DubaiLandLord:
FIRS should just renogotiate with the major states. For example, Lagos State, FCT, Rivers and the rest of the states can keep 50-60% of what she generates, why the rest of the 40% will be shared among the 36 stayed and the FCT equally.

There can be a timeline, It can be till 2030. Between 2021 and 2030, the rest of the states go don dey work hard, towards creating a conducive environment for business to be establish in each State.


This will be a win win situation for the states and FG.

Totally unacceptable. Infact, VAT collection should be a KPI for rating a governor's performance. Every state should control the outcome of their VAT. When you know you have a lot of work to do, in order, to generate revenue for your state as a governor, you'll think twice before contesting as a governor. California cannot be generating revenue for Ohio... NEVER!

techwaya:
I said it earlier,this tax formulae will not work some States will just collapse,this is more like resources control.

What was the basis by which Nigeria was governed by the Colonial masters that forcibly brought us together ? What was the constitution at Independence ?

BKayy:

Then why is it only the North that is complaining despite the statistics that put them as the population and economic hub of Nigeria?
Incase you have forgotten, Nigerian statistics put North at 75m people

It's more of a stereotypic mindset.

Many Northerners wrongly assume that any proposed change to the structural, political and/or economic situations in this country is inspired by hatred for the North and they always try to resist such changes.

Fahdiga:
Northern parasites will continue banging their oblong head on the floor until they receive sense

I know you would be here! North, your daily nightmare!

Grayoso:



You are still missing what is very obvious. Na by force to be a "State"? If you cannot afford private schooling for your child, does that mean you will let that child remain illiterate at home rather than send them to a government School?

Mindless vanity is the problem of the black man. Unviable States, whether Northern or Southern, should merge with bigger States to drastically lessen the financial burden some unfeasible States are carrying currently.

When the going gets tough the tough get going.

In principle, I agree with your submissions. From a practical perspective, and knowing how fanatical Nigerians are, i doubt this is achievable. But in any event, I agree with you

Ekakamba:

---

This is what happens when you get married to an intellect (both gender). I think Gov. Wike's wife with the help of her colleagues notifies her husband about these VAT loopholes and how to turn them around for the State's benefit.

I might be wrong though.

Oga, Wike is a senior lawyer (a Life Bencher) who understands the law. His Attorney-General, Prof. Zacccheus Adangor (SAN) is one hell of a very good lawyer as well.
If Wike carry u go court, na God grace you go take win.
Besides, he's a friend of the judiciary. If you know, you know.

techwaya:
I said it earlier,this tax formulae will not work some States will just collapse,this is more like resources control.

states generating less VAT will gain from this judgement. they will be forced to think right. they will soon start the industrialisation of their states so as to generate .more revenues. northern states have everything to gain by this new development. agriculture, solid minerals and animal husbandry will generate enough revenue to run state bureaucracy

DubaiLandLord:
FIRS should just renogotiate with the major states. For example, Lagos State, FCT, Rivers and the rest of the states can keep 50-60% of what she generates, why the rest of the 40% will be shared among the 36 stayed and the FCT equally.

There can be a timeline, It can be till 2030. Between 2021 and 2030, the rest of the states go don dey work hard, towards creating a conducive environment for business to be establish in each State.


This will be a win win situation for the states and FG.

Abeg forget that mathimatics, the verdict is passed, every state hussel your own. Period!
I so like the new vat method

DubaiLandLord:
Lol

By the time most states in the North and South can't pay salaries, I hope you won't
be one of the people screaming to the FG, for them(FG) to bail them(Unviable states) out.

I'm also in support of States keeping 100% of there VATs. But, it shouldn't be done in such a hasty way.

If these States can't pay salaries then they should reduce their workforce to around 2000 civil servants that they can pay for. The rest can be transferred to other businesses like Agriculture, mining and other ventures.


With time, each State will start demanding the right to mine their resources, develop them and sell to raise money.



***Welcome to the era of restructuring.

BKayy:

Even people that claims they have the highest population by state.
Now the VAT on telecoms will prove them right or wrong if this works. They will have to explain how they contribute high VAT when the FG was in charge but fail to sustain themselves when it was desolved to state level.
You now see why the North is worried. Most especially Kano

Since yesterday on nairaland and two other media, I have been saying this same point. VAT collection by States would expose so many things. The IGR collected by States report is highly wrong and very POLITICAL. I saw some political figures in the report. They know VAT collection by States would expose them. Their yansh go open yakata, they are ready to do everything to cover up. I am not even talking about Kano, there is one particular bogus figure.

IgiveLadiesBj:

Why are you still in Naija with me?

BettyKeys is still in Nigeria because she doesn't want to leave her husband and family who are living in Nigeria.

uthlaw:
what visa you are giving for france and UK....shey I go fit play football?

You also thinking of playing football?. That's good maybe we could meet on field of play one day.

BKayy:

Then the states shouldn't have existed in the first place.
One thing for sure if this VAT work will be reassessment of the Vat statistics. Then you will realise that most states are empty because the statistics will now come from the state directly.

Every State has peoples consuming goods and services that can be taxed e.g for every trailer load of wooden planks, Cocoa, Kolanuts, granites or crates of eggs leaving Osun State, a specified amount of money will be paid as tax to Gov't.

kindlyheart:
I am 100% in support of rivers and Lagos. people will start voting their state governors wisely, not based on sentiments or emotions. if a governor can't use his brain, then he is in for a very long hungry tenure.

You are right. We must make politics about innovative good governance and solution delivery. If this happens then only those who are worthy and administratively competent will approach political office.

Most will run away because the demand of the office will not be worth the loot. When people are hungry in a State, under a new system where there is less accruing to States from the center, then Governors must sit up and perform or be impeached every other month till citizens start seeing acceptable improvements.

It is the only way forward because our current system only encourages indolent looting and leadership irresponsibility/incompetence Governors can conveniently blame on the federal government.

BKayy:

Even people that claims they have the highest population by state.
Now the VAT on telecoms will prove them right or wrong if this works. They will have to explain how they contribute high VAT when the FG was in charge but fail to sustain themselves when it was desolved to state level.
You now see why the North is worried. Most especially Kano

Kano will do fine, ever far better than the amount of VAT they are presently getting because they will start imposing Tax on Cattles, onions, beans, rice, corn, millets leaving the State for other parts of the country.
Zamfara will do very well if they can solve the problems of armed Banditry by turning the Bandits into REGISTERED artisinal miners with known addresses, sureties and bank details who will be paid a percentage of the the solid minerals they are able to dig from the ground using modern equipments.

Zamfara and Osun Stated can incorporate Mining Companies which will apply for mining licenses from the FG and pay royalties to the FG.

The 30 states comprises of states from the East, West, North and South. For those that like saying the South is feeding the North. It seems Lagos and Rivers are feeding everyone.

DubaiLandLord:
FIRS should just renogotiate with the major states. For example, Lagos State, FCT, Rivers and the rest of the states can keep 50-60% of what she generates, why the rest of the 40% will be shared among the 36 stayed and the FCT equally.

There can be a timeline, It can be till 2030. Between 2021 and 2030, the rest of the states go don dey work hard, towards creating a conducive environment for business to be establish in each State.


This will be a win win situation for the states and FG.

The best time to act is now. The lazy States will still decide to be lazy even if they're given 50 years to sit up. Sometimes people improve when they're in serious tension. Las las every state go get sense. Especially those ones that don't want to be liberal.

jacoik:
so many other work dey for them to do. After all Lagos gutter is very dirty, maybe they will start from there

lol

This restructuring will happen by fire by force

JosephXavier:
There is no way the states will go bankrupt

Abokis still have proceeds from crude oil sales generated from the southto share every month at Abuja

The south just wants to be retain the tax after working hard to bring investors

There is no way you'll keep pursuing investors and be getting dividends from those that give enabling environments for business to thrive

Sure States will continue to receive FAAC monthly. But with this issue on ground, allocations will reduce cos money from VAT is part of what the FG share to States. So now that FG won't be able to collect VAT it means the money they can share will reduce drastically.

Now during elections when Governorship aspirants are campaigning, what every sane person should want to hear is how the aspirants would increase their State's IGR not how they would build a 22 storey world class hospital. They should tell us how they'll get money to do the things they're campaigning for.

Now states governors would think twice before using millions to fund students to study Arabic in Egypt or building a worship center with millions of taxpayer funds. This policy will make State Governors to have sense.

But on the down side this policy can cause increment on some goods. Cos now, in a bid to make more cash, Governors would begin taxing things that weren't taxed before now and their price would come up. But then, that's a price we're willing to pay for a better Nigeria.

CR777:
Good development.
No matter how bad it gets, I am sure we Igbos can never eat grass unlike the useless religious blinded fools we have in a certain region.

They have tried all their best to hold us down in this country, but our chi no dey sleep.

Despite not holding a juicy post in this administration run by the most useless and nepotic president, we are still waxing strong from every angle.

God bless umunnem.
God bless Igbos all over the country and outside.

u dey mad, seems you've never travel out. Fish in a pond. If am one of the governor of affected state I will tripple the tax on anyone not from my state.

hansomb:
u dey mad, seems you've never travel out. Fish in a pond. If am one of the governor of affected state I will tripple the tax on anyone not from my state.

Haha, cry more. Parasite.

It's not only Northern states that will suffer alone. Everyone will hear it except Lagos , Kano, and porthacourt.

kindlyheart:
I am 100% in support of rivers and Lagos. people will start voting their state governors wisely, not based on sentiments or emotions. if a governor can't use his brain, then he is in for a very long hungry tenure.

Do you know the sad thing about this... Its the fact that majority of us youths don't even know the issue on ground. You'd be surprised at the number of youths that don't even know about this VAT issue between FG and Rivers/Lagos State. Most of them are busy watching BBN.

Thermodynamics:
States de collect VAT Lagos sef wan still de collect VAT, Lagos when the whole Nigeria de feed. Lagos is a metropolitan city that was built by the entire Country. There is nothing special about the place, if not for sea port, Lagos for be like Ogun or Abia, there are sea ports in Calabar, Warri and Port Harcourt, but in a bid to make Lagos the center of attraction, the federal government refuse to grant license to the sea ports in Niger Delta.

I support that each start should collect their VAT but Lagos nor join, Lagos is for the entire Country. The state nor even get any resources, unlike Rivers State which has an intrinsic value.

Do you know what a resource is? Location is a resource, sea port is a resource, population is a resource, etc etc etc....

Are the masses even enjoying the said VAT ?

cocolacec:
Until now, the FIRS had the responsibility of collecting VAT on behalf of the 36 states and the FCT. Section 40 of the VAT Act requires that the VAT pool be shared 15% to the FG; 50% to states; and 35% to LGs (net of 4% cost of collection by the FIRS).

The Federal Inland Revenue Service (FIRS) is only fighting for itself. The FIRS wants to continue to collect Value Added Tax (VAT) so that it can get the commission of 4%.
The FIRS is not really concerned about the reduced revenue for the federal government and other states.

No states will go bankrupt, every states have their own resources, each governor need to think upstairs, we don't need Dullard's In governance

DubaiLandLord:
FIRS should just renogotiate with the major states. For example, Lagos State, FCT, Rivers and the rest of the states can keep 50-60% of what she generates, why the rest of the 40% will be shared among the 36 stayed and the FCT equally.

There can be a timeline, It can be till 2030. Between 2021 and 2030, the rest of the states go don dey work hard, towards creating a conducive environment for business to be establish in each State.


This will be a win win situation for the states and FG.

Bro, you've made a nice contribution which makes alot of sense. But on the other hand, these so called governors will just continue looting till the said time knowing fully that they won't be in power by then. Therefore, I think this should continue. Alot of politicians are just empty barrels who just have opportunity to be at the top, no thanks to our colonial masters (Britain)

DerrickzB:


Brother, while you made sense ehn!! I have no pity for any state that wants to die because they have since been eating far on another states sweat!! It’s the north that would start dying off and I’m sure we are okay with that!!!

Why are you obsess about the north?

There was north before VAT and crude oil in the south.

To hell with your VAT.

BKayy:

Who is worried if not them. Which state made Wike to move this campaign?
They are the most worried

If Kano was worried, Wike wouldn't dream about it.

What is Wike contributing that is unsurmountable by any state in the north?