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The VAT Struggle : Lessons for the North

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4 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.

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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

Gov. Abba Kabir Yusuf and Hon. Murtala Sule Garo: A Well‑Matched Pair of Walking Shoes

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6 minutes ago

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January 23, 2026

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By Kabir Mamman Sani

Very soon, Kano’s political landscape will realign, when the State Governor, Alhaji Abba Kabir Yusuf finally join the All Progressive Congress (APC).
When this finally happened, the governor will need a “perfect pair” to keep his stride steady, particularly when the current Deputy Governor, Comrade Aminu Abdulsalam decided not to defect along with him.
Governor Abba Kabir, now in his 63rd year and over two years into office, has already set a pace of urgency, restoration, and a “New Kano” vision.
For the State to sustain that momentum, pairing him with a deputy who can match his stride — like Hon. Murtala Sule Garo will certainly justify the political realignment.
In leadership, a governor and his deputy are like a well‑crafted pair of walking shoes: one provides direction, the other offers support, and together they traverse any terrain. The left shoe (the governor) charts the course, while the right shoe (the deputy) absorbs shock, maintains balance, and keeps the journey comfortable. Their synergy translates into stability, inclusive governance, and relentless progress for Kano.

For so many reasons, Hon. Murtala Sule Garo fits the right shoe. He is from the Kano North Senatorial Zone where the deputy governor position was zoned.
He has grassroots credibility. As a former Commissioner for Local Government, he has built a reputation for accessibility and for managing people and resources at the community level.
Hon. Murtala, is a bridge‑builder. He can link the NNPP’s existing structures with the APC’s broader network, easing the anticipated party switch and creating a cohesive environment for policy execution.

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As a grassroots mobilizer, particularly in a state known for political vibrancy, Murtala Sule Garo will play a stabilizer role. His ability to rally wards, councils, and youth groups and turn political apathy into active participation, boosting voter turnout and civic engagement, is assured.

What can this pair deliver?
Stability from the ground up – a olid foundation of local support prevents “small tremors from becoming structural crises,” as analyst Dr. Elena Vance notes, hence with Hon. Murtala Sule Garo providing a buffer to the Governor, political stability will ensue.
The pair is capable of further accelerating development in the State – With the ongoing projects in water supply, agricultural subsidies, and digital transformation, the governor’s ambitious blueprint gains a reliable executor.
Moreover, Murtala’s inclusive approach to governance will further open doors to traditional rulers, youth groups, and private investors fostering collective ownership of Kano’s progress. Hon. Murtala Sule Garo will lock in that trajectory, ensuring the administration’s plans endure and citizens feel the comfort of steady, balanced leadership.

Governor Yusuf’s achievements in urban renewal, educational reform, healthcare expansion, and infrastructure upgrades—have already earned him a reputation as one of the state’s most effective leaders. Pairing him with Murtala Sule Garo will be the best way forward for the State.

Just as a good pair of walking shoes carries a traveler forward with confidence, Governor Abba Kabir Yusuf and Deputy Murtala Sule Garo can lead Kano on a successful, step‑by‑step journey—comfortable, supportive, and balanced for every stakeholder.

Kabir Mamman Sani, a political analyst write from Minjibir

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Opinion

Christopher Musa: Experience Meets Strategist-Sageer Ahmad

Published

1 day ago

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January 22, 2026

By

Sageer Ahmad

It didn’t come to us as a surprise when President Bola Ahmed Tinubu announced the appointment of General Christopher Gwabin Musa (rtd.) as Nigeria’s Minister of Defence.

Indeed the president’s decision signals a deliberate effort to align experience with strategy at a time when national security remains a critical concern for every well-meaning Nigerian. No doubt, Nigeria and Nigerians have had it very rough in recent years and the deserving testimonies the nation received on the choice of CG Musa is adequate enough to tell the world that CG Musa is equal to the task.

A veteran officer with decades of distinguished service to the well-being of Nigeria, his appointment as a minister brings to the Defence Ministry a deep understanding of Nigeria’s security environment and a calculative and systematic approach to a sustainable solution to the lingering security issues. Without being sentimental, his emergence as Defence Minister reflects the Federal Government’s resolve to strengthen policy direction, improve coordination among security agencies and reinforce public confidence in the country’s defence institutions.

As a professional shaped by years of frontline command and strategic leadership, Nigerians now believe the country is widely regarded within military and policy circles, as a country at the verge of overcoming its travails. His records have shown that over the course of his career, he played key roles in counter-insurgency and internal security operations, particularly in areas affected by terrorism, banditry and communal violence. His experience cuts across field operations and high-level defence planning, giving him a balanced grasp of both tactical realities and policy demands, for a better country.

Before his appointment, Musa served at the highest level of Nigeria’s military leadership, where he oversaw joint operations involving the Army, Navy and Air Force. His tenure was marked by a strong emphasis on inter-service cooperation, intelligence-driven operations and improved welfare for personnel.

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His appointment came at a critical time that the nation is in dire need of peace and Nigerians have no doubt that CG Musa will steady but surely give Nigerians the needed peace. A straightforward personality with a complete sense of responsibility and commitment to national security, he is an exact example of a responsible and responsive security administrator.

Barely weeks after assuming office, Minister CG Musa began by setting a clear tone for the country’s security direction and recording early ministerial milestones anchored on coordination, professionalism and decisive action against insecurity.

Since his appointment he has moved swiftly to redefine the Ministry of Defence’s leadership posture, placing emphasis on results-driven security management rather than rhetoric. At several high-level engagements, he has publicly committed to delivering tangible improvements in national security, assuring Nigerians of the government’s resolve to reclaim communities affected by insurgency, banditry and violent crime.

However, one of CG Musa’s notable early achievements is his push for stronger inter-agency collaboration. He has consistently underscored the need for seamless cooperation among the Armed Forces, intelligence agencies and internal security institutions, arguing that modern security threats require unified and intelligence-led responses. This stance has reinforced the ongoing joint operations and improved coordination among security stakeholders. Moreover, the citizens have started seeing the good impact of the calculative and decisive move of the minister.

CG Musa has further distinguished his tenure by reasserting professionalism and ethical leadership within the military by charging senior officers to uphold loyalty to the Constitution, integrity and discipline in command as well as professional conduct.

It is on record that troop welfare has also featured prominently on his agenda as he publicly emphasized that the morale and wellbeing of personnel are critical to mission success, he also pledged improved attention to logistics, equipment, healthcare and family support for service members.

As a graduate of the Nigerian Defence Academy who attended several advanced military and leadership courses within and outside Nigeria, his career also includes participation in regional and multinational security initiatives, reinforcing Nigeria’s role in collective efforts to address cross-border threats in the sub-region as well as to install the nation’s dignity in the global focus.

As Defence Minister, Musa is expected to focus on defence policy coordination, military reforms, procurement oversight and the strengthening of civil-military relations. His background places him in a unique position to bridge the gap between policy formulation and operational realities, ensuring that decisions taken at the centre translate into tangible security outcomes across the country.

However, with insecurity still posing serious challenges nationwide, expectations are high and that is why we believe in the simple fact that Christopher Musa’s appointment represents a strategic recalibration that will chase the bandits, insurgents and other vices out of the country for a healthier, better and robust Nigeria of all good days.

To the bandits and the insurgents, get ready to repent or face the wrath of CG Musa, the Nigerian savior.

Sagir Ahmed writes from Kano and can be reach via email: ahmadtsagir@gmail.com

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Opinion

Why delivery will define Nigeria’s climate future-Erika Paredes

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1 day ago

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January 22, 2026

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By Erika Paredes

Across Nigeria, a recurrent question among policymakers and business leaders is no longer about climate ambition, but about outcomes. What matters is whether climate action translates into households with steady power, affordable energy for businesses, and jobs for young people.

Climate capital is available, and Nigeria ranks among the top destinations for climate investors. Capital is flowing to solar grids, electric buses, flood-proof roads, and drought-resistant crops. Yet the central doubt remains whether the country has the delivery capacity to move fast enough. Success hinges not on funding alone, but on bankable projects: clear timelines, assigned roles, transparent risks, and fast approvals. When done right, paper becomes power plants.

Nigeria’s international climate engagement has not lacked ambition. Recent statements make this clear. This momentum is already visible: in 2023, the World Bank approved a USD 750 million clean energy programme to expand access for over 17.5 million Nigerians, while a separate agreement with Siemens Energy is advancing grid modernisation. This shows that well-structured projects can attract investment.

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Climate finance is often seen as only about saving forests. In reality, for Nigeria, it can be a growth engine that attracts investment and creates employment at scale. Nigerian leaders are already engaging with these opportunities. When energy projects advance faster, power reaches households and businesses.
Countries that are beginning to scale climate finance successfully are not those announcing the largest targets. They are the ones strengthening the systems that turn opportunity into delivery, building confidence among investors and citizens alike. Successful top-scaler cases include Vietnam, with 17 GW of solar deployed in three years, and Chile, with 10 GW of renewables delivered through auctions and digital innovation.

Nigeria has the capacity and readiness to seize this moment. The next step is clear: shift decisively from ambition to execution, modernise and diversify project portfolios, and prioritise outcomes that Nigerians feel in their daily lives, particularly young people.

About the author: Erika Paredes is a Harvard-trained climate finance leader, former UN senior executive, and CEO of Climate Solutions for All. She has mobilised over USD 8 billion in development finance across Africa, Asia, and Latin America.

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