No system can function effectively without revenue. Revenue plays a pivotal role in both the private and public sectors. It enables the government to fund public services like education, healthcare, infrastructure, and law enforcement.
In addition, it helps to stimulate economic growth by creating jobs, attracting investment, and increasing consumer spending. Its crucial role in budget allocation cannot be neglected, as it helps in prioritizing essential services and projects, as well as debt management, reducing reliance on borrowing, and maintaining a healthy economy.
At both federal and state levels, revenues can be generated from a diverse range of sources, including taxes. These taxes may take the form of sales tax, income tax, property tax, and others. Additionally, revenues can be realized through various fees, such as license fees (e.g., driver’s licenses), permit fees (e.g., building permits), and service fees (e.g., court fees and utility fees). Other sources of revenue include federal government grants, state-owned enterprises, natural resources, fines and penalties, and other mineral resources available to the government.
This article seeks to explore driver’s licenses and vehicle registration as vital sources of government revenue in Nigeria. As stipulated in the Constitution of the Federal Republic of Nigeria (1999, as amended), state governments are empowered to register vehicles through the following provisions:
1. Section 6(1) grants state governments the authority to collect taxes and fees, including vehicle registration fees.
2. Section 7(1) empowers states to establish and maintain a motor vehicle administration agency, encompassing vehicle registration.
3. The National Road Traffic Registration Act (2012) mandates states to register vehicles and issue plate numbers.
In light of these constitutional provisions, a critical question arises: How many elected and appointed government officials possess valid driver’s licenses and registered vehicles?
According to the National Bureau of Statistics (2020), approximately 11.7 million vehicles were registered in Nigeria, while the Federal Road Safety Corps reported around 10.4 million valid driver’s license holders in the same year. Let’s conduct a rhetorical analysis.
With Nigeria comprising 36 states, 777 local government areas, and the Federal Capital Territory, it begs the question: How many current and past public office holders, including presidents, governors, local government chairmen, commissioners, special advisers, ministers, personal assistants, directors, permanent secretaries, top civil servants, and aides possess valid driver’s licenses, registered vehicles, and other properties? What implications does this have on revenue generation?
Nobody is above the law.
The aforementioned scenario warrants government attention at all levels of governance to develop a comprehensive and workable policy framework. By addressing this menace, it will lead to increased revenue generation, demonstrate leadership by example, and restore the masses’ confidence in leadership.
This article, thus, recommends that the government should introduce and implement a digital registration system that captures information on all citizens, regardless of rank or position, as this would not only increase revenue generation, but also ensures principles of equity in governance.
Email: stanchiley2003@yahoo.co.uk
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