Accounting and Taxation: The Backbone of Economic Development

 

Accounting and Taxation: The Backbone of Economic Development

Renowned Professor of Accountancy, John Ohaka, has emphasized the crucial role of accounting and taxation in driving economic growth and development. Delivering his inaugural lecture, titled "Plug-and-Play opportunities in accounting and taxation: a social contract lens," at Rivers State University, Prof. Ohaka stressed that accounting provides the financial framework necessary for business operations, decision-making, and regulatory compliance ¹.

Prof. Ohaka noted that taxation plays a pivotal role in economic development, serving as a primary source of government revenue and funding public infrastructure, social services, and economic policies. He also highlighted the importance of a functional tax system in anchoring the framework for sustainable funding of essential public services.

The professor contended that accounting and taxation offer immense opportunities for stakeholders to drive national, organizational, and individual growth. He metaphorically referred to these opportunities as "Plug-and-Play" concept, emphasizing their potential for building economies, empowering companies, and creating an equitable society.

Prof. Ohaka identified areas where "Plug-and-Play" opportunities are evident, including taxation and industry synergy, taxation and cash flow dynamics, and taxation and other opportunities for individuals, governments, and businesses.

To promote economic development, Prof. Ohaka recommended that Nigerian tax principles should consider the needs of taxpayers, ensuring equity, convenience, certainty, and economy. He also advocated for transparency and accountability in public spending, quality public services, tax incentives, and stakeholder collaboration.

Vice Chancellor Prof. Isaac Zeb-Obipi commended Prof. Ohaka's lecture, noting its significance as the first inaugural lecture under his tenure as Vice Chancellor.