Our tax systems need to be upgraded — Hashim

Engr Abdullahi Hashim, the CEO/MD of Cubical Vertex Solutions Limited, an engineering consulting company in this interview talks about the tax reform bill before the National Assembly, the issues of building collapse and substandard materials. Excerpts:   What is your take on tax reform bills? The tax reform bill is one of the most wonderful […]

Engr Abdullahi Hashim, the CEO/MD of Cubical Vertex Solutions Limited, an engineering consulting company in this interview talks about the tax reform bill before the National Assembly, the issues of building collapse and substandard materials. Excerpts:

 

What is your take on tax reform bills?

The tax reform bill is one of the most wonderful reforms I have ever seen and I can say, Singapore, I think as far back as 2023, did their tax reform bill. So, it’s a global thing, it’s not like, even the Organisation of Economic Co-operation and Development (OECD) they have 38 member countries also adopted certain policies similar to what Mr President did. So, it’s not peculiar to Nigeria.

If you look at the system, we have been using an archaic tax system, but with this proposal, we have  an upgrade of what we already have, and we have to contextualise it with the realities on ground to be in tandem with the global best practices.

Now, if you look at the ageing population and the overriding expansion of technology, there is a need for the upgrade of our tax system. What I advocate is nothing but consensus. You know, it’s a very wonderful thing, but the consensus is what will move the country forward, based on what the Governors’ Forum have adopted.

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What do you think of the governor’s new position?

Well,  It shows that  Mr President is really inclusive in his leadership, because if you bring a policy, you have to allow it to be consumed by the entire population. What we are seeing is a paradigm shift in  policy formulation and in the running of the administration. We have seen different  perspective, the governors vent out their perspective based on their local realities.

Do you think the new proposal by the governors is more realistic?

Well, it is bound for debate and I think there must be a point of equilibrium among everyone.

How do you rate the level of awareness about this tax reform in Nigeria?

The level of awareness is really low. And you can’t believe that people don’t even know what tax reform is. The tax reform document is almost 400 pages long. Who has the time to read when Nigerians are battling with issues of increase in fuel, increase in hardship and other stuff like that. People don’t even have time to read while the majority of those that have time to read it have interests. So, they will play around it to suit their personal interest. And this thing is beyond personal interest. We’re talking about over 200 million people.

What comes to my mind is nothing but if you look at the Northern part of Nigeria, majority of the businesses that are happening there, they are happening in an informal way. So, there are going to be leakages for the tax system. So, Northern Nigeria will definitely vent out their anger because they know the realities on ground are not going to meet up with what Mr. President brings. But Mr. President brought this particular policy because he wants to raise the capacity of Nigerians. He wants to reduce the enslavement process that some of the politicians are really dumping on the public and make people independent.

Do you think the achievements with the refineries are worth celebrating?

Yes, it is worth celebrating because some of the past leaders would crave for what is happening. Many thought it is not going to happen. But under this administration, the reverse is the case. Apart from the government refineries, we have others that are picking up like the Dangote Refinery, which is already in operation and BUA, which is almost 70% completed.

Talking about the government refineries, almost four of them, at least 50%, are working with the hope that the remaining ones are going to be in operation sooner. So, I think it is a good thing. We really need to have a time to celebrate it at a larger level. This is something that we need to put belief in Nigerians that this administration will definitely bring positive changes and developments.

For sustainability’s sake, what would you recommend in maintaining these refineries after they are working?

Operations and maintenance under the private sector are one of the best things because every private person that invests a single penny inside any business, wants a rate of return. So, he will not play with the business. He will definitely maintain it.  if you look at all the developed countries, they are doing concessions. You know, concession and Public-Private Partnership, which is a very good way to go. Privatising all the refineries would be the way to go.

As a member of COREN, what can you say about the frequent building collapse in the country?

There are policies on ground, which are not being implemented, and the situation in Nigeria is to the extent that just one person will just call a foreman to build a house, without recourse to the law. So, what I will just say is we must improve on enforcing all the laws so that everybody will sit up, from the client to contractors and engineers.

How do we combat substandard materials in the country?

I think there should be a collaboration between Standards Organisation of Nigeria and the Federal Consumer Protection Agency. It is very important and vital they link up along with all the professional bodies like the Nigerian Institute of Civil Engineers, Council for the Regulation of Engineers (Coren) and the Nigerian Building research Institute.