₦airaland Forum

Danjikanbauchi:
Of Buhari have his way he would have advice the position be given to one Terrorist FULANI idiot.

endsarrrs:
Nice one Mr. President

BigYash:
Well-done Edo man...

He nor he zi ar ror..

Congratulations.. But this one wen bubu dey celebrate you so..
Hmmm .. Failure no go reach ur side sha. Say Amen doc..........

Corporate2020:
Please what is Nigeria?

kelib:
This man na ode. When he was the governor of Rivers State, he blamed Jonathan for not doing enough for South South. Is that not ethnicity. He should better be calming down till he's out of office.

FRESH facts emerged yesterday that intrigues and horse-trading accounted for the Peoples Democratic Party’s delay in arriving at a zoning formula for its National Convention.

The Nation investigation revealed that permutations over the 2023 elections have overwhelmed the party’s ongoing consideration of zoning of offices.

It was gathered that some serial presidential aspirants from the North, including ex-Vice President Atiku Abubakar, ex-President of the Senate, Dr. Bukola Saraki, Governor Aminu Waziri Tambuwal and ex-Governor Sule Lamido are pushing for the retention of the 2017 formula which will see the South occupying the National Chairman’s seat.

The offices to be filled at the convention scheduled for October 30 include the National Chairman, Deputy National Chairman (North), Deputy National Chairman (South); National Secretary; Deputy National Secretary; National Financial Secretary; National Organising Secretary; National Treasurer; National Auditor; National Legal Adviser; National Publicity Secretary; National Youth Leader and National Women Leader.

There were also indications yesterday that the Southwest zone is being considered for the chairmanship of the party with a former governor from the zone who has long indicated interest in the race being favoured among other contestants.

A session of the Zoning Committee of the party, headed by Governor Ifeanyi Ugwuanyi, in Enugu on Thursday was inconclusive.

Some PDP leaders from the North met on Tuesday and agreed on a zoning formula that would lead to the retention of the 2017 power sharing format.

But the proposals from the affected Northern leaders have led to intrigues and divergent opinions among PDP governors and party bigwigs.

It was gathered that while some party leaders are demanding that all offices be thrown open without recourse to zoning, some foundation members, some governors from the North and the South, including Nyesom Wike,  are insisting on strict adherence to the rotation of party offices in anticipation of power shift to the South in 2023.

Some party leaders, especially members of the National Executive Committee (NEC) and the Board of Trustees (BOT) of the PDP, are however worried that there are no presidential aspirants from the Southwest, the Southeast and the South-south with enough clout to win the presidential poll in 2023.

The governors and party leaders in question claimed that it has been difficult to get a presidential aspirant who can attract mass followership from the North and the South like the late Chief M.K.O Abiola and ex-President Olusegun Obasanjo ahead of the 2023 election.

A top source, who spoke in confidence, said: “The truth is that calculations over the chances of PDP in 2023 are delaying the zoning of party offices. There are many intrigues on zoning because the shape of the party offices will define the presidential slot of the party.

“Forget the assuaging comments of the Chairman of the Zoning Committee, Governor Ifeanyi Ugwuanyi, that his panel has no mandate to decide on zoning of President and Vice President tickets. Zoning of party offices determines the presidential and vice presidential slots.

“So, for those interested in contesting the presidential ticket of the party in 2023, the zoning of offices is crucial to their ambition. But they are engaging in what I may call proxy war or lobbying.

“Once the National Chairman emerges from North or South, the presidential candidate of the party will alternate accordingly. So, the zoning formula can make or mar the ambition of any presidential aspirant.”

The source said there were suspicions that some of the Northern PDP leaders who met on Tuesday night in Abuja were working for Atiku, Saraki, Tambuwal, Lamido and other Northern presidential aspirants, who he said made a strong case for the party’s retention of its 2017 zoning formula.

He added: “Although all the aspirants have kept quiet on the zoning formula, all their strategists and loyalists are neck-deep in zoning politics. The roll call at the session was instructive.

“Some of those at the meeting were Dr. Iyorchia Ayu; a former Minister of Women Affairs, Hajia Inna Ciroma; ex-governors Attahiru Bafarawa, Babangida Aliyu, Sule Lamido and Boni Haruna; a former National Chairman of PDP, Alhaji Abubakar Kawu Baraje; a former Minister of Special Duties Kabiru Tanimu Turaki (SAN) and Hon. Theophillus Dakkas Shan.

“Others included Senator Zainab Kure; Senator Joel Danlami Ikenya; Dr. Akilu Indabawa; Hon. Galadima Abba; Hon. Mukhtar Ahmed; Hajiya Hauwa Musa Kida; Hon. Manu Swa; Mrs. Launrentia Mallam and Dr. Aminu Abdullahi, among others.

“The game is so overwhelming that the Zoning Committee is managing it with care to avoid anything that could erode the unity of the party.”

Responding to a question, the source said: “The Northern PDP leaders were of the opinion that there are no strong presidential aspirants in the South that could earn a broad-based North-South support for PDP to defeat the ruling All Progressives Congress (APC) in 2023.

“The permutation is that the APC ought to be beaten to its 12 million votes in the North.”


War over 2017 formula as Southeast, South-South go for VP

Investigation also revealed that some Southern PDP leaders have been tinkering with Option B in case the party’s chairmanship slot is retained in the South as was the case in 2017.

Findings revealed that PDP leaders from the South-South are already plotting to secure the position of the vice presidential candidate of the party against the Southeast which got same in 2019.

The argument of the South-South is that its voting strength is bigger than that of the Southeast.

A party source said: “We are caught in zoning politics in such a manner that if it is not well managed, it can consume the party or undermine its electoral fortunes.

“While some party leaders have been adamant on the 2017 zoning formula, the South-South is now trying to displace the Southeast for the vice president ticket. It means the South-South PDP leaders are plotting to alter the 2019 power equation. This is unhealthy for PDP.

“They are saying that since election is a game of number, PDP is stronger in the South-South than in the Southeast. They claimed that apart from having six states, the South-South garnered 2,233,232 votes for PDP during the 2019 presidential election as against the Southeast’s 1,693,485.”

As at press time, Governor Nyesom Wike was also said to be interested in the VP slot with ex-Governor Peter Obi and Governor Ifeanyi Okowa also said to be in the race.

Speaking with our correspondent, a former governor, who was in Enugu at the last session, said:  “We have a big challenge on our hands. We need to be large-hearted when we reconvene on Thursday to finalise our decision on zoning. We must give and take in the overall interest of PDP in 2023.

“I hope the ongoing consultations and negotiations will lead to a consensus which can help PDP to dislodge APC from power.”

Party mulls consensus chairmanship candidate from S/West

Indications emerged yesterday that PDP leaders and key stakeholders may settle for a consensus candidate for the position of National Chairman ahead of the party’s national convention billed to hold on October 30.

Inside sources confided in our correspondent yesterday that the Southwest zone was being considered for the chairmanship, with a former governor from the zone who has long indicated interest in the race favoured among other contestants.

One of the sources, who spoke with our correspondent on condition of anonymity because he was not authorised to speak on the matter, said the decision was taken at a stakeholders’ meeting in Abuja on Thursday night.

Responding to a question, the source said: “Yes, it is true that a former governor from the Southwest is being considered as a consensus candidate for the chairmanship because of his maturity and past experience in party administration at the national level.

“After wide consultations, we ruled out any state where the PDP currently has a sitting governor, to avoid the type of leadership crisis that the party is presently passing through.

“We don’t want a situation where a sitting chairman would be beholden to a sitting governor of his home state, like the case we have in hand and which we have been battling to resolve in the past few weeks.

“However, the decision to present a consensus candidate is not final yet and we have not foreclosed the possibility of having other aspirants joining the race, because we can’t stop other qualified members from contesting.”

So far, three aspirants from the Southwest are believed to have indicated interest in the chairmanship position. They include a former governor of Osun State, Prince Olagunsoye Oyinlola; immediate past governor of Ekiti State, Mr Ayo Fayose and the PDP candidate in the 2020 Ondo State governorship election, Mr Eyitayo Jegede, SAN.

But Jegede was on Thursday appointed the Deputy Chairman of the Constitution Review Committee, a sub-committee of the National Convention Organising Committee chaired by the Adamawa State Governor, Ahmadu Fintiri.

By implication, his role as member of a sub-committee of a parent committee charged with the responsibility of organising the convention may constitute a clash of interest should he decide to contest for the position of party chairman in the same convention.

Stating some of the factors for which the said former governor is being considered for the chairmanship, another party source said his neutrality in the various leadership crises at both the national and Southwest zonal levels has been a huge advantage.

“Recall that the person in view was deeply involved in the various reconciliatory efforts during the leadership crisis that rocked the Southwest PDP shortly before the recent zonal congress in that zone.

“He is also being considered based on the fact that he has never been associated with any of the factions in the protracted leadership crisis at the national level that led to the suspension of Prince Uche Secondus as National Chairman.

“With our experience in the recent past, leaders and elders of our great party have resolved that the next national chairman will not emerge from a state where the PDP has a sitting governor, to avoid a repeat of the problems that brought the party to the present crisis situation.

“We all know how Secondus, who is from Rivers State, emerged as national chairman in 2017 and the role his home governor played in ensuring his emergence, despite the fact that it was the Southwest that was being considered for the position at the time.

“It became a case of ‘he who pays the piper dictates the tune’, but along the line, the ‘falcon decided to ignore the falconer’ and the party ended up in what we now see as a no-win situation,” the source added.

Following fruitless efforts to resolve the lingering leadership crisis triggered by the animosity between Secondus and the Rivers State governor, Nyesom Wike, stakeholders in the party have resolved to treat the matter as a crisis in the local chapter of Rivers PDP.

Recall that Secondus was first suspended by his Ward chapter, followed by another suspension order from his local government chapter. The suspension order was upheld by a High Court in Port Harcourt and the embattled chairman is currently battling to upturn the order at the Court of Appeal.

BluForce:
How pitiable? The North still wants to hold on to power

Bluntguy:
The Igbos really want to go their way. If an Igbo man loses interest in anything, nothing changes his conviction. That is what is happening.

A game of intrigues between the two major political parties, the Peoples Democratic Party, PDP and the All Progressives Congress, APC is shaping up over the zoning of their 2023 presidential tickets.

The two parties, sources revealed, are looking across at one another with the intention of not being outfoxed in the zoning puzzle.

The opposition PDP which yesterday inaugurated a zoning committee according to Saturday Vanguard sources is gravitating towards zoning the office of national chairman to the Southwest.

And in a move which is bound to likely upset the APC, the principalities in the PDP are also planning to leave the zoning of the 2023 presidential ticket open to all regions of the country.

The move is against the expectation of the APC which had been planning to square up to the PDP by leaving its own ticket open until after the PDP would have zoned its presidential ticket.

The moves in the PDP and APC, it was learnt, are bound to upset those canvassing for the zoning of the presidency to the Southeast.

The decision to zone to the chairmanship to the Southwest, a party insider told Saturday Vanguard, was upon the general agreement of restituting for the sin of 2017 when the party offended the zone by giving the office to Prince Uche Secondus from the South-South.

“You know what happened in 2017 and what it caused at that time and how people like Professor Tunde Adeniran left,” the source said as he referenced the defection to the Social Democratic Party, SDP of the former education minister and a one time top operator of the opposition party.

Senator Rasheed Ladoja was also another disappointed party chieftain who also left the party at that time.

Besides the restitution, a party source also said that zoning the office to the Southwest would also help to mobilise the region for the coming governorship elections in Osun and Ekiti States.

“They need it to drive the party towards winning the election in the two states and you can hear what happened yesterday now,” the party source from the Northcentral said in reference to the reported defection of a high profile loyalist of Rauf Aregbesola to the PDP.

With the APC in Osun now thrown asunder between Governor Gboyega Oyetola and Aregbesola, the source said that the PDP stood the opportunity to gain by mobilizing well with the help of a national chairman from the zone.

However, despite the seeming decision to zone the office to the Southwest, the party, Saturday Vanguard gathered would leave the presidency open to all sections of the country.

Against the convention that the presidential flagbearer would come from the opposite section of the country, it was gathered that PDP insiders would prefer to leave it open for the sake of party unity and also for the purpose of fending off the APC which is waiting for a slip from the opposition party.

The PDP’s stance, it was gathered, is helped by the fact that nearly all the serious presidential contenders are from the North.

“It doesn’t really change anything for now,” it was claimed yesterday.

The main presidential contenders include Atiku Abubakar, Bukola Saraki, Governor Bala Mohammed and Aminu Tambuwal.

There are, however, insinuations that Governor Tambuwal may be putting his eyes in the top spot in the National Assembly following suggestions that the country may not be ready for another Northwest president following President Umaru Yar‘Adua and President Muhammadu Buhari.

Despite the Thursday communique of the Southern governors it was also gathered that no one in the PDP from the zone is really putting forward his feet towards the presidency except the party specifically zones the office to the South.

“There are two PDP governors who will come forward if the office is zoned to the South, but without it I don’t see them coming out,” one party official said on the condition of anonymity.

Saturday Vanguard reports that the House of Representatives Minority Leader, Ndudi Elumelu had few days ago seemingly thrust forward Governor Ifeanyi Okowa of Delta State for the presidency. It is, however, not certain if the assertion by Elumelu had the approval of Okowa who has held political office at all levels of government from local government to the federal level.

The signs are, however, more ominous for the Southeast in the two parties.

Recent moves by President Buhari to rally APC troops in the Southeast was at the weekend yet to gain traction. The recent presidential visit to Imo State and the president’s commitment to the emergence of Senator Andy Uba as governor of Anambra State on the platform of the APC had been canvassed as a way of pushing forward the zone’s capacity to argue for the ticket to be zoned to region.

READ ALSO: 2023: Igbo businessmen clamour for president of Igbo extraction

“With President Buhari’s endorsement of Senator Andy Uba, it is now left to Anambra voters to endorse Uba, so as to facilitate Ndigbo’s quest to produce Nigeria’s President of Igbo extraction in 2023,” Mr. Osita Okechukwu, director-general of the Voice of Nigeria, VON said in a statement made available to Saturday Vanguard.

Arguing further, he said:

“Senator Andy Uba’s victory in the November 6, 2021 gubernatorial election will strengthen our collective bargain for Nigeria’s president   of Igbo extraction in 2023.”

However, internal divisions within the Anambra State chapter of the APC and related factors were upsetting that aspiration.

“It is not possible for us to win the election. Our party rating in Anambra is poor, our candidate’s rating is also poor,” a top APC shot told Saturday Vanguard.

Hope for a Southeast president emerging on the platform of the PDP is also not forthcoming given the thinning of the party in the region.

The party which few years ago had a 100% hold on all the governorship and state legislative houses has now been reduced to a minority.

“They are not serious,” a party operative said as he recalled frustrations that attended moves championed by Senator Ike Ekweremadu to bring Southeast leaders together on the issue at a parley in Senator Uzor Orji Kalu’s country home earlier this year.

“You don’t get the Presidency through agitation. For now, Bola Ahmed Tinubu remains the front-runner from the south,” Hon. Musa Sarkin Adar, member of House of Reps from Sokoto said yesterday on Arise Television.

• Reaffirm commitment to structural, fiscal federalism
• Appeal Court declines to stop FIRS from VAT collection
• Reserves ruling on Lagos’ request to join case on VAT dispute
• NECA seeks power to determine agency to remit VAT to
• LCCI expresses concern over double taxation on businesses
• Port stakeholders align with FG, vote for status quo

The Southern Governors’ Forum, yesterday, expressed its support for states to collect the Value Added Tax (VAT). This was part of resolutions the governors reached in their meeting held in Enugu State.

There has been controversy over the collection of VAT after a Federal High Court ruled that it was not the duty of the Federal Government to collect it. The tax has been collected by the FG since the military era, although the money is shared by the three tiers of government.

Following the court ruling, Lagos and Rivers states passed laws that allowed them to collect VAT in their states. The Federal Inland Revenue Services (FIRS), which used to collect the VAT on behalf of the Federal Government, has, however, challenged the court ruling at the appellate court.

Reading the resolutions of the governors after the meeting, which was attended by nine governors and seven deputy governors, Chairman of the Forum and Governor of Ondo State, Rotimi Akeredolu (SAN), tasked the governors that were yet to enact the anti-open grazing law to do so without much delay.

Akeredolu, in the seven-point communiqué, said the governors were satisfied with the rate at which the states were enacting and amending the anti-open grazing laws, in line with the uniform template and aspiration of the Forum.

The communiqué read in part, “the Southern Governors’ Forum encourages the full operationalisation of already agreed regional security outfits, which would meet, share intelligence and collaborate to ensure the security and safety of the region.

“The Forum reaffirms its earlier commitment to fiscal federalism as resolved at the inaugural meeting held on May 11, 2021, at Asaba, Delta State, and emphasised the need for Southern states to leverage the legislative competence of their respective state Houses of Assembly, as well as representation in the National Assembly to pursue its inclusion in the Nigerian Constitution through the ongoing constitutional amendment.

“The meeting resolved to support the position that the collection of VAT falls within the powers of the states. It also expresses satisfaction with the handling of issues around the Petroleum Industry Act and ownership of Nigerian National Petroleum Corporation by the larger Nigerian Governors’ Forum.

“The Forum also reiterated their earlier position that the next President must come from the Southern part of Nigeria, in line with the politics of equity, justice and fairness.”

The governors agreed that Rivers State would host their next meeting in November. Except host governor, Ifeanyi Ugwuanyi of Enugu State, four other governors of the Southeast region, yesterday, could not attend the meeting. The meeting was in continuation of the earlier ones held in Delta and Lagos states.

During their Asaba meeting, the 17 governors called for concerted efforts at tackling the worsening insecurity, while in Lagos, they resolved to enact laws in their respective states against open grazing as well as presidential zoning in 2023 to the South.

At the Enugu meeting, which is the third this year, governors of Ebonyi, Dave Umahi, was represented by his deputy, Kelechi Igwe; that of Imo, Hope Uzodimma, was represented by his deputy, Prof Placid Njoku; while Abia, Okezie Ikpeazu was represented by his deputy, Ude Oko Chukwu. Governor Willie Obiano of Anambra was neither at the meeting nor sent in a representative.

Other deputy governors at the meeting were those of Oyo, Rauf Olaniyan; Ekiti, Bisi Egbeyemi; and Edo, Philip Shuaib.

Governors of Delta, Ifeanyi Okowa; Akeredolu (Ondo); Babajide Sanwo-Olu (Lagos); Adegboyega Oyetola (Osun); Emmanuel Udom (Akwa Ibom); Nyesom Wike (Rivers) and Dapo Abiodun (Ogun) attended the meeting.

MEANWHILE, the Court of Appeal, yesterday, declined to accede to the request of Rivers and Lagos States for the appointment of Receiver or Manager for the purpose of collecting and keeping VAT in place of the FIRS, pending the resolution of all legal disputes in the matter.

The two states separately canvassed that the order of status quo ante belum granted on September 10 in favour of FIRS to continue the collection be put on hold in view of the appeal already lodged at the Supreme Court against the order.

Counsel to Rivers State, Chief Ifedayo Adedipe (SAN), in his oral application, pleaded with the appellate court to exercise its power under Order 4 Rule 6 of the Court of Appeal to appoint a Receiver or Manager to take custody of the VAT in the interest of justice to parties in the matter.

Attorney General of Lagos, Mr Moyosore Onigbanjo (SAN), who stood for his state, toed the path of Rivers in canvassing that the court be fair and just in the pending appeal.

Onigbanjo specifically asked the Appeal Court to restrain FIRS from further collecting the tax and replace it with a Receiver or Manager that will act for parties locked in the legal battle.

The Lagos AG predicated his expressed fear of unjust treatment on the fact that FIRS, apart from collecting the tax, has been sharing it among the 36 states and the Federal Capital Territory (FCT) despite pendency of the legal tussle.

However, the Presiding Justice, Hamma Simon Tsanami, asked the two states to make their request formal by making it in writing.

The court also reserved ruling in an application by Lagos to make it a respondent in the appeal filed by FIRS against a judgment granted in favour of Rivers State by a Federal High Court in Port Harcourt.

Onigbanjo, who moved the application, argued that Lagos has vested interest in the VAT collection and that the decision of the court would affect it when delivered.

The Attorney General informed the three-man panel of justices that FIRS in its appeal against the Federal High Court judgment made some allegations against it and that it would be in the interest of justice for it to be allowed to join in the appeal to ventilate its defence.

“From the contents of the appellant’s affidavit, Lagos has been made a necessary party in the appeal by some references to it and for it to be bound by the final decision, it is in the interest of justice that it should be allowed to make defence to allegations against it.”

FIRS, as the appellant through its counsel, Mahmoud Magaji (SAN), vehemently opposed Lagos’ request to join, adding that the state has not shown how its interest would be jeopardised if not allowed in the matter.

Processes filed by the Attorney General of the Federation (AGF), Abubakar Malami (SAN), through his counsel, Tijani Gazali (SAN), were struck out on the ground of being incompetent, having been filed out of time.

After taking arguments from parties, Justice Tsanami reserved ruling, adding that parties will be communicated when the ruling is ready.

HOWEVER, there is a looming danger that the federal and state governments might experience a steep drop in revenue accruing from VAT, as some members of the Organised Private Sector (OPS) are considering withholding remitting the consumption tax until the controversy surrounding its payment is addressed.

They also suggested that a new formula for distributing VAT revenue among the tiers of government has become necessary to calm the raging controversy.

The representatives of the OPS, which included the Lagos Chamber of Commerce (LCCI), the Nigerian Employers’ Consultative Association (NECA) and the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) have called on the Federal Government to act fast in addressing the raging VAT ‘war’.

Reacting to the development, Director General of NECA, Dr. Timothy Olawale, said businesses should not remit their VAT until the matter is finally dealt with in the court of law. He also asked for powers where employers can approach the court through inter-pleader proceedings to determine who they should remit the deducted VAT to.

He said the concern of employers is not to remit deducted VAT due to the pending appeal but to avoid penalties and double payment. He suggested that an employer could open an escrow account for the money, which must be different from other accounts of the company. This, he said, should be remitted upon the final judgment of the court, as it appears the case could get to the Supreme Court.

The chamber lamented that companies may soon be subjected to harassment from the FIRS and the states’ revenue services demanding the same tax.

LCCI, in its reaction, said businesses may also be subjected to a cumbersome process by the states who may not already have the required operational and transactional structure to collect VAT.

On whatever happens at the courts, LCCI said there is a need for more accountability and judicious use of tax revenues at the federal, state, and local government levels.

Founder of Independence Shareholders Association, Sir Sunny Nwosu, said the move by Lagos to extricate VAT control from the Federal Government would impact positively on the bottom-line of Deposit Money Banks (DMB).

According to him, the fund generated from taxes by the state would help service the debt they incurred at the issuance of various tranches of bonds. He said since the DMBs are the major investor in the bonds, the bulk of the money would go into their coffers, which will ultimately improve their liquidity and profitability.

“It will help the state government to pay back to individuals and banks and by so doing, the banks will have more money to do business and declare dividend to shareholders while individuals will have more money to invest in capital market,” he said.

President, Shippers Association of Lagos (SAL), Jonathan Nicol, said the Federal Government should state clearly who should be entitled to the 7.5 per cent VAT from the ports. He said all the confusion should be cleared out before forcing investors to pay twice as that would overstress the trading public.
   
The National President, Africa Association of Professional Freight Forwarders and Logistics in Nigeria (APFFLON), Otunba Frank Ogunojemite, noted that the Lagos State government has never been a stakeholder in the maritime business, neither has it invested in the sector. He said ports operations have always received interventions of the Federal Government, especially as maritime is an international business that requires incentives to meet up with other countries.
   
“What has been the impact of Lagos on maritime, especially port operations? We will prefer to pay VAT to the Federal Government. There is no option for us than to go with the Federal Government’s decision because maritime is an international business. We are only appealing to the government to be lenient with the percentage,” he said.
 
Ogunojemite further appealed to the government to look into the infrastructures at the ports, as they serve as obstacles impeding the ease of doing business in the country.

Five northern states, two south-western states, two south-south states, and one south-eastern state collected a total of N373.84bn of the N836.51bn Value Added Tax allocation available for states in 14 months.

This is according to the latest FAAC allocation data available from the National Bureau of Statistics for the months of January 2020 through to February 2021.

In the period under review, the thirty-six states of the federation and the Federal Government shared N1.09tn as VAT revenue from the Federation Accounts Allocation Committee.

The top 10 states were: Lagos (N153.94bn), Kano (N32.48bn), Oyo (N29.85bn), Rivers (N28.43bn), Kaduna (N24.75bn), Katsina (N22.72bn), Delta (N20.91bn), Bauchi (N20.49bn), Anambra (N20.14bn), and Jigawa (N20.13bn).

Lagos got the largest share of VAT revenue in the period under review (N153.94bn), while Nasarawa got the least allocation of N15.36bn.

Based on the regions, the South-West region received the highest VAT allocation (N256.21bn), followed by the North-West (N154.41bn), South-South (N119.88bn), North-East (107.43bn), North-Central (N106.58bn). The South-East received the least from the VAT allocations (N91.99bn).

The bottom 10 states were Nasarawa (N15.36bn), Bayelsa (N15.79bn), Taraba (N16.23bn), Gombe (N16.33bn), Kwara (N16.35bn), Ekiti (N16.46bn), Yobe (N16.90bn), Abia (N17.03bn), Ebonyi (N17.04bn), and Cross River (N17.17bn).

According to Investopedia, VAT is a consumption tax that is levied on a product repeatedly at every point of sale at which value has been added. In Nigeria, VAT is collected by the Federal Inland Revenue Service and shared by the Federal Government.

According to data from the NBS, VAT has a non-import VAT local, non-import VAT for foreign, and Nigerian Customs Service Import VAT components.

In 2020, N1.53tn was generated as VAT in the nation. Non-import VAT local accounted for N763bn, non-import VAT for foreign accounted for N420.43bn, and NCS-Import VAT accounted for N347.72.

Locally derived tax accounts for about 50 per cent of total VAT, while imported goods and foreign goods or services not imported account for the other half. Local VAT is imposed on goods and services consumed within each state of the federation.

Based on the country’s revenue sharing formula, the Federal Government gets 15 per cent of VAT, while states share 50 per cent, and local governments share 35 per cent based on the sharing formula. In the period under review, the Federal Government got N251.55bn from VAT.

In an August 10 ruling, the Federal High Court sitting in Port Harcourt, Rivers State, declared that it was the Rivers State Government, and not the Federal Inland Revenue Services, that should collect VAT and Personal Income Tax in the state.

In 2020, the total internally generated revenue of the 36 states in Nigeria was N1.21tn.

A former Minister of Finance, Mrs Kemi Adeosun, had said 55 per cent of total local VAT was generated in Lagos.

Based on this indication, in 2020, Lagos may have contributed N419.65bn. in the same year, however, it received N130.97bn.

The Governor of Rivers State, Nyesom Wike, said recently that Rivers State generated N15bn VAT revenue in June this year, but got only N4.7bn. He added that Kano generated N2.8bn in the same month and got the same N2.8bn back.

Wike also said that Lagos generated N46.4bn but received N9.3bn.

The Director-General, Lagos Chamber of Commerce and Industry, Dr Chinyere Almona, on Sunday said the current sharing formula for the states and LGAs should be adjusted using the factors of equality 20 per cent, population 30 per cent, and derivation 50 per cent.

This is against the present system of equality 50 per cent, population 30 per cent, and derivation 20 per cent.

According to her, this arrangement should be agreeable to the concerned parties and can drive innovation on revenue generation in all the states towards increasing their internally generated revenue.

She added that it would also make the states more sensitive to the needs of businesses in their respective jurisdictions.

Almona said, “The first concern of the chamber is the confusion that businesses face as to who is in charge of VAT collection. This is not healthy for the business community and planning.

“We, however, hail the swift intervention of the Court of Appeal to reduce the uncertainties surrounding these controversies.

“Businesses should not be subjected to unnecessary hurdles and made to pay the same tax twice from different agencies.

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“The Federal Government should urgently establish an understanding with states on what is best for the nation and businesses.”

According to the Head of Economics Department, Pan-Atlantic University Lagos, Dr Lekan Aworinde, if state governments start to collect VAT, there would be some positive as well as negative outcomes.

He said, “On the positive side, states can boost their internally generated revenue, meaning that states that realise huge amounts of money from VAT will be able to generate more revenue to themselves.

“However, on the flip side, we do not know whether states will have the structure to be able to collect this tax. What I mean is that tax collection involves a lot of structures such as the policies and the tax planning; also, do these states have the manpower to collect these taxes. If they don’t, the process might not be that smooth and effective.

“Aside all of this, if the administration of VAT falls to the state, how sure are we that they will be able to remit what is due to the local governments.

“In many cases, even with the old systems when federation account allocations come in, state governments do not remit the share of local governments as expected.”

He added that there was the possibility of multiple taxations, especially on imports.

Aworinde added, “There is also the possibility of multiple taxation which can be caused when both the federal and state government charge VAT for certain items like imports. Multiple taxation will have a ripple effect on the economy.

“It will hamper ease of doing business in the country, erode investor’s confidence in the country and further decrease foreign investments, largely because investors don’t want to come into a country with too many taxes.

“With investments on the decrease, unemployment will spike, which will also pull more people below the poverty line.

“As income remains constant while cost of goods and services keep increasing, heightened poverty or a rapid increase in the poverty rate in the country is inevitable.”

Meanwhile, the Fiscal Policy Partner and Africa Tax Leader, PwC, Taiwo Oyedele, has said challenging any ambiguity or treatment the states consider inconsistent with the constitution in court, is a healthy development for the system.

Oyedele said this in an interview with one of our correspondents, in response to the states’ attorneys’ general’s prayer to the supreme court to determine whether or not the states have the sole authority to administer and collect stamp duties on all transactions involving individuals and persons within their respective states.

The PUNCH had reported that the Attorney-General of the 36 states of the federation had dragged the Attorney-General of the Federation, Abubakar Malami, before the Supreme Court over the failure of the Federal Government to remit the funds generated from stamp duties into states’ accounts.

Oyedele said, “There is generally no ambiguity regarding the collection of stamp duties. States are entitled to collect stamp duty on any dutiable instruments between individuals. Where a corporate entity is involved, the Federal Government is empowered to collect the stamp duty.

“While each state gets to keep the stamp duty collected by them, any stamp duty collected by the Federal Government is to be shared to states at 100 per cent less cost of collection based on derivation.”

In another development, an economist and private sector advocate, Dr Muda Yusuf, has advised the National Assembly and the Federal Ministry of Finance to halt the proposed excise duties on a segment of the manufacturing sector.

Yusuf said this in a statement on Sunday in response to the announcement by the Nigerian Customs Service during the 2022-2024 Medium Term Expenditure Framework assessment in the National Assembly to reintroduce excise duties on the production of soft drinks in the country.

Yusuf described the move as ill-timed, inappropriate and detrimental to the growth of the manufacturing sector, saying that it negated the economic recovery and job creation objectives of the federal government

He said, “Many upcoming small businesses in the beverage sector would be hard hit by this proposal. The millions of micro enterprises in the soft drinks’ distribution chain will be adversely impacted by the imposition of the excise tax.”

He added that the reality was that Nigerian manufacturing companies were going through tremendous stress at the moment, affecting sales, turnover, profitability, shareholder value and the sustainability of investments in the sector.

The federal government is considering dragging some medical doctors through the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) for illegally collecting medical training allowances meant for House Officers on residency training programme in 2020, to the tune of N540 million.

The move came as THISDAY learnt that the government had released N4.8 billion for the 2021 residency training programme.

Reliable sources at the Federal Ministry of Health and Federal Ministry of Labour and Employment told THISDAY at the weekend that the health ministry was considering reporting the doctors, who failed to refund the illegal payment to the treasury, to the anti-corruption agencies.

The source said there were three categories of medical officers involved in the scam, including some consultant doctors.

The source also said the government had accused the managements of some of the Teaching Hospitals of allegedly smuggling names of those who had completed their residency training programme into the list of House Officers that received payment from the medical training fund in 2020.

According to the source, though the affected doctors had promised to refund the money, they were yet to do so, thereby making it difficult for the ones due for the training to access their allowances.

THISDAY gathered that the federal government was particularly concerned that some of the consultant doctors who were involved in the illegal deal had not shown remorse for their action but rather were among those collaborating with resident doctors on the on-going strike.

The source also disclosed that out of the 8,000 House Officers that applied for the 2021 residency training programme, 2,000 were screened out for not having postgraduate residency training numbers.

The source said verification was on-going to ensure that only those qualified were deployed for the next programme.

According to the source, the Federal Ministry of Finance has released N4.8 billion as this year’s residency training fund to the Office of the Accountant General of the Federation two weeks ago.

Regarding the smuggling of names into the salary payment platform, the source said the federal government had issued queries to Chief Medical Directors of the Federal Teaching Hospitals involved in the illegal act.

About 205 doctors were alleged to have been illegally recruited at the Ibadan Teaching Hospital, while the Calabar Teaching Hospital carried out illegal recruitment of over 100 doctors out of the 500 health workers.

According to the source, these illegally recruited doctors and health workers formed the majority of those that the NARD leadership were demanding that government should pay before they would end their on-going strike.

The source said, “These CMDs went ahead to recruit new doctors and other health workers without relevant approvals and ignoring the federal character principles. They went further to smuggle their names into the (GIFIMS) salary payment platform.

“Teaching Hospital, Ibadan recruited over 950 health workers without waiver from the office of the Head of Service, without certificate of finance and manpower compliance from the Budget Office of the Federation and without compliance with the federal character principle.

“These illegally recruited doctors and health workers were among those that NARD is demanding that federal government must pay salaries. This amounts to arm twisting of the government and cover-up of fraudulent act and it will not happen.

“The federal government in its magnanimity, despite the on-going strike, has decided to pay these illegally recruited doctors and health workers by asking the Head of Service of the Federation to approve a waiver for the affected doctors to be recruited formally into full employment.

“The Budget Office of the Federation is now working to capture them into the budget to be paid through the service wide vote.”

But, in a statement issued at the weekend and made available to THISDAY, former President of NARD, Dr. Muhammad Askira, accused some government officials of deliberately delaying the grant of waiver for recruitment or replacement of medical doctors and other health workers in the federal government health institutions.

Part of the grievances of the striking Resident Doctors was that their members were being owed several months of salaries and allowances by federal and state governments.

Askira, while justifying the current strike by resident doctors, said it was as a result of the government’s insincerity in implementing agreed actionable series of memoranda.

He alleged that there was currently a dearth of medical manpower in healthcare institutions caused by unnecessary bureaucratic bottlenecks.

Askira alleged that the country presently had a doctor-to –patients’ ratio of 1: 7000, adding that many hospitals are finding it difficult to recruit or replace doctors.

According to Askira, many doctors are leaving the country to other climes where they can do their job with satisfaction.

He said, “As a result, the hospitals are depleted but find it difficult to employ new staff because of bureaucratic processes that involve the Budget Office of the Federation, Office of the Head of Civil Service of the Federation, the Federal Character Commission as well as the Federal Ministry of Health.

“This has made the work burden on the available doctors to be unbearably high, resulting in physician burnout and limited care to a limited number of people needing care.”

Writing on the alleged rot in the public health sector, Askira said the process of recruitment or replacement of medical staff was incessantly delayed for no just reason. He accused some officials in the Federal Ministry of Health and its agencies of corruption and deliberately delaying grant of approval for waiver for recruitment or replacement of medical staff.

He said, “It takes an average of 8-12 months for a lucky hospital to finally obtain a waiver for recruitment or replacement of medical staff. In some cases, the hospitals would be forced to consider candidates from some directors and politicians if at all they want the processes to be expedited, otherwise, it would be out rightly rejected or at best delayed and the required number slashed.”

But the Minister of Labour and Employment, Senator Chris Ngige, had debunked these, saying contrary to the claims by the striking members of NARD, no genuinely recruited doctor or health worker in Nigeria is being owed monthly salary.

Speaking recently at a conciliatory meeting with doctors, Ngige had said, “NARD goes about telling Nigerians that government is owing them salaries and that government is not taking the problems in the health sector serious. But this is not true. It is incorrect.

“No doctor, nurse, pharmacist or any other health worker, including the driver, is owed monthly salary. Government pays as and when due.

“The truth is that NARD doctors fail to tell Nigerians that their colleagues who are owed salaries are the ones illegally recruited and were, therefore, neither captured by the Office of the Head of Service of the Federation nor was their payment provided for by the Budget Office of the Federation.”

Undies8:
They didn't treat secondus well

Citing a recent warning handed judicial officers by the Chief Justice of Nigeria (CJN), Justice Ibrahim Mohammad, over abuse of court processes, Justice Tijjani Ringim, of the Federal High Court in Lagos, yesterday, refused to entertain a suit by the embattled National Chairman of the Peoples Democratic Party (PDP), Uche Secondus, which sought to restrain the party and its national officers from calling, summoning or presiding over any meeting except the one convened by himself, pending the hearing and determination of the substantive suit.

Secondus, had also prayed the court to restrain them from calling meeting of any committee of the party, any congress of the party, the National Working Committee, the National Executive Committee, the National Convention except the one he called.

But, in ruling on the application, Justice Ringim, declined to entertain the suit on the ground that it was unripe for hearing and that the defendants were yet to respond to the motion.

Applicants in the suit marked FHC/L/CS/1117/2021, included Honourable Eddy Olafeso, Alhaji Rashidi Olakunle Sunmonu, Honourable Daisi Akintan, Honourable Bunmi Jenyo and Honourable Wahab Owokoniran.

Those joined as respondents were Secondus, Elder Yomi Akinwonmi (PDP Deputy National Chairman, South), Senator Suleiman (PDP Deputy National Chairman, North), Senator Ibrahim Tsauri (National Secretary, PDP), Independent National Electoral Commission (INEC) and the Attorney-General of the Federation (AGF).

At the resumed hearing of the matter, yesterday, counsel to the applicants, Chimezie Victor Ihekweazu (SAN), informed the court that his client’s Motion on Notice was for hearing and that all parties in the suit had been put on notice.

But a lawyer, Mr. Chucks Ugo, announced his appearance for the party and Senator Ibrahim Tsauri, the party’s national Secretary (first and fifth respondents) while Mr. Oladayo Ilori, also claimed to be representing all the defendants except Secondus (second defendant) in the suit.

Both Chucks and Oladayo informed the court that they all had the mandate of the respondents to represent them in the suit.

Justice Ringim, after taking arguments on the issue of representation, however, held that the two counsel were in disharmony and could not represent a client.

Consequently, Justice Ringim urged the parties to resolve the issue of legal representation.

He also held that since the applicants’ processes were served on the respondents on September 2, 2021, the respondents were still within time to file their responses, adding that the motion was unripe for hearing.

The judge cited the recent directive from the Chief Justice of Nigeria (CJN), Tanko Muhammad, on conflicting orders issued from the courts and urged the applicants to explain to the court if the present suit was not an abuse of court process.

The judge, therefore, directed that the suit would be returned to the admin Judge for reassignment, as there was no urgency in the affidavit filed by the applicants to warrant hearing it during vacation.

The applicants were seeking “an interlocutory order of injunction restraining the first, third, fourth and fifth defendants by themselves, their servants, agents, privies or any member of the defendant whatsoever, other than the 2nd defendant; from calling, summoning or presiding over any meeting of the party whatsoever including the meeting of any committee of the party, any congress of the party, the National Working Committee, the National Executive Committee, the National Convention and all other organs or bodies of the party pending the hearing and determination of the substantive suit.

“An interlocutory order of injunction restraining the first, third, fourth and fifth defendants by themselves, their servants, agents, privies, associates or whosoever from stopping, disturbing or in any way interfering with the excise or the continues exercise by the 2nd Defendant (Secondus) of the powers, duties and functions of his office as the National Chairman of the Peoples Democratic Party (PDP) or from limiting or usurping his Powers, functions and duties as provided for under the constitution of the Peoples Democratic Party pending the hearing and determination of the substantive suit.

“An interlocutory order directing the second defendant/Respondent to forthwith resume the exercise of all his Powers, Duties, function and privileges at the National Chairman of the first defendant as guaranteed him under the Constitution of the first defendant as amended in 2017 pending the hearing and determination of the substantive suit.

“An interlocutory order of injunction restraining the first, third, fourth and fifth defendants/respondents by themselves, their servants, agents, privies, associates or whosoever during the tenure in office of the second defendant, from communicating, sending any correspondence or making any requests or establishing any manner of official contact whatsoever on behalf of the first defendant with the sixth and seventh defendants and all agencies or organs of the Federal Government under the supervision and control of the seventh defendant; other than through the 2nd Defendant or on his direction or authorization pending the hearing and determination of the substantive suit.

“An interlocutory order of injunction restraining ‘the sixth and seventh defendants, and all agencies or organs of the Federal Government under the supervision and control of the seventh defendant, from receiving or maintaining any communication or request whatsoever from any organ or official of the first Defendant or acting on any such request other than from the second defendant or at his direction or authorization pending the hearing and determination of the substantive suit.”