Thread by @yinkanubi

Last week, I did a thread which ended with this tweet. 👇. I will like to follow up with some honest talk.

First off, the election is over. Barring any drama from the election tribunal, Buhari will serve his second term and will not be coming back.

https://twitter.com/yinkanubi/status/1125671872832704512?s=20

This presents an opportunity for us as nation to take some difficult decisions. Let me be clear, these decisions have the potential of inflicting significant electoral cost. But there is no "3rd term" opportunity to have a do over. The time to take those tough decisions is now.

Let me highlight a few of them.

1. Fuel Subsidy Removal - The Subsidy needs to go. It is not a decision that will come easy but it is one that needs to be taken as was done in 2016. Spending 9% of GDP (in 13yrs) on subsidy is high. A % of that can be spent to cushion its effects

2. Tax Increases – 5% VAT is a joke. The highest ever collected is N1 Trillion. That is less than 1% of GDP. Double it to 10% and it still won’t make any significant impact. Is there a case to expand the tax bracket? Yes! Is there a case for creativity in tax application? Yes!

Is there a case that if we want to be able to improve debt sustainability and increase tax to GDP of 6.1% (Ghana - 18.2%) there has to be a tax increase? Yes! We can't be spending 78% of revenue on recurrent expenditure and not expect to raise revenue.

punchng.com/fg-spent-78-of…

85% of VAT collections goes to States & LGs, so any increase is going to benefit them more than the FG. The rich must pay their fair-share (they presently don't). There is a clear difference between CIT and PIT. Let those who claim a benefit in cash or kind pay their due taxes.

3. Reduce Size of Govt – The Size of govt is humongous. The Nigerian govt at all levels is a leech on our resources. We simply cannot maintain this size anymore. We would need to cut it down. Does that mean Job losses? Yes! But mainly for political jobbers, aides & appointees.

The Oronsaye report which recommended the reduction of govt agencies from 263 (its more now) to 161 should be dusted and implemented. Each year and with each new bill passed by NASS, the govt becomes bigger. There is no economic justification to run the kind of democracy we run.

The need to raise revenue to the level of debt sustainability shd not be debated. But there is also a moral reason for this; you can't remove subsidy, increase taxes and not cut govt expenses. There is a low hanging fruit you can start from & it's called Governors #PensionForLife

Today, over 106 living ex-Governors and dep have costed the commonwealth of Nigeria over N100 billion in Pension benefits ranging from 2 Houses in State and Abuja, 2-3 Cars every 3-4 years, Free medicals for entire family, Pension at last or current salaries and salary for aides.

There is simply no economic, political or moral justification to be owing pensioners when ex-govs smile to the bank with money paid for by poor tax payers. This is why I believe that the first order of business for new HoA members is to repeal these obnoxious #PensionForLife laws

4. Structural Reform – Yes restructuring means different things to different people…but start with the restructuring you agree with. If it's regional restructuring you agree with, do it. If it's economic restructuring, do it. Whatever you are comfortable with, just do it.

If you can’t finish it during your tenure, the next govt will complete it. What we can’t do is keep talking about restructuring and not doing any restructuring. The quest to create a more equal & balanced society shouldn't be a wish, it must be a target with measurable timelines.

Granted, many will disagree with this thread. Some (not reading in totality) will pick bits & pieces of what was said to critic. It's fine as long as you can proffer a better and realistic path for us as a nation. Whichever way you look at it, one thing we can't do, is do nothing