Connect with us

Feature/OPED

ISOPADEC: NULGE, Opiah, Irona and Many Unanswered Questions

Published

on

gerald Irona imo state

By Walter Duru, Ph.D

Last week, the Imo State branch of the National Union of Local Government Employees (NULGE), while addressing journalists in Owerri, called for the arrest and prosecution of the immediate past Deputy Governor of Imo State, Engr. Gerald Irona.

The group centred its call on what it described as alleged mismanagement of funds belonging to the Imo State Oil Producing Areas Development Commission (ISOPADEC).

Similarly, Special Adviser to the Governor of Imo State on Oil and Gas, Mr Goodluck Opiah, added his voice to the call by NULGE in the state.

According to him, “things started getting bad from 2011, and during the time of Mr Gerald Irona as the Deputy Governor, there was nothing to show from ISOPADEC because it became a conduit pipe for looting. It became a place to enrich themselves, cronies and families.”

Mr Opiah alleged that the commission started witnessing misappropriation of funds since 2011, noting that “it became worst during the tenure of Ihedioha who appointed his former deputy to head the place.”

I have been searching the books to see when the former Deputy Governor, Engr. Gerald Irona was appointed head of ISOPADEC and cannot see.

No records – past and present suggest same; or is this part of the political witch hunt? Should we just call a dog a bad name in order to hang it? If the former Speaker of the Imo State House of Assembly has advanced in age, one may have been tempted to consider his position as the product of senility.

I have also carefully studied the law establishing ISOPADEC but find no part thereof that suggests that the Deputy Governor of Imo State should head ISOPADEC.

From all indications, the NULGE press briefing was clearly sponsored, as part of a broader campaign, just to malign the person of the immediate past Deputy Governor. Who really is afraid of Mr Irona? Or, is this all about the 2023 elections?

By the way, what really does NULGE represent? What is Imo NULGE’s raison d’être, apart from the vow of its present leadership to sabotage the collective interests and abrogate the rights of Local Government workers in the state, for a fee.

When one considers that NULGE (national) is uniquely positioned as an umbrella organization that champions the cause, welfare and interest of all workers employed in local government areas in Nigeria, can anyone in all fairness rightly say that the Imo State branch of the union has not lost its way?

In Imo State today, Local Government workers are being owed several months of salary arrears, and still counting. Up till this moment, NULGE in the state has not said a word in defence or support of her beleaguered members, some of whom are dying of hunger.

The fate of our senior citizens that retired from the local government service is even more pitiable, with some of them owed arrears of pension ranging from four to six months, with no respite on the horizon.

Pensioners in the state have been protesting the non-payment of their entitlements. Many of them are dying of hunger, lack and disease, yet NULGE in the state has refused to say a word in solidarity.

At a period of dire stress, compounded by the COVID-19 pandemic, while majority of the local government employees in Imo State lament over government’s insensitivity and insincerity, a few of the members of the state executive of the NULGE continue to luxuriate in the patronage of some members of Imo state executive council, executing a range of hatchet jobs on their behalf, while showing zero remorse for the betrayal of the trust reposed in them by their hapless members. Is it not a case of slaves being in love with their chains?

Where on earth does a chicken take issue with the cooking pot, while carefully exculpating the knife that slit its throat? Should a labour union that ought to be fully focused on holding the government to account, while fighting for a better welfare package for her members; instead concern itself with receiving peanuts from the same government officials responsible for the impoverishment. How does Imo State NULGE’s current preoccupation differ from that of a receiver of blood money?

As we speak, available reports show that at least two different audit exercises have been conducted in ISOPADEC in the last four months with none indicting the administration of Chief Emeka Ihedioha.

Instead, it’s being reported, on good authority that the Ihedioha/Irona administration mainstreamed transparency in public service in the state. That enviable legacy is one of the touchstones that certain persons who are not friends of the citizens are struggling to tarnish, or ultimately destroy.

During that short period of that administration, communities in Ohaji/Egbema and Oguta that had been cut off from the national electric power grid for over 10 years were reconnected.

Some other communities that had never witnessed electricity since the creation of the world suddenly became drafted onto the power map, with quick-fire electrification projects commenced and underway in their areas.

The perennial security challenges in those same areas were equally addressed. Stakeholders in the oil-rich areas confessed that they never had it that good.

I recall vividly the exact words of former Commissioner representing Imo State on the Board of the Niger Delta Development Commission, His Royal Highness Eze Emmanuel Assor, during one of the former Deputy Governor’s consultative meetings with stakeholders on the electrification project of Awarra Court Area.

He said and I quote: “We are excited that we are no longer invited to meetings for, and over killings in our area. We are now invited to discuss developmental projects in our area.”

More so, practical steps were taken to ensure that thousands of youth from oil producing communities in the state were put on the path to attaining sustainable sources of livelihood.

This is unlike in the past, where ISOPADEC funds were diverted to private purses while phantom empowerment programmes were fervently promoted.

Those turning history on its head refused to tell the world the pioneering role Engr. Gerald Irona played in birthing ISOPADEC. At least, Dr. Goddy Esom Obodo is still alive. Thank God that history never dies.

Meanwhile, an elaborate audit was conducted on the affairs of the Commission by the Hon. Ihedioha-led administration, which revealed colossal looting and mismanagement of the Commission’s finances. Incidentally, one of those calling for the head of Engr. Irona today was indicted in the audit report. This is a story for another day.

There is no doubt that the main sin of the former Deputy Governor, Engr. Gerald Irona is that he ensured that ISOPADEC funds were no longer shared by a few persons, but were used in working for the people of Oil Producing communities of the state. Sadly, ISOPADEC is back to the dark days.

To make matters worse, ISOPADEC’s allocation from FAAC in the last five months totaling more than three billion naira (N3bn) cannot be accounted for.

Why is no one talking about it? Where is the forty percent (40%) of the state’s 13% allocation statutorily meant for ISOPADEC? Why is AUPCTRE, the staff union of ISOPADEC silent over this, or have they succeeded in cowing everyone? Or, did they hire NULGE to speak for them? What are the youth of the oil producing communities of the state doing? What of Ohaji/Egbema/Oguta/Oru West league of professionals?

Why has ISOPADEC’s Board not been constituted, five months into the life of the present administration in the State? Where is the One Hundred and Fourteen million (N114m) paid by Waltersmith Petroleum for the electrification of Awarra Court Area which the Ihedioha administration left in the United Bank for Africa – UBA Plc account of ISOPADEC? What about the over One Hundred and Eighty million (N180m) left in ISOPADEC account in UBA Plc by the Ihedioha administration? On the 14th of August 2020, the Governor Uzodinma-led administration in Imo State will be seven months old and Imo people will be able to compare between the present and the Ihedioha-led government in the state.

As Dietrich Bonhoeffer puts it, “silence in the face of evil is itself evil: God will not hold us guiltless.” Those who earn their livelihood fron suppressing the people are out once again, in typical fashion, to distract stakeholders with false claims, using a few persons that have no business whatsoever with ISOPADEC. Every true patriot must speak out at this point. We must refuse to be distracted, but ask questions about why ISOPADEC funds are no longer used in working for the people. Staff of the Commission are owed for about four months now, yet, the Commission’s funds that run into billions cannot be accounted for. Who, really is a friend of the people, bearing in mind that while the Emeka Ihedioha-led administration was in place, Imo workers, including those of ISOPADEC were paid regularly?

As for NULGE, there is no doubt that the union’s present leadership in the state is a complete disaster. They have betrayed the confidence reposed in them.

They have completely derailed and have no business remaining in office as representatives of local government employees in the state. Their best bet is to resign from service and join the ruling All Progressives Congress in the state, instead of masquerading as union leaders.

More so, both the individuals that authored, and those acting the anti-Irona script must realize that no one has monopoly of mischief making. We are presently studying previous reports on ISOPADEC, including those covering the era 2007 to 2011 and will make our findings known soon.

A word is enough for the wise!

Dr Walter Duru is a Communication expert and a Public Affairs analyst. He can be reached on: [email protected]

Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Feature/OPED

Publication Standards and Predatory Publishing in Africa

Published

on

Timi olubiyi Predatory Publishing in Africa

By Timi Olubiyi, PhD

I pray that the new year, 2026, unfolds with fresh opportunities, meaningful growth, and endless possibilities. Amid the many emerging topical issues, this piece focuses on a troubling trend in academia: the growing reliance on predatory publications and the declining pursuit of reputable, recognised journals.

For many academics, particularly early-career scholars, mid-career academics facing promotion bottlenecks, adjunct and contract lecturers under publish-or-perish pressures, and even senior scholars navigating international mobility aspirations, evolving global performance metrics, and global competitiveness, this piece is intended as a lifeline, offering clarity, guidance, and reassurance at a critical moment in evolving scholarly environment.

Predatory publications are sometimes legitimate outlets that promise rapid academic publication but without the expected integrity of research or known ethical reputation, and oftentimes quality is compromised for cash for these publications. This alarming trend is not only undermining careers but also diminishing the visibility and impact of knowledge in shaping global scientific discourse.

From an African perspective, the damage caused by predatory publishing goes far beyond wasted money; it quietly erodes academic credibility, blocks international mobility, and traps scholars within local systems that increasingly struggle to meet global university standards.

Predatory journals thrive where demand for publication is high, and support structures are weak. In many African universities from observation, promotion and appointment criteria emphasise quantity over quality and indexed publications.

The disturbing finding is that often times there are no clear differentiation between indexed and non-indexed publication. As a result, many university-based journals have become the default publishing route but these journals are largely not indexed in reputable databases like Scopus, Web of Science, ABDC (Australian Business Deans Council) and ABS (Association of Business Schools) journal ranking systems which should increase quality and standards. These non-indexed journals journals are sometimes institutionally encouraged, yet they rarely offer the global visibility, citation impact, or academic recognition required for international competitiveness.

For a scholar whose work never leaves these local publishing ecosystems, the world remains largely unaware of their research, no matter how insightful or relevant it may be. Yet perhaps the most painful consequence of predatory publishing is loss of global opportunities, and systematic underestimation of impact.

African academics are frequently judged as underperforming, not because they lack ideas, rigour, or relevance, but because their work is largely invisible on global platforms. From the author’s observation, a striking number of African scholars have no Scopus profile at all, or profiles are with very low visibility, despite years of teaching and publishing as experienced lecturers, senior researchers, and even professors. This invisibility feeds a damaging cycle because when it comes to international evaluation limited indexed output is seen and it is assumed that African scholars have limited scholarly contribution, while local systems continue to reward these non-indexed publications that do not translate into global recognition.

The danger becomes most visible when academics attempt to cross borders physically or professionally. Because for international job applications, visiting fellowships, postdoctoral positions, and global research collaborations increasingly rely on transparent metrics: indexed publications, citation records, journal rankings, and evidence of international engagement.

An academic who has published extensively in non-indexed or predatory journals may appear productive on paper locally, but he is invisible internationally. Hiring committees in Europe, North America, Asia, and increasingly the Middle East are trained to recognise predatory outlets; rather than viewing such publications as achievements, they quickly interpret them as red flags, questioning the rigour, ethics, and peer-review exposure of the candidate.

In this way, predatory journals do not merely fail to help academics they actively ruin their global prospects. The contrast between quality publishing and predatory publishing is very clear and obvious. Because quality publishing follows strict academic standards like peer review, transparency, and ethical practices, predatory publishing on the other hand ignores these standards and mainly exists to collect fees from authors without providing real scholarly value.

A single well-placed article in a reputable indexed journal can open doors to international conferences, editorial invitations, collaborative grants, and academic networks.

For example, Nigerian and Kenyan scholars who publish in respected international journals often find themselves invited to review manuscripts, join global research teams, or contribute to policy-oriented projects at the African Union, World Bank, or UN agencies. These opportunities rarely come from non-indexed or predatory outlets because such journals are not read, cited, or trusted beyond narrow circles. Visibility, in the modern academic world, is currency, and predatory journals offer the illusion of productivity without the substance of impact.

So, what is the future of African academics in a globalised academic labour market? As universities worldwide shift toward international rankings, global partnerships, and research impact metrics, African scholars’ risk being locked out not because they lack intellectual capacity, but because their work is trapped in publishing systems that the global academy does not recognise. The danger is a growing academic isolation, where African knowledge circulates locally but fails to influence global debates or attract global opportunities. The solution lies not in rejecting local journals outright, but in redefining academic ambition and preparedness.

African academics must increasingly think beyond local promotion requirements and prepare for international exposure from the outset of their careers. This means understanding journal indexing systems, targeting reputable outlets even if acceptance takes longer, and valuing revision and rejection as part of scholarly growth. Universities, in turn, must reform promotion criteria to reward quality, indexing, and impact rather than sheer volume. Training in research methods, academic writing, and ethical publishing should be institutional priorities, not optional extras.

Governments and regulatory bodies can support this shift by funding open-access publication in reputable journals and discouraging the use of predatory outlets in academic evaluation. The suspenseful reality is this: African academics stand at a crossroads. One path leads to rapid local advancement built on fragile publishing foundations, offering short-term comfort but long-term invisibility. The other path is slower, more demanding, and often frustrating, but it leads to global relevance, intellectual exchange, and genuine academic mobility.

Predatory journals promise speed and certainty, but they quietly close doors. Quality publications demand patience and rigor, but they open the world. For African scholars seeking international jobs, collaborations, and influence, the choice is no longer optional it is existential. The future of African academia depends not just on producing knowledge, but on ensuring that knowledge travels, is trusted, and is seen. In this new year and beyond be different, be intentional, be visible, and be globally relevant. Good luck!

How may you obtain advice or further information on the article? 

Dr Timi Olubiyi is an expert in Entrepreneurship and Business Management, holding a PhD in Business Administration from Babcock University in Nigeria. He is a prolific investment coach, author, columnist, and seasoned scholar. Additionally, he is a Chartered Member of the Chartered Institute for Securities and Investment (CISI) and a registered capital market operator with the Securities and Exchange Commission (SEC). He can be reached through his Twitter handle @drtimiolubiyi and via email at [email protected] for any questions, feedback, or comments. The opinions expressed in this article are solely those of the author, Dr. Timi Olubiyi, and do not necessarily reflect the views of others.

Continue Reading

Feature/OPED

Game of Power: Throne Reclaim

Published

on

kano politics

By Abba Dukawa

Kano politics has been thrown into fresh uncertainty following reports that the Kano State Governor, Abba Yusuf, is planning to defect from the New Nigeria Peoples Party (NNPP) to the All Progressives Congress (APC).

For years, Rabiu Musa Kwankwaso aspired to be Kano’s undisputed political kingmaker. He only succeeded in realizing this ambition by installing his perceived political godson as the current governor of Kano State.

His earlier attempts had failed; notably, the current governor is the only candidate Kwankwaso attempted to install twice.

Even before the recent attempt at reclaiming the political and power throne by its rightful owner, there were widespread insinuations that the relationship between the political godfather and godson was far from cordial, despite both camps publicly maintaining that all was well.

The governor’s recent move to cross over to the ruling party has been strongly opposed by the state party leadership and the NNPP’s national leader, Senator Rabiu Musa Kwankwaso. This development has triggered internal disagreements within the NNPP, particularly between supporters of the governor and loyalists of the Kwankwasiyya movement.

Since news broke of Governor Abba’s intention to defect to the APC, claims have circulated  that he was acting with Kwankwaso’s consent.  Those who believed that Governor Abba planned to defect with Kwankwaso’s approval made a grave misjudgment.

This is not a coordinated plan; rather, it is a political conflict akin to that between a father and a son.

From a rational political standpoint, the situation reflects a deep and intense struggle—a clear attempt at reclaiming the throne between the Governor of Kano State and the leader of the Kwankwasiyya movement, Senator Rabi’u Musa Kwankwaso.

By all political indicators, the governor’s effort to reclaim the throne appears aimed at securing absolute control and liberating himself from total submission to the national leader of the Kwankwasiyya movement.

In response to the unfolding conflict, the NNPP national leader has intensified efforts to rally federal and state lawmakers, local government chairmen, and party structures to remain loyal to him. Kwankwaso’s reaction has been firm but defensive.

Kwankwaso, addressing them, reportedly stated that it was evident the governor was abandoning the NNPP for the APC and that any member wishing to follow him was free to do so. He reminded them that they won the election by divine grace alone, asking rhetorically: “Will the God who gave us power in 2023 not still be there in 2027?”

He has denied any involvement in defection plans and reaffirmed his loyalty to the NNPP and its ideology, warning supporters against what he described as “betrayal. However, events on the ground tell a different story, as several local government chairmen, along with state and federal lawmakers, appear to be gravitating toward the governor’s camp.

Ahead of his anticipated defection and in a bid to strengthen his political base, the governor has reportedly been working behind the scenes to secure the support of National Assembly members and NNPP members of the State House of Assembly and the local government council chairman.

Although no official statement has been issued by the governor’s office  since reports of the planned defection emerged, the body language of prominent government officials suggests that the plan is already in motion and that it is only a matter of time. So far, only the Speaker of the State Assembly, Yusuf Falgore, has publicly endorsed the governor’s planned defection. Sources also indicate that a significant number of local government chairmen have joined the governor’s defection train.

Blind Kwankwasiyya members ideologues fail to distinguish between political betrayal and the pursuit of independence. Politics, after all, is about survival and adaptation.

Most Kwankwasiyya members are youths. Where were they when Kwankwaso parted ways with Hamisu Musa, Musa Gwadabe, and Dauda Dangalan? Kwankwaso rose under mentorship before charting his own course. Where were they when Abubakar Rimi broke away from Aminu Kano in ’79-’80, pursuing his own path? When Abdullahi Ganduje split from Kwankwaso, he faced ridicule and insults.

These same critics should appreciate Abba Gida-Gida’s restraint in not publicly recounting the unpleasant experiences surrounding his emergence as governor under the NNPP.

The Kwankwaso–Abba conflict is, at its core, politics in its truest form—a search for solutions and self-determination. There is a clear distinction between betrayal in politics, the pursuit of solutions, and the quest for independence from total submission.

If Governor Abba succeeds in taking the bulk of NNPP’s structure to APC, it’ll be a major symbolic blow to Kwankwaso’s influence . It seems Kwankwaso’s biggest fear is Abba taking the state with him, leaving him with a movement without a state .

The plan Abba defection from the New Nigeria Peoples Party (NNPP) to the All Progressives Congress (APC) could reshape Kano’s politics significantly- APC regains dominance in Kano, strengthening its position ahead of 2027- NNPP’s national relevance takes a hit, struggling to recover from losing its only governor Kwankwasiyya faces a tough test without state power, potentially losing influence. New alliances might emerge as Yusuf’s move triggers political recalibrations across the North.

Game of Power: Throne Reclaim

Dukawa writes from Kano and can been reached via [email protected]

Continue Reading

Feature/OPED

How Nigeria’s New Tax Law Could Redefine Risk in the Banking Sector

Published

on

Nigeria’s New Tax Law

By Blaise Udunze

Nigeria’s new tax identification portal goes live nationwide tomorrow, Friday, January 1, 2026, marking a pivotal moment in the country’s fiscal and financial governance. Designed to modernise tax administration and strengthen taxpayer identification, the reform reflects a decisive shift in economic strategy by a government grappling with shrinking oil revenues, rising public debt, and widening fiscal deficits.

At the centre of this shift is a deeper integration of identity systems, banking data, and tax administration, most notably the adoption of the National Identification Number (NIN) as a tax identification mechanism for operating bank accounts. In parallel, banks will also begin charging a N50 stamp duty on electronic transfers of N10,000 and above, following the implementation of the Tax Act.

Individually, these measures may appear modest, even reasonable. Collectively, however, they signal a fundamental reordering of the relationship between the state, banks, and citizens with far-reaching implications for banking business, customer trust, financial inclusion, and credit creation.

Banks at the Centre of Fiscal Enforcement

Under the new tax framework, Nigerian banks are no longer merely financial intermediaries or corporate taxpayers. They are increasingly positioned as collection agents, reporting hubs, and frontline enforcement points for government revenue policy.

The linkage of NIN to tax compliance, combined with transaction-based stamp duties, reinforces a stark reality that the banking system has become the most visible and accessible channel through which the state now extracts revenue from citizens.

This expanded role exposes banks to a new layer of risk not just financial or operational, but social, reputational, and political risks that extend far beyond balance sheets.

A Structural Shift in the Banking, Tax Relationship

Historically, banks played a facilitative role in tax compliance, primarily through payment processing and remittance support. The use of NIN as a tax identifier marks a structural departure from this model.

Bank accounts are no longer merely financial tools; they are becoming gateways to tax visibility.

This shift fundamentally alters the risk profile of the banking business. Banks are now exposed not only to credit, market, and operational risks, but also to heightened social backlash, reputational damage, and political sensitivity, arising from their expanded enforcement role.

Account Friction and Slower Customer Onboarding

One of the earliest and most visible consequences of NIN-based tax identification is increased friction in account opening and maintenance.

Consequently, in a real sense, millions of Nigerians will continue to face challenges with the NIN system, including delays in enrolment and correction, biometric mismatches as well as  inconsistencies between NIN, BVN, and bank records.

For banks, this translates into slower onboarding processes, higher rates of account restriction or rejection, and increased congestion across branches and digital platforms.

What should be a growth engine for deposit mobilisation instead becomes a bottleneck, resulting in lost customers, fewer transactions, and weakened scale advantages in an increasingly competitive banking environment.

Banks as the Face of an Unpopular Tax Regime

Perhaps the most underappreciated consequence of the new tax regime is the escalation of customer hostility toward banks.

When accounts are flagged, restricted, or subjected to enhanced scrutiny, customers rarely direct their frustration at tax authorities or policymakers. Instead, they confront the most visible institution in the chain, their bank.

Banks are increasingly blamed for account freezes, accused of colluding with government, and perceived as punitive rather than service-oriented institutions. This hostility is particularly pronounced among informal sector operators, small traders, artisans, and self-employed professionals with irregular income streams.

In a low-trust economy such as Nigeria’s, perception often outweighs regulation. Banks risk becoming the public face of coercive taxation, absorbing reputational damage for policies they neither designed nor control.

Erosion of Trust in the Banking Relationship

Banking fundamentally depends on trust that deposits are safe, transactions are private, and institutions act in customers’ best interests.

When NIN becomes a tax enforcement gateway, that trust begins to fray. Banks are no longer seen primarily as custodians of savings, enablers of enterprise, or neutral financial intermediaries. Instead, they are increasingly perceived as extensions of tax authorities, surveillance nodes, and compliance police.

Once trust erodes, customer behaviour adjust often in ways that undermine the formal financial system itself.

The Hidden Impact of the N50 Stamp Duty

The introduction of a N50 stamp duty on electronic transfers of N10,000 and above may appear trivial. In practice, it carries outsized implications.

For many Nigerians, especially low- and middle-income earners, electronic transfers are not discretionary transactions. They are salary payments, family support remittances, SME operating expenses, and routine commercial settlements.

Customers rarely distinguish between government levies and bank charges. The stamp duty will therefore be perceived as yet another bank fee, deepening resentment toward institutions already accused of excessive charges.

Behaviourally, customers may respond by breaking transactions into smaller amounts, increasing cash usage, or migrating to informal transfer channels, distorting transaction patterns and weakening the efficiency of the digital payments ecosystem.

Although banks merely collect the duty on behalf of the government, they will once again bear the reputational cost.

Threat to Deposit Mobilisation and Liquidity

Fear of tax exposure is a powerful behavioural driver. As NIN becomes closely associated with tax scrutiny and transaction charges mount, many customers are likely to reduce account balances, avoid lump-sum deposits, split transactions to stay below thresholds, or move funds outside the banking system entirely.

For banks, the consequences are clear, as these will result in slower deposit growth, volatile liquidity positions, and reduced capacity to fund loans.

Deposit mobilisation is the lifeblood of banking. Any policy that discourages formal savings weakens banks’ intermediation role and, by extension, the broader economy.

Reversal of Financial Inclusion Gains

Nigeria has invested more than a decade in expanding financial inclusion through agent banking, digital wallets, and tiered KYC frameworks. The use of NIN as a tax trigger threatens to reverse these gains.

Many newly banked individuals, particularly those at the base of the economic pyramid, may abandon formal accounts, revert to cash-based transactions, or rely on informal savings mechanisms.

The irony is stark as an identifier designed to formalise the economy may inadvertently push activity back into informality.

Rising Compliance, Legal, and Technology Costs

Operationally, integrating NIN as a tax identifier significantly increases banks’ compliance burden. However, institutions are expected to synchronise multiple databases, resolve inconsistencies at scale, implement continuous monitoring systems while also managing customer disputes arising from mismatches or wrongful flags.

The challenges inherent in these demands require heavy investment in IT infrastructure, expanded compliance teams and enhanced cybersecurity. The costs either erode profitability or are passed on to customers, further fuelling public resentment.

Credit Creation and Economic Growth at Risk

Reduced deposits, higher compliance costs, reputational strain, and customer attrition converge on a single outcome that mainly constrained lending capacity.

There is no two ways about this, banks under sustained pressure will tighten credit standards, reduce SME and consumer lending, and favour low-risk government securities. The ripple effects include slower job creation, constrained entrepreneurship, and, on a dangerous level, it leads to weaker economic growth, ultimately undermining the very revenue base the tax reform seeks to expand.

Revenue Without Ruin

No doubt, linking NIN to tax identification and expanding transaction-based levies may enhance government visibility over economic activity, but in reality they carry significant unintended consequences for banking business.

They risk weakening customer trust, undermining deposit mobilisation, reversing financial inclusion gains, increasing operational and reputational risks, and constraining credit growth.

Banks do not oppose taxation. What they caution against is turning financial inclusion infrastructure into a blunt instrument of tax enforcement without adequate safeguards.

For the policy to succeed without damaging the banking system, regulators must ensure clear thresholds and exemptions, strong data protection guarantees, phased implementation and ensure sustained public education to redirect hostility away from banks.

Ultimately, the critical question is not legislative readiness but execution, especially coordination across institutions, technological preparedness and the capacity to prevent unintended disruption to businesses and citizens alike. The authorities must understand that when revenue meets risk, wisdom lies in balance.

Blaise, a journalist and PR professional, writes from Lagos and can be reached via: [email protected]

Continue Reading

Trending