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VAT legal tussle: The implications and way forward

Written By: Chukwuemeka Oluka

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Chukwuemeka Oluka VAT

It is no longer news that some states of the federation struggle to keep their head above water because of the paucity of funds occasioned by challenging internally generated revenue structures.

VAT controversy

These states also allege that they are being short-changed by the Federal Government when sharing the national proceeds from Value Added Tax (VAT). It is on this premise that the Rivers State Government, one of the biggest contributors to the VAT proceeds has filed a suit through the state’s Attorney General against the Federal Inland Revenue Service (FIRS) and the Attorney General of the Federation to challenge the legality of the FIRS to collect VAT within the state.

In a verdict delivered by a Federal High Court sitting in Port Harcourt on August 9, 2021, Justice Stephen Dalypop Pam ruled that the Rivers State Government and not the FIRS is entitled to collect VAT and Personal Income Tax in Rivers state territory.

The judgement by extension means that other states government’s constitutional right and authority to impose, collect, and utilize VAT within their respective territorial jurisdictions were upheld too.

Not satisfied with the judgment, the FIRS approached an Appeal Court to challenge the ruling.

While the appeal was yet to begin, the revenue collection agency returned to the same Federal High Court in Port Harcourt to seek a stay of execution on the court’s ruling, pending the determination of their appeal.

Recall that sequel to the landmark judgement in favour of Rivers state, the state House of Assembly had enacted the Rivers State Value-Added Tax Law of 2021 and it was signed by the Governor, Nyesom Wike on August 19th, 2021.

It is against this backdrop that this research examines the issues around the current legal tussle. It examines the implications for parties involved while proffering some suggestions on the way forward.

What is VAT?

Yes, one may ask, what does VAT mean? VAT is an acronym for Value Added Tax. It is a consumption tax paid when goods are purchased and services are rendered.

It is a form of indirect sales tax paid on products and services at each stage of production or distribution, based on the value added at that stage and included in the cost to the ultimate consumer.

VAT was introduced in Nigeria with the enactment of the VAT Act No. 102 of 1993, to replace the Sales Tax, which had been in operation since 1986 under the Federal Government Decree No. 7 of 1986.

According to the Decree establishing VAT, the FIRS claim it remains the legitimate authority to administer it. But the Rivers State Government would maintain that the inability of VAT to be captured in items 58 and 59 of the exclusive legislative list of the 1999 constitution makes the FIRS unable to administer VAT. This is the bone of contention; this is the crux of the matter!

Matters Arising…

With this knowledge, it is interesting to know that the public spat between the Rivers State govt and the FIRS over the administration of VAT appears not going away soon.

This followed the trial court’s dismissal of the application of FIRS for a stay of execution of its judgment in favour of the Rivers State Government to collect VAT and not the FIRS. In delivering his ruling on the stay of execution application by the FIRS, Justice Pam said the revenue collection agency failed to file an application to set aside the Rivers State Tax Law of 2021.

Therefore, he maintained the state’s law on VAT remained valid and subsisting.  But despite the ruling, the FIRS had remained defiant, resisting the ruling of the court and had directed taxpayers in river state to continue to comply with the VAT Act pending the determination of its appeal by a superior court.

As events kept unfolding, Gov. Wike of Rivers took the battle a step further by releasing a letter written by the FIRS to the National Assembly dated July 1, 2021, asking the legislators to amend the 1999 constitution by moving VAT administration from the concurrent legislative list to the exclusive legislative list.

The letter with reference number FIRS/EC/CWREP/0416/21/037, was titled, ‘Request for sponsorship of a bill for the establishment of the proposed Federal Revenue Court of Nigeria and the insertion of Value Added Tax under item 58 of the exclusive legislative list’.

In the letter, the FIRS Executive Chairman, Muhammad Nami, specifically pleaded with the Chairman of the Constitution Review, who is also the Deputy Speaker of the House of Representatives, Idris Wase to vest, exclusively on the FIRS, all adjudication of tax disputes, including federal tax laws, companies’ income tax, petroleum tax, income tax, capital gain tax, stamp duty, VAT, taxes, levies and other laws, regulations, proclamations, government notices, and rules.

According to Wike, the FIRS letter, more or less, reinforced the judgement of the court and vindicates the position of the Rivers State Government that it is not the responsibility of the FIRS to administer VAT generated in the states.

While the Rivers State Government was still rejoicing in the recent trial court rulings at the time, The appellate court in Abuja, on Friday, September 10, 2021, ordered the Rivers State Government as well as the Lagos state government – that had applied to be joined in the subsisting suit – to stay action on their bids to collect Value Added Tax (VAT) pending the resolution of the legal dispute on the matter.

Premium Times reported that Haruna Tsammani, the judge who delivered the lead ruling of a three-man panel also suspended the operation of the law passed by the Rivers State House of Assembly and assented to by Governor Nyesom Wike, for the collection of VAT by the State government.

The court held that since parties had submitted themselves to the jurisdiction of the court (of appeal) for adjudication on the issue, they must not do anything that will destroy the subject matter of the appeal.

Honestly, one never gets enough of the myriads of evolving issues in the tussle between the Rivers State and the FIRS.

It has been and continues to be a roller coaster of controversies. Nonetheless, this research would go on to explore the implication(s) the ongoing VAT controversy has on parties involved and most especially, on the fiscal federalism that is being practised in Nigeria.

The Implications

As the VAT legal battle rages, the researcher is somewhat coy and a bit careful not to pre-empt the decision of the superior courts before which the final interpretation of the law on the matter lies.

This is based on the realization that when a matter goes on appeal, a superior argument will arise. Even, a case can be lost on appeal based on technicalities. When a matter is entertained based on substance, one could still lose a case on appeal.

Nonetheless, based on the realities on the ground and since the trial court’s ruling in Port Harcourt has been in favour of states to administer VAT, most of the implications the research identifies, tilts towards what obtains if Rivers State wins the legal battle in the end.

With this, the first implication will be that states can now enact their tax laws within a new tax regime and then set a rate for it. This will give them leverage to improve their financial statuses.

Whether this development will be welcome across economically less-viable states of the federation is a different question. But certainly, this is a conversation Nigeria must not shy away from, because, now is the time for it to be heard.

Another implication is that the current revenue allocation formula will now be up for serious scrutiny and discussion.

The reality had been that some states – especially those with huge VAT revenue potentials – have held that the Federal Government has been unfair to them in terms of the revenue sharing formula.  In the month of June, VAT collected in Rivers State was N15.1billion; what they were given was N4.7billion.

The VAT collected in Lagos state was N46.4 billion but what it got was N9.3billion. However, Kano state contributed N2.8billion and then was given the same amount in allocation.

This is why the governor of Rivers state would describe this sharing formula as an injustice. So, the current litigations give states like Rivers and Lagos, which have always cried of injustice, an excellent window to put things in the right perspective. But when this is done, the truth is that some states with low economic profiles are likely going to get impoverished.

Even the Federal Government will bear the brunt hugely should they lose the legal tussle eventually. This is because the FIRS has been one of the largest revenue pools for it. Also, given that the Federal Government is being plagued of late with borrowing funds at all costs, their balance sheets will now go from the sublime to the ridiculous.

How this will affect the national Gross Domestic Product (GDP) in the long run is yet to be seen, considering that the economy showed signs of full recovery after a period of strong recession.

Meanwhile, business operators in Nigeria are deeply concerned about what becomes their fate in the anticipatory VAT regime.

The argument is that it will lead to multiplicity of taxes especially where items are sold and then moved from one jurisdiction to another.

The disparity in VAT charges at the point of goods’ procurement and sales that will hold sway in different states of the federation would lead to tax-payers paying double.

Also, the practice over the years, by the Federal Government of collecting tax accruing to the states has been alleged to stifle and prevent fiscal federalism from blossoming successfully in Nigeria.

Should the final judgement be in favour of states to collect VAT, the implication will be that the Federal Government will now rethink other governmental functions and financial relations accordingly amongst states and local governments with a view to shedding more of its weight to end any perceived ‘uneven’ fiscal federalism. This will set the precedent for a properly federated structure to come on board.

The Way Forward

Now that the legal battle has been taken to superior courts, it becomes expedient that they accord accelerated hearing to it. In doing so, the judiciary must decline any temptation to be used by the Federal Government to do any dirty jobs in the VAT legal tussle.

Any attempts, for instance, to move the matter from where it currently is to another court that will be seemingly favourably disposed to granting judgement to one party at the expense of the other, will automatically throw a spanner in the works of our democracy.

The scandal of ex-parte order of interim injunctions and conflicting rulings from courts of coordinate jurisdiction must be resisted in this case.

Reliance on the Federal Government has made some states feel somewhat lazy and laid back. As a potentially new tax regime takes form, it presents a wake-up call for governors of economically less-viable states to wear their thinking caps to start thinking outside the box.

They must move away from the idea of a ‘feeding bottle’ system of government that goes cap in hand to Abuja to beg for funds.

These states must roll up their sleeves, work hard and explore alternative and viable ways to survive. This includes collaborating with other regions to grow their revenue base.

In the meantime, the logic of not consuming certain things but benefit from them when VAT revenues are shared should be discouraged.

Many states in the North have Sharia (Hisbah) police in place and they prevent people from drinking or selling alcohol, but they end up benefiting from the same VAT proceeds from alcohol collected in other parts of the country.

These states should rethink the destinies they have chosen for themselves and start creating the enabling environment for businesses to thrive. In a related development, if a beauty pageant is disallowed in a state, for instance, Investments that would’ve come to the state concerning entertainment would’ve been lost.

By this, states are encouraged to scale up their economic policies to attract investments since they will be the ones to get the VAT benefits.

While states of the federation anticipate the final judgment on VAT administration, it is being suggested that they should prepare for a transition period of VAT regime if the final verdict goes in their favour.

There should be a lot of orientation and education for business owners and the public to know the institution empowered by law to collect VAT going forward.

Do some states have the capacity to collect VAT like the FIRS do in case the legal tussle finally goes their way? Well, while capacity talks about the infrastructure or the provisions made for the seamless collection of VAT, these states, if they do not have the capacity in place, can learn from investments hubs like Lagos, Ogun, Kano, and Rivers states to understudy how they’ve been able to manage their tax collection schemes over the years.

While this is done, the conversation has to be shifted from VAT collection to the responsibility of the states – if the power eventually rests on their table – to properly now administer the humongous amount of money that will be coming to them through VAT.

In all, there is simply no gainsaying that Nigeria has witnessed a dramatic turn of events lately due to the current impasse between Rivers State and the FIRS over VAT collection and administration.

It shows that we are living in interesting times, and interesting it is to see that states are gearing up to take their destinies into their own hands.

Good a thing parties involved in the legal tussle are respecting the rule of law and doing so within the ambits of the law. Therefore, the time is now for our courts to rise to the occasion, not fearing whose ox is gored in the VAT tussle, and be ready to expand the frontiers of our legal jurisprudence for good while saving our democracy some impending blushes.

About The Writer

Chukwuemeka Oluka writes in from Enugu, Nigeria. He is a passionate writer and a research enthusiast. He is also a graduate of Electronic and Computer Engineering from Nnamdi Azikiwe University, Awka. He tweets @mekus_oluka and can be reached via [email protected]

GrassRoots.ng is on a critical mission; to objectively and honestly represent the voice of ‘grassrooters’ in International, Federal, State and Local Government fora; heralding the achievements of political and other leaders and investors alike, without discrimination. This daily, digital news publication platform serves as the leading source of up-to-date information on how people and events reflect on the global community. The pragmatic articles reflect on the life of the community people, covering news/current affairs, business, technology, culture and fashion, entertainment, sports, State, National and International issues that directly impact the locals.

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One Nigeria: How Governor Mbah is Leading the Azikiwe Dream

By Majeed Dahiru

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Peter Ndubuisi Mbah

A few weeks to his inauguration as governor of Enugu state on May 29 2023, I had my first meeting with Peter Mbah along with a few other colleague media personalities.

The meeting, which was at the instance of my good friend, brother and perhaps one of Nigeria’s best media relations guru, Uche Anichukwu, held at the Abuja Transcorp Hilton.

Present at the meeting was also my good friend Ifeanyi Ossai, then deputy governor-elect of Enugu state. For many years,

I have been deeply connected to the political leadership of Enugu state to the extent that the state has become my second ‘’state of origin’’. And in these years, I have come to appreciate a leadership value system that is firmly hinged on a deep connection between the political leaders and the people of Enugu state.

In my close interaction with leading lights of Enugu state such as former Governor Ifeanyi Uguwanyi, former Deputy Senate President Ike Ekwerenmadu, former house of representative members Patrick Asadu and Toby Okechukwu among many others, I have come to the realization that if there is one state in Nigeria where democracy is truly work in progress then it is my second home state.

But throughout my years of involvement in Enugu affairs, I never met Peter Mbah, who by then was busy carving a niche in the ecosystem of Nigeria’s organized private as a leading player in the oil and gas industry as the chairman of Pinnacle until the Abuja meeting.

At the meeting, Peter Ndubuisi Mbah, a lawyer, business man and politician who previously served as chief of staff in the administration of former governor Chimaroke Nnamani, in a very calm, composed and stoic mien, took us through his vision for the state.

In fact, he reiterated his campaign promises including the creation of a 30billion dollar economy, resuscitation of urban water supply, ending sit at home, upgrading of health facilities and most importantly the building of smart schools to usher Enugu children into a future that is today.

Listening keenly to this gentleman, I saw a serous minded man who means the business of governance.

Satisfied that Peter Mbah knew exactly what he wanted to do as governor, I decided to quip in a little suggestion on the need for him to run a government that should be inclusive of all Nigerians resident in the state irrespective of ethnicity and religion, especially given the fact that Enugu was the former regional capital of the old Eastern Region.

I specifically made this suggestion to the incoming governor, because of the widespread perception that the Igbo people of Nigeria are not accommodating of other groups as they are accommodated outside their eastern heartland home region and this issue is often weaponized against individual politicians seeking the highest office in the land from one of Nigeria’s most important sections.

As I made this appeal, Governor Peter Mbah, an otherwise straight-faced man with an expressionless mien, let out a smile of appreciation without saying a word. Little did I know that I was preaching Catholicism to the Bishop of Rome.

The recent controversy surrounding the abandonment of a multi-billion naira contract for the construction of Governor Mbah’s smart schools across the state, which was awarded to Olasijibomi Ogundele, a Lagos based Yoruba property developer has clearly revealed Peter Mbah as a detribalized pan Nigerian nationalist who is leading and living out the vision of the Great Zik of Africa of one united Nigerian nation of citizens away from a fractured country of disunited tribesmen.

After all it all began in 1952, when Nnamdi Azikiwe’s NCNC party threw up Mallam Umaru Altine, a Hausa speaking Muslim from northern Nigeria, who was resident in Enugu city as the Mayor of the regional capital of the Nigeria’s Igbo homeland; a feat in national integration that has remained a reference point in national unity for more than half a century.

This commentary is not about the business dispute between Brethren Olasijibomi Ogundele and Enugu state government but more about the fact that Governor Peter Mbah has shattered the myth or if you like the fallacy and falsehood about Ndigbo not being accommodating of others as they want others to accommodate them.

By entrusting some of his most important project in the hands of ‘’others’’ Governor Mbah’s action has clearly vindicated the Igbo people of Nigeria and rebranded their image as a people who truly believe in the philosophy of ‘’Nwanne di na Mbah’’ [a brethren can be found in foreign land].

Interestingly, Olasijibomi Ogundele is not the first and only beneficiary of Enugu state government patronage within the context of this commentary.

Recently, the Governor commissioned five ultra-modern bus terminals in Enugu state as part of his administration’s transportation master plan to provide affordable and seamless interconnectivity across the state’s major towns and city centre. Four of those terminals were constructed by Planets Projects; a Lagos based construction whose major promoter is Eng Biodun Otunola.

The modern Oshodi Bus terminal in Lagos was constructed by this firm. Similarly, the multi-billion naira Enugu state Command and Control Centre, which is reported to be the biggest in Nigeria with AI-enabled surveillance cameras across the state vide fibre optic cables, was built by Hajaraisan Nig LTD.

The Managing Director and Chief Executive Officer of the company is Aminu Uba Miko, an indigene of Kano state, while Ibrahim Shehu from Jigawa state was engaged to develop the Enugu State Vehicles’ Identification System Software.

And XEJET, the operator of the recently launched Enugu Enugu Air; an Enugu state owned airline was founded by Emmanuel Izah from Kogi state.

The good thing about these engagements is that they were competitively bided for but the Yoruba or Hausa ethnicities of Enugu state government’s preferred bidders did not limit or diminish their chances of winning the contract in Peter Mbah’s Enugu.

Just as Planets Project has a track record in transport infrastructure construction and management, so does Olasijibomi’s Sujimoto Property construction firm have a solid track record as pioneers of smart buildings in Africa.

That the Enugu state government has taking steps to sanction Olasijibomi Ogundele clearly shows that Governor Mbah has no incestuous relationship with the young man and that his engagement was purely based on the belief that he can deliver on the job.

Away from these few cases amongst many others, Governor Mbah in making strategic appointments in Enugu state has demonstrated the oneness of Nigeria, where the principles of inclusion, equity and justice reigns supreme.

The Managing Director of Enugu state Broadcasting Service is Ladi Akeredolu-Ale, a veteran broadcaster from Ondo state, while the man helping Governor Peter Mbah to drive his vision for available, accessible and affordable healthcare is Dr Yomi Jaye, his Special Adviser on Health Matters.

To boost the IGR of the state, Governor Mbah hired Adenike Okebu as his Senior Special Assistant on Revenue. While Alh Abubakar Yusuf Sambo serves as the governor’s Senior Special Assistant on Special Duties, the Commander of Enugu Forest Guard is Olamitisoji Akinbamilayo, a retired Deputy Commissioner of Police who served in the Enugu state Command.

The retired DCP was in charge of operations when Governor Mbah directed the full implementation of the ban on sit-at-home and other violent activities by miscreants. For his meritorious service to the state, DCP Akinbamilayo was retained by the state as part of its security management team.

Peter Mbah’s Enugu state is the Nigeria of our dreams. And when the Igbo people of Nigeria are accused wrongly, they should point in the direction of Peter Mbah’s Enugu State.

Like I have consistently maintained, Nigerians are essentially one people and the various ethnic groupings are simply members of the same family that are living in different parts of the family compound.

A movement from one part of the family compound to another should not render a member of the family an outsider inside his/her family compound.

This is called citizenship. And as citizens of Nigeria, we should be free to reside in any part of the federation without the dichotomy of ‘’indigene and settler’’ wherein one’s ethnicity can enhance or diminish access to state provision and protection.

The fundamental condition preceding national development and security of any sovereign entity is the social cohesion, national integration and unity of the constituent peoples. Now we know why Peter Mbah’s Enugu State is working progressively.

*Dahiru is an Abuja-based public affairs analyst

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Tinubu The Audacity To Hope – Two Years After

Article Written By Segun Adeleye

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President Bola Ahmed Tinubu
President Bola Ahmed Tinubu

The second year has gone since Asiwaju Bola Tinubu was sworn in as the President of Nigeria, which translates to half of his tenure already spent!

At the first anniversary, the thinking in some quarters was that one year was too short to access the performance of any government. But now that it’s half of the tenure and behind the scene networking for him to return for the second term is in full gear, a comprehensive assessment should better be done now by anyone that cares or never.

Surprisingly, there is no meeting point between the two opinions on the performance of the President so far, and it seems there will never be a convergence, with those that are against him having nothing good to point at as achievement, while those in support are ready to sing his praise to the heavens.

Those on the left pole as expected are from the camp of the opposition parties who are yet and may not be able to cross to the ruling party, and of course millions of citizens who are negatively hit by the president’s economic policies in the last two years. It has been very difficult for many to comprehend why government cannot banish an extreme hardship that has even surpassed what they saw when they thought there could never be a worse clueless leadership in Nigeria.

Nigeria’s political system is yet to have a measurement mechanism where the performances of the leaders and the mood of the populace can be gauged as we see in many advanced democracies where opinion polls on leaders are released from time to time, and they are taken seriously, like a mirror to know the possibilities in future elections.

THE NAY SAYERS

The voice of those who seem to be discontented with the way things are going in the country no doubt is the loudest. The hardship voice is so loud in every corner such that if public opinion counts and if there is a remote possibility of having a free and fair election in the country, one would say that the President and his ruling party will be having sleepless nights.

It will be interesting to see anyone that can swear that there is a free and fair election in Nigeria. I believe the closest to a consensus will be that candidates will rig and win where they are popular. This can explain why some supporters will sing ‘ba tie dibo, oti wole’ (even if we don’t vote, you have won) during electioneering campaigns or the audacity that the PDP had then to boast that it will rule for 60 years.

The loud voice of discontentment in the last two years stems from  the removal of fuel subsidies, Naira depreciation, spiraling inflation as high energy and food costs eroded the purchasing power of most Nigerians.

In the opinion of the former Vice President Atiku Abubarka who is occupying the extreme end of the opposition, in two years, the Tinubu’s administration has proven to be one of the most incompetent, disconnected, and anti-people governments in Nigeria’s democratic history.

He claimed a disregard for transparency, accountability, and responsible leadership, saying the government has not only deepened poverty, but set new records in wasteful public spending.

Pointing out that Nigeria’s total public debt in two years skyrocketed from 150 per cent to N144 trillion when compared to those of state governments where debt levels dropped from N5.86 trillion to N3.97 trillion, he concluded that Tinubu administration was the primary driver of Nigeria’s debt crisis.

His former boss, Former President Olusegun Obasanjo also shared same sentiment as he was quoted to have written in his book, Nigeria: Past and Future, that the Lagos-Calabar highway typifies waste and corruption.

He was quoted as saying, “Typical examples of waste, corruption and misplaced priority are the murky Lagos-Calabar Coastal Road on which the President had turned deaf ears to protests and the new Vice-President’s official residence built at a cost of N21 billion in the time of economic hardship to showcase the administration hitting the ground running and to show the importance of the office of the Vice-President. What small minds!”

Atiku’s political party, the PDP is also singing the same song while urging Tinubu to urgently address the issue of insecurity, reverse all economically suffocating policies and check the wholesale corruption, greed, unbridled profligacy, reckless misdirection of resources, arrogance in failure and totalitarian tendencies in his administration, which has shown itself as anti-people and impervious to the suffering of Nigerians.

Mr. Peter Obi, the Presidential candidate of the Labour Party  has always been critical of President Tinubu’s administration, particularly on economic issues. He had expressed concerns about the country’s economic downturn, highlighting a significant decrease in GDP from $477 billion to $252 billion, which dropped the country from the biggest economy in Africa to number four.

SIMPLY THE BEST?

But in a sharp contrast, those that could see with the same lenses as the President, particularly those in the organised private sector are happy with what they are seeing so far.

Ironically, the removal of fuel subsidy which many are lamenting about is what the President’s admirers have embraced as one of his best achievements so far.

They believe that Tinubu’s economic reforms are promising despite being tough on Nigerians and businesses as they see positivities in the  fuel subsidy and foreign exchange rate unification; Compressed Natural Gas (CNG) initiative to save over N2 trillion monthly by cutting petrol imports; Billions approved for the Student Loan Scheme; significant increase in government revenue with  funds being channeled into large-scale infrastructure projects; rise in oil production; over $500 million in foreign direct investments; other social intervention programmes which include  over N200 billion allocated to the newly established Consumer Credit Corporation;  N570 billion disbursed to states for livelihood support; new national minimum wage to N70,000; increasing NYSC allowances to N77,000; tariff waivers on food and pharmaceutical imports among others.

Abdul Samad Rabiu the Founder and Chairman, BUA Group in an interview listed what the administration had done right to include the removal of the fuel subsidy which he said was the biggest economic scam in our history. He said the administration unified the foreign exchange market and restored stability, fairness, and confidence in the economy.

“These are the foundations of growth. Nigeria is full of potential. With the right leadership, which we now have, there is no limit to what we can achieve,” Rabiu said.

The Chairman of the Dangote Group, Alhaji Aliko Dangote also shared the same view with Rabiu as he described Tinubu as a visionary leader, saying one of the Tinubu administration’s most transformative initiatives is the Naira for Crude Policy.

He said that the policy stood out as a clear testament to the administration’s commitment to economic recovery and national sovereignty.

He said, “This bold policy has enabled us to reduce product prices consistently and guarantee availability for the overall benefit of Nigerians. It has also helped significantly in stabilising the prices of petrol, diesel, jet fuel, LPG, and polypropylene to their lowest levels ever. The effect of this development is the stabilisation of our currency, a critical element in the development of economic policy and budgeting by businesses.”

He also lauded the administration’s Nigeria First Policy, which aimed to drastically reduce reliance on foreign goods and services, prioritising local patronage in investment decisions, business operations, and consumption habits.

Anambra State governor, Prof Charles Soludo from an opposition party also joined the camp of those that believed that Tinubu had been outstanding in the last two years. He said the President’s bold and visionary economic reform policies, have positioned the country on a trajectory of sustainable growth and development, despite temporary setbacks.

He said President Tinubu’s game-changing initiatives, including the removal of fuel subsidies, foreign exchange reforms, and significant investments in infrastructure development, demonstrate his decisive commitment to building a prosperous nation.

MAN SHALL NOT LIVE BY BREAD ALONE

As expected, the administration has not been slack at defending its record with the President dismissing critics of his legacy projects for being ignorant about how the government awarded them to contractors.

The President will be right if he borrows the phrase ‘man shall not live by bread alone’ to defend his administration’s thirst for legacy projects if one should reflect on the past when the country was turned into the dumping ground for imported products with strategic infrastructures left undeveloped.

The administration no doubt has been bullish and performed beyond expectations on infrastructure development if one should reflect on the time that these projects were conceived, like the Sokoto-Badagry Superhighway which was said to have been envisioned 47 years ago under the Shagari administration.

Another area where one can argue that the President has also surpassed expectation is the quality of appointment into strategic agencies as he did away with the past culture of mediocre in high places. I had in one of my early series, ‘If I were Tinubu: Setting a Tinubunomic agenda’, wrote that “ The President will need the right professionals to run the oil industry. Specifically, there will be a need for a total overhaul of the system. The new NNPC Limited should be made to advertise the positions of its CEO and other top directors to attract the right professionals from all over the world.”

When the President initially retained the old management of the NNPCL, I had thought that could only happen because he had seen what people from outside could not see. But the dramatic replacement of the management and board which could pass for a corporate coup has been applauded in many quarters as the right thing to do.

On sports, while the Tinubu’s administration has been commended for its development initiatives, particularly the reinstatement of the National Sports Commission (NSC) as the governing body for sports along with the timely payment of bonuses and allowances to athletes, its yet to be seen when these will translate to Nigeria winning medals in international events.

With the government also deserving credit for the bold tax reform agenda which is expected to become more pronounced when the new tax bills are signed into laws, it’s not also too difficult to identify the areas where hope is still hanging in the balance.

For instance, the claim of a repositioned health sector despite all odds has not been felt by a large segment of the masses, so also the initiatives to boost local food production, support farmers, and stabilise food prices have not yielded recognisable results, as the level of hunger in the land is still at the extreme.

Moreover, the government has not been convincing with its programmes to improve electricity supply as the grid keep on suffering multiple collapses, with most people still living with poor supply despite increase in tariff.

Also the blue economy that raised so much hope with the creation of the Marine and Blue Economy ministry has not lived up to the billing, with no sign of definite direction to harness the huge potential in the sector.

While the road infrastructure where huge resources have been committed also hold great prospect for the country, it is understandable that the impact may not be felt in the next one or two years.

TINUBU UNSTOPABLE?

Going forward, it will be difficult to expect any dramatic change in the posture of the president for the rest of his term, more so when the groundwork for his reelection has started.

By now, most Nigerians would have formed their opinions about who the president is, yet no one can absolutely boast that they know him. To say that he is stubborn or brave would be an understatement. Like a script in a mafia book, he has plotted his ways through the political trench to built a cult of followership and emerged as the most powerful and influential leader Nigeria has ever seen. His influence in the National Assembly is overwhelming, which would make it possible for him to push his agenda either legislatively or through Executive Orders. Unlike Obasanjo who would have instigated crisis in order to uproot their leadership as he would not like to share the limelight with anyone, Tinubu has allowed them the room to breath while pulling the string behind the scene to get his ways.

In a congratulatory message to the President on the second anniversary in office, President of the Senate, Godswill Akpabio said Tinubu had restored the hope of Nigerians for a viable and sustainable nation through transformative and courageous leadership… he had placed Nigeria on a solid developmental pedestal using the Renewed Hope Agenda as his policy thrust.

There may be likelihood of positivities in the enormous power that the President has amassed if positively deployed as the case of Lee Kuan Yew, the Singapore’s first Prime Minister who transformed his nation from a developing country to a developed one through visionary leadership and pragmatic policies between 1959 and 1990. If Tinubu can push through his legacy projects and other reforms, he could achieve the feet of Yew with Nigeria. However, since he is human and as absolute power corrupts, the fear of abuse cannot be overlooked.

The opposition parties that could give him a run for his money are currently in a disarray. One will be expecting more manoeuvring to weakening them and lure away their remaining prominent leaders in the coming months, which will make victory look very obvious for the President in 2027 even if the masses are crying murder.

The minister of Finance and coordinating minister of the Economy, Wale Edun told foreign investors few months ago  that the government through its veracious reforms had laid the foundation that would make the country the desired destination for private investors, saying the country is on the road to 7 per cent annual growth, while the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, similarly said Nigeria’s economy is on a path of stabilisation and recovery following months of tough but necessary reforms.

With assurances like these coming from government officials while the opposition parties are at disarray with defection waves sweeping through the South South up to the North, Nigerians can only buckle up for the rough ride that may  go beyond 2027, with hope and prayer that light will eventually come at the end of the tunnel.

*Segun Adeleye is the President/CEO, World Stage Limited, the publisher of WorldStage Newsonline. He is the author of Tinubu The Audacity To Hope, So Long Too Long Nigeria among others.

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Atiku Abubakar’s Coalition on a Path to Failure after Struggles

By: Prof. Ojo Emmanuel Ademola

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Atiku Abubakar

In Nigeria’s political landscape, Atiku Abubakar’s coalition stands as a significant challenger to the status quo but faces challenges like internal disputes, regional divides, and distrust among stakeholders. To succeed, the coalition must present a clear economic vision resonating with an informed electorate. Fostering unity, transparency, and inclusivity while addressing internal conflicts and regional disparities will enhance trust and strengthen its position in Nigerian politics.

Atiku Abubakar is leading a coalition of major political parties, including the APC, PDP, and Labour Party, to challenge President Bola Tinubu in the 2027 elections. The coalition aims to tackle regional insecurity and economic issues, which Atiku believes the current government is mishandling. In response, President Tinubu is employing a carefully crafted strategy, termed a divide-and-rule approach by some analysts, to weaken this coalition. However, analysts suggest that Nigerians are increasingly focused on economic solutions rather than divisive politics.

Political analysts assert that Atiku Abubakar’s coalition faces immense challenges, indicating it is “dead on arrival.” Atiku Abubakar’s coalition is plagued by internal conflicts, particularly between him and Peter Obi over leadership and the presidential candidacy. Regional divisions have weakened the coalition, with the PDP losing influence in the South-South and South-East to Obi’s Labour Party. Trust issues persist as members question Atiku’s motives and whether the coalition serves a collective purpose. Amid Nigeria’s economic and political instability, the coalition struggles to gain support and maintain unity, highlighting the need for cohesion to navigate upcoming challenges, especially ahead of the 2027 elections.

Public opinion plays a crucial role in the success of political coalitions like Atiku Abubakar’s, influencing political dynamics significantly. Support from the public can enhance a coalition’s credibility and momentum, making it a stronger alternative to the current government. As politicians are attuned to public sentiment, aligning coalition goals with public concerns can motivate them to join or support the coalition. Positive public opinion leads to greater media coverage and supporters while mobilising essential resources for campaign efforts. Ultimately, electoral success depends on the coalition’s ability to connect with voters, making it imperative for Atiku’s coalition to engage with and address public concerns effectively.

Prioritising youth engagement, economic growth, and sustainability is essential for any administration aiming for progress. With Nigeria’s large youthful population, active involvement can enhance political participation, spark innovation, and build a strong workforce. Addressing the youth’s needs through targeted policies on education, job creation, and inclusivity is crucial.

Additionally, focusing on economic development is vital to tackle unemployment, poverty, and regional disparities, requiring policies that promote entrepreneurship and attract foreign investment. Emphasizing sustainability ensures economic progress while protecting the environment; this includes investing in renewable energy and eco-friendly technologies. President Tinubu’s commitment to these areas is key to fostering a more inclusive, prosperous, and sustainable Nigeria.

It’s an interesting perspective that Atiku Abubakar’s coalition might be seen as a distraction rather than a genuine attempt to address Nigeria’s challenges. In the digital age, where information flows rapidly and citizens are more informed, such strategies can indeed face significant hurdles. Here’s an expanded view on why this approach might struggle and what could be more effective:

Challenges of Distraction Politics in the Digital Age:

In today’s digital age, Nigerians have greater access to information through social media and online news, making traditional political diversion tactics less effective. This increased transparency allows citizens to monitor government actions closely and hold officials accountable. The youth, who are active online, prefer practical solutions over distractions, highlighting the need for meaningful policies to drive genuine progress and change.

Effective Strategies for Democratic Development:

Focusing on economic empowerment through sustainable initiatives such as job creation, small business support, and investment in technology can significantly improve citizens’ well-being. Enhancing education and skills for youth prepares them for the job market and strengthens the economy. Inclusive governance that addresses regional disparities fosters national unity and stability. Additionally, promoting environmental sustainability through green technologies and renewable energy ensures long-term prosperity and a healthier future for everyone.

Inspiring Examples:

Digital innovation has transformed governance and public services in Estonia, highlighting transparency and efficiency. Nigeria should adopt similar strategies to enhance its performance. Youth-led initiatives are crucial for economic growth and support young entrepreneurs. The tech industry in Nigeria is booming, with start-ups gaining global recognition.

Community engagement is vital for effective political movements, requiring grassroots involvement to address diverse needs. Leaders who connect with communities foster strong support, essential for successful governance. Nigeria can build a brighter future by embracing innovation, empowering youth, and engaging communities.

Distraction politics may have worked in the past, but the digital age requires more transparency. By focusing on real solutions and engaging with an informed electorate, leaders can foster democratic development and a brighter future for Nigeria.

Atiku Abubakar and his coalition have faced challenges in developing winning strategies. Let’s examine some democratic perspectives on the reasons behind this and potential alternatives.

Challenges Faced by Atiku Abubakar and His Coalition:

Progress in Nigeria’s political landscape hinges on overcoming formidable hurdles such as the lack of a unified vision, deep-rooted trust deficits, and intricate regional and ethnic divides. The coalition must navigate complex agendas and historical disappointments to present a cohesive front and inspire confidence among voters. Addressing Nigeria’s diverse societal scope requires inclusive strategies that bridge demographic disparities and deliver tangible solutions to pressing economic and social woes. By forging a unified vision, rebuilding trust, and fostering cohesion among varied communities, the coalition can chart a path towards transformative change and sustainable development in the nation.

Engaging Democratic Views:

To succeed, a coalition must first establish a unified vision that transcends individual ambitions and resonates with the broader public. Rebuilding trust is key, requiring transparency, accountability, and consistent communication to demonstrate a commitment to democratic principles. Inclusivity in policymaking is vital, necessitating engagement with diverse groups to address regional and ethnic needs effectively. A strong focus on the economy, with clear and practical plans for job creation and infrastructure investment, is essential for garnering voter support. Additionally, prioritizing youth engagement through education, skills development, and political participation initiatives can ensure a more inclusive and sustainable political strategy.

Inspiring Examples:

Building grassroots movements is essential for a coalition’s success, as local networks create strong support. Digital campaigns via social media and online platforms can broaden the coalition’s reach. Collaborative leadership fosters voter confidence, as united leaders convey solidarity and commitment.

Atiku Abubakar and his coalition have struggled to meet essential foundational criteria. Despite the challenges they face, there are effective strategies they could implement to enhance their prospects. However, various reasons limit their ability to adopt these strategies. Instead, they should foster unity, trust, inclusivity, and economic development. By doing so, they can craft a compelling vision that truly resonates with the Nigerian public.

In conclusion, Atiku Abubakar’s coalition is at a pivotal moment, with the potential to either reshape Nigerian politics or struggle with its challenges. To succeed, the coalition must present a unified vision that resonates with all Nigerians. It needs to rebuild trust through transparency and accountability while addressing the diverse needs of the country’s various regions and demographics. By focusing on economic empowerment, youth engagement, and sustainable development, the coalition can provide a compelling alternative to the current administration. In a time when voters seek genuine solutions and meaningful change, the path to success lies in tackling the real issues facing Nigeria and engaging the public in a transparent and inclusive manner.

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