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The VAT Struggle : Lessons for the North

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By: Sani Danaudi Mohammed

The current VAT struggle between the Federal Government and two states in the South, Rivers and Lagos, is sending strong signals to the slumbering North. Obviously, they, the northern states, have abandoned the agriculture sector which could put the region on a global radar as a formidable exporter of cash crops to the international community. At the state level, the North is unfortunate to find itself under different clueless regimes. The governors’ overdependence on the federal allocations has finally forced the region to its knees, begging for alms to survive. It is incontestable that most states in the northern region would be completely on their knees should Rivers and Lagos States succeed in accomplishing their noble dream of becoming revenue collectors.

The term ‘VAT’, Value Added Tax, is a consumption tax that is being exploited by many developed and developing countries to great advantage. In any clime where consumption is key, VAT cannot be evaded. The truth of the matter is that the economic development and growth of any nation depends on its government’s ability to generate adequate revenue in order to effectively provide various infrastructural facilities and amenities to meet the growing needs of its population. Success in meeting its population’s needs enables a nation to maintain its pride of place among the global comity of nations. Proceeds from VAT have brought about wonders of socio-economic progress and infrastructure development in America, United Kingdom and France, to mention but a few.

Nyesom Ezenwo Wike, the Rivers State governor, is currently taking the bull by the horn. A trained lawyer cum economist and former Minister of Education, the iconoclastic Wike, by his resilient stance on making VAT count in Rivers State, seems to have jarred some of his counterparts in other Nigerian states from sleep. And such stance has the potential of phasing out unproductivity on the part of many state governors who contribute little or nothing to the federation account. It is also capable of discouraging mediocre individuals with knowledge deficit on how economy works from contesting political leadership positions like governorship. With the development in Rivers, the installation of VAT will increase the blessings already existence in the oil-rich state. but Rivers State is not alone in this radical but promising move. The Lagos State governor, Babajide Samwo-Olu, has followed suit with the signing, into the law, a bill that will empower the State of Excellency to collect its VAT. This move will, no doubt, justify the sustained clamour for the replacement of economically tactless state gobernors with enterprising and visionary ones who have the will to generate productive ideas as well as translate such to resources for the overall good and interest of their people. Leadership, it must be stressed, is not a walk in the park. It entails responsibility. And to be responsible, a leader must be constructively creative.

In Nigeria, tax collection has become practically impossible, given the uninspiring reality that both the tax collectors and the tax payers share different sentiments in relation to VAT. The current global oil glut has adversely affected the revenue generation status of Nigeria. The over 60% drop in oil price to less than $40 per barrel was unanticipated by President Buhari-led government. And this has resulted in over 80% fall in the yield (spread) per barrel of oil produced in Nigeria. This markedly steep decline in the country’s revenue accounted for the 2016 budget deficit of over N2trillion, An untoward development like this has precipitated the continuous devaluation of the Naira, while the Gross Domestic Product( GDP) growth is slow, inflow of foreign direct investment has been cut down, bringing about rising inflation and growing unemployment.

The FG has put a stop on capital projects while allocation to the states of the federation has reduced. This has resulted in the inability of many state governments in the nation to honour the social contract (between them and the populace) which constrains their provision of necessary infrastructural facilities and pay workers’ salaries ranging as and when due. It is, therefore, very clear that there is the need to diversify the revenue base of the nation, and VAT is the panacea. As a major revenue source of advanced nations of the world, VAT is not well exploited to great advantage the Nigerian government.

Section 46 of the VAT Act introduces new definitions for animal feed and commercial aircraft spare parts and components. The definition of goods and services has been reviewed, as animal feed now refers to any raw, semi-processed or processed product which is fed to domesticated and other animals raised and slaughtered for human consumption as beef, goat, lamb, pork, chicken, fish and other kinds of meat. Such feed is also given to animals cultivated and raised for the production of milk or eggs as well as other sources of protein and nutrients useful to humans. Commercial aircraft spare parts and components, according the review, now refer to engines, propellers, radio apparatus, instruments, appliances, furnishing, parts of any of the foregoing, and generally any other article of whatever description maintained for installation in a commercial aircraft in substitution for parts or articles removed. All forms of tangible properties, movable or immovable, but which do not include land and building, money or securities.

Our northern governors must begin to see government and governance beyond addressing gatherings and making public speeches, Political leaders in Nigeria have, for decades, been riding on the coat tails of family privileges to acquire wealth by faulting, on many occasions, our Constitution. It is obvious that politics in Nigeria is now becoming a business of the weak-minded individuals who lack the vision to see beyond their noses to create ideas and innovations to generate income for infrastructure developments and create jobs. We all witnessed the plight of states’ legislations across the country, which mandates payment of huge amount of money to former governors and their deputies to the detriment of the electorate.

Since there is pegged monthly allocation coming from the federal purse which is not determined by the amount contributed by the federation states, many governors are more than lazy in contributing to the pool of fund expected to be shared at the month end. But they are quick to claim glory for voting figures during general elections. Indeed, it high time every state government learnt to steer its population towards contributing resources for the development of the state. We read from our archives about how the late Premier of the defunct Northern Region, Sardauna of Sokoto and his counterpart in the Western Region, the late Obafemi Awolowo exploited this capability to great advantage in building very solid economic and educational structures which still remain the pride of the country.

The founding fathers of Nigeria were never this lazy. While Nigeria operated regional system of government, it became healthy competition among regional leaders, striving for development of their respective regions and people. While multiple streams of income generation were initiated, no one went to bed and wait for monthly allocations as the case is now. On a personal note, I see Wike and Nasir El-Rufai as the most radical political leaders in this country. The late Maitama Sule (Dan Masanin Kano) described such breed of politicians as responsible rascals because they are exactly the crop of leaders Nigeria needs now. They have been courageous to speak and implement policies and programmes which they consider right for their states and people, no matter whom their decisions may hurt.

On arriving Kaduna from Abuja on Saturday for a function, I, while passing through the busy Mando express way, saw young men. They were well dressed in uniform. And I kept wondering whether or not they were security agencies. Little did I realize that they were officers of Kaduna State Transport and Environmental Law Enforcement Agency (KASTELEA). This is one of the sundry initiatives boldly taken by Kaduna State to take the youths off the street. The major bye-product of this radical move is the emergence of a new Kaduna State under El-Rufai’s watch. It is true that Wike and El-Rufai are pacesetters while others follow. This is because they have set standards in terms of revenue generation. The cities of Kaduna and Port Harcourt currently wear a new look, as flyovers are beautifully scattered all over just because these two states are able to develop capacity for finding an alternative method of revenue generation rather than rely always on the federation account.

According to the available records of internally generated revenue (IGR) in the 36 States of the Federation in the year 2020, Lagos State topped the list, followed by Rivers, Delta, Ogun and Kaduna States. These states generated more than what other 31 states generated as IGR combined, which is why other states are financially dependent on the federation account where they account for 50% , 35% to local governments while the Federal Government is left with only 15% of the generated revenue.

In conclusion, it is evident that, should the governors of Rivers and Lagos States succeed in their plight then, like Governor Inuwa Yahaya of Gombe State said, many states will collapse. It is not time for begging for alms but this is critical time for the northern states that are left behind to begin to think about the constructive ways to improve on their internally generated revenue. Otherwise, the sinking ship will spare no one. Though, the Appellate Court has ordered for the stay of execution of the earlier judgment secured by the Governors of Rivers and Lagos States with respect to the signing, into law, the bill that will empower the state governments to collect VAT, the wounds are not yet healed. Anyone accusing Wike or Sanwo-Olu on this needs urgent reorientation. Otherwise, he or she can be said to share the same lazy mindset with the of the northern Political elites in question.

Sani Danaudi Mohammed
National President,
Arewa Youths Advocate for Peace and Unity Initiative, Writes from Bauchi.

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Opinion

Northern Nigeria’s Silence Amidst Rising Injustices: A Call for a Return to Principled Leadership

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The worsening security situation in Northern Nigeria is no longer merely a concern—it has become a full-blown crisis threatening the lives and liberties of millions. Kidnapping, once considered the work of hardened criminals, is now perceived as a lucrative trade. Even more disturbing is the encroachment of this practice into governance, with reports of state authorities detaining citizens under questionable circumstances, particularly young protesters. These developments raise difficult questions about the strength and integrity of leadership in Northern Nigeria and leave us wondering whether the region still has leaders who genuinely represent its people.

The recent detention of minors, allegedly in unhealthy conditions, illustrates this chilling trend. These young individuals were reportedly taken by the authorities while engaging in a protest to call for better governance. Their alleged crime? Waving a foreign flag, in this case, the Russian flag, which authorities deemed treasonous. They did so, perhaps naively, without recognizing the potential implications, yet the state treated them with severity, reportedly requiring a staggering N10 million per person as bail. In contrast, individuals in Southern Nigeria have raised foreign flags and voiced secessionist sentiments without facing equivalent punishments.

This discrepancy raises difficult questions about the consistency of the law and whether it is applied equally across the country. Why are Northern youth held to such strict standards while similar actions in other regions seem to be treated with leniency? Historically, the North was known for its stalwart leaders—individuals who stood up for the people, challenged the government when necessary, and never allowed the region to be compromised. Leaders like Sir Ahmadu Bello, the Sardauna of Sokoto, Alhaji Tafawa Balewa, and Malam Aminu Kano left a legacy of dignity, integrity, and advocacy for Northern interests. These figures prioritized the wellbeing of their people, standing up against exploitation and injusticeTheir voices resonated across Nigeria, leaving an indelible mark on the nation’s political landscape. Today, however, the lack of a unified voice from Northern leaders is disheartening. In the past, these leaders would not have hesitated to demand justice for the detained minors or to negotiate on behalf of their people. Now, the silence of Northern elites on issues like insecurity, youth incarceration, and poor governance has left a void. Instead of elders standing firmly to shield and protect the region’s youth, we are witnessing a tragic indifference that has left many young people feeling abandoned. This crisis of leadership in Northern Nigeria has had severe consequences. Kidnapping and banditry are ravaging communities, youth are disillusioned, and the voices of the people are ignored or, worse, suppressed.

The North is bleeding, and without intervention, the situation will continue to deteriorate. To the elders of the North, if indeed they still exist in spirit and purpose, it is time to rise. The North needs a collective, principled voice to stand against injustice and ensure that the region’s youth are protected and that their futures are not sacrificed to lawlessness or state oppression. The need for Northern Nigeria to reclaim its dignified, protective, and principled leadership has never been more urgent. It is time to break the silence.

Abubakar Ibrahim can be reach via:

habuibrahim76@gmail.com
+2348098454956

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Opinion

Barau’s Failed Strategy Again, By Adnan Mukhtar

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Adnan Mukhtar T Wada

There’s a Chinese proverb that says, “the mighty oak falls, while the flexible willow survives.” This saying implies that even the strong and mightiest can fall or fail, while the seemingly weak and insignificant remain standing. The secret to this does not lie in egoistic tendencies, machiavellian plots or deploying attack dogs to undertake one’s biddings. It lies in humility, adaptability and resilience, reminding us that true strength lies not in external power, but in internal flexibility and determines willingness to recognise and heed proper advice when given one.

I initially hesitated to respond to the rejoinder on my article about Senator Barau’s poor political strategy. However, I’ve decided to address it for two key reasons: to provide further clarification on the senator’s strategy and to set the record straight that my opinions are entirely my own, unbiased and uninfluenced by any external sponsorship.

But first, I will like to correct the character (or is it writer)’s tendency in quoting Quranic verses to hoodwink people gullibly. No true Muslim ever denies that it is Allah the supreme that gives power, but it is the Holy Quran itself that emphasises the importance of human action and responsibility.

For instance, Surah As-Saff Ayat 14 states that Allah helps those who help themselves, highlighting the need for human effort in achieving success. This verse shows that quoting Quranic verses to deceive innocent people doesn’t change the reality that our actions have consequences.

Additionally, Quran 13:11, says that Allah won’t change a people’s condition unless they change themselves. This verse underscores the importance of personal agency and reform.

It’s also essential to recognize that the Quran encourages reasoning and critical thinking. Quran 18:54 reminds us that humans are prone to disputes, but we should strive for constructive arguments, appealing to reason and acknowledging the truth.

These and many teachings of the Quran demonstrates that quoting Quranic verses to deceive others is misguided and doesn’t align with the principles of Islam. Attack dogs should be wary of how they throw our revered religion into the fray of greed.

Now to the crux of the matter, I’d like to first correct the character who responded to my article. The title of my piece is, “Senator Barau and his poor political strategy.” But by conveniently omitting the word “poor” while making reference to the article, I will think that they did not read the article comprehensively because they were in a rush to collect their little share of the national cake.

Those familiar with me in the media space and beyond can attest that I’m an independent thinker with unwavering ambition. Despite Senator Barau being old enough to be my father, I take pride in speaking truth to power, unafraid to challenge the status quo.

I have been writing and publishing articles in the national dailies since a year after completing my IJMB programme at Kano State College of Arts, Science and Remedial Studies, some 15 years ago. My digital footprint is there on the internet, the pseudonyms who were sponsored to write the rejoinders know this better.

My independent mind prompted my ambition to contest for election in 2019 and to aspire for the same office in 2022. I’m a media consultant with clients from different sectors and a university lecturer, I’m therefore too big to be sponsored by any individual for pecuniary interest much less one that involves Barau. The allegations are not only shallow but myopic and defensive in the absence of any substantial argument to counter the fact that indeed Barau’s political strategy is very poor!

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That is why I found the rejoinder taken too personal, failing to address the issues raised. This has proven the title of my article referring to Senator Barau as a politician with a poor strategy from day one. The strategy he is using to respond to me is in itself a failed one.

It’s baffling that a supposedly seasoned politician like Senator Barau would engage in a pointless battle with someone from his own Senatorial District simply to further his ambitions of becoming Kano’s governor. Considering his confrontational history with humble appointees like Abdullahi Muhammad Gwarzo, I question his ability to handle a formidable opponent like Murtala Sule Garo. Not only do they hail from the same local government, but Garo also boasts a broader support base and superior people mobilisation skills.

What’s more, Garo wields significant influence over the party structure in Barau’s own backyard, which is precisely why Barau seeks to oust Dr. Abdullahi Ganduje as APC National Chairman. However, this move overlooks the fact that a former governor leads the party in the state, where there is currently no serving governor.

People like Abubakar Kabir Bichi and Engineer Hamisu Ibrahim Chidari, a former Speaker of the Kano State House of Assembly are both grassroots politicians who were forces to reckon with in Barau’s 2023 election. He has been winning elections in this area because of the calibre of people in Kano North who are mostly of the APC.

The sponsored pseudonym accused me of not appreciating the role of destiny in Senator Barau’s ambition forgetting that it was the same Barau who displayed his desperation to convince the President to sack Abdullahi Gwarzo after not consulting any party official including Dr Abdullahi Umar Ganduje at a time the former Minister scored 79 in his assessment scorecard. The Special Adviser to the President on Policy and Coordination will testify to this.

It was said that he did all the maneuvering to test his strength within the APC, it is evident that his little supporters are boasting of this but where is their faith in destiny when you are struggling to see the sacking of someone that did nothing to you?

Garba said and I quote “It is on record that since he ventured into politics, he has maintained a decent image devoid of rancour, acrimony or ill feelings towards others”.

Is it, not the same Barau and his people that were calling Murtala Sule Garo and the former Minister Gwarzo names shortly after the sack? Your people were even mocking him after he was removed boasting that their leader has come of age. Did Barau call any to order?

When people were trooping from the nook and crannies of Kano to sympathise with ATM Gwarzo, Barau was nowhere to be found, apparently due to his guilty conscience.

I have cautioned the Distinguished Senator to stop creating unnecessary enemies for himself in the zone he comes from. The Kano North is a no-go area for the NNPP, he should understand that even if you nominate 3 Ministers from Kano Central, they can’t defeat Senator Kwankwaso’s NNPP.

Kwankwaso is the strong man of Kano politics and is in full control of the Kano Central and Kano South. His only threat is the Kano North because of the aforementioned stakeholders.

Senator Barau should apply a new strategy of uniting party members by working together without plotting evil against anyone.

The defectors that he boasts of receiving, claiming that he is giving APC more strength is nothing short of a Kannywood movie in full glare. He should tell me any serious and grassroots supporter he has so far welcomed to the APC other than Kannywood actors and Tik Tokers in their desperation to collect their share of the National Cake ‘Awanki Gara’.

It’s evident that Barau is lacking in political strategy, people who lack that will be committing blunders at the helm of the affairs of Kano. It will be suicidal to elect a man of his calibre to govern a mega state like Kano.

The pseudonym boasts that the position of Deputy President of the Senate is bigger than the office of a governor. A whole governor? The Chief Security of Officer of a whole state? This writer should check his head again.

Kano needs someone who will be serious with governance, who will bring and attract investors not from receiving Tiktokers and Kannywood actors to receiving Nollywood and Bollywood actors at the Africa House.

To be forewarned is to be forearmed!

Adnan is a political commentator, he writes from Abuja

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Opinion

Re: Barau and his political strategy

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By Garba Tsoho Dangoro

It is Allah that gives power to whosoever he pleases, and it is only him that possesses the might to take it at any time he deems fit and none can question him – Quran chapter 3, verse 26.

But reading the piece by one Adnan Mukhtar on the above subject matter makes one wonder if the writer and his sponsors appreciate the role of destiny in the affairs of men for them to have made the postulations in the piece where they attributed the attainment of political leadership totally to the schemes of men.

Perhaps it is the fixation on tarnishing the image of the Deputy President of the Senate, Senator Barau I Jibrin, CFR, that had made the writer blind to common reasoning. A little due diligence would have saved him from embarrassment and spared us the needless alleged conspiracies about the power tussles he talked about that are, at best, the figments of his imagination.

To the best of my knowledge, all the people he mentioned in the write-up owe their achievements in life to Allah and cannot, therefore, hold any grudge against any man because they know that no man can deny another what is divinely bestowed.

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That said, it would be pertinent to address some of the misrepresentations in the write-up so as not to mislead the public or paint certain leaders in a bad light.

Only the most gullible would believe that Senator Barau was behind the removal of Abdullahi T. Gwarzo as a minister, as claimed by the writer, as everyone knows that the appointment of a minister and removal from office is at the discretion of the President.

We witness how many ministers were appointed and relieved of their appointments by various presidents. None has attributed such removals to another person other than the president, who merely exercised his prerogative to choose whoever he likes to work with as provided by our constitution.

Along this line, one can recall how General Abdulrahman Dambazzau was appointed minister by then-President Muhammadu Buhari and replaced with General Salihi Magashi. Former President Buhari also appointed Alh Sabo Nanono but was later relieved of his appointment. Hon. Umar El Yakub replaced him.

Also, one can vividly recall the case of Maryam Shetty who was nominated and was even at the Senate for screening only for her name to be withdrawn at the last minute. Like Shetty, Jemila Salik was nominated by President Goodluck Ebele Jonathan in February 2014, but she was replaced with Malam Ibrahim Shekarau hours before her confirmation.

In the scenarios mentioned above, nobody attributed the change of those affected to anyone but to the Presidents who reserved their rights to choose whoever they wanted to work with.

The commendations trailing the nomination of Hon Yusuf Abdullahi Ata were not limited to the APC as it was meritorious and done to balance the equation in the Kano State political arithmetic. Everyone was wowed when Senator Rufai Hanga (NNPP, Kano Central) told the world on the floor of the Senate that he was threatened with Ata’s appointment, describing him as a political juggernaut and master of the game.

Senator Barau is a humble, respectful and pro-masses politician; these traits have endeared him to the elites and masses, including traders, artisans, farmers, women, youths, and clerics in Kano and beyond.

It is on record that since he ventured into politics, he has maintained a decent image devoid of rancour, acrimony or ill feelings towards others. That’s his selling point and perhaps what is giving Mukhtar and his sponsors sleepless nights.

Even the average observer of Kano politics knows that Senator Barau’s primary interest is to serve the people and improve the lot of the masses.
He has been doing that very well through his interventions in infrastructural development, education, health, agriculture, power, quality legislation, and outreach to people.

Only a few politicians can match the depth of Senator Barau’s reach, which has touched people’s lives since his days as a member of the House of Representatives to when he became a commissioner, a senator, and now deputy president of the Senate and First Deputy Speaker of the ECOWAS Parliament.

That is why many people are defecting to the APC in Kano, not for pecuniary reasons, as mischievously contrived by the writer. Notwithstanding the attempt to downplay such accomplishments by other parties through the sponsorship of a few persons to make spurious claims, one cannot take away the fact that Senator Barau has attracted so much development to not only Kano but to the entire Northwest region as evidenced by in his sponsorship of the North West Development Commission and other bills.

The resort to saying that people are defecting for what they can collect from him is a sign of panic. Still, Senator Barau is not bothered, knowing that Kano is an APC state that only suffered a minor setback in 2023 but is about to be reclaimed.

Moreover, the people of Kano would ultimately decide who governs them in 2027 based on their assessment of those presented to them and not on the bias of a few selfish individuals who may want to sacrifice merit for their gains.
Kano voted for Rabiu Musa Kwankwaso from Kano Central in 1999, for Malam Ibrahim Shekarau from the same zone for two consecutive terms, and for Kwankwaso back for another four years, giving the zone 16 years.

It is the same people who would again decide what is best for them in 2027 and would not be blackmailed into sacrificing merit to please a few self-centred individuals.

For the information of Mukhtar and his sponsors, the position currently occupied by Senator Barau, the Deputy President of the Senate, is higher than a governor’s seat. The people of Kano State, across the 44 local government areas of the state, are clamouring for him to come and govern the state to change the developmental trends based on his antecedents and sterling service to the people.

Allah SWT will shame Mukhtar, his sponsors and co-travellers when Barau becomes the governor of our beloved state, Kano, Insha Allah, come 2027.

Amin Ya Allah.

Garba Dangoro is of Kumbotso LGA of Kano State.

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