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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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My CFR National Honours Award

By COL ABUBAKAR D. UMAR (Rtd)

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CFR National Honours

When the President called to inform me of his decision to magnanimously confer on me the the National Award of Commander of the Federal Republic, CFR, on account of my much advertised role in the struggle for the validation of the June 12th election and affirmation of Chief MKO Abiola’s mandate, my first reaction was why only me and not all those unsung heroes.

Those officers and men who actively participated in that struggle, risking their careers and even lives.

Although I was one of the leaders of that movement within the military, my contribution was by no means bigger than theirs.

While I have been recognised and celebrated, including this National Honour by the President, they have remained anonymous.

It is therefore incumbent upon me to reveal the identity of these patriots if only to acknowledge and commend their contributions to the emergence of the current democratic dispensation.

The fact that Chief Abiola, the presumed winner of the June 12th election won over 80% of the Armed Forces votes, clearly demonstrated the contribution of the other members of the military. I should  add that this list is by no means exhaustive.

There are a lot more participants who have remained unknown to me since they served under others.

I apologise to all those whose names I must have missed. May God recognise and reward your sacrifice.

Top on my list is my deputy at the Armoured Corps Centre and School, Col MA Garba, whose commitment was so strong that he  continued with the execution of our plans after some of us were arrested, detained and mercifully retired in October, 1993. He went on, as he should, to attain the enviable rank of a Major General in the army. Others are:

Others are:

-Lt col Lawal Jaafaru Isa.

-Lt col UF Ahmed.

-Lt col MS Dasuki.

-Lt col ML Gwadabe.

-Lt col J. Temlong.

-Lt col Musa Shehu.

-Lt col Chris Eze.

-Lt col HM Dzarma.

-Lt col Isa Jibrin.

-Lt col JOS Oshanupin.

-Lt Col A Oloruntoba(kabiesi Olugbede of Gbede kingdom).

-Lt col Moke.

-Lt col Happy Bulus.

-Lt col Olagunsoye  Oyinlola.

-Col J Okai.

-Col E. Ndubueze.

-Lt col Yakubu Muazu.

-Lt col Yahaya Abubakar ( current Etsu Nupe).

-Major Saad Abubakar (current Sultan of Sokoto).

-Maj Abba Maimalari.

-Maj Jamil Tahir.

-Maj Buzugbe.

-Maj LP Aprezi.

-Maj MK Yake.

-Maj J Dawah.

-Maj Suleiman  Wali.

-Maj Dauda Komo.

-Maj Lucky Torrie.

-Maj JS Zaruwa.

-Maj M Sumaye.

-Maj Sani Bawa.

-Maj Ndaliman.

Maj Ahmed.

-Maj M Bawa.

-Lt col JB Ahmadu.

-Capt Junaid Bindawa.

-Capt Lar.

I therefore accept this award with all sense of humility on behalf of all these officers and men. Obviously, it goes without saying that this award will be doubly more meaningful if the democracy we all fought for delivers the real dividends.

This can happen only  if leaders at all levels govern with the fear of God and in accordance with the tenets of democracy.

It remains the hope and prayers of all patriots that nothing is done to derail this infant democracy.

To achieve the stability and progress of our democracy, leaders must prioritise good governance over politicking for self aggrandizement.

The three co-equal branches of government must operate independently while cooperating with each other.

One enduring lesson from the conduct of the officers and men is their decision to operate above sycophancy but to hold their superior officers to account.

Sadly, this does not appear to have a positive impact on our political leaders. Sycophancy everywhere has become the scourge of selfless and accountable leadership. It is the reason for the arrogance and vanity we see in our leaders at all levels. Men of straw are widely and falsely being elevated to the position of icons by self seeking sycophants.

Mr President must lead in a war against sycophancy in all its forms. This must allow for no exceptions including the rapidly growing trend of naming and renaming public institutions, facilities and other infrastructure after a President or State Governor while in office.

The other day, the Senate President was reported to have predicted that President Bola Tinubu will win the 2027 election with 99.9% of the votes! Even allowing for the fact that this Senate President is widely known for his humorous incitement, Mr President will do well to shun such oracles.

God bless Nigeria.

Abubakar Dangiwa Umar, Colonel (Rtd)

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Security Above Politics: Kogi Govt Hails Faleke

BY: SANDRA ANI

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Hon. James Abiodun Faleke

The Kogi State Government has commended Hon. James Abiodun Faleke, Member Representing Ikeja Federal Constituency in the House of Representatives, for his unbending commitment to the security and wellbeing of his home state, describing him as “a patriotic Kogite who leads by example.”

Faleke, an indigene of Kogi State, recently donated a brand-new Hilux patrol vehicle to support the operations of the newly commissioned Smart Police Divisional Headquarters in Ekinrin-Adde, Ijumu Local Government Area.

The high-tech facility which was facilitated by the Nigeria Police Trust Fund in its collaboration with the Government of Kogi State to ensure security at every corner of the state by modernizing and digitizing security operations in the state. 

Speaking with journalists on Sunday, the Kogi State Commissioner for Information and Communications, Kingsley Femi Fanwo, conveyed the appreciation of Governor Ahmed Usman Ododo to the federal lawmaker, stating that Hon. Faleke has demonstrated what it means to place security above politics and people’s well-being above personal ambition.

“The Government of Kogi State wishes to reecho the open commendation earlier given by His Excellency during the commissioning of the Smart Police Divisional Headquarters,” Fanwo said.

“As a Government, we appreciate the demonstrative contribution of Hon. James Faleke to the security architecture and infrastructure of the state. This is how to lead the people with emphasis on security above politics, patriotism above scheming with the lives of our people.”

Fanwo added that Hon. Faleke has played key underground roles in support of intelligence, logistics, and coordination with security agencies, working quietly but effectively with the State Government to ensure lives and property are better protected in  Kogi State.

The Commissioner expressed confidence that Faleke’s latest intervention would significantly strengthen security not only in Ijumu but across Okunland, Kogi West, and the entire state.

“This is one intervention that we are sure will improve the security of Ijumu, Okunland, Kogi West, and Kogi as a whole. This is how to make an impact without playing to the gallery. What the people need are concrete interventions that can save lives, not selfish arrangements that protect personal interests at the expense of the people.

“The people know those who are genuinely working for their security, those working closely with the State Government to achieve lasting peace in Kogi State. They also know those who are merely playing politics with the lives of the people.”

The Government urged political and business leaders of Kogi origin to emulate Hon. Faleke’s sense of responsibility and selfless service to the people.

“Hon. James Faleke has set an example for others to emulate. He has shown that the lives of his people matter. He is not doing all of these to protect a personal interest or his investment or the investment of his friends. He is doing it to protect the Kogi people, his people”, he said. 

Fanwo also disclosed that the Government is closely monitoring the activities of illegal miners and their collaborators, vowing that those compromising the security of the state through economic sabotage will face stiff consequences.

“We are aware of the activities of illegal miners and their enablers. Let it be known that the state will not tolerate any action that puts the lives of our people at risk. We are taking bold steps to ensure that criminal actors do not jeopardize the peace we are working hard to build.”

The Kogi State Government reaffirmed its commitment to partnering with patriotic stakeholders like Hon. James Faleke in its mission to secure every corner of the state and preserve the gains already made in law enforcement and public safety.

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The Intellectual Sins of June 12: A Reckoning with Nigeria’s Democratic Conscience

Article Written by Professor Ojo Emmanuel Ademola

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The Intellectual Sins of June 12
The Intellectual Sins of June 12

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.

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