Vice President Dr. James Wani Igga, Chairperson of the Economic Cluster, addresses the Fourth Forum on Revenue Management in Juba on Tuesday, November 12, 2024. — Photo Credit: William Madouk

Vice President Dr James Wani Igga urged the forum on revenue management to conduct a comparative analysis, highlighting that Nigeria could serve as an exemplary model for South Sudan’s oil revenue management practices.

The Chairperson of the Economic Cluster made a statement at the launch of the Fourth High-Level Forum on Fiscal Devolution and Revenue Management, part of the Permanent Constitution-Making Process in Juba.

Dr Wani encouraged the country to draw lessons from the experiences of Nigeria, as well as neighbouring Ethiopia and Kenya in revenue management.

“Let’s examine the practices of other oil-producing countries to draw comparisons that are relevant to our situation,” said Dr Wani.

“Our nearest neighbours, including Ethiopia, Nigeria, and Kenya—who are beginning to explore similar avenues—provide a valuable context for this discussion,” he said.

The chairperson of the Economic Cluster remarked that Nigeria has established the most effective system for the devolution of revenue management.

“Historically, Nigeria implemented a favourable decentralization of taxation during two specific periods: between 1948 and 1949, and again from 1966 to 1967. During these times, the country allowed regions to retain a larger share of highly profitable taxes, which significantly boosted regional revenue,” said Dr Wani.

“These taxes included not only import and export duties but also a range of other taxes—possibly totalling between seven and nine types,” he said.

“This decentralization approach can serve as an important lesson for us as we consider how to effectively manage our oil revenues and promote regional economic development,” he stated.

Key government officials present at the opening of the forum included Mary Ayen, the first deputy Speaker of the Council of States, the Minister of Finance and Planning, Dr Marial Dongrin, the Minister of Federal Affairs, Lasuba Wongo, the Governors of Upper Nile, Unity, and Eastern Equatoria—James Odhok, Louis Lobong, and the Deputy Governor of Central Equatoria, Paulino Lukudu.

Also, in attendance were the chairperson of the National Constitution Review Commission, Dr Riang Yer Zuor, a representative from Western Bahr el Ghazal State and officials from the Ruweng Administrative Area.

The United Nations Mission in South Sudan (UNMISS) and the United Nations Development Programme (UNDP) supported the Fourth High-Level Forum on Fiscal Devolution and Revenue Management in South Sudan organized by the Council of States in collaboration with the Ministries of Finance & Planning and Petroleum.

Some of the stakeholders include members of civil society, lawmakers, and academia in support of the National Constitutional Review Commission.

The experience is among the oil-producing states and communities and learned best practices for how wealth is shared among the federal constituent units in federalism.

The forum deliberates on the best fiscal distribution mechanism that would befit South Sudan in its quest for the federal system.

The forum made a follow-up with the relevant stakeholders from the government institutions and oil-producing states and communities on the progress made on transparent management of environmental issues and sharing oil revenues.

The meeting formulates an operationalization plan of the previous resolution and the policy recommendations to mitigate conflict, and challenges facing the effective implementation of the provisions of the law on oil revenues sharing and environmental management.

It also creates a dialogue between the national institutions and states and community development committees in charge of oil revenues management.

The forum enhances understanding of the existing laws that manage the revenues and identifies the areas to be considered in the constitution-making process.