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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.

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

Censoring the Uncensored: The irony behind Hisbah’s ban on Hamisu Breaker’s song

Published

1 day ago

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May 2, 2025

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By Ummi Muhammad Hassan

Following the ban by Hisbah on a new song titled “Amana Ta” by Hamisu Breaker, social media went into an uproar, capturing the attention of the public.

In the early hours of April 24, 2025, social media was filled with reactions following a press statement issued by the Deputy Commander of the Hisbah Board, Kano State chapter, Dr. Khadija Sagir, announcing the ban of Breaker’s new song. The reason cited was that the song allegedly contains obscene language.

This announcement, however, triggered a counterreaction from the public. Many became curious to know more about the song and the so-called obscene content, with some taking to their social media handles to express their opinions.

The irony of the situation is that Hisbah unintentionally gave the song more prominence, causing it to go viral. Many people who were previously unaware of the song searched for and listened to it, just to understand the controversy.

In my opinion, after listening to the song, it contains no obscene language. Rather, the issue seems to lie with some young women who mimed the song in a suggestive manner after hearing that Hisbah had labelled it as indecent—as though to dramatize or reinforce the claim. Some even appeared as if they were intoxicated.

To me, this is both devastating and concerning, as it reflects the erosion of the strong moral standards once upheld by Hausa women. Many young people are now making videos lip-synching the song in indecent ways. It made me pause and ask myself: where has our shyness gone? I believe this question deserves a deeper conversation on another day.

In Breaker’s case, thanks to the Hisbah ban, he became the most trending Kannywood artist in April, and his song went viral—and continues to trend.

A similar incident occurred earlier this year when the federal government banned Idris Abdulkareem’s song *Tell Your Papa*. That action unexpectedly brought the artist back into the spotlight, causing the song to trend widely.

Social media has made censorship increasingly difficult. Once a movie, text, or song reaches the internet, it becomes almost impossible to control—even by the creators themselves.

While social media censorship remains a challenge, this recent incident highlights the need for the government to intensify efforts against the spread of indecent content—through Hisbah and agencies like the Kano State Film Censorship Board.

Clear guidelines should be put in place, requiring artists and filmmakers to submit their content for review and approval before public release. This, among other strategies, could help reduce the spread of inappropriate material.

Additionally, Hisbah should be more mindful of how such announcements are made, as they may inadvertently promote the very content they seek to suppress.

Ummi Muhammad Hassan, Ph.D., is a lecturer in the Department of Mass Communication at Bayero University, Kano. She can be reached via email at: ummeemuhammadhassan@gmail.com.

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Opinion

After My Parents, Then Prof. Nelson Aluya A Tribute to a Mentor Who Changed a Life

Published

4 days ago

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April 29, 2025

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By Zubair A. Zubair

 

When Dr. Veronica, then a lecturer at the University of San Francisco, “adopted” me as her son in early 2020, I never imagined that a simple WhatsApp introduction would alter the trajectory of my life. Nestled in a group chat named “Nigerians in Diaspora,” I soaked up every opportunity she shared, scholarships, networking events, webinars. One afternoon in 2020, she tagged the president of the Nigerian American Public Affairs Committee (NAPAC USA), Prof. Nelson Aluya, in a post about an upcoming virtual panel. Without hesitation, I sent him a direct message expressing my eagerness to join the discussion.

At the time, Prof. Aluya was an Associate Professor of Medicine at Rutgers Medical School in New Jersey. His response was swift and generous: “Welcome aboard, Zubair. I look forward to seeing you there.” Little did I know that his simple act of inclusion would mark the beginning of a mentorship unlike any other. In that moment, I realized there was a connection. I had first encountered his name, and his eloquent voice, on NTA News in February 2018, when he spoke passionately about diabetes awareness. His clarity and compassion had captivated me then; now, I was on the verge of being guided by him.

A Promise to Mentor

During our first call in 2020, I nervously explained that I was a university student back home in Kano. Prof. Aluya listened intently, then made me a promise: “I will mentor you to become the leader Nigeria needs, confident, compassionate, and competent.” He introduced me to Aliyu Sulaiman, another aspiring youth leader, and together we launched a new WhatsApp group in early February 2021 called “Wake Up Africa.” Our shared mission was ambitious: to bridge divides between Africans on the continent, Africans in the diaspora, and people of African descent worldwide.

Trials, Tribulations, and Unwavering Support.
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Life’s challenges tested our resolve almost immediately. In March 2021, I lost my phone unexpectedly and was unable to rejoin the group for eight months. Just as I managed to reconnect in November, fate intervened again: during my “Use of English” exam, I misplaced my replacement phone. Forced offline once more, I spent two months unable to participate. Yet every time I resurfaced, Prof. Aluya reached out with the same warmth: “Zubair, we miss your voice. How can I help?” His unwavering support reminded me that mentorship transcends geography and setbacks.

From Virtual Chats to In-Person Impact
In January 2022, Prof. Aluya sponsored Aliyu, Shamsudden, and me to attend a Pan-African youth forum in Abuja. Walking into that conference hall, I felt the weight of possibility settle on my shoulders. Surrounded by young change-makers, I realized how vital our “Wake Up Africa” vision could be. Buoyed by this experience, Prof. Aluya challenged us to formalize our efforts. Thus, in February 2022, Youth Together Work Together (YTWT) was born a youth-led organization dedicated to community action across Nigeria.

Three Signature Projects
Under Prof. Aluya’s guidance and financial backing, YTWT executed three flagship initiatives over the next eighteen months:
1. Religious Tolerance Seminar (Kaduna, July 2022): Bringing together Muslim and Christian youth to foster dialogue and mutual respect.
2. Market Cleanup (Kano, August 2022): Mobilizing students, activists, journalists and traders to restore the city’s bustling markets, highlighting civic pride.
3. Youth Against Drug Abuse Campaign (Abuja, May 2024): Conducting workshops in schools, markets and community centers to educate peers on substance-abuse prevention.

Each project bore Prof. Aluya’s fingerprints: from strategy sessions over Zoom to on-the-ground coordination and resource mobilization.

Beyond Events: Lifelong Lessons
Prof. Aluya’s investment in me extended far beyond sponsoring trips. He guided me through public-speaking workshops, critiqued my writing, and introduced me to networks of professionals across healthcare, technology, and public policy. In July 2023, he arranged for me to attend a cybersecurity seminar in Jos; in April 2024, an IT conference in Ibadan; and this March, the ‘Come Talk Africa’ in Abuja. At each event, he reminded me: “Zubair, your voice matters. Use it well.”

His mentorship taught me resilience in the face of failure, humility in success, and generosity without expectation. When I doubted my talents, he reaffirmed them. When I feared I wasn’t enough, he declared that I already was.

A Mentor’s Legacy

Mentors come and go, but rare is the one who reshapes your understanding of service, leadership, and compassion. Prof. Aluya did more than fund projects, he believed in my potential when others did not see it. He challenged me to think bigger, serve better, and lead with my heart. Without ever asking for thanks, he gave of himself freely: his time, his wisdom, and his unwavering belief in Nigeria’s youth.

Conclusion

My parents gave me life and love. After them, Prof. Nelson Aluya gave me purpose and direction. As I prepare to graduate and embark on my own journey of service, I carry his lessons with me: to uplift others, to persevere through adversity, and to lead with integrity. This tribute, published today, is but a small token of my gratitude, and a reminder that some of the greatest gifts we receive are the people who see our potential before we see it ourselves.

“A mentor is not always the one who stands at your side, it is the one who reaches out to lift you higher.”
– Prof. Nelson Aluya

By Zubair A. Zubair
Kano, Nigeria

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Opinion

Can the Trump Trade Policies Affect the African Economy?

Published

4 days ago

on

April 29, 2025

By

Dr Muttaqa Yushau

 

 

 

By MuttaqaYusha’u

myushau@gmail.com.

 

Since his re-election as President of the United States, Donald Trump has vowed to raise trade tariffs, particularly on Chinese imports. However, his protectionist trade agenda extends beyond China, affecting several countries, including those in Africa, even though Africa trades relatively less with the U.S. compared to other regions of the world.Trump’s trade policies are rooted in protectionism — an approach aimed at shielding American products from foreign competition. By doing so, the administration seeks to boost domestic employment, increase production, and promote shared prosperity for Americans.

However, the impact of these policies will vary across countries, depending on the extent of their reliance on the American market. The key question is: Can Trump’s trade policies significantly affect the African economy?According to the United States Census Bureau, Africa accounts for approximately 1.5% of total U.S. trade — a relatively small share. In 2023, African exports to the U.S. were valued at around $32 billion, with key sectors including crude oil, textiles and apparel, agricultural products, automobiles, and precious metals. Under the African Growth and Opportunity Act (AGOA), many African countries have enjoyed duty-free access to the U.S. market, especially for textiles and agricultural goods.For instance, Lesotho, a small country in southern Africa, is highly dependent on textile exports to the U.S.

The textile industry in Lesotho employs around 12,000 workers, representing 42% of the total formal employment in the manufacturing sector. Similarly, South Africa exports automobiles, agricultural products, and minerals to the U.S., with the auto industry alone contributing significantly to employment and foreign exchange earnings. A 10% tariff on African exports would likely slow down these sectors, reduce export earnings, and contribute to rising unemployment. Many companies would be forced to lay off workers, deepening social and economic challenges.Moreover, tariffs would make African goods less competitive in the U.S. market, potentially eroding the gains made under trade agreements like AGOA. For example, textile exports from Africa under AGOA account for about $1.3 billion annually, providing jobs to tens of thousands of workers, particularly in countries like Kenya, Ethiopia, and Lesotho. The imposition of tariffs on AGOA-eligible goods would undermine the core objectives of the agreement, which aims to promote economic growth through trade. It would also discourage investment in sectors that had been built around preferential access to the U.S. market, ultimately threatening job creation and industrialization efforts across the continent.One key lesson from these developments is the urgent need for Africa to deepen intra-African trade as a strategy for economic resilience. The African Continental Free Trade Area (AfCFTA), launched in 2021, provides a major opportunity for African countries to integrate their economies and trade more among themselves. According to the United Nations Economic Commission for Africa (UNECA), AfCFTA has the potential to boost intra-African trade by 52% by 2025, creating a larger market for African producers and reducing dependency on external markets.Recently, the Director-General of the World Trade Organization (WTO), Dr. Ngozi Okonjo-Iweala, stressed that the new U.S. tariffs, especially those affecting sectors like textiles in Lesotho, offer a wake-up call. She emphasized that African countries must seize this opportunity to strengthen their own markets, foster regional value chains, and build resilience against external shocks.In conclusion, while Africa’s direct exposure to Trump’s trade policies may seem limited, the localized impacts on sectors like textiles, agriculture, and automobiles could be significant. These changes reinforce the importance of regional economic integration and the need for African countries to diversify their trading partners and domestic markets. Africa must act swiftly to turn challenges into opportunities and chart a more self-reliant and sustainable economic future.

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