GRPolitics
[OPINION] Wike, VAT and the Quest for True Federalism
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.
GRPolitics
The Intellectual Sins of June 12: A Reckoning with Nigeria’s Democratic Conscience
Article Written by Professor Ojo Emmanuel Ademola
Every June 12, Nigeria observes a significant date that embodies both the aspirations for democracy and the painful betrayal of that dream. This day commemorates the 1993 presidential election, celebrated as the most free and fair in the country’s history but ultimately annulled by the military regime led by General Ibrahim Babangida.
While the focus has often been on the political and military figures involved, there has been less emphasis on the intellectual shortcomings that contributed to this democratic failure.
These shortcomings—the “intellectual sins” of June 12—include silence, complicity, and ideological failures that continue to impact Nigeria’s pursuit of democracy.
The Election That Could Have Changed Everything:
On June 12, 1993, Nigerians came together to vote for Chief Moshood Kashimawo Olawale (MKO) Abiola, a well-known southern Muslim celebrated for his wealth, philanthropy, and political acumen. His electoral victory was more than just a tally of votes; it became a powerful symbol of national unity and a collective longing for civilian governance following years of military rule.
The military’s annulment of the election results, based on vague security concerns and claims of irregularities, was profoundly disappointing. This decision was not merely a political manoeuvre; it represented a significant betrayal of the democratic values that the election was meant to uphold.
The Silence of the Intellectual Class:
One of the most troubling aspects of the June 12 crisis was the widespread silence—or, even worse, the rationalizations—by many in Nigeria’s intellectual elite. University professors, public commentators, and thought leaders, who should have served as the nation’s moral compass, largely failed to speak out against the annulment. Some even justified it, wrapping their arguments in legal jargon or appealing to national stability.
The silence in this situation was not neutral; it was an act of complicity. During times of national crisis, when the intelligentsia chooses to remain silent, this absence is not merely a lack of comment—it is an endorsement of the status quo. Nigeria’s intellectual class’s failure to provide a strong defence of democracy in 1993 highlighted a more profound issue: a lack of genuine commitment to democratic governance.
Ethnic Chauvinism and the Failure of National Integration:
The annulment highlighted the fragility of Nigeria’s national identity. Although Abiola had widespread appeal across the country, the decision to invalidate his victory was perceived mainly as influenced by northern political elites who were uneasy about a southern Muslim becoming president. This perception, whether accurate or not, strengthened the belief that Nigeria’s democracy is held captive by ethnic and regional interests.
Once again, the intellectual class fell short. Instead of confronting the ethnicization of politics, many scholars and commentators either overlooked it or contributed to it. The chance to use June 12 as a catalyst for national integration and civic nationalism was missed.
The Legal and Constitutional Vacuum:
The events of June 12 highlighted Nigeria’s fragile legal and constitutional framework. The annulment of the election exposed the country’s institutions as inadequate in preventing executive overreach and safeguarding the electoral process. At that time, there was a lack of an independent judiciary capable of contesting military actions, an ineffective legislature to oversee government activities, and a civil society that was not sufficiently strong to mobilize in response.
The Institutional weakness in Nigeria was not a coincidence; it stemmed from years of intellectual neglect. The country’s legal scholars, constitutional designers, and policy thinkers did not create a system robust enough to resist authoritarian tendencies. Consequently, the annulment of electoral processes directly resulted from this inadequacy.
The Myth of Transition Without Transformation:
The military’s commitment to transitioning Nigeria to civilian rule was fraught with inconsistencies. The annulment of the June 12 elections exposed the illusion that democratic governance could be realised without a fundamental change in the country’s political culture. The transition program itself was characterized by a top-down approach, a lack of transparency, and a focus on maintaining the interests of the elite.
Many intellectuals were drawn into the myth surrounding a purportedly democratic transition process. By actively participating in advisory roles, they inadvertently lent credibility to a system that lacked true democratic principles. Their failure to critically examine the underlying foundations of this transition program represents a significant intellectual oversight.
The Repetition of History:
The aftermath of June 12 has had lasting repercussions for Nigeria, as the country seems trapped in a cycle of repeating past mistakes. Key issues such as electoral malpractice, the dominance of elites over democratic institutions, and the suppression of dissent are still prevalent in the political landscape. Unfortunately, society has not fully grasped or embraced the vital lessons from June 12, indicating a failure to learn from history.
The recurring failures In Nigeria’s democracy highlight a deeper intellectual shortcoming, as there is a reluctance to engage in critical self-reflection and necessary institutional reform. It is simpler for leaders to honour June 12 through ceremonies and speeches rather than address the uncomfortable realities that emerge from this historical moment.
A Path to Redemption:
Nigeria needs to initiate a new democratic renaissance to address the intellectual shortcomings highlighted on June 12. This revival should focus on enhancing civic education, implementing institutional reforms, and reaffirming a strong commitment to democratic values.
1. Enhancing civic education within society is essential to ensuring the vitality of democracy. This involves prioritizing the teaching of democratic principles, critical thinking, and active citizenship in schools, universities, and media outlets. By doing so, citizens will become more aware of their rights and responsibilities, thus fostering a more engaged and informed populace.
2. Strengthen Institutions: A functioning democracy requires that the judiciary, electoral commission, and legislature operate without political interference. Achieving this necessitates legal reforms and a significant cultural shift in how power is exercised and contested within society.
3. Empower a New Generation of Public Intellectuals: Nigeria requires independent thinkers who prioritize democratic values over ethnic or political affiliations. These intellectuals should courageously challenge authority and advocate for democratic principles, unafraid of potential repercussions.
4. Confront the Past Honestly: The June 12 crisis serves as an important historical event that should be incorporated into school curricula and discussed in public forums. It carries significant moral lessons that are essential for understanding the past. By acknowledging and confronting this history, Nigeria can work towards establishing a more just and democratic future.
Conclusion: Democracy as a Moral Imperative
June 12 serves as a powerful reminder of Nigeria’s complex democratic journey, highlighting both its potential and challenges. Rather than merely marking the date with hollow statements, engaging in a genuine reflection on the past is essential. The mistakes of that time—characterized by silence, complicity, and ideological failures—should not be repeated. As we honour this day, we must recommit ourselves to the ideals embodied by Abiola’s victory, including justice, unity, and the empowerment of the people.
Democracy transcends being merely a system of governance; it is fundamentally a moral obligation. Every citizen, particularly those influential in shaping public opinion, has the responsibility to uphold and defend democratic principles with bravery, clarity, and firm conviction.
GRPolitics
PDP Crisis: Saraki, Dickson, Dankwambo Storm Enugu, Meet with Gov Mbah
… South East is important to PDP, says Saraki – REPORTER: SANDRA ANI
In a clear bid to stem the tide of crisis rocking the Peoples Democratic Party, PDP, the PDP Special Reconciliation Committee chaired by former President of the Senate, Dr. Bukola Saraki, Friday, met with the governor of Enugu State and leader of the party in the South East region, Dr. Peter Mbah.
Other members of the Committee present at the meeting, which held behind closed doors at the Government House, Enugu, were former governor of Bayelsa State, Senator Seriake Dickson, and former governor of Gombe State, Dr. Ibrahim Dankwambo.
It is recalled that the leaders of PDP in the zone had in a communique issued after the South East PDP Zonal Executive Council, ZEC, meeting a fortnight ago announced the re-nomination of former PDP National Youth Leader, Hon. Sunday Udeh-Okoye, to serve out the remaining tenure of the National Secretary, threatening possible exodus should their decision not be respected.
“In the event that our position is not promptly implemented by the Party, the South East PDP, as a family, will be compelled to reconsider our relationship with the PDP going forward,” the communique stated.
But addressing newsmen after the closed-door meeting with Mbah, Saraki said, “We are members of the PDP Reconciliation and Strategy Committee that was set up recently by the PDP Governors’ Forum to work towards ensuring that our upcoming National Executive Council meeting and also likely convention is rancor-free and and works smoothly.
“In line with that, we are here in Enugu State to consult with one of our leaders, Governor Peter Mbah, who is the leader of South East PDP.
“This is the first state we are coming to because we appreciate the importance of the South East in our PDP family. As you all know, the South East has played a key role as the bedrock of the popularity and the strength of our party.
“In recognition of that, we are here to consult with him and first to commend him on the leadership role he has been playing in the party. More importantly also, to commend what he is doing in Enugu State, which is a reflection for Nigerians to see what happens when you have a PDP government.
“In doing that, we discussed how we will ensure that we carry out the assignment given to us and go ahead to have our NEC and our convention. We will have one that is rancor-free and smooth, peaceful and lays the foundation for the PDP that we all are wishing for.
“We have had a very good discussion. Frankly, we have had a very, very useful discussion. We are going away with some of the suggestions that we have here and hopefully work on that.
“With this, we can say here in Enugu we laid the foundation for a greater new PDP that is coming.
“What we have also seen today is that there is nothing insurmountable in the challenge ahead and the spirit, the commitment of all of us, especially our leaders, is very very inspiring,” he stated.
… It’s time to stand together – Mbah
… We’ve been trampled upon – Wabara
… We don’t want to be taken for granted – Achike Udenwa
The crisis currently rocking the opposition Peoples Democratic Party, PDP, has worsened as the South East caucus of the party has threatened mass exit from the troubled party if its choice of Hon. Udeh-Okoye as the National Secretary is not respected for the umpteenth time.
This was even as the governor of Enugu State and leader of the PDP in the zone, Dr. Peter Mbah, said it was time for the zone to speak with one voice, while the Chairman of PDP Board of Trustees, Senator Adolphus Wabara, and former governor of Imo State, Chief Achike Udenwa, expressed fury over what they described as the party’s disrespecting and trampling of the region.
The zone vented its displeasure in a communique read by the Zonal Chairman, Chief Ali Odefa, at the end of a meeting by the South East Zonal Executive, ZEC, at the Government House, Enugu on Wednesday.
It said the meeting was convened to nominate a candidate to complete the remaining term of the position of National Secretary in line with the directive of the party’s National Working Committee, NWC, during its 600th meeting in Abuja.
Rendering the communique, Odefa said, “The South East ZEC exhaustively deliberated on the directive of the NWC and came to the conclusion that it offered a sure pathway to peace, unity, stability, and progress of our party. Consequently, the ZEC unanimously recommended Hon. Sunday Udeh-Okoye as the candidate to complete the term of office of the National Secretary.”
The South East PDP, however regretted that it had to go through the process of nominating Udeh-Okoye severally since October 2023, and urged the NWC to not only immediately ratify his nomination, but also ensure that Arch. Setonji Koshoedo effectively occupies the Office of the National Secretary in acting capacity pending Udeh-Okoye’s ratification by the NEC.
The South East PDP, however, threatened to review its continued membership of the party should its position suffer further delay despite its agelong loyalty to the PDP.
“The South East has consistently served as a stronghold of the PDP from inception. In PDP’s near three-decade existence, we have given our loyalty and all to the party.
“Currently, while the party has been losing key members post-2023 general elections, the South East PDP is at the vanguard of strengthening the Party by rallying major opposition figures such as in Enugu where the Labour Party, LP, gubernatorial candidate, two LP House of Representatives Members, numerous members of the House of Assembly, among other stalwarts into the PDP fold.
“Therefore, we hope that this time around, the position of the South East PDP regarding the Office of the National Secretary is accorded the honour and immediacy it deserves. This would bring to a closure to the needless lingering dispute over the matter.
“However, in the event that our position is not promptly implemented by the Party, the South East PDP, as a family, will be compelled to reconsider our relationship with the PDP going forward,” the communique concluded.
Wabara, on his part, said it was in order to review the region’s relationship with the party should what he described as trampling of the zone by the party persist.
“We have been trampled upon, not taken seriously. If such a position were vacant in the South-South, it would not be like this. And now, it came to us. I mean, the usual thing is to play politics with the Igbo man. Yes, we may have to reconsider our stand as far as the party is concerned. But I trust the NWC,” he stated.
Udenwa, on his part, Udenwa said, “We are expecting that this issue will be finally ironed out once and for all. We do not want to be taken for granted by anybody again.”
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