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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.

Opinion

Ahmad Abdulkadir Firdaus :A Successful Business Man And Philanthropist

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Abdulkadir Ahmad Firadusi

 

By AbdurRaheem Sa’ad Dembo

The fascinating story of Ilorin born businessman but resident in Kano, Ahmad Abdulkadir Firdaus is the one filled with a rare commitment and tenacious disposition. He is the Chief Executive Officer of Aquarich Integrated Services, Hydro Blue Water and Habidaus Global Concept in Kano. Indeed, no businessman or an entrepreneur would ever tell you it is easy to be in business or self employed but he has been making remarkable progress against all odds.

It interests me to write about him because I have been in the know of how he has positively metamorphosed from being an employee to become an employer of labour in the commercial city of Kano. Firdaus story is not a fairy tale as those who know him can attest to his growth in the Kano business community.

Sincerely, it is through observation of him I got to know practically that you don’t invest in a business if you don’t have time to monitor it, otherwise you would be feeding the greedy and glutton among your workers inadvertently, and before you know it, the business has collapsed. They don’t want to know how you come about the capital for the business but they would be ready to drain the resources to comatose, since no one would be around to have critical monitoring of their activities.

Successful businessmen do have challenges and that of Firdaus is no exception, especially given the current stifling inflation in the country. You must have the courage and sagacity to pull through in business with sincerity and promptness.

There was a time I visited Kano, precisely February, 2022 to attend the 40th Anniversary of Mass Communication Department in Bayero University, Kano, my alma mater. I observed him in the office and I discovered that he has full grasp of what it entails to run a business. He is an economist, so one shouldn’t expect less from him.

He is very strict but pragmatic. His strictness cannot be likened to nefariousness but proper way of doing things. He doesn’t cut corners. He will never bargain for substandard products.

As an entrepreneur you have a goal, but it should be predicated on your customers satisfaction. Without them your business will face retardation and sluggishness. That is why when you agree on a day and date for the supply of goods, do not renege. Customers develop confidence in someone based on their experience over time. If their experience is positive you are in for a good time with them.

Discipline as a core value in any setting, be it political, social or economic, will help anyone to grow; especially in business, financial discipline is key. To the best of my knowledge, Firdaus has it and his prudence is a great deal of idea.

*My relationship with Firdaus*

We are both from Ilorin but we didn’t know each other until we met in Bayero University, Kano. Although we gained admission the same time, he was a year ahead of me because his was a direct entry. Since graduation, the relationship has been sustained till today; alhamdulillahi! He is a thorough person, he neither receives ideas and/or opinions nor treat issues dogmatically. It takes a sound and convincing explanation of a subject matter to get him on the same page with one.

Our good friends, they say, are our lives. At one’s lowest hour, one must have that one person in whom to confide. This is reminiscent of Mariama Ba’s So Long a Letter in which it is said “confiding in others always pain”.

Our relationship has transformed beyond friendship, it is now a familial bond. I can remember when I attended his wedding in Kaduna in the year
2009 and he reciprocated by attending my wedding in Ilorin together with his wife, an epitome of a good wife.

He is based in Kano but his door is always open to visitors. You can’t visit his family without giving a good account of their hospitality and humility. Great men are synonymous with humility and that has been my conviction over the years.

*His Philanthropic Activities*

He is a finest gentleman with a kind heart and generous disposition.He does not have a Foundation through which he reaches out to the less privileged because he believes giving to people is a personal thing and does not require publicity. His argument has been that he is doing it for the sake of Allah, not for people to praise him, and that getting a reward for doing good is preregative of Almighty Allah.

This is unlike politicians; there is no way they can keep in secrecy if they render assistance. If they don’t say it out, oppositions would use that against them, that they have neglected the people after gaining their mandates. So it is easy for him to do it in his own way, because he is not a politician.

There are cases of where he has helped and those people would be the one to tell me much later. If he helps you the third person would not hear about it. Emphatically, he has been kind to me as well.

Ahmad Abdulkadir Firdaus does not allow his busy schedules to deprive him of the opportunity to reach out to people through associations. He is currently the Vice President II of Bayero University Kano Alumni Association, the national body. He is also the Vice Chairman of Ilorin Emirate Descendants Progressive Union (IEDPU), Kano Branch. He is a Patron of Ilorin Emirate Students Union, BUK Chapter.

He is a detribalized Nigerian; his hand of fellowship spreads beyond his tribes and associates.

*His business sojourn*

Firdaus joined Royal United Nigeria Limited in Lagos State in 2007. He was later transferred to Kano office where he rose from the position of Accounts Assistant to become Regional Manager, North. In his words “I joined Royal United Nigeria Limited in 2007 through my Guardian, Dr. Abdullahi Jibril Oyekan”

Ahmed Abdulkadir Firdaus was born to the family of Alfa Ahmad and Hajia Halima of Ile Machine, Oju Ekun Oke, Adangba, Ilorin and grew up at Sebutu compound, Ilorin. He had his primary and part of secondary school education in Ilorin before proceeding to Lagos where he completed it. He is happily married with kids.

Below are his Educational background, Awards, and excerpts of the interview with him.

*Academic Qualification

In 2005 he bagged B.Sc. Economics from Bayero University, Kano with second class upper. He also obtained Master of Business Administration (MBA) in 2011 from the same institution. In 2006 he obtained Proficiency Certificate in Management and graduate member from the Nigerian institute of Management.
He became an Associate member , Institute of Chartered Economists in Nigeria (2006).

*Awards

Award of Excellence by Ilorin Emirate Descendants Progressive Union, IEDPU Northern Zone, 2023

Award of Excellence by BUK Alumni, Ilorin Emirate chapter, 2023

Award of Excellence by An-nur Islamic Organization, BUK, 2021

Award of Excellence by Ilorin -Ifelodun Social Group, Kano, 2021

Markazul Ulum Wal Maharif Islamic School Dei Dei, Abuja, 2020

Award of Excellence by National Association of Kwara State Students, BUK Chapter, 2019

Award of Excellence by Ilorin Emirate Youth Development Association, Kano, 2019

Award of Excellence by Ilorin Emirate Students’ Union, BUK, 2016

Certificate of Merit by National Youth Service Corps, Corps Welfare Association, Giginya Barracks, Sokoto, 2007

Merit Award (Chairman Fundraising) by Ilorin Emirate Students’ Union, BUK, 2005

Merit Award (Financial Secretary) by Ilorin Emirate Students’ Union, BUK, 2005

Merit Award (Member Fundraising) by Ilorin Emirate Students’ Union, BUK, 2004

Merit Award by Markaz Agege Alumni Association, BUK, 2003/2004

Al-Adabiyya Alumni Association, BUK, 2003/2004

Merit Award (Active member) Ilorin Emirate Students’ Union, BUK, 2002

*Interview Session*

What do you sell?

I sell different types/brands/sizes of Tyres and TableWater (HYDRO BLUE)

What could be the catalyst for your success in the business world?

Determination, patience, and passion can drive a business growth.

Nigerian economic challenges are enormous, but I always tell myself that if Dangote can do it, I can equally do with determination.

What advice do you have for upcoming entrepreneurs?

Business requires pragmatism, goal-oriented, and target. Including the culture of discipline

At the early stage of business, they must be available (full participation), adopt austere approach, have some level of accounting knowledge, and financial discipline.

They should understand that there is no shortcut to success; Rome was not built in a day.

Is it always rosy for your kind of business?

Not at all, like the Yoruba would say, a person that knows the day he would make plenty of sales might know the day of his death. Is just a saying nobody knows when he or she will die. No one can determine the day he or she will make enormous sales. However, business is unpredictable, most especially in the face of the current inflation that has influenced price instability.

It is obvious that even in the business world there are challenges but your ability to cope with its complexity and dynamism will determine how far you would go. This doesn’t rule out the significance of prayers as you weather the storm gradually. Our young men and women should cultivate the habit of sincerity and patience. Nothing good, they say, comes so easy. Get-rich-quick syndrome can’t be a way out of poverty but the road to doom. Patience is key to every facets of our lives just as Hausa saying “Hakuri maganin zaman duniyan”. Meaning patience is the key to successful life.

Firdaus, as a businessman is an example of those who would do their businesses diligently and would not surcharge the people.

He is in Kano, doing his business with utmost standard and excellent customer relations. Please patronise him for a life changing experience.

abdurraheemsaaddembo@gmail.com

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Opinion

Exposing the fraud in NASS budget-Jaafar Jaafar

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By Jaafar Jaafar

In an unprecedented budget fraud, the National Assembly has appropriated N370 billion on running costs, contingency, vague and duplicated projects for the Senate and House of Representatives in the 2024 Appropriation Act.

I’m not talking about the hundreds of billions of naira padded in other ministries, departments and agency, but what they budgeted for their welfare and running of the National Assembly.

In the N370 billion NASS budget, the lawmakers duplicated projects and created new, unnecessary projects that increased the budget from N170billion in 2023 to N370 billion this year.

In budget (under Statutory Transfers ), the NASS budgeted 36,727,409,155 for the National Assembly Office; N49,144,916,519 for the Senate; N78,624,487169 for the House of Representatives; N12,325,901,366 for the National Assembly Service Commission and; N20,388,339,573 for Legislative Aides.

A senator recently told me that each of them (and members of the House of Reps) is entitled to five aides, while the four presiding officers (Senate President, Speaker and their deputies) have at least 3,000 aides. In total, you are talking about over 5,000 aides!

Despite the foregoing, the NASS budgeted N30,807,475,470 for “General Services” and N15billion as “Service-Wide Vote” – known in administrative parlance as “contingency” or “security vote”. The NASS never had anything like service-wide vote in the past as “service-wide vote” is always exclusive to the Executive arm. Insiders said this is a clear case of budget padding as the purpose for the huge appropriations are vague.

Even the retired clerks and perm secs (despite receiving their pensions) are not left out in this public funds buffet as they got N1.2billion padded for them.

Apart from padding the intangibles, the NASS will spend N4billion to build recreation center; about N6billion to furnish committee rooms for the two chambers and; another N6billion to build car parks for senators and members (don’t ask me whether they lack any parking space).

And despite this, the lawmakers padded N30 billion in the FCDA budget for “Completion of NASS Chambers” and N20billion for “completion of NASS Service Commission”! In the same budget, the lawmakers set aside another N10billion (under NASS budget) for the completion of National Assembly Service Commission building! How did this happen? No be juju be dis?

Still hungry to devour public resources, the avaricious parliamentarians budgeted another N3billion for the “Upgrade of NASS Key Infrastructures”. How come? What about the N30billion budgeted for “Completion of NASS Chambers”?

NASS Library Complex, named after President Tinubu’s Chief of Staff, Femi Gbajabiamila, got N12billion as take-off grant and another N3billion for purchase of books.

Like other institutions under NASS, the National Institute for Legislative and Democratic Studies got N9billion without clearly stating how or where the resources will apply to. The same institute also got another N4.5billion (is this ‘jara’?) for completion of its headquarters.

Despite the dedicated powerline and powerful generators backing up power supply in the National Assembly, the lawmakers budgeted N4billion to install solar power system. I guess this will give them a reason to pad billions for the purchase of batteries every year.

The committee that superintended this butchery of public resources, the Appropriations Committees of the Senate and the House of Reps, got N200m each for a job well done.

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Opinion

Workers’ Day and The Nigerian Workers In Perspective

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By AbdurRaheem Sa’ad Dembo

Every 1st of  May workers celebrate their day globally .It is always a day of reflection, celebration and emancipation of workers around the world.

In Nigeria,May Day as a holiday was first declared by the People Redemption Party (PRP) Government of Kano State in 1980.Afterwards it became a national holiday on May 1, 1981

Before venturing to restrict myself to Nigerian workers let me take a broad look at how May Day emerged in the world.Workers’ Day, stemmed in part, from an ancient European Spring festival,but its modern manifestations arise from the organised efforts of socialist and communist groups to establish a time for honouring workers and the working class.To be specific, the holiday was first promoted by the International Workers Association in 1904 to commemorate the slaughter of protesting labourers in Haymarket Square in Chicago ,United States of America in 1886 and it was to be a day to push for the eight-hour work day and other demands.

The date May 1st was chosen because,in the USA, the eighth- hour workday first came into effect on that date in 1886.It was predicated on the demands of the Federation of Organized Trades and Labour Unions.There was a general strike and a riot in Chicago in 1886, and eventually, the eight -hour workday was legally recognised.

Many people tend to attend the National May Day celebration in Abuja and other State capitals.The president or State Governors would be there as the case may be to make a speech, and thousand would fill the Eagle Square or state stadium to listen to the President or Governor.Some people attend number of other events that hold across Nigeria on May Day,organized by schools,labour unions,hospitals,and other various institutions.People use the day for relaxation since it is a public holiday.

In Nigeria,some people participate in nationwide marches and rallies on workers’ Day or Labour Day.More often their major concerns are usually to clamour for an increase in the minimum wage,an end to workers being left unpaid for months,the need for government action to address the high unemployment rates of recent years ,and the necessity for government action to address the high unemployment rates of recent years, and the need to move Nigeria off of over dependence on petroleum exports.

On a May Day in Nigeria, politicians and labour leaders will give out speeches on the strength and the challenges of Nigerian economy , and on how to improve it for the general good of the country.

It is significant to say that Nigerian workers both in public and private sectors are facing enormous challenges.The disparity in the salary structure and irregular payments of salary as witnessed before the coming of Buhari’s administration in 2015, where a lot of state Governors could not pay their workers for several months.

The Buhari administration ensured that bailouts were given to states to enable them offset their unpaid salaries to workers.That was a plus for the Daura man administration.

Meanwhile, President Tinubu’s administration has also sustained the legacies of prompt payment of workers salaries in the last one year.It is expected , because even as Lagos State Governor he had no history of owing workers.

In a larger context, welfare of Nigerian workers are not properly taken care of, most especially those in private sectors.There are situations where teachers in private schools are being paid peanuts as salaries,whereas the owners or proprietors charge the parents homongous school fees.This is not a hearsay I was once in that shoe as an English language teacher.

The area where the civil servants in both Federal and States are feeling the heats is the non regular payment of promotion arrears.According to sources some agencies under federal government are being owed promotion arrears since 2018.This is not a healthy practice, though some sources said the federal government has put the payment in batches and it is now being paid bit by bit.In some states the promotions are not even implemented let alone payment of its arrears

As Nigerian workers join others around the world to mark 2024 workers’ Day,it is expected that the ongoing negotiation by the federal government and labour leaders on new minimum wage will yield good results.

It is imperative to say that the Federal Government should fix the economy for the collective good and progress of the country.No minimum wage can ameliorate poverty, if there is consistent economic instability.

The level of inflation ravaging Nigerian economy is worrisome.Any minimum wage that is less than hundred thousand naira today won’t make any appreciable impacts in the lives of average Nigerian workers.

Essentially,Corruption can only be tackled effectively and holistically,if there is a reasonable living wage for the civil servants.You can’t fight corruption in a country where workers welfare and retirement package are relegated to the background.According to the human rights lawyer,Femi Falana ” corruption cannot be meaningfully fought by governments that pay poor wages to workers,owe workers and pensioners arrears.”

To the NLC and TUC leaders, providing sincere leadership is key to the quality ,emancipation and progress of Nigerian workers.Adam Oshiomhole was an example of a good labour leader in the history of Nigeria.He stood for the workers even in the face of oppression.So the current leaders should take a cue from his tireless comradeship for the benefit of Nigerian workers.

 

Nigeria is a blessed country and a land of prosperity; her workers have no reason for penurious lives.

Happy Workers’ Day

abdurraheemsaaddembo@gmail.com

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