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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.

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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.

Opinion

Inside My Conversation With A Kwankwasiyya Disciple -Hamisu Hadejia

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Last week, I rang my friend who is a Kano-based Kwankwasiyya disciple to know more about the rumour I heard about RMK joining APC. Though not in the inner sanctum of the Kwankwasiyya Movement himself, I knew my friend would know something I didn’t.

I rang because I could not, on my own, see any sincere, Talakawa-centric, Arewa-benefitting or pan-Nigerian justification for Madugu to make such a move.

For I know, at the popular level, which is what matter most to me, it is indisputable that all PBAT’s neoliberal, IMF-inspired economic policies have succeeded in are plunging the poor and middle class deeper and deeper into unprecedented hunger and poverty—so Kwankwaso’s justification cannot be framed as pro-poor or Talakwa-centric.

At the regional level, everyone knows that after Arewa contributed at least 60% of the votes that brought him to power, PBAT has turned around to not only bite the fingers that fed him but also actually cut off those fingers in a manner that defies all logic, commonsense, and rationality— so Kwankwaso’s justification can neither be generally framed as Arewa-centric nor particularly pro-Kano.

My contact (who I am sure will read this) minced no word in confirming to me that yes the rumour I had heard wasn’t groundless before going further to educate me about Kwankwaso’s or Kwankwasiyya’s calculations (aka justifications) for such a consideration (if not a decison).

“Hamisu, I have no doubt about the sincerity of your interventions which I’ve been following closely, however, I’ll tell you this: while ordinary folks like you and I have our eyes on 2027, politicians like Kwankwaso and others have their eyes on 2031”, he kicked off as I listened with rapt attention.

“Kwankwaso”, he argues, “sees this moment as the opportunity to build the bridges which he would require to actualise his presidential ambition in 2031.” Put in simpler terms, Kwankwaso wants to help PBAT today in anticipation of PBAT paying him back tomorrow in 2031 “ when it will be the north’s turn” to produce Nigeria’s president.

“By hook or by crook,” he added, “Tinubu will bring himself back to power in 2031”. This, according to him, is the reality that Kwankwaso sees and wants to tailor his moves to fit in.

Unable to challenge my friend’s analysis of the Realpolitik behind RMK’s imminent political moves, I now asked about where the poor and Arewa stand in all of this. Here my friend bursts out laughing hilariously before bringing the example back home to me:

“Hamisu, Aminu Ringim (NNPP’s 2023 guber candidate in Jigawa) with his red cap went up and down towns and villages in Jigawa pulling impressive crowds across the state. But what did we end up with? Just one state House of Assembly member!”.

“The reality is,” he continued, “in today’s Nigeria, a politician needs that elite connection to actualise his ambitions. Look at Buhari as an example.”

So I was thoroughly lectured by Sidi.

My take from the chat is: While RMK is grass-rooted and genuinely cares for the poor as seen in many of his pro-poor initiatives, he seems to have now—for public good or ill—found out that there is a point up to which Takawa’s love and support can take a politician. Beyond this point, what matters most significantly, RMK appears to have now discovered, is intra and inter elite alliances. Call it the eliticization of Kwankwaso. Call it Realpolitik. Call it what you may!

Later I thought about other people such as the current NSA who also allegedly has ambitions for the presidency and is no doubt a close PBAT’s ally. What of Nasir Ahmad El Rufa’i’ and his hitherto cosy relationship with PBAT and how it all ended up in tears and regrets. Isn’t RMK taking the risks of squandering his goodwill to join a bandwagon under which he might be thrown the El-Rufai style?

Hamisu Hadejia Wrote From London

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Opinion

From Vision To Impact: How Comrade Waiya is Redefining Information and Internal Affairs in Kano

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By Tijjani Sarki

On the 7th of January,
2025, His Excellency the Executive Governor of Kano State made a decisive appointment—Comrade Ibrahim Abdullahi Waiya was entrusted with the leadership of the Ministry of Information and Internal Affairs.

In just 100 days, the Honourable Commissioner has not only embraced his role with remarkable energy and clarity of purpose, but he has also redefined what it means to serve with passion, strategy, and a deep sense of responsibility.

At his inaugural meeting, the Commissioner outlined a forward-looking vision for the state’s media landscape, emphasizing his commitment to implementing innovative strategies that will enhance the performance, credibility, and reach of state-owned media outlets. He highlighted the importance of strengthening staff welfare and investing in professional capacity building as key priorities, noting that these efforts are essential to ensuring the delivery of high-quality, impactful services to the public.

From the outset, Comrade Waiya hit the ground running, embarking on a comprehensive familiarization tour across key parastatals under his ministry—ARTV, Triump publishing company,Kano Printing Press, and Radio Kano. The goal was clear to foster unity, establish cordial working relationships, and lay the groundwork for a collaborative, performance-driven ecosystem.

EMPOWERING THE INFORMATION MACHINERY:

Recognizing the vital role information officers play in governance and grassroots communication, the Commissioner organized a three-day capacity-building training for information officers across the 44 local government areas of the state. This unprecedented step has reinvigorated the public information machinery, ensuring that the government’s developmental strides are effectively communicated and well understood by citizens.

Furthermore, Comrade Waiya engaged with Senior and Special Reporters (SR & SSR) in a strategic dialogue to enhance the amplification of the Kano state Governor’s developmental agenda—an initiative that underscores his commitment to transparency and proactive media engagement.

He also breathed new life into the once-dormant Gauta Club, creating a vibrant platform for cultural and social exchange among ministry staff and stakeholders.

DRIVING DIGITAL ADVOCACY:

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Understanding the evolving media landscape, the Commissioner inaugurated the H.E Project Promotion Advocates, a team dedicated to projecting the achievements of His Excellency via platforms like Facebook, TikTok, X (formerly Twitter), and Instagram. This has significantly improved the state’s digital visibility and public engagement.

He also held sensitization meetings with online media operators, ensuring a responsible and credible media presence in the digital space.

PROMOTING DECENCY AND DIALOGUE:

In a time when political discourse often falls prey to toxicity, Comrade Waiya’s leadership stands out. He has held meetings with political programme presenters to encourage the use of decent language, as well as engaged political activists on the need for clean and constructive engagement.

Further, he extended a hand of partnership to Friday mosque Imams, seeking their support in promoting peace, unity, and progressive messaging within the communities.

BRIDGING MEDIA AND GOVERMENT:

In a bid to strengthen relationships between the media and the state, the Commissioner organized strategic meetings with media executives and held an interactive session with members of the Correspondents’ Chapel. These engagements have fostered mutual understanding and streamlined communication between the government and the media.

He also facilitated a productive meeting with the National Broadcasting Commission (NBC) aimed at sanitizing the media space and ensuring that content shared with the public adheres to ethical and professional standards.

WELFARE AND INNOVATION:

To tackle the growing trend of misinformation among journalists in the state, the Honourable Commissioner has underscored the urgent need to restore accuracy, integrity, and professionalism within the media space. As a strategic response to this challenge, he established the Kano State Ministry of Information Advisory Council—an initiative designed to elevate the standards of information management and public communication in the state. The Council, initially composed of seven distinguished members and chaired by veteran broadcaster Alhaji Ahmed Aminu, is expected to play a crucial role in guiding media practices and improving the overall quality of information dissemination. Beyond curbing misinformation, the initiative aims to foster a more informed and engaged public, strengthen the credibility of media institutions, and promote a culture of responsible and ethical journalism in Kano State.

One of the hallmark achievements within these first 100 days is the establishment and inauguration of a cooperative society for staff of the Ministry. This not only reflects the Commissioner’s concern for staff welfare but also his vision for long-term economic empowerment.

LOOKING AHEAD:

One of the most impactful events during his early tenure was the Iftar lecture, where veteran journalists and NUJ members gathered to reflect on the way forward for journalism in Kano and beyond. It was a moment of unity, introspection, and shared purpose.

As Comrade Ibrahim Abdullahi Waiya marks his first 100 days in office, his tenure is already a blueprint for what visionary, people-centered, and media-savvy leadership looks like. With a firm foundation now in place, expectations are high and justifiably so. If the last 100 days are any indication, the future of the Ministry of Information and Internal Affairs is bright and promising.

The journey has only just begun, but the impact is already being felt—loud and clear.

Tijjani Sarki
Wrote from Zawaciki,Kano
18th April, 2025

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Opinion

Legislative – Executive Cohesion : DSP Barau’s Multiple Efforts

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By Abba Anwar

Being from the Legislative arm, with outstanding performances, the Deputy Senate President, Barau I. Jibrin, makes extra effort to remind Nigerians the salient achievements of President Bola Ahmed Tinubu’s administration, after rigorous and cumulative legislative engagements by the National Assembly.

This singular act from the DSP, of showcasing deliverables from Tinubu’s executive responsibilities, speaks volumes of amplifying federal government feats, being achieved and at the same time, promoting cohesion, in many instances, between the two arms, legislature and the executive.

Without abandoning his legislative territory and responsibilities, he clearly understands the need for helping the executive to tell the electorate and beyond, how commendable and stressful are democratic dividends trickling down to the citizenry, in a globally challenging spaces. Of which Nigeria is a political entity.

In his un-paradoxical analysis of trending discussions DSP gives bit-by-bit, unambiguous and enhanced account of Tinubu’s fulfillment of his (President’s) part of the social contract entered in the Nigerian project.

The Deputy Senate President is not doing this at the expense of his legislative responsibilities. His legislative primary responsibility ha never been at the receiving end since the inauguration of the 10th Senate /Assembly on 13th June, 2023.

In fact as at December, 2024, he was the highest sponsor of private member Bills, with 21 Bills to his credit. For that he was honoured with the Award of the Highest Number of Private Member Bills Sponsorship by the Senate Press Corps, then. An umbrella platform of both Nigerian and foreign journalists reporting from the Senate.

In my decades of being on this planet, this is the first time I came across a very senior legislative member creating awareness on the activities, programmes, policies and projects of the Executive arm, for posterity purposes. Without feeling short-changed, shortsighted and shorthanded.

Even the nature of Bills he privately sponsored, says a lot in giving you the picture of his resourcefulness, creativity, deeply rooted sensitivity and unwavering responsibility. A dull legislator, cannot do half of what he faces, treats and achieves.

One can spot Senator Jibrin’s intellectual capacity, when you see the nature of Bills he sponsored. Among them are, Development Planning and Projects Continuity Bill (2023) – informed by his worry on abandoned projects all over the federation -, Cyber Crimes (Repeal and Re-enactment) Bill (2023) – emanates from his concern for safer and better Nigeria -, North West Development Commission (Establishment) Bill (2023) – stemming from his quest for quicker regional development for the overall national development- and Federal Polytechnic, Kabo, (Establishment) Bill (2023) – influenced by his zeal for literacy and numeracy for his primary constituency, Kano North and the nation by extension/implication.

As aforementioned, the Distinguished Senator, did bit-by-bit analysis, of the administration’s strive in many spheres of national development, goodwill posture and genuine political engagement. A de facto Tinubu’s spokesperson, of sort, with his higher legislative position, an improved player in the art of legislation and unassuming orator.

As he reminded people the real launching pad of the nation’s woes, he aptly captured the global perspective of the tainted experience. He argued, “In the past decades, all spheres of our country—power, road infrastructure, agriculture, education, health, water, housing, and others—have been begging for genuine attention.

This is coupled with the fact that this government came on board at the time that the entire world economy was and is still quite turbulent due to the high cost of basic goods and services all over the world arising from Russia -Ukraine, and Israel–Palestine wars. Nigeria is certainly not an exception.” This is modernity with scholarship.

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He still acknowledges that, “By May 29, it will be exactly two years since President Bola Ahmed Tinubu’s administration came on board in the country. Yes, we are not there, and we cannot be in the promised land in less than 23 months when the numerous challenges facing our beloved country have weighed us down for decades.

But a journey has started—the road is rough, but it’s for the restoration of our country’s glorious days. It is not easy to rebuild a shattered building.” Doing justice to the entire argument.

The Senator courageously requested Nigerians “… to support Tinubu in his quest to address the challenges facing the country.”

Raising hopes that, “The good news is that the President is genuinely committed to addressing these challenges. Fresh air is already permeating all the country’s spheres, nooks and crannies to the admiration of lovers and good people, irrespective of differences and persuasions.”

On the improved security system and coordinated network, he has this to say, “For instance, admirable success has been recorded in the area of security. Hundreds of terrorists have been neutralised in the North West geopolitical zone. Yes, there are pockets of cases of kidnapping and attacks, but they are minimal compared to before the coming of this administration. The instances of incessant kidnapping on the Abuja/Kaduna road have become history.

In the Southeast, the activities of unknown gunmen terrorising the region have been on the downward side. In the North East, Boko Haram was almost completely eradicated until the recent attacks in some parts of Borno State.”

Adding that, ” I am confident that our gallant members of the Armed Forces will act decisively to smoke them out permanently. The people of the remaining five states in the North East live peacefully and conduct their lawful businesses—commendation to our gallant officers and men of the Armed Forces and other sister security agencies.”

The result of which he highlighted, ” With the enhanced peace across the country, the Federal government has recently launched phase one of the Special Agro-Industrial Processing Zone (SAPZ) to revolutionise and industrialise the agricultural sector. SAPZ aims to transform Nigeria’s agriculture landscape through innovation, private-sector investments and strategic public partnerships.

The zones are designed to create agro-industrial hubs that integrate farmers with processors, reduce post-harvest losses and expand rural economic opportunities. Seven states, namely Kaduna, Kano, Kwara, Oyo, Ogun, Imo, Cross River, and Federal Capital Territory, have been selected for phase one, while Bauchi, Borno, and Gombe are listed for phase 2.”

For taking development to grassroot, Senator Jibrin appreciated Tinubu administration for the establishment of the North-West, North Central, South-East, South-West, and South-South Development Commissions. And for the overall development of the regions. It is still fresh in our memories that it was him who presented private Bill to the Senate for the establishment of North West Development Commission.

For infrastructural development the architect of our regional development cited and appreciated Abuja—Kaduna—Kano highway reconstruction, which was dragged on under Muhammadu Buhari administration for eight years. And few years before him.

While touching on the introduction of the Nigerian Education Loan Fund (NELFUND) under President Tinubu, as thousands of students across the country benefitted, their parents and guardians were relieved of the ever-present stress of school fees, he reviewed in summary, policies directed at turning around nation’s economy.

As a de facto Spokesperson, if you will, the Deputy Senate President critically observed that, “President Tinubu has been working genuinely to correct the fiscal misalignments. He has attracted Foreign Direct Investments (FDIs) worth Billions of Dollars, paid the forex backlog and cleared the ways and means of the Trillion Naira he inherited from the last administration.”

With all these the Distinguished Senator representing Kano North Senatorial District, has not left his legislative responsibilities as his primary task-shouldering engagement. As acknowledged by the Nigerian – American Chamber of Commerce (NACC), when they honoured him recently with Excellence in Legislative Leadership Award.

The Award acknowledges that, “In recognition of his outstanding leadership skills, stakeholder engagement for peace and unity in Nigeria and support for education and agriculture in Kano and beyond.”

His outings and speeches around the country show how glued his heart is with national development. As he made his remark to the organizers of the Award by NACC, he said this out of genuine patriotism,” Let us continue to work together, serving with passion, integrity and dedication as we contribute to building a better Nigeria.”

Anwar was Chief Press Secretary to the former Governor of Kano State, Dr Abdullahi Umar Ganduje CON and can be reached at fatimanbaba1@gmail.com
April 17th, 2025

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