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[OPINION] Wike, VAT and the Quest for True Federalism

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By Chidiebere Nwobodo

“Boldness is not second to everyone, it is intentionality.”
— Janna Cachola

History is being made in Rivers State. There is a bold move by the State Government at challenging the retrogressive status quo of the federation. Nigeria’s political structure is not only lopsidedly skewed against the states but has become a clog on the nation’s wheel of progress. Like local government areas, the states are mere appendages of the behemoth center—yet we call this country “Federal Republic of Nigeria”. It is feeding bottle federalism!

The rattling question is: what is federal about a country structured along unitary system by respective military dictatorships. In the last few years, there has been vehement agitations for a restructured Nigeria that will encompass true federalism where states will have the needed autonomy and resources to determine and unleash their socio-political cum economic destinies.

Failure to make any meaningful progress in the direction of restructuring, in the last few years, has birthed agitations for self-determination, especially in southern Nigeria. Restructuring advocates are opposed to separatist campaigners calling for total balkanization of the country. While true federalists believe that Nigeria can still be salvaged via restructuring, self-determination proponents have been pummeling them for not walking their talk.

Rivers State Government has changed the game. Age-longed problems cannot be solved by persistently and indefinitely talking about them without action. There comes a time in history when courageous and well-calculated actions are left to do the talking because all talk and no action makes someone a rabble-rouser reveling in ramblings. Rivers State decided to confront the hydra-headed monster of unitary structure that made states subservient to the center.

The bone of the contention is Value Added Tax (VAT).

Recently, Rivers State Government went to court to challenge Federal Government’s collection of VAT via Federal Inland Revenue Service (FIRS). It argued that FIRS did not have the constitutional right to collect VAT and Personal Income Tax (PIT) on behalf of local governments, states and federal government. It advocated that states should be allowed to collect VAT—and not Federal Government.

On August 9, Justice Stephen Pam of Federal High Court, Rivers State, ordered the tax agency of the FG, the FIRS and the Attorney General of the Federation, from collecting VAT and Personal Income Tax (PIT) from residents of Rivers State. Federal Government via FIRS fumed and vowed to appeal the judgement.

Rivers State Government did not stop there, it ensured that the State Assembly legislated on it through a bill, which was swiftly signed into law on August 19, 2021, as Value Added Tax Law No. 4 of 2024 by the man behind the wheels—Governor Nyesom Wike. I doff my cap for this courageous move of Rivers State Government.

There are insinuations in the media that FIRS is lobbying National Assembly to put VAT in the exclusive list, in order to legitimacy its illegality—to continue the exploitation, and but this move is dead on arrival. I am sure that even all other states will sleep and allow the agency to ambush the states using National Assembly, Rivers State Government under the leadership of Governor Wike will not allow this to happen.

Governor Wike has demystified the bogus term called restructuring cum true federalism. It is not rocket science. He has proved that easiest way to handle mountainous challenge is by compartmentalization of it. My own definition of restructuring of which Governor Wike has accentuated, is using legitimate avenues to get back your resources and power that were illegally taken away using military regimes.

Back to issue at stake—VAT.

Value Added Tax (VAT) was introduced in 1993. The sharing formula; states—50%, LGAs—35% and FG—15%. FIRS gets 4% from FG’s share as operational cost. But the subject of controversy had been whose duty it was to collect VAT—states or FG via FIRS? but the judgement of Federal High Court has lent credence to narratives of restructuring advocates; though FIRS said it has appealed the historic judgment. Let wait and see how it goes. But why is it running to National Assembly if it has water-tight case?

VAT falls under consumption tax, which is within the state government power to collect and remit 15% to the Federal Government. Majority of the VAT are generated from the states, which gave them lion share of 85% in the sharing formula. Why then should FIRS, on behalf of Federal Government, collect VAT and distribute to the state? Did states complain that they lack capacity to collect VAT?

What is the work of states Internal Revenue agencies responsible for Internally Generated Revenues (IGR)? Why will a minority stakeholder in a company be the one collecting revenues, especially when the revenues are being generated from the states—majority stakeholders? Sadly, this illegality cum impunity had gone on unchallenged for decades. As a restructuring advocate, I am happy Rivers State Government has taken the bull by the horn to correct this obnoxious practice of “monkey dey work bamboo dey chop”.

FIRS collection of VAT from states and distributing same via the Federation Accounts Allocation Committee (FAAC), is tantamount to robbing Peter to pay Paul. Majority of the VAT remitted to FAAC monthly comes from just few economically viable states with high volume of VAT generation like Lagos, Rivers, Ogun, Delta, Enugu, Akwa Ibom, etcetera, yet other states get rewarded for indolence and crass unproductivity—the reason Nigeria is economically backward—and poverty capital of the world.

FAAC shared a total of N733 billion as June, 2021 revenue, out of the sum, VAT revenue got N143.6 billion—huge chunk of the VAT came in from alcohol consumption. Look at the injustice and irony here, majority of Sharia-compliant states that routinely destroy alcoholic beverages in their states, did not only partake in revenues from VAT but got lion share of it—going by the hegemonic template of using number of states and local government councils to share revenues.

Why will someone drink beer in Lagos and another person in Kano State that detest alcohol as a result of religious belief gets more share in the distribution of VAT emanating from the produce? This is wickedness taken too far. I strongly stand with Governor Nyesom Wike and Rivers State Government on this courageous step to end this official theft.

Other state governments with huge volume of VAT generation should throw their weight behind Rivers State and see this to a logical conclusion. This is the real battle for a restructured Nigeria. The die is cast. Governor Wike has shown leadership where it mattered mostly and should be railed round. There is a weighty allegation that FIRS illegally withholds some VAT it collects on behalf of the states—it remits only a fraction of what truly comes into it coffers.

States do not control FIRS; its operations and recruitment process, thereby cannot efficiently monitor its modus operandi yet FIRS generates most of its revenues from the states. Ideally, FIRS should not collect VAT outside Abuja—FCT; where FG has substantial control of its Internally Generated Revenues. It VAT collection influence should be limited to FCT alone.

While signing the historic Value Added Tax bill into law, Governor Wike could not hide his ill feelings towards impunity of Federal Government using FIRS to strip states of their VAT revenues, of which made state governors to always go cap-in-hand begging for financial support from the center. He was quoted as saying:

“In this (Rivers) state, we awarded contract to companies and within the last month we paid over N30billion to the contractors and 7.5% will now be deducted from that and to be given to FIRS.

“Now, look at 7.5% of N30billion of contracts we awarded to companies in Rivers State, you will be talking about almost N3billion only from that source. Now, at the end of the month, Rivers State government has never received more than N2billion from VAT. So, I have contributed more through the award of contracts and you are giving me less. What’s the justification for it.”

With this calculated move that has quaked the foundation of the FIRS and rattled Federal Government, Governor Wike has become the Moses of our time leading true federalists to the promise land of a restructured Nigeria. We are morally bound to give him all the support.

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2027: Nsukka Leaders Endorse Gov Mbah Over Massive Projects in the Zone

…say senatorial district highest beneficiary of Mbah’s projects, reports Ikenna Oluka

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Nsukka Leaders Endorse Gov Mbah for 2027
Nsukka Leaders

Leaders of Enugu North Senatorial District, otherwise known as Nsukka Zone, have endorsed the Enugu State governor, Dr. Peter Mbah, to continue in office beyond 2027, saying the governor has transformed the zone in less than two years of his administration.

The Nsukka leaders who convened at the Adada House, Nsukka, on Thursday, under the aegis of Enugu State Coalition for Progress, Enugu North Senatorial Zone Branch, comprised a cross section of socio-cultural groups, the academia, representatives of Traditional Rulers, captains of industry, businessmen and women, politicians, market men and women, farmers association, labour leaders, among other leaders drawn from the 6 council areas of the zone, expressed their unwavering support for the Mbah administration.

In an interactive session by a panel of discussants from the groups which was followed by a communique issued at the end of the discussion and signed by no fewer than 700 signatories including the former deputy governor, Chief Okechukwu Itanyi, Senator Chuka Utazi of the All Progressives Congress (APC), the deputy speaker of Enugu State House of Assembly, Rt. Hon. Ezeani Ezenta, Dr. Dan Shere, Prof. Simon Ortuanya, Gen. Godwin Ugwuoke (rtd), Dr. Mike Ajogwu SAN, Chief Maxwell Ukuta, Prof Osita Ogbu, and Igwe Dr H.N Ukuta, they cited the litany of monumental infrastructural developments of the governor across the state, particularly in Nsukka Zone, as the reasons behind their endorsement.

In a resolution and vote of gratitude, the coalition commended the governor’s outstanding leadership and stellar performance since assuming office in May 2023, saying the only candidate the zone would support in 2027 is Governor Mbah.

They insisted that supporting Mbah to do 8 years in office was in the best interest of Nsukka people as his re-election would enable him finish the landmark projects initiated by his administration in the zone which were already opening Nsukka for economic development.

The coalition further praised the governor for providing peace and security in Enugu State, making it an attractive destination for investment, business, and tourism in Nigeria.

“In particular, we note with satisfaction, that the setting up of the Enugu State Command and Control Center by His Excellency at the Government House for tracking criminal activities across the state has become a model for other states of the federation. We applaud His Excellency’s holistic development agenda for Enugu State anchored on his disruptive innovation philosophy as a catalyst for positive change,” the communique read in part.

Nsukka Leaders Endorse Gov Mbah
Traditional leaders

While underscoring that the senatorial district has 102 electoral wards constituting 39.2 percent of the 260 electoral wards in the state, the elated Nsukka leaders said with 102 Smart Green Schools and 102 Type-2 Primary Healthcare Centres across the six councils, the zone has become the highest beneficiary of Mbah’s stellar performance.

On the ongoing dualization of Enugu-Ugwogo Nike-Opi-Nsukka Road, the coalition described it as a critical infrastructure aimed at enhancing connectivity and boosting economic activities, adding that the reconstruction of the 44.8 km Ama Ngwo-Eke-Oghe-Iwollo-Umulokpa road and the new 40 km Owo-Ama Nkanu-Ubahu-Mbu-Neke dual carriageway would open up a new traffic and economic corridor to the senatorial zone.

It also noted that Mbah’s administration has transformed Enugu State from a civil service state to a fast-emerging  industrial hub, with an unimaginable  annual internally generated revenue of over N600 billion by the end of 2025. “The governor’s commitment to progress is evident in the rapid pace of development and transformation across various sectors, including roads, bridges, healthcare, security, tourism, entertainment, industries, and educational institutions.”

Throwing their weight behind the governor, Chief Ukuta said the people of the zone would not only queue behind him in the next polls, they also owed the governor apology for the herd mentality that almost led to the voting of wrong candidates.

Expressing confidence in the governor’s leadership ability, Senator Utazi said as an APC card-carrying member, he was at the meeting to particularly appreciate the good work of the governor, stressing that he deserved the unwavering support of the entire zone.

“I am a card-carrying member of APC starting from my ward in Nkpologu all the way to Abuja. I want to say that this gathering is not for PDP. It’s a gathering for every well-meaning Nsukka indigene who is appreciative of the good job the governor of Enugu State is doing in Enugu State and especially in Enugu North senatorial district. In fact, when I came back to Enugu, starting from the airport, I saw nylon roads, the type only seen in Abuja. When I visited the governor recently to discuss the police station I built there as a senator, the governor was immediately working to operationalize it, and is additionally working on the road from 9th Mile to Umulokpa. He also told me severally the things he was doing in Nsukka zone and all of them are what people can see on ground. Let’s support him to continue with his job. I want to say frankly that Nsukka people are happy with him,” the senator added.

Adding his voice, Dr. Ajogwu said the coalition had already spoken the minds of Nsukka people which was to support the governor for another term.

On his part, Hon. Ezeani, who led lawmakers from the zone, said the governor would continue to enjoy cordial relationship with the House of Assembly to ensure the continuation of the good governance in the state.

He described the Mbah administration as business unusual where new projects were springing up daily with many already completed across the state, adding that they had already declared unalloyed support and endorsement for his candidacy beyond 2027.

Lending his voice, Dr Shere lauded the governor for the transport infrastructure project which has the Nsukka Central Terminal Station, the Holy Ghost utra-modern terminal stations, Abakpa and Gariki stations in addition with the recently delivered CNG buses ordered by state government.

“You don’t need to be told that in Nsukka, we are all adopting governor Peter Mbah to complete the job he has started here. Nsukka is now looking beautiful because of what he’s contributing to our economy, infrastructure, education and transport sectors. Look at the Enugu Air, it’s a game changing moment for the state. The investment prospects will impact all the nooks and crannies of the state. Again, the International Conference Centre, the ongoing 5 star hotel, the Hotel Presidential and the 300-bed international hospital in the state will make Enugu the hub of medical tourism where robotic surgery will be conducted and thousands of jobs created,” he said.

Moving a motion for endorsement of the governor for 2027, Chief Itanyi insisted that the ongoing 43.7 km dualisation of the Penoks-Ugwogo Nike-Opi-Nsukka road was the single most costly project in the state. The motion was unanimously affirmed by voice votes by the members coalition who filled the hall.

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Breaking: ‘Welcome home,’ Gov Mbah Receives Edeoga Back to PDP

…‘You’re Enugu people’s choice,’ Edeoga tells governor

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Governor Peter Mbah of Enugu State welcome Edoga back to PDP
Governor Peter Mbah of Enugu State welcoming Chijioke Edeoga back to PDP

Governor of Enugu State, Dr. Peter Mbah, on Wednesday, welcomed the gubernatorial candidate of the Labour Party, LP, in the 2023 governorship election, Hon. Chijioke Edeoga, back into the Peoples Democratic Party, PDP, fold, commending the ex-opposition flagbearer for demonstrating that politics is not a do-or-die affair.

Mbah said that Edeoga’s return to the PDP was in line with the party’s principle of reconciliation and making the people, not personal ambition, the focus of governance, urging him and his supporters to feel very much at home.

This was even as the former gubernatorial candidate endorsed Mbah as the popular choice of the people of Enugu State, stressing that he had fully aligned with that choice.

Receiving Edoega in his office, in the company of party leaders led by the state party chairman, Dr. Martin Chukwunweike, Mbah said, “Welcome back home. The symbolism of your action is a mark of the enduring bond that runs in our party. I am indeed very delighted to have you back to rejoin your family.

“What we are witnessing today is a result of fence-mending consistent with the philosophy of our party – the imperatives of reconciliation.

“It is also a demonstration on your part that politics is not a do-or-die affair; that what we are currently doing in Enugu State appeals to you and you believe that it is working for the interest of the people and you have taken that decision to say, ‘Look, let us join hands together and serve our people.’

“I commend you greatly for making such a courageous bold step. The lesson for us is quite profound, as it shows that the common denominator even when we express our aspirations on different political platforms, is all about the people and making them the centerpiece of our ambitions.

“So, we will embrace you with our arms wide open. You are going to be treated as a member of PDP, which we know you are indeed. We look forward to working with you in the service of our people.”

Edeoga, on his part, commended Governor Mbah for making his return possible, describing it as a paradigm shift from politics of animosity and winner takes all to politics of empathy and people-centred development.

“I thank Your Excellency for overseeing the process that has culminated in my return to the PDP and my visit to your office. It is easy to downplay what has happened. But something like this has not happened in the annals of politics in Enugu State. I commend your wisdom, I commend your empathy, I commend your mental sagacity.

“What has happened here today will effect a paradigm shift in the way politics is played in Enugu State. It will no longer be winner takes all or politics being seen as a hostile or brutal activity. It has restored politics as just a contest of ideas and visions. These contesting visions were thrown open to the public and the people of Enugu State have made their choice, which I completely align myself with.

“Politics should be played without bitterness; it should be played without animosity and as much humanely as possible. Once the victor has emerged, the next thing is governance. The governance is ongoing and it is going very well. When it is time for politics, people are free to pursue their dreams. For now, it is time for governance.

“Anyone, who feels annoyed or deeply angered that Edeoga has taken this step of faith, I believe with time, they will align with the superior wisdom of those who are their leaders. Leadership comes with responsibilities and one of these responsibilities is to take a step of faith.

“Again, thank you for making my return to the PDP possible. I recommit myself to the ideals of PDP. As much as possible, I will work to ensure that PDP becomes victorious going forward,” he said.

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Minister Commends Guards Brigade for Exceptional Service in Securing the Seat of Government

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Minister of State for Defence, H.E. Dr. Bello Mohammed Matawalle,
Minister of State for Defence, H.E. Dr. Bello Mohammed Matawalle at WASA 2024

The Minister of State for Defence, H.E. Dr. Bello Mohammed Matawalle, has expressed profound appreciation for the unwavering commitment and exemplary efforts of the Commander, officers, and personnel of the Guards Brigade in safeguarding the Federal Capital Territory and its environs.

In his remarks as the Special Guest of Honour at the 2024 West African Social Activity (WASA 2024) held in Abuja, the Minister stated, “Your loyalty, sacrifice, and dedication in executing your Presidential security duties, coordinating ceremonial parades, and managing operational challenges are commendable. Your proactive approach in addressing security threats has ensured the safety of the Presidency as well as that of citizens, visitors, and diplomats alike. I urge you to continue embodying compassion and empathy in your operations, striving for excellence in all your responsibilities.”

The Minister highlighted that the WASA event serves as a vibrant testament to the rich cultural heritage of Nigeria, as showcased by the personnel and families of the Guards Brigade. “The traditional dances and local delicacies on display tonight not only enhance our appreciation of our diverse cultures but also play a crucial role in preserving our cultural heritage and distinct identity,” he added.

In conclusion, the Minister called upon the Guards Brigade to uphold the trust placed in them by consistently meeting the challenges of their duties and ensuring that the flag of the Nigerian Armed Forces continues to fly high.

Earlier, Major General Adebisi Onosayan, Commander of the Guards Brigade, delivered a welcome address expressing gratitude to the President for his unwavering support of the Brigade’s operations, training, and welfare. “Thank you, Your Excellency. I also wish to extend my sincere appreciation to the Chief of Defence Staff and the Chief of Army Staff for their relentless guidance and support. We pledge our unwavering loyalty and readiness to contribute effectively to the security of lives and property in the Federal Capital Territory and its surroundings,” he emphasized.

General Onosayan further noted that the 2024 WASA highlights the social diversity, cultural identity, values, beliefs, and rich heritage of the Nigerian people, resonating with the ethos of the Nigerian Army. “This event provides an opportunity to showcase various cultural dances, traditional cuisines, languages, attire, and ethnic groups of our great nation in a relaxed atmosphere,” he stated, adding that today’s event marks the Brigade’s Grand Finale.

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