GRPolitics

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

Published

3 years ago

August 20, 2021

Justice Okamgba

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

With Commitment, Resilience We’ll Defeat Banditry and Terrorism – Badaru

…it is time to end it…Reports SANDRA ANI

Published

4 days ago

November 19, 2024

grassroots

The Honourable Minister of Defence H.E Mohammed Badaru Abubakar, has called on the Nigerian Airforce to intensify the use of their various platforms to bring an end to banditry and terrorism.

According to the Minister, you are key to this this fight and we must put our acts together on your active component to end this war.

In a statement signed by Henshaw Ogubike, director information and Public Relations, Badaru said this during his operational visit to the Air Component Sector 2 Operation FANSAN YAMMA at Katsina state on Monday 18th November 2024.

The Honourable Minister appreciated the heroic Air warriors who has continued to shine as beacons of hope, courage and resilience which is an inspiration to Nigerian people.

Furthermore, “the Minister opined that their efforts are yielding positive results as farmers are gradually returning to their farms, schools are reopening, businesses are picking up and Nigerians can now sleep peacefully.”

According to the Minister, the President and commander in chief of the Armed forces Bola Ahmed Tinubu GCFR has expressed confidence on their unwavering loyalty, perseverance and professionalism. He recognizes the personal sacrifices you make every day to keep our country together.

It is pertinent to know that the President has provided the Nigerian Airforce with state of the art Aircraft and unmanned aerial vehicles to enhance their attack capabilities. With the induction of these new platforms including the T129 Attack Helicopter, ” I am confident we will make Mr President and Nigerians proud.”

Consequent to this, ‘it is no coincidence that I am here today to flag off this critical phase of the Operations’. “I therefore urge you to synergize with the ground forces and other stakeholders to ensure maximum effect from these combat enablers” Badaru said.

The Honourable Minister of Defence H.E Mohammed Badaru Abubakar CON mni continued his operational visit by also going to sokoto to inspect the combat readiness of the platforms and also toured the new site where the permanent base of the newly established Airforce component of military operations against banditry and terrorism and facilities will be built at Sokoto Airport.

In his remarks, the chief of the Air staff , Air Marshal Hassan Bala Abubakar, appreciated the Minister’s servant leadership style which is an inspiration to all. For him , the T129 Attack Helicopters will transform our operational capabilities to those who think they can destabilize our nation.

GRPolitics

Jigawa Youth Agenda Refutes Allegations Against Badaru

By, Al-Amin Aliu, a Public Analyst

Published

7 days ago

November 16, 2024

grassroots

Minister of Defence, Muhammad Badaru Abubakar

The Jigawa Youth Agenda has vehemently denied the unfounded allegations made by a mysterious group claiming to represent APC youth in Jigawa State against Minister of Defence, Muhammad Badaru Abubakar.

After thorough investigations, it was revealed that this group is not officially registered with the All Progressives Congress (APC) in Jigawa and seems to have been hastily formed to spread misinformation and disrupt party unity.

The Youth Agenda are in solidarity with Minister Badaru Abubakar as they reaffirmed its unwavering support for Minister Badaru Abubakar, acknowledging his exceptional contributions to the APC and Nigeria. His leadership and commitment are indisputable, from his transformative tenure as Governor of Jigawa State to his current role as Minister of Defence.

The them, Minister Badaru has done excellently well and the highlighted his key schievements to include but not limited to the following:

– Strengthening National Security: Minister Badaru Abubakar has enhanced Nigeria’s military capabilities, ensuring protection of lives and property.

– Forging Strategic Partnerships: He has fostered vital alliances with global defence organizations to bolster Nigeria’s security and modernize defence infrastructure.

– Promoting Youth Empowerment: The Minister has launched initiatives focused on education, employment, and entrepreneurship in Jigawa State.

– Advancing APC Unity: Minister Badaru Abubakar promotes unity within the party, fostering collaboration across Jigawa and nationally.

The so-called APC Youth Group’s allegations are an attempt to create division within the united APC family. The Jigawa Youth Agenda urges APC members and the public to disregard these unfounded claims and focus on strengthening party unity and ideals.

Minister Badaru Abubakar’s legacy remains a source of pride for Jigawa State and Nigeria. His dedication to national development, APC principles, and the Tinubu administration demonstrates his integrity and effectiveness. The Jigawa Youth Agenda urges Nigerians to recognize his achievements and support his efforts to build a stronger, more secure nation.

The Jigawa Youth Agenda reaffirms its full confidence in Minister Badaru Abubakar’s ability to lead and contribute positively to Nigeria’s development. Together, let us reject misinformation and uphold APC unity and progress at state and national levels.

GRPolitics

Unmasking the Campaign of Calumny against Dr Bello Matawalle

Writer: Habib Usman, writes from Abuja

Published

1 week ago

November 13, 2024

grassroots

Recent protests and allegations against the Honourable Minister of State for Defence, Dr. Bello Muhammed Matawalle MON, have stirred controversy.

Organized demonstrations outside the Department of State Security (DSS) headquarters in Abuja, filled with hired crowds by APC AKIDA sponsored by Tijjani Ramallan and the Zamfara state government with unsubstantiated accusations, reveal a calculated attempt by Zamfara State Governor Dauda Lawal to discredit Dr. Matawalle.

This orchestrated campaign, fueled by political motives and a desire to undermine Matawalle’s position, demands closer scrutiny.

Reports indicate that these so-called protests are not spontaneous outcries from Zamfara’s citizens but rather an agenda-driven spectacle designed to tarnish Matawalle’s reputation.

According to sources, the protestors arrived in approximately 12 long buses, clearly organized and funded to create an image of discontent aimed at the minister.

The protestors, reportedly waving placards accusing Matawalle of colluding with criminals, are part of a broader strategy to mislead the public and manipulate the narrative around Zamfara’s complex security situation.

This orchestrated misinformation aligns with the ongoing media offensive spearheaded by Governor Lawal who has now recruited Tijjani Ramallan and his cohorts. Despite lacking concrete evidence, the governor has been on a persistent media campaign, linking Matawalle with criminal elements and falsely alleging his complicity in the state’s banditry crisis.

However, these accusations have repeatedly failed to withstand scrutiny, as underscored by a recent ruling from the Kano High Court.

The court issued an interim injunction barring Governor Lawal and his associates from continuing their smear campaign against Matawalle, stating that any further defamatory actions would be illegal until a substantive hearing on the matter.

The court order highlights the groundlessness of the governor’s claims and serves as a reminder that accusations against public officials must be substantiated by evidence, not driven by political vendettas.

By pursuing a smear campaign against a fellow public servant, Governor Lawal risks destabilizing not only his state but also the critical national security efforts in which Matawalle is involved.

Such actions could divert attention and resources from urgent security issues, ultimately harming the very citizens the governor purports to defend.

The governor’s tactic of repeatedly visiting media houses to disseminate misleading information about Dr. Matawalle has sparked concern among political observers and security experts alike.

His attempts to block Matawalle’s reappointment appear to be rooted more in political rivalry than in any genuine concerns about Zamfara’s security. It’s no coincidence that this intensified campaign began just as discussions about a potential cabinet reshuffle surfaced.

Dr. Matawalle’s growing influence, coupled with his steadfast loyalty to President Bola Ahmed Tinubu, has evidently made him a target for those who feel threatened by his rise.

For Nigerians, it is crucial to separate truth from politically motivated propaganda. The allegations against Dr. Matawalle are part of a coordinated campaign to undermine a dedicated public servant who has contributed significantly to Nigeria’s defence apparatus.

As the Honourable Minister of State for Defence, Matawalle plays an essential role in shaping security policy, a responsibility he takes seriously and executes with distinction.

The public is advised to view the recent protests and media blitz with caution. It is imperative to consider the context: Governor Lawal’s relentless pursuit to discredit Matawalle, despite the court’s injunction against these defamatory efforts. Rather than yield to such divisive tactics, Nigerians should remain vigilant, prioritizing the integrity of national discourse over political maneuvering.

In conclusion, let us reject efforts to smear individuals serving in crucial roles, particularly when these efforts lack factual foundation and threaten to undermine national security. The Honourable Minister of State for Defence, Dr. Bello Matawalle, deserves due process and an unbiased evaluation, free from political interference.nmasking the Campaign of Calumny Against Minister of State for Defence, Dr. Bello Matawalle

Recent protests and allegations against the Honourable Minister of State for Defence, Dr. Bello Muhammed Matawalle MON, have stirred controversy. Organized demonstrations outside the Department of State Security (DSS) headquarters in Abuja, filled with hired crowds and unsubstantiated accusations, reveal a calculated attempt by Zamfara State Governor Dauda Lawal to discredit Dr. Matawalle. This orchestrated campaign, fueled by political motives and a desire to undermine Matawalle’s position, demands closer scrutiny.

Reports indicate that these so-called protests are not spontaneous outcries from Zamfara’s citizens but rather an agenda-driven spectacle designed to tarnish Matawalle’s reputation. According to sources, the protestors arrived in approximately 12 long buses, clearly organized and funded to create an image of discontent aimed at the minister. The protestors, reportedly waving placards accusing Matawalle of colluding with criminals, are part of a broader strategy to mislead the public and manipulate the narrative around Zamfara’s complex security situation.

This orchestrated misinformation aligns with the ongoing media offensive spearheaded by Governor Lawal.

Despite lacking concrete evidence, the governor has been on a persistent media campaign, linking Matawalle with criminal elements and falsely alleging his complicity in the state’s banditry crisis.

However, these accusations have repeatedly failed to withstand scrutiny, as underscored by a recent ruling from the Kano High Court.

By pursuing a smear campaign against a fellow public servant, Governor Lawal risks destabilizing not only his state but also the critical national security efforts in which Matawalle is involved.

Such actions could divert attention and resources from urgent security issues, ultimately harming the very citizens the governor purports to defend.

The governor’s tactic of repeatedly visiting media houses to disseminate misleading information about Dr. Matawalle has sparked concern among political observers and security experts alike.

Dr. Matawalle’s growing influence, coupled with his steadfast loyalty to President Bola Ahmed Tinubu, has evidently made him a target for those who feel threatened by his rise.

As the Honourable Minister of State for Defence, Matawalle plays an essential role in shaping security policy, a responsibility he takes seriously and executes with distinction.