong partnerships, Nigeria can unlock its potential and achieve inclusive and sustainable national development.