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The VAT Struggle : Lessons for the North

Published

3 years ago

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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

Kano APC Youth Coalition, Nasir Ja’o’ji and Party Survival

Published

13 hours ago

on

November 21, 2024

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By Abba Anwar

At cursory look of the title of this piece, what readily comes to mind, is the existing relationship between Kano APC Youth Coalition and Nasir Bala Ja’o’ji, in APC realignment process or procedure. This really captures the picture clearly from the surface. But there is more to it.

Kano APC Youth Coalition came into being more as a one-man-show, probably self-styled and crafty moved. But subsequent engagements of the Coalition, proves otherwise. Some people thought, the Coalition came handy canvassing for primary support for some quasi – politicians, unproductive as they appear, who always hide behind the scene and make a cover under good image of the party leadership at all levels.

Many people, including me, thought this Coalition under Adamu Unguwar Gini, would operate in desperation, under the guise of recuperating party youth into one basket for misleading purpose. As some elders, would-be-elders and self – acclaimed elders operate from clandestine position.

For sure the Coalition, prepared before its debut. Party elders, leaders and other stakeholders were contacted for direction and guide. This, I was not told, but I observed. I understand this by looking at its growing process. I equally understood that, the leadership of the Coalition was one time tilted towards particular side of the prism. But experience and good intention, in my view, necessitated for spreading the leadership into all sections of the state.

It is this strategy, among others, that gave individuals like Hon Nasir Bala Ja’o’ji, to see reason in aiding the movement. Though he is the Zonal Leader of the movement, from Kano Central. But his contribution towards having effective and efficient implementation of the core central objectives of the group, that is making the party stronger and domineering at all levels, gives him the courage to be one of the principal stakeholders.

The recently announced donation of Eighty Eight Million Naira (N88m) to the Coalition for the 44 local governments tour and empowerment of 100 people from each local government, says a lot in his enduring commitment to the expansion and making the party strong enough to compete comfortably come 2027, at both state and national elections.

The proposed local governments tour and empowerment programme scheduled for time to come, is an important pointer to the fact that, this Coalition has very strong and fearless individuals that are ready to sacrifice their time, energy and resources towards political alignment and realignment within the party structure.

People like Musaddique Wada Waziri, Malam Abdussalam Ishaq (Kumbotso), Umar Maiwayo Rimingado, my younger brother Inyass Habibu, Ibrahim Danyaro, Jijitar, Abubakar Indabawa, former Vice Chairman, Warawa, Dini Manchester Kankarofi, Abubakar Aminu, Hon Barwa, Sani Gilashi, Danfillo, Idris Zango, among many others, are playing very critical role in strengthening the grip of the party across the state and the nation at large.

One interesting thing about this combination is, here are important actors, who, for strategic reason, come from all “sides” of the party stalwarts. Party stalwarts because they are the shining stars of the party in the state.

Stars like Deputy Senate President, Barau Jibrin, former Deputy Governor and Gubernatorial Candidate for 2023 election, HE Nasiru Yusuf Gawuna, former Commissioner for Local Governments and Chieftaincy Affairs and Deputy Gubernatorial Candidate for 2023 election, HE Murtala Sule Garo, Hon Abubakar Kabir Bichi, among others.

But all the Stars above lineup behind our Flagship, the National Chairman of the Party, Dr Abdullahi Umar Ganduje, CON.

After critical review of the intention of the Coalition, Nasir Ja’o’ji comes to believe that, this Coalition means well for the party. And should therefore be facelifted, encouraged, guided and supported. After believing that, the Unguwar Gini led group, “… belongs to everybody and does not belong to anybody…”, Ja’o’ji made it compulsory to always give a helping hand to the group. More importantly, since the Coalition means genuine support for the party at all levels.

Let me still insist that, if Ja’o’ji a political appointee under President Tinubu, as a member Governing Council, of the Federal College of Education (Technical), Potiskum, Yobe State, can do this, contributing N88m, I’m sure other political appointees under the same administration can also replicate.

Because supporting Coalition in the same pace and manner, equals to supporting the party, the National Chairman, and President Bola Ahmed Tinubu at the same time. In my view therefore, Ja’o’ji apart from being a pacesetter among all political appointees from Kano, he is genuinely a firm believer of APC programmes and policies.

My appeal is for the National Chairman of the party, Baba Ganduje, and the Tinubu led administration, to kindly see reason for continued support for the Coalition and similar ones across all the 36 states of the federation, including the Federal Capital Territory, Abuja.

As Unguwar Gini model shows in Kano, Coalition of this nature is not taking away any responsibility of party leadership. We can see how harmonious is the relationship between APC Youth Coalition and state leadership of the party, under Prince Abdullahi Abbas. Another pillar of great substance.

Neutrality of this Coalition, in my own understanding, is clearly manifested in how our shining stars give helping hands to the movement. They are eager to give resources and moral support. It is indeed the neutral posture that gives Ja’o’ji the strength to be of that magnitude.

Anwar, was Chief Press Secretary to the former Governor of Kano State, Dr Abdullahi Umar Ganduje and can be reached at fatimanbaba1@gmail.com

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Opinion

Open Letter to the Former Minister of State, Housing and Urban Development

Published

4 days ago

on

November 18, 2024

By

 

Abba Dukawa

As Muslims, we believe in Al-Qadar, the concept of Divine Decree or predestination. This pillar of faith reminds us that everything, good or bad, comes from Allah. We trust in Allah’s wisdom, love, and plan, acknowledging that our lifespan, deeds, and circumstances are recorded in the Lauhul-Mahfuz.

In light of your recent dismissal, I’m concerned that your public statements blaming certain individuals for your removal contradict this fundamental Islamic principle.

You admitted President Bola Tinubu explained your removal was due to the need to balance Kano State’s political representation. Quoting you: “I was surprised, as I wasn’t found guilty of wrongdoing or poor performance… Kano North was overloaded with political officers, hence the need to strike a balance.”

I urge you to reflect on Quran 2:286, “Allah does not burden any human being with more than he is well able to bear,” and Surah Ali ‘Imran, verse 26, “Allah! Possessor of the kingdom, gives the kingdom to whom He will, and takes the kingdom from whom He will.”

Your rise from local government chairman to deputy governor and minister was Allah’s will. Similarly, your dismissal is part of Allah’s plan.

I caution against desperation and blaming others. Instead, trust Allah’s wisdom and providence.

As a Muslim, it’s inconsistent to think anyone can alter Allah’s plan for you. I believe those close to you are misleading you by allowing you to publicly blame others for your dismissal as Minister of State, Housing and Urban Development. It’s unwise to grant interviews after being relieved of duty, as it comes across as desperate—and your media handlers are equally at fault for permitting it.

Why have the rest of the ministers who were equally sacked remained silent? Why are you the only one expressing dismay for being relieved?

Dukawa writes from Abuja and can be reached at abbahydukawa@gmail.com

 

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Opinion

Sokoto:Sen. Wamakko’s 9 Years Of “Poor” Representation In The Senate

Published

4 days ago

on

November 17, 2024

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Sokoto is known for leadership and where religious knowledge is deep-rooted. So, leaders from the Caliphate are well respected and honour by people from other parts of the country. The reason is clear, Sokoto is the seat of Caliphate that produced great leaders and Islamic scholars of high repute.

So, nobody expects less when it comes to leadership in the state, but if you are a keen observer and follower of activities in Nigeria, you would wonder if the Sokoto they are talking about today, have any link with the activities of the great leaders and scholars that were in charge of Sokoto of years back. Certainly, not, because the kind of leadership is not the same, today its political leadership and followers of Nigerian politics know that, the present day politics can’t provide the kind of leadership the Sokoto of the past provided.

Analysts questioned the negative trend ascribed to Sokoto state. They asked several questions including but not limited to how can the great Sokoto state be rated among the educationally backward states in Nigeria? Why should Sokoto be rated among the poorest state in Nigeria? They are worried that it is not acceptable to count Sokoto state among states with negative statistics on child and maternal health; malnutrition should not be an issue in Sokoto. In fact Sokoto should not be among the state that should be faced with insecurity challenges.

But all these and more are prevalent challenges in Sokoto state and this call to question the kind of leadership the political class in the state are providing. For those who are concern about the happenings in the state, are begining to doubt all the positive publicities some top politicians in the state are enjoying for years.

One politician in the state that fortune has smiled on since the inception of this political dispensation in 1999 is Senator Aliyu Magatakarda Wamakko, he has been around for so many years, from the grassroots to the mainstream politics of the state Wamakko has been at the forefront of leadership in the state. He was deputy governor for 7 years, governor for eight years and now Senator for nine years.

Wamakko enjoyed positive publications as a governor and had some landmark achievements ascribed to his name. He was seen as one of the performing governor in the state. Even though critics and analysts have contrary opinions. They said in terms of impact and cost analysis of some of his projects and or their lifespan/durability, Wamakko’s tenure is more of a disservice to the people of Sokoto than a blessing.

To buttress their argument, the critics and analysts, drew the attention of people of Sokoto to compare what his predecessor Sen. Ibrahim Lamido has done in terms of quality, durability and relevance to the general wellbeing of Sokoto people and the plethora of substandard projects Wamakko littered Sokoto with.

They further argued that to assess the quality and sincerity of Wamakko as a leader, his nine years as a senator should be critically scrutinized and the result of the findings be made public for all to judge. According to the analysts, Wamakko has not represented his people well. As a Senator, they said, he has held privileged committees that should be beneficial to the entire Sokoto, but no soul aside members of his inner circle that has benefitted from his senatorship seat.

They explained that the years of neglect of local governments like Gudu, Tangaza, Binji, Silame is the obvious reason why the Lakurawa terrorists group existed in the area for over 8 years unnoticed by the Nigeria government.

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Sokoto North senatorial district comprises of Sokoto North and Sokoto South, Wamakko, Kware, Binji, Silame, Gudu and Tangaza, you go round these local government areas and point to one particular thing the senator has done for members of the senatorial district.

Yes the eastern senatorial district of Sokoto is facing serious security threat in the last seven years, and this has affected socioeconomic activities, which has increased the level of poverty in the region. However, for the last 17 months, things have began to change for better. Purposeful leadership and deliberate actions to change the fact of things can be witnessed.

The purposeful leadership of senator Ibrahim Lamido and deliberate attempt to find a lasting solution to the many challenges affecting the region are so glaring for all to see. For instance, the deliberate investment in education of youth from the region is one sure way of liberating the region from the grip of unscrupulous elements taking advantage of poor level of education in the area to recruit terrorists.

In an unprecedented move and boldness to confront the deep rooted challenges of poor quality of education, Sen. Lamido has sponsored about 50 youth from the zone to study in various fields of human endeavours in India. This is in addition to many interventions in the education sub-sector from the senator, who out concern to the education of youth, declared war against poor education in the region.

This is not happening in any of the senator districts of Sokoto including Sokoto central where Sen. Wamakko spent 9 years representing his constituents in the Red Chamber. It has never happened, it is not happening and I am not sure if there is any plan to do anything like this by the two other senators for the teeming youth in their respective zones. All the eight local government areas of the senatorial district need education intervention including the two metropolitan, but nothing close to this has ever happened. Why won’t Sokoto be rated as educationally backward state when leaders don’t see the need to invest in education of the teeming youth?

Due to the security challenges, Sokoto state is faced with a lot of humanitarian challenges as a result of banditry attacks. And Sen. Lamido has responded well to these challenges. He did not stopped at distribution of relief materials and visitation of victims of banditry attacks, rather engaged in a very robust package of intervention where over a hundred of widows were empowered with N250,000 each to engage in micro and small businesses so as to become self-reliant.

This is done, to facilitate the resuscitation of the economic activities of eastern senatorial district that has suffered from bandits attacks and Sen. Lamido is doing all these from the point of knowledge, that no nation can survive insurrection if it’s people are economically incapacitated.

In the entire nine years of Sen. Wamakko, nobody can provide the record that he has done this kind of gesture. Nobody is talking about giving rice and clothing materials to widows and orphans. Nobody is talking of photoshoot with people who genuinely need humanitarian assistance, but leaders are taking pictures to further exploit people in need of assistance.

Sen. Lamido’s contributions in fighting insecurity in the eastern part of Sokoto if replicated by other senators in the state, nobody would be talking about the Lakurawa terrorists group in Sokoto. Sen. Lamido had from time to time assist communities’ efforts towards ending insecurity. In fact, with permission by the federal security agencies, Sen. Lamido funded the civilian JTF to support the mainstream security personnel in fighting the terrorists operating in the zone. This is in addition to many efforts that can’t be express in black and white due to their sensitive nature all in a bid to restore peace and normalcy in his region.

Such exemplary leadership is lacking in other parts of the state including in Sokoto North, Sokoto South, Gudu Tangaza Binji, Wamakko, Silame and Kware where Senator Wamakko is representing.

Needless to engage in lengthy write up, if Sen. Wamakko in his 9 years did 10% of what Sen. Lamido has done in 17 months in fight insecurity, the Lakurawa terrorists group wouldn’t have penetrated into Nigeria.

The security challenges in the eastern part of Sokoto is receiving the adequate attention of Sen. Lamido. Beside his contributions in fighting banditry, the senator he has equally provided many communities with good drinking water, relief materials and other supports to the Internally Displaced Persons (IDPs) with a view to making their better.

Signed:
Concern Sokoto State Progressive Mind.
Convener

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