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Opinion

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

Gov. Yusuf’s executive order extending retirement age for HoS, Kano Assembly Clerk, and others unconstitutional

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Sani Usman-DanAbdullo, a Director of Admin and General Services at the Kano State Agency for the Control of Aids, KSACA, has written to the state assembly, seeking its intervention in the
Executive Order issued by Governor Abba Yusuf.

Mr DanAbdullo, in a petition dated January 6 and addressed to Speaker of the Assembly, Jibrin Ismail Falgore, recalled that the governor had in January 2025 issued Executive Order No. 1 of 2025, extending the service period of some civil servants.

According to him, the governor extended the service year of the Head of Service, Assembly Clerk, some judicial officers, Permanent Secretaries and a host of other staff in the state health sector for 2 years after they were due for retirement as of December 2024.

The lawyer also recalled that the state assembly had enacted a law fixing the retirement of staff at 60 years of age or 35 years of service, depending on whichever comes first.

Mr DanAbdullo, therefore, asserted that the governor’s executive order was unconstitutional, “since the House has already made laws which the order seeks to alter”.

He noted that that executive order is not meant to alter, amend, modify or expand the law made by the legislature.

“This act, is, therefore, a clear violation of the principles of rule of law and separation of powers enshrined in our Constitution being not only a clear attempt to usurp the legislative powers of this Honourable House, but to contradict the existing laws already enacted by it in exercise of its powers as such,” the petition added.

While dismissing a claim that the governor issued the order in the spirit of the Doctrine of Necessity, Mr DanAbdullo said there was no justification for extending the service years of the affected retired officers since there are many competent hands with adequate qualifications to be appointed.

“And as for the staff in the health sector, they can be retained on contract arrangement in line with the existing service law of Kano State,” the petition added.

Mr DanAbdullo, therefore, warned that the provisions of the Constitution must not be subordinated to any other law, and must not be subjected to the indignity of deletion of any section or part thereof.

“In view of the foregoing, I urge this esteemed House to employ all legal mechanism at its disposal to overrule the Governor’s decision in the act complained of, which is capable of setting a very dangerous precedent that will ruin the entire public service system of our dear State, if allowed.

“TAKE NOTICE Sir, this act of indiscriminate issuance of executive order, if allowed, will cause the entire Kano State the following catastrophic effects,”

The State Assembly failed to attend to the petition even if it means dismissing it for fear of the governor, if the petition is not attended to we will have no option but to go to court”. He added

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Opinion

The Movement (Tafiyar Matasa) and the Very Big Questions to Answer

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Comr. Habu Hassan Abdullahi

Comr. Habu Hassan Abdullahi

Yes, I am not some sort of social critic who would unfairly denigrate someone’s achievement for personal gain or political interest that I do not have. Thus, this is pre-eminently the right time to speak the truth to the members of my generation in Nigeria whether they care to accept it or not. But remember the truth is always truth and can stand alone.

No doubt that not everyone is happy with how leadership is running in this country, with the exception of those at the corridor of power. But this is not enough to be a raison d’etre to handle our dear nation to the hands of inexperienced youths. Forgive my pen for the use of “inexperienced”. Just because most of them have never been to real leadership. Of course, I am myself opposed to the exclusionary habit of the present politicians, they’ve relegated youths to the mantle of power but we have to cautiously control our faculty of thinking to avoid getting entangled in a lust for power.

I was very happy when I heard the idea of “The Movement” known as “Tafiyar Matasa” in the Hausa language. And of course, the genesis of the movement was attributed to the unavoidable “EndBadGovernance” protest of 1st August, 2024. The movement began immediately after the protest, in fact, it is one of the noticeable outcomes of the protest due to the unity it brought. The idea of the movement was preached and promoted by some prominent northern activists and social media influencers to serve as a last resort to the youths in their effort to bring good governance. No one can deny the fact this is a laudable effort. But the very big question supposed to be asked here is: youthfulness is the only parameter and yardstick to measure the caliber of a good leader? If yes, why Yahaya Bello (Former Governor of Kogi) and Abdurrasheeed Bawa (former EFCC Boss) were arraigned for looting the public treasury! The point I want to make here is, being young or old will not be a determining factor for an individual to be a good leader. We can have corrupt leaders within any range of age.

Another important issue to take into cognizance is the failure of some youths to comprehend the logic and existing distinction between being a good activist and being a good leader. Leadership is quite different from activism, therefore, a good activist may not necessarily be a good leader. It is common knowledge that the conveners of this important movement lack practical leadership acumen and organizational skills that are fundamental for successful leadership. Okay, should we handle our future to the trial and error leaders? We have to exercise extraordinary care when it comes to leadership.

Yet another problem faced by this movement is financial constraints. To be sincere and frank, the quantum resources required to run a great national political movement like this oversizes the pockets of the conveners. Another organic question to ask here is: where the movement conveners can solicit humongous financial resources? From the politicians they are castigating? If yes, this is performative contradiction!

Finally, I would like to remind my fellow youths that new breed, as the late Yusuf Maitama said, cannot solve the Nigerian problem. There must be mutual cooperation and understanding between the new breed and old breed. We must work together with them to acquire all necessary experience, knowledge, and practical leadership skills.

Written by
Comr. Habu Hassan Abdullahi
From Bayero University, Kano
Department of Education
Contact via 07065941454 or habu92hassan@gmail.com

 

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Opinion

Time to Move on at the University of Abuja

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By Alabi Lut

In the past four months, the University of Abuja has been in the news over the appointment of a substantive vice-chancellor. Controversies and disagreements surrounding such appointments are not necessarily unexpected, particularly in a university situated in the Federal Capital Territory, near the seat of power. What is unusual and unnecessary, however, is that those who feel aggrieved that they or their preferred candidates were not appointed have refused to wake up to the reality of Professor Aisha Sani Maikudi’s leadership. Instead of accepting the decision, they have continued their attacks on the University and the person of the Vice-Chancellor.
Despite these persistent attacks, Professor Maikudi has continued to receive accolades and congratulatory messages from both within and outside the University community. The University Senate, which comprises Deans, Academic Directors, Heads of Departments, and Professors, has congratulated her as well and thrown its weight behind her leadership by passing a vote of confidence in the Chairman of the Governing Council, Air Vice Marshal Saddiq Ismaila Kaita. This should send a strong message to the small clique of dissenters that she is well accepted.
What is even more significant is that the management of the University and the Vice-Chancellor herself have refused to be distracted by this orchestrated smear campaign. Instead, the vice chancellor has remained focused on academic and administrative activities to ensure the growth and development of the institution.

One of the major events on the University’s calendar is the upcoming matriculation ceremony. Following a commendable admission exercise, thousands of newly admitted students are set to be officially welcomed into the university this week. For these students and their parents, guardians, this ceremony will be quite memorable to them.
Also, the University has already scheduled its 29th convocation ceremony for this month. It will be a momentous occasion for students who have successfully completed their academic programmes and are now set to graduate.

Since assuming office, Professor Maikudi has met with virtually all key stakeholders to give them a sense of belonging. She appreciates the importance of bringing the University community together to actualise her vision and move the University forward. Her appointment continues to resonate with the whole world. No wonder that on Friday 31st December 2025, when she turned 42, she was celebrated as that leader who means a lot to the University community. At the occasion which attracted great personalities, including the governor of her home state, Katsina, Dikko Umar Radda; Governor Uba Sani of Kaduna State, and former governor and speaker of the House of Representatives, Aminu Bello Masari, and other prominent personalities, one guest noted jocularly, “Maikudi shouldn’t be celebrated just because she’s now Vice-Chancellor or because she’s hit the big 4-2. She should be celebrated because she’s got the brains to take the university to greater heights—and let’s be honest she is beautiful too!”
Managing a tertiary institution, especially a big one like the University of Abuja, is no small task. Established in 1988, the University has come a long way, still it has much ground to cover in terms of infrastructure and academic development.
While past leaders played their own part, there is no doubt that more work needs to be done. I think the University community understands this as well as the vice-chancellor.
At a recent town hall meeting with student leaders, Maikudi was met with both congratulatory messages and pressing demands. The students, while pledging their support, shared their various expectations, which included need for increased hostel accommodation and transportation. Indeed, the current demand for hostels far exceeds available space, and many have had to seek alternatives. However, her promise to expand accommodation facilities through public-private partnerships has given a lot of hope to both students and staff.
The need to revise the university’s academic calendar is another crucial task. Disruptions caused by previous Academic Staff Union of Universities (ASUU) strikes and the COVID-19 pandemic have left the institution struggling to maintain a stable academic schedule. Thankfully, the University Senate took a welcomed decision for a structured, well-maintained calendar that will help the smooth running of academic programmes in the coming years.
One of the biggest challenges that will face the administration of Maikudi will be funding. Like most Nigerian public universities, the University of Abuja operates on a lean budget. The issue of inadequate funding is compounded by other challenges, such as encroachment on the university’s over 11,000 hectares of land.
However, Professor Maikudi is no stranger to leadership. She has steadily risen through the ranks—from being a Head of Department to Deputy Dean of Law, Director of the University’s International Centre, then Deputy Vice-Chancellor, Acting Vice-Chancellor — to become the substantive Vice-Chancellor. Her experience so far means she understands the University’s workings inside out, and this puts her at a vantage position to handle its challenges effectively. As an administrator with impressive networking skills, the issue of funding particularly should be well mitigated.
At this point, those who remain opposed to her appointment should acknowledge her competence and level of preparedness, and accept that it is time to move forward. Sure, leadership comes with its fair share of obstacles, and history has shown that great leaders often face certain resistance before achieving success. Perhaps the opposition she has encountered so far are simply part of the journey meant to fortify her and edge her toward changing the University of Abuja for the better.
One of her key strategies, which has been widely welcomed, is working with a new team of competent individuals who can help her achieve her vision. The recent appointment of Abubakar Sadiq Abba as Deputy Vice-Chancellor (Academic) by the University Senate is praiseworthy. Abba, a professor of political science will hold this position for another two years and will be expected to help the vice chancellor, along with other management members, towards realising the strategic objectives of her administration.
The University of Abuja needs at this moment, a leader like Professor Maikudi to move it beyond the present point. Now is the time to focus on building a stronger, more vibrant University of Abuja. And she deserves every support to actualise this vision.
Those who have resisted her leadership must now recognise the need to collaborate in this important journey. There can be hardly any progress without unity. The University, its students, and the broader academic community stand to benefit far more from such a collaborative approach than from continued division.

 

Alabi Lut writes from No 42B Federal Housing Lugbe, Abuja.

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