₦airaland Forum

Anchor Borrowers Program helps channel over N1Tr towards agric every year and that means the north takes the lion's share.

Strong support for highways and flyovers and Hajj subsidies. Great news.

yoruboid:
What the Agulu fraud could not achieve in 8 years

Did Tinubu achieve what Sanwo is busy doing today. If them retaliate against your god, no vex ooo.

He is begging for aide with style.

Which of these problems has he addressed with his top 5 expenditures?

They only become important when he wants to appeal for funds through what westerners like to hear and see as global challenges.

Too vague to assume bandits did this.

Hmmm

ObosiLandlord:
You're wrong

no you are.

No wonder they suddenly want it to be based on consumption and notthe place where value is added to raw input.

maasoap:
Why don't we allow those states that consume alcohol to enjoy the VAT on it and let all the states where MTN and others have masts also enjoy the VAT from the telecom? Must we lump everything together?

Value Addition is not consumption. Consumption is very different from value-addition.

dtiBusiness:
I wonder if comprehension is an issue here. The FIRS Boss is saying Kano, Bauchi, Borno and others were not getting fair VAT share of what is consumed in their states, you are here talking about Kano taking alcohol VAT. Kano did not receive vat collected on services rendered by mtn and her likes in Kano and other respective states, nor where they given enough of food that they sell to the nation.
If Northerners should collect vat on food and other agro services don't you know they will realize alot?

VAT is about Value Addition and not consumption.

Archtype:
Very fair and straight to the point, Infact,According to the Supreme court ruling, FG shouldn't be collecting VAT self, so, Those states suppose to have a 100% VAT

If FG dont centealize and regulate VAT, in an attempt by crooked governors to catch up with Lagos and Rivers, other states will use taxation to fustrate whatever isnt ptoduced within their states and a war of fustration between states will emerge.

I wonder where endrick links back to.

Zooposki:
All the ideas to run the industrial process are coming from the west, where the parent companies are located. The only refinery adding value to the crude in it’s raw form is Dangote refinery.

Dangote operation and head office is in Lagos. Use another example.

Zooposki:
You made sense here. What are the oil headquarters in Lagos adding as value to it when the crude is being exported with no value added?

all the ideas to run to the industrial process are added there.

beejay85:
A manufacturing company is nothing with a filled up warehouse.
Its a fact that when you remove the sales from the north from companies like Unilever,Nestle,FMN, Honeywell etc with the current economic situation- these companies would have shutdown as sales in Lagos,Port Harcourt and Fct can't pull them through in anyway.
Everyone sees issues with alcoholic beverages not consumed in the north but do you consider the number of trucks of non alcoholic beverages (maltina,coke,Pepsi,Amstel ,table water ) etc that finds its way up orth on a daily basis?
In conclusion,if you have no sales for the value you create,ur enterprise will go down...so VAT should be benefitted by the producing and also consuming states

sales and consumption should be taxed by making the salesman pay his or her own tax to the state according to his or her profit from that sales.
Value-addition too should be taxed and paid ti where value is being added to raw inputs. It is a simple thing.

Zooposki:
Oga, they should go and prospect for oil in Lagos state. We don’t want them to prospect for oil in Delta state. They are destroying our land. We want to use our lands for farming and fishing.

Go meet them where they are prospecting oil and eject them. I am not them. Don't unleash your frustrations on me Oga.

Zooposki:
Then they should go drill oil in Lagos or Benin. Maybe the natives don’t want them there. Ever think like that?

Why not you go to Lagos and arrest them to force them back into Delta state where 'deve' is demanded from multiple angles. You are trying to reverse the effects without regards to cause here. What caused them to locate HO in Lagos miles away and be prospecting for oil in Delta states hundreds of KM away? Addreess that and see them run back to delta state.

Zooposki:
You mean those drilling oil, that is, their operational bases in the Niger Delta can survive, but their headquarters cannot survive where their bases are? Maybe they should also move their operational bases to where the headquarters are and go drill there.

Yes. If theit operational base are not being harrassed for 'deve', they will never think of running to culturally neutral and hospitable Lagos or Benin.

SmartPolician:
There's no modification made to the tax bills that won't see Lagos, Abuja and Port Harcourt getting the most vat because they are the core consumers in Nigeria.

Even Ogun State, which has many industries, cannot stand a chance because most goods produced in Ogun State are consumed in Lagos and across Nigeria.

Just as the middle class is quickly varnishing, there's no conscious effort to distribute the wealth of Nigeria. We are still living with the "grab as much as you can" disease.

The real issue here should be about what constitutes value-addition? Is it the process of taking raw inputs and add value to make them better output or the process of taking output with added-values and consuming them?

Comsumption is not value-addition?

The crooked northerners are only trying to confuse value-addition with consumption so they can start getting more money without suffering polution or hazards associated with actual value-addition process. No more need to poach FDIs again once they get that wish. Lagos can poach FDI, suffer the hazard, sacrifi e their cultural values and land to accomodate Foreign Investors, provide water and electricity, then pretend all of that is detrimental to everyone who consumes the final goods. Thats a recipe for further chaos.

Judolisco:
bro it's not only alcohol, but take for example mtn or Glo, though the headquarters is in lagos or Abuja, but we have people in Kano and jigawa using this Networks.... That's the argument... No be only alcohol

The issue is why did MTN and GLO site their main operational bases in Abeokuta and Lagos and not Kano? VAT is meant to reward where value is added an not where value is consumed. If the like let them create a VCT ( Value Consumption Tax) to compensate for spenders.

The reasonable thing is to reward states for value addition so that each state is always looking to attract investors and thus strive to be their best selves in anticipation of Foreign investments. Why do peesidents travel like devils around the globe looking for FDI if there is no local incentive to recieve them? After accommodating every tribe and creating a conducive environment, is it not fair that lagosians who lost their culture and land to Foreign Investors get compensated for giving the foreign investors the atmostphere to thrive. As rich as Delta state is in Oil and Gas, investors cannot survive there because the locals are hostile. Same goes for most of the states and geopolitical zones. It makes little sense to compensate stae govt for what their citizens buy to add value to their lives. It is a service they failed to render the foreign investors that another state has provided that VAT is addressing.

fineboynl:
state should tax does consume by their state as well. Also if any product should sell in their state then they should have a distribution office. That way state can calculate and collect their tax

consumption is not value addition.

^^^ clown. What was it like 2, 3 years ago in dollar o and not devalued Naira o.

Is Kano consuming alcohol when they take VAT from alcohol? That formula is fair enough if we must grow. The north wants VAT shared by consumption but get VAT from what they do not consume presently. How does lagos get rewarded for absorbing the pollution that goes with value-addition(manufacturing)?

“As we know, 70% of consumption is not accruing to those three states. So, whatever way you look at it, apart from Lagos, Rivers, and FCT, every northern state would benefit. That is the Bill being presented.

Favourdays1:
Is Nigeria a country?
Charity should begin at home

Local marketers say it is too expensive but foreign ones are buying.

Clown.
What about Russians scattered across Europe?
He invaded to attend to ethnic Rus right? Let him build shelters for the ones spread out across Europe too.

Instead of all these sidestepping, confront corruption directly.
What is the total VAT from food, health and education to start with. We are talking of three heavily subsidized things so VAT is bound to be negated by the subsidy going in.

IbeOkehie:
EXPERIENCE...not speculation....experience shows that such a subsidy will be an incentive for corruption.

It's likely that subsidized electricity for industry will be CORRUPTLY diverted and sold to households for higher prices.

There's no subsidy that will work in Nigeria. Again not speculation, that's evident from DECADES of experience.

Good Luck to Nigeria.

Corruption can affect any policy. It is up to the authorities to dothe right thing and stamp it out.

Now we have removed subsidies because of corruption,are the leaders not stealing from where the saved funds were redirected to?
Was Lagos-Calabar highway award a fair and open process to you? What about state governors who havent done any tangible thing even with more than doubling of FAAC?
Corruption abounds in every area and it is up to the leaders to take a stand against it.

Lastly, subsidy will work if done well. If corruption cannot be tamed, it is better the country disintegrates until the units can stamp out corruption individually.

IbeOkehie:
That's a solution worthy of examination. Thanks for bringing it up. Such policy has been applied to inputs like ENERGY over the years.

Electricity is currently subsidized and has been subsidized for DECADES in Nigeria. It has led to a DECREASE AND SCARCITY of electricity.

Petrol and other refined fuels were subsidized. The result was chronic scarcity.

Cement is an important input to housing and other construction activity. It was subsidized for DECADES before President Obasanjo put an end to that in 2003 or so. Before 2003, cement was scarce in Nigeria.

So it's very clear that input subsidies don't work in Nigeria. Again, it's a worthy suggestion but EXPERIENCE shows it's counter-productive.

Thanks.

Good Luck to Nigeria.

Energy subsidy is largely towards consumption and luxury. That makes all the difference here.
A good instance of input subsidy will be towards something like coffee and cocoa farming. Even benneseed and other cash crops too. We dont consume them much but they can be easily exported for forex once accumulated as a result of the effect of input subsidy. Imagine trippling cocoa or coffee or benneseed output. Imagjne subsidising power for production of service parts. Instead we use it to watch DSTV and overpump water at night. We leave our bulbs on during the day and dont prioritize use of energy effecient bulbs or appliances.

Talkkng about chronic scarcity of peteol after its subsidy,that had to happen because of corruption. If you import for west africa but budget for only Nigeria, it is bound to become scarce wherever it sell for the loweat price when the volume of import reduces.

HydraFeeds:
To every sensible people on this forum ,what do you think will happen if Russia supply weapons to countries like Cuba or Mexico to strike US directly?

Has America invaded those nations under the pretext of rescueing red Indians? Comparing apple to orange

Civil defence for Warri.

Reelz:
Sell dollars at a reduced price to petroleum importers n give waivers to food imports. Simple n short.
Baba goslow

Thats reduced naira earnjng for govt. They dont like that.