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The VAT Struggle : Lessons for the North

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By: Sani Danaudi Mohammed

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

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

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

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

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

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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.

Opinion

Goodwill, Visibility, and Operational Security: A Strategic Communication Reading of Senator Ahmad Lawan’s DIA Post

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Former Senate President Ahmad Lawan recently announced on his official Facebook page that he facilitated the recruitment of two of his constituents into the Defence Intelligence Agency (DIA). The post identified the young men by name, acknowledged a serving DIA officer who guided them through the process, and included photographs of the visit.

 

Let me be clear about what this post is not about. It is not about whether facilitating appointments for constituents is right or wrong. That is a governance debate for another day. My concern is strictly the communication decision and what it reveals when examined through the lens of public relations and strategic communication.

 

The intention behind the post was likely to demonstrate responsive representation and reassure constituents that their elected representative is creating opportunities for them. Those are legitimate political communication objectives. However, strategic communication is not only about intention. It is also about weighing audience, context, stakeholder interests, and potential consequences before communicating publicly.

 

From that perspective, the post raises three important concerns.

 

First is operational security. The Defence Intelligence Agency is one of Nigeria’s most sensitive security institutions for good reason. Publicly associating the names and faces of new recruits, alongside a serving DIA officer, may create unnecessary visibility for individuals whose future responsibilities could require discretion. Whether or not immediate harm results, the disclosure introduces avoidable security considerations that deserve careful reflection. In strategic communication, the question is not simply whether information can be shared, but whether it should be.

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Second is stakeholder exposure. Strategic communication requires practitioners to consider the ripple effects of every message across multiple stakeholders. In this instance, the post potentially creates reputational and security considerations for the former Senate President, the Senate as an institution, the Defence Intelligence Agency, the serving officer, and the two young men. Effective communication is not measured solely by visibility; it is measured by whether the value created justifies the risks introduced. In this case, the visibility gained appears disproportionate to the strategic value it delivered.

 

Third is message discipline. One of the enduring principles of strategic communication is balancing transparency with legitimate confidentiality. This is particularly important where national security institutions are concerned. The popular saying that “there is no such thing as bad publicity” has clear limits in contexts involving intelligence and security. Communication professionals are expected to assess not only what a message communicates, but also what it unintentionally reveals. That is why even private citizens often exercise discretion when discussing relatives or friends serving in sensitive security roles.

 

So, what might have been a more strategically sound approach? In my assessment, a private acknowledgment would have achieved the political objective without creating unnecessary public exposure. The beneficiaries could have become part of the record of constituents assisted, allowing the goodwill to circulate naturally within the community without drawing wider attention online. Sometimes, in strategic communication, restraint is the most effective message.

 

The broader lesson for public figures and their communication teams is simple. Every communication decision should undergo a basic risk assessment before publication. Beyond asking, “What does this post say about me?” communicators should also ask, “What does this post do to everyone else connected to it?” That shift in perspective is often the difference between communication that merely attracts attention and communication that serves the long-term interests of all stakeholders.

 

About the Author

Auwal Sani, ANIPR is a Public Relations and Strategic Communication scholar and practitioner. He is a Lecturer in the Department of Development and Strategic Communication, Faculty of Communication and Media Studies, University of Abuja, and serves as the Head of Programmes at the Impact Storytelling for Development Initiative (ISDI). His research and professional interests span strategic communication, public relations, development communication, crisis and risk communication, humanitarian communication, and the application of artificial intelligence in communication practice.

 

The views expressed in this article are solely those of the author and are intended to contribute to professional discourse on strategic communication. They do not represent the official position of any institution with which the author is affiliated.

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Opinion

The missing commissioner :Unraveling The Controversy Behind The Arewa Media Summit

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By Shariff Aminu Ahlan

It is outrageous, disturbing, unimaginable, undeserved, and simply difficult to comprehend how such a high-profile and well-attended event, organized to celebrate media excellence and promote discussions on strengthening media platforms that advance the Northern agenda, could deliberately exclude the Commissioner for Information of the host state, a man widely acknowledged as one of the most competent and outstanding Information Commissioners in Northern Nigeria.

The wave of criticism that followed the event was massive and centered on several noticeable shortcomings, including poor coordination, misplaced priorities, organizational lapses, and a lack of professionalism. However, the most ironic aspect of the entire event was the deliberate exclusion of the State Commissioner for Information.

As the summit was organized under the leadership of the Senior Special Assistant to the President on Media, the apparent lapses and alleged collaboration with disgruntled elements pursuing hidden agendas ultimately diminished what should have been a historic gathering. Despite the presence of governor, commissioners of information from various states, media practitioners, academics, and other distinguished personalities, the event failed to make the impact many had anticipated.

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To be fair, the organizers made considerable efforts to ensure the summit achieved its objectives. The discussions focused on Northern Nigeria and explored practical ways through which the media could contribute to the region’s development by promoting constructive narratives, intellectual engagement, and effective information dissemination.

Unfortunately, avoidable organizational shortcomings prevented the event from fully meeting expectations. More importantly, the exclusion of the host state’s Commissioner for Information became one of the most talked-about controversies surrounding the summit.

Had the organizers involved the Commissioner from the planning stage, his vast experience, administrative competence, and institutional knowledge could have significantly improved the coordination of the event. His contributions might have transformed the summit into a model gathering and eliminated many of the shortcomings that attracted widespread criticism.

Ironically, those blaming the Commissioner for his absence are not being fair. Such accusations only strengthen the belief that certain individuals are pursuing a carefully orchestrated agenda aimed at discrediting him. According to available information, the Commissioner was not invited to an event held within his own official domain. In keeping with professional ethics and protocol, he chose not to attend an event from which he had been deliberately excluded. The consequences of that decision. and of the organizers’ actions, were evident for everyone to see.

As for those working tirelessly to push the Commissioner into political irrelevance, they should understand that their alleged campaign has become increasingly obvious. More importantly, the Governor has continued to demonstrate confidence in him. Beyond that, the Commissioner has continued to receive recognition and commendation for his dedication, professionalism, and unwavering commitment to the responsibilities entrusted to him.

History has repeatedly shown that competence, professionalism, and integrity ultimately outlast conspiracy, manipulation, and political scheming.

Shariff Aminu Ahlan
APC Intellectual Warrior
Realahlan0101@gmail.com

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Opinion

eHealth Bill: How DSP Barau, the Digital Senator, is Driving Nigeria’s Health Tech Future

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By Abba Anwar

Only advanced minds and globally exposed political leaders can think of the necessity and relevance of E-Health regulatory framework in the nation’s healthcare system.

The National E-Health Bill, 2026, presented to the Senate plenary session some weeks back, by His Excellency the Deputy Senate President, Barau I Jibrin, CFR, PhD, is a clear testimony that, this Distinguished Senator knows the right button to press when it comes to compliance with the global practice in the healthcare sector.

As the Bill passed second reading three days ago, it has become clearer that our National Assembly houses refined legislators, who behave as and are global citizens. Who understand what is obtained elsewhere across the globe in many sectors, including health.

On his Facebook page DSP disclosed that, “During today’s plenary of the Senate, my Bill, the National E-Health Bill, 2026, scaled second reading in our bid to establish a comprehensive legal and institutional framework for the development, regulation, coordination and integration of electronic health services in the Federal Republic of Nigeria.”

He was supported unanimously by his Distinguished colleagues, during the plenary. After which it has been referred to the Committee on Health (Secondary and Tertiary) for the remaining legislative process. Two weeks was given for the Committee to report back to the plenary.

To tell you that DSP is soundly familiar with the digital terrain in the healthcare sector, with deep interest and unwavering care for all Nigerians, he argued on the floor of the Senate, that, “… the healthcare sector globally is undergoing an unprecedented digital transformation. Across developed and emerging economies, digital technologies have become indispensable tools for improving healthcare delivery, expanding access to medical services, reducing costs and enhancing health outcomes.

Nations are increasingly deploying electronic medical records, telemedicine platforms, artificial intelligence, mobile health applications, electronic prescriptions, wearable health technologies and integrated health information systems to improve efficiency and quality of care.”

The above argument advanced by Senator Jibrin, tells us in broader terms and unhindered breakthrough in the thinking, action, deep philosophy and glaring global comprehension of this noble legislator in pushing for the advancement of our healthcare system. With reference to global experience.

In his added capacity as an astute administrator, a focused Pan-African legislator and a high profile researcher he was able to capture bit-by-bit reasons why digital healthcare system is a prerequisite of modern healthcare administration and management.

The attention of my readers is needed here, where he argued brilliantly that, “Nigeria cannot afford to remain on the margins of this global transformation. Despite significant investments in healthcare infrastructure and reforms over the years, our healthcare delivery system continues to face enormous challenges.

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Medical records remain largely paper-based, resulting in loss of patient information, duplication of diagnostic tests, delayed treatment and avoidable medical errors. Healthcare facilities often operate in isolation, making it difficult to exchange patient information securely across institutions.”

Because of his glued attachment to the grassroot, he was able to remember that, millions of our citizens are residing in rural, underreported, hard-to-reach and underserved communities, which make them to continue facing enormous barriers in accessing specialist medical care due to shortages of healthcare professionals and geographical limitations.

As a scholar with real and genuine academic Doctorate Degree (PhD) he was able to draw a scientific curtain for the need to have regulations governing the operationalization procedures of digital healthcare. Our esteemed Digital Legislator of repute.

That was when he said, “… the COVID-19 pandemic demonstrated beyond doubt that digital health technologies are no longer optional but essential components of resilient healthcare systems. During the pandemic, telemedicine, remote consultations and electronic health information systems became indispensable in maintaining continuity of healthcare services while reducing unnecessary physical contact.”

It is through proper legislation that any system strives, cements its parts, provides goodies, enhances benefits and maintains advantages. Thinking in the same way Senator Jibrin believes that, with the negation of clear legislation there is every likelihood that, what becomes the outputs are “… fragmented implementation, inconsistent standards, inadequate interoperability, weak governance structures and uncertainty regarding legal responsibilities of healthcare providers operating digital platforms.”

During his presentation or rather arguments, he behaved as if he was a medical personnel. When he raised the issue of data confidentiality and management. One of the core behavior of health workers, to safeguard the privacy and health history of patients.

Too tantalizing for a non-medical person, when he argued that, “Distinguished Colleagues, data protection remains one of the cornerstones of this legislation. Health information is among the most sensitive categories of personal information. The Bill therefore establishes robust safeguards to ensure confidentiality, integrity and security of patients’ medical records.”

Thinking from informed position ab initio, to show to all that, DSP Jibrin knew his starting point, he knows where he was heading to and knows the clear message involved in digitalizing healthcare system, with relevant stakeholders, he identified possible collaborators who are critical in the implementation of this all-important Bill.

He said, “… this Bill aligns with the Federal Government’s digital transformation agenda, the National Digital Health Strategic Framework, the National Health Act, Universal Health Coverage objectives, the Nigeria Data Protection Act and our broader commitment to achieving the Sustainable Development Goals, particularly Goal 3 on Good Health and Well-being and Goal 9 on Industry, Innovation and Infrastructure.”

Before the Bill scaled the second reading, DSP urged his colleagues to see wisdom in the Bill and support him for its passage. Understanding the critical need for the Bill, having gone far and wide across the globe he believes that this 21st century digital era should be reflected in our healthcare sector.

In his urge to colleagues he said, “This Bill represents a bold legislative response to the realities of twenty-first-century healthcare. It provides the legal foundation necessary for building a modern, efficient, inclusive and technology-driven healthcare system that will serve present and future generations of Nigerians.
I therefore urge my Distinguished Colleagues to support this very important Bill and allow it to proceed to Second Reading.”

Anwar writes from Kano
Sunday, 12th July, 2026

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