FreeThinkerPlut: How the North’s Fiscal Freeloading Keeps Nigeria in the Economic Dark Age’s
Oh, bravo, President Tinubu, for once again proving that in Nigeria, politics trumps progress, and the loud whining of regional power blocs can drown out any semblance of economic rationality. Your decision to slash the VAT revenue-sharing formula from a bold 60% derivation-based allocation to a measly 30%—all to appease the northern states’ tantrum over their self-inflicted revenue woes—is a masterclass in spineless governance. Why strive for a transformative tax system when you can just cave to the same old regional blackmail that’s kept Nigeria’s economy limping since independence? Truly, a visionary move for a man eyeing 2027’s ballot box.
Let’s dissect this farce. The northern states, clutching their pearls over the prospect of losing VAT revenue due to their “limited industrial base,” have once again weaponized their political clout to preserve a fiscal status quo that’s as outdated as a rotary phone. Their argument? “We don’t generate much VAT because we’re not Lagos or Rivers, so don’t you dare cut our slice of the federal pie!” Never mind that Lagos alone accounts for over 50% of Nigeria’s VAT while some northern states contribute less than a rounding error. This isn’t a new script; it’s a tired rerun of Nigeria’s post-independence saga, where the North’s overreliance on federal handouts has consistently choked economic innovation and kept the country tethered to mediocrity.
Historical Context: The North’s Economic Albatross
Since Nigeria’s independence in 1960, the economic imbalance between the North and South has been a festering wound, and the North’s dependence on federal allocations is the gangrene. The South, with its coastal ports, oil wealth, and commercial hubs like Lagos and Port Harcourt, has always been the economic engine. Lagos, for instance, was generating significant internal revenue even in the 1960s through trade and commerce, while the North leaned heavily on groundnut pyramids and colonial-era administrative structures. When oil became Nigeria’s golden goose in the 1970s, the federal allocation system—cemented under military regimes like Gowon’s and Buhari’s—turned into a sacred cow. States, especially in the North, grew addicted to monthly payouts from the Federation Account, with little incentive to build their own revenue bases.
Take the Groundnut Pyramids of Kano, once a symbol of northern agricultural prowess in the 1950s and 1960s. By the 1980s, they were a distant memory, collapsed under the weight of mismanagement, corruption, and a refusal to modernize agriculture. Instead of pivoting to industrialize or diversify, northern elites doubled down on federal oil rents, using their population size and political leverage to secure disproportionate shares. The 1976 creation of states under Murtala Mohammed’s regime, which gave the North more states than the South, entrenched this imbalance. More states meant more federal allocations, regardless of economic output. By 1999, when Nigeria returned to democracy, northern states were still leaning on federal funds, while Lagos, under Tinubu himself as governor, was revolutionizing its tax system to generate over ₦10 billion annually by 2007 without begging Abuja.
The North’s economic inertia isn’t just about geography; it’s a mindset. Policies favoring centralized control—like the Petroleum Profits Tax Act of 1959, which funneled oil revenue to the federal government rather than producing states—were championed by northern leaders like Ahmadu Bello, who prioritized national unity over regional self-reliance. Fast forward to the 1980s and 1990s, and Structural Adjustment Programs (SAPs) under Babangida devastated northern textile industries, like those in Kaduna, because the region failed to adapt to global competition. Meanwhile, southern states, particularly Lagos, embraced private-sector growth, attracting multinationals and building infrastructure. The result? By 2025, Lagos’s IGR is over ₦1 trillion annually, while states like Yobe or Zamfara barely scrape together ₦20 billion.
Tinubu’s Capitulation: A Betrayal of Progress
Now, enter Tinubu’s tax reforms, which could have been a game-changer. The original 60% VAT derivation formula was a nod to fairness: reward states that actually drive economic activity. Lagos, Rivers, and Ogun, which together generate over 70% of VAT, would finally get their due, incentivizing others to step up. But no, the northern governors and their Senate allies threw a fit, crying “regional inequality” as if their decades of economic lethargy aren’t the real culprit. And Tinubu, the supposed “Lagos miracle worker,” folded like a cheap suit. Reducing the derivation share to 30% isn’t a compromise; it’s a surrender to the same parasitic fiscal culture that’s kept Nigeria’s tax-to-GDP ratio at a pathetic 13.5%, lower than Ghana’s 15% or Kenya’s 18%.
Why did he cave? Oh, let’s not pretend it’s anything but 2027 election math. The North’s voting power, with its 19 states and inflated population figures, is the ultimate trump card. Tinubu knows he can’t win without northern votes, so he’s traded economic reform for political survival. Never mind that this perpetuates a system where states like Kano or Kaduna, with vast agricultural potential and millions of consumers, contribute peanuts to VAT because they’ve refused to modernize or attract investment. Instead of challenging them to innovate, Tinubu’s handing them a lifeline to keep coasting on federal crumbs. Truly, a bold strategy for a man who once turned Lagos into Africa’s fifth-largest economy.
The North’s Ultra-Conservative Economic Mindset
And let’s talk about the North’s economic philosophy—or lack thereof. Their insistence on preserving federal allocations over derivation reeks of an ultra-conservative mindset that would feel right at home in Niger or Chad, where economies limp along on subsistence agriculture and foreign aid. Why bother with pesky things like industrial policy, tech hubs, or tax reform when you can just demand a bigger slice of someone else’s pie? Kano, with its centuries-old trading history, could be a logistics powerhouse, yet its markets are stuck in the 19th century. Kaduna, once a textile giant, hasn’t recovered from the 1980s because its leaders prefer lamenting “marginalization” to building factories. Compare this to Rwanda, a landlocked, resource-poor country that’s tripled its GDP per capita since 2000 through aggressive innovation and governance reforms. But no, Nigeria’s North seems content playing the victim, clutching federal allocations like a security blanket while the South sweats to keep the nation afloat.
The Cost of Inaction
This compromise isn’t just a policy misstep; it’s a betrayal of Nigeria’s economic potential. By caving to northern pressure, Tinubu’s ensuring that states have little incentive to innovate. Why should Borno or Jigawa invest in industrial parks when they can coast on VAT from Lagos’s ports? The 30% derivation formula is a half-hearted gesture that won’t push laggard states to compete, nor will it fully reward high-performers like Lagos, which now subsidizes the nation while grappling with overstretched infrastructure. The tax-to-GDP target of 18% by 2026? Good luck achieving that when half the country’s states are incentivized to do nothing.
And let’s not kid ourselves: this isn’t about “equity.” It’s about entrenching a system where political clout trumps economic merit. The North’s fear of revenue loss isn’t a cry for fairness; it’s a refusal to confront their own failures. If they want equity, how about taxing their vast untapped agricultural wealth or formalizing their informal economies? Oh, but that might require actual work, and why bother when you can just bully Abuja into submission?
Conclusion
Tinubu’s VAT formula retreat is a cowardly capitulation to a region that’s held Nigeria’s economy hostage for decades. The North’s overreliance on federal allocations isn’t a quirk; it’s a deliberate choice to prioritize political power over economic innovation, a pattern etched into Nigeria’s history from the groundnut pyramids’ collapse to the textile industry’s demise. By bowing to their pressure, Tinubu’s not just undermining his own reforms; he’s ensuring Nigeria remains a country where mediocrity is rewarded, and ambition is punished. Perhaps the northern governors should take their economic playbook to Niamey or N’Djamena, where it might fit better. As for Nigeria? Don’t hold your breath for that 18% tax-to-GDP ratio—or any real progress—anytime soon.
FreeThinker from Pluto
These people don't like good thing. What will it cost you just to complement the government for ones? You must find fault in everything! Democracy is all about consensus and compromise. Nobody is perfect, not even that man that claim to have one wristwatch and 2 shoes for over 20 years now
clydecarson: But you are in a position to demolish a property without the Lagos state government being aware and you informed the boys that came for the demolition not to disclose your identity Y'all are really ill in the brain
Are you the owner of the property? Everything is not meant for social media! At least Obi was shown the warrant! If he or anyone interested in the property has a grudge, they can approach the judiciary.
walefresh3: See consumption tax....southeast Naa poor region...I swear...nobody go tell me otherwise
The reason South East region's VAT is small is because most of the businesses done there is mainly import related. For example, someone that deals on imported goods like spare parts, drugs, fashion etc, will pay VAT at the ports. This VAT will accrue to Lagos State not the South East.
PaChukwudi44: Everyone should wait for court yet you went ahead to order demolition
What the woman is saying is that the courts have given judgement for her to possess the land. If Obi is not satisfied with that, he should also go to court to show otherwise and not be gallivanting on social media with lies
Linzo: "No magic can make the APC and Tinubu win any state in the South-South region. I strongly agree that while he may secure the 25% required by law in some states, winning outright is highly unlikely, especially in Delta State where I'm based. If you doubt me, try engaging with your contacts in the region and see what they have to say."
Yes, the governors have defected, but the people on the ground, including their strongest followers, will tell you the same: APC and Tinubu can't even win any local government, especially here in Delta State.
Before you call me names, let me clarify - I'm a Deltan based here in Effurun, by Ogbe Street, behind Hotel de Mark, and I shuttle around the South region on a regular basis.
If you like, believe it or not, APC will lose in 2027 because it has already lost the North, except for Kwara. Please don't mention Benue, because that's a no for PBAT in 2027.
Do not generalise! Speak for yourself. you have just one vote.
WizardOfNG: Precisely. APC manages her internal problems and conflicts well because it has leaders, from all ethnic groups who know how to compromise for the sake of the greater good.
Same cannot be said for the PDP or Labour.
The problem of PDP is Atiku. He wants to be president at all cost. He uses his money to buy the ticket every without regards to the party's constitution.
Media Personality, Rufai Oseni has said that all is not well with the ruling All Progressives Congress
According to him, no matter how they spin, all is still not well in the party at the moment.
Oseni is a clown. Once it's more than one person, there must be issues. Even in families, there are issues. The difference is that ability to settle grievance.
immortalcrown: No evidence in the economy. You go explain tire. Better rest.
It is called RESERVE for a purpose! It is not part of money in the economy. Therefore, even if it goes to $50 billion, the price of rice and beans will still remain the same.! Productivity is what affects the prices of rice and beans, not money kept in the bank for rainy days.
JagaLove: My name is XYZ I graduated from secondary school at 15 in year 2010. That was the same year I first masturbated; I was in my room one day and all of a sudden I started stroking my genitals; after a little while I felt the release of semen. The feeling was enjoyable and soothing or so I thought not knowing the Devil had crept into my life. I curse the day I got to do this first.
I was staying alone with my dad in a single room apartment and dad would always leave early for work and return late. Immediately dad leaves for work I start masturbating. Sometimes once in a day, sometimes twice, even thrice at most.
I got admission into the university and this didn't stop. It was easier for me since I stayed off campus. Sometimes I masturbate before going to class and feel dizzy when in class through out my stay in the university I was masturbating. I started developing negative consequences like anxiety, guilt, tiredness and weakness, I thought some of these things were normal or so inability to associate with people especially ladies. I could just see a girl then and I want to have sex with her and sunce i can't I'd wait till my spare time and do the deed. I would think people were seeing through me that I masturbate. I had this false confidence like I was the man.
I moved in to the school hostel in my third year and that didn't stop. I masturbated in my hostel room and even in the open field in school. Just trying to skip a lot of details. There's no place of family or friend I've visited where I did not masturbate. Even during my NYSC in year 2022 I masturbated all through the scheme.
I try to stop and can go off for I week or three days and i'd be back to it. I masturbate with my productive time and It has been 15 years now since I started masturbating I don't have good social skills, my relationship with people is faint, i don't have a job and its even a scandal now. People around me say it because I don't have a girlfriend I don't have friends and I don't talk to anybody. Not having a girlfriend is not my problem Worst of it all is I missed my purpose. I can't say it to anybody cause I'm ashamed of it so I came here to pour my heart and advice anyone who is tempted. I t ruins life. I'm supposed to be a role model but I'm the opposite. I used to have high hopes but now my intelligence level has dwindled.
Masturbation is a demon and an evil spirit. I just pray God helps and heal me and restore me. Praise God.
Stop posting nonsense. You are who you are not because you hold your dick or not. What then would you say about people like Bobrisky that have been sleeping with men! Is that not worst than masturbation! Is Bobrisky not rich due to his activities? Wether you masturbate or not, it will not change who you are because you're an introvert.
Sorry to burst your bubble! A Flt Lt in Nigeria is still at the learning stage of flying. He's still training at 301 training school in Kaduna where there are no fighter jets but single propeller aircrafts for training purposes.
AustineE1: This Sanwolu guy is a world class ass-licker,people like him can be dangerous, that's the more reason I think the president is being careful.
The other day, Obi did sallah with moslems. It was all praises for him! You guys claim it was a sign of religious tolerance on his part. Now, I wonder what happened!
okpouman: Yahaya Bello is one out of millions of young people,we have given chances to repeated failed old men but one young failure now should hinder other young ones?you people have Stockholm syndrome
One Young failure you say! How old was Peter Obi when he was governor of Anambra state? Now let me ask this question! Would you prefer a Peter Obi at the age he was governor to his present age as president? If you take the former, then I'm sorry, I have nothing to say further. The more aged a wine is, the more it's value.
bolaayenimo: Why are the Northern youths angry with Tinubu and pulling down his billboards.
Of course, we all agreed that Tinubu has not performed well but the anger of the northerners is that Tinubu is still alive and functioning as president.
They thought he was sick during the campaign and will end up like Umaru Musa Yar'adua so that Kashim Shettima will take over
But the man is far smarter than them
@the bolded! Stop this silly generalisations! Tinubu has done well. Performance cannot be judged by the cost of a plate of rice! Judgement should be based on where the country was when he took over and where it is today. I know the next thing you'll do is start comparing the cost of rice and beans! But as Nigerians, let's ask ourselves this question! Were our financial future guaranteed before 2023 compared to now?
okpouman: A young ruler will make the difference, because he will be hands on,try it and see and stop giving excuses for these old men
A young ruler indeed! Yahaya Bello was the youngest governor during that dispensation. Tell me, what did he do? When you talk about hands on deck, you sound as if the president will be the one doing the chores! That is the beginning of failure! A leader that claims to know it all will always fail. A good leader is someone that knows how to get the best from his subordinates. Someone that is decisive.
okpouman: Nigerians have to realise that the basic fundamental key to transform their country is not whether they are detribalised or dereligionised,or the amount of entrepreneurship they practice.
What is missing in NIGERIA is a young leader- a capable young leader with less political baggage.an example of such a person who is known is adebayo of sdp.
People keep making reference to yahaya Bello, that is bullcrap.yahaya Bello had his fault quite alright but one reason kogi is not under the attacks of killers is because of the strategy yahaya Bello implemented both diplomatically and offensively, I will not go into details in that.but it went a long way in preventing attacks by the so called herders.
Nigeria needs a young person as a ruler, who can move around the country easily and freely and doesn't need all the political and cultural dressing and pageantry attached to the usual presidential visits and activities.This will enable proper approach to governance, not a ruler who leaves governance to his handlers and just enjoys the perks and status of a president- this was typical of BUHARI and now TINUBU rule.
Nigeria needs a young president that is hands on and in tune with the modern times.
As long as Nigerians keep electing frail old men as presidents,they'll keep getting frail leaders who rule by proxy and who constantly are tone deaf,no progress will be made
Get this clearly! It's not about the person! It's about the system and the people. If a General gives clear orders and his subordinates misinterpret those orders, the results will not be as expected. Now factor that into Democracy where the rule of law is sacrosanct and the rule of law states that everyone is innocent until proven guilty! What do you expect one man to do?
njokuuche77: You’re defending a system where nobody shows up for the people and calling that leadership. That’s sad. Empathy isn’t weakness. If our leaders can't mourn with us when we bleed, why should we trust them when they speak of progress? Nigeria doesn’t just need roads, we need leaders with heart.
It is called eye service! It's better for the system to be working than for governance to be based on where the president visits. In developed countries, some people don't even know who the leader is. The leader might pass by and nobody cares! This is because their interest is about the system and not who is the leader. The news around now is that 4 persons were murdered in cold blood in Anambra yesterday or so! Do you expect the president to go there too? Or is that number too small? Now, who determines the number at which the president will leave Abuja for on site viewing? Me? You? Or who?
njokuuche77: There’s nothing ‘trash’ about demanding empathy from a president addressing a grieving community. Of course security is everyone’s concern, but when over 200 citizens are massacred, and the Commander-in-Chief shows no visible compassion, that’s a leadership problem. Nobody said he should carry a gun, we’re saying he should carry the weight of the moment with dignity. Asking about relief and prevention is valid, but it starts with acknowledging the pain first. That’s not too much to expect from a leader.
Empathy like Peter Agbotikuyo that jumps from one place to another looking for bad news! Yes the killings is very nauseating but you should know that the herders/farmers conflict did not begin today. Fulani herders have been killed indiscriminately too. The president did not visit them when they were killed or cried crocodile tears because of pretence of empathy! It is better for governance to be working than for people to be waiting for the president then after that day, nothing happens.
Copied “..There is hunger in the land, People are suffering, and this suffering Nigerians will determine APC fate in 2027 - Seyi Makinde 2 weeks ago.👀🙆
So, To complicate the lives of Oyo people further, Seyi Makinde has set aside N64billion to renovate the governor office.
Yes, He deserves to live in luxury but he must quit the hunger activism.
The N64billion he intends to splash on his office wasn't generated by Oyo state govt.
Oyo state IGR in 2024 was N65billion, while the salary and personnel bill of the state in 2024 was N213billion...
What Seyi Makinde is generating annually as Oyo gov for 6yrs can't pay a third of Oyo workers salary, He is paying salaries and affording to splash over N64billion on govt house renovation because of the Tinubu policies he is blaming of causing hunger,
N64billion will create over 100,000 agro businessmen, and take over 500,000 Oyo people out of poverty...
Seyi Makinde won't do that, It would make the people vote for APC...
It is better he leave them hungry and renovate his office with N64billion so that the hungry people vote against APC....
After all Nigerians don't blame governors and chairmen for being hungry, they would rather blame Tinubu who gave Makinde the money he is wasting on his office.
In 2024 Oyo couldn't pay their counterpart fund to collect the N3.5billion meant to renovate public schools, The hungry and impoverished Oyo people will blame Tinubu.
N64billion will transform over 200 public schools in Oyo state to world class level.
Oyo people don't deserve that, The money should be wasted on Makinde office so that he can have beautiful Seren environment to mock hungry Oyo people and encourage them to vote out APC.
Atiku will never condemned this, Peter Obi frãud will observe table manners on this, Their Obingo m0bs are still busy dissecting Tinubu visit to Benue they won't see this.
Tinubu policies created more money for states and local govt but govs like Seyi Makinde, Bala Mohammed, their friend from Adamawa prefer to waste this money on frivolities so that their gullible citizens who blame Tinubu for everything can remain hungry and very angry till 2027 and unleash that misguided anger at APC and Tinubu..
So that they can get back to Aso Rock and set Nigeria back by over 100 years again as they did before 2015.
It is better to born a thief than to born a mumu - Urhobo proverb Onovughe Igwe
njokuuche77: Imagine losing your loved one in a massacre, only for the president to come and act like it’s business as usual. No moment of silence, no strong words of compassion, just politics as usual. This is not just tone-deaf, it’s heartless. Every thinh should not be about politics, haba!
Stop talking trash. Security starts from everyone. If you're waiting for the president to come from Abuja to secure your environment, then you must be on a long thing. What you should be asking is what has the government done to alleviate the sufferings of those that have been displaced and hospitalized. Also, what are they doing to prevent such events from reoccurrence.
Obi is a clown! He wants the president to be waist deep in the River Benue, just the way he did when he was governor, before he will be satisfied! Till this day, that area is still flooded!
People that are typing rubbish! Hear this: The president's visit was not done in secret! Therefore, I see no reason why some persons will be making silly comments. Journalists were allowed to televise the program live. So what's the problem with red carpet, blue sofa and all that? Creating roforofo where there's non!
These are just pictures and videos for the public. Deep down she's in pains because there's a difference in the affections of humans and inanimate objects.
As it stands now, l want them to send Senator Natasha H Akpoti to jail since they're blindly bent on doing so. With the turn of events, contrary to their state of mind, sending her to jail 'II not humiliate her, it will rather make her a hero. A national hero, a global hero, a social hero. They're about to spark a national and global movement over a case that ought to have died down by now if someone hadn't gone sourcing for one Professor Mgbeke.
In a country being governed by the very person who stood still, organized protest, funded The News Magazine and other media houses from exile when Gen. Sani Abacha was closing print media houses and seizing printed publications. The Nigeria Police Force is being tossed around like a toy and being used to arrest and detain anyone that stepped out criticize one Sandra Duru AKA Professor Mgbeke a national who ran to USA abandoning criminal cases against her in court here. Obinna and Francess has been arrested.
They were arrested for stepping out to encounter the fact that Senator Natasha never mentioned about overthrowing Yoruba government. Once that was mentioned their initial plan of using Professor Mgbeke's lies to charge Natasha for felony changed.
That leaves me with the question. Why is the Nigerian Police Force not investigating this? Are they not aware that such false accusation is a serious security issue? Why is the presidency treating such serious false information likely? Why is the INSPECTOR GENERAL OF POLICE treating Sandra Duru that brought about this false allegation lightly? Why is Sandra Duru openly making posts on social media and boasting that everyone that said anything about her will be arrested by Nigerian Police and few days later the person will receive an invitation from the same Nigerian Police. Why?
At period when over 200 Nigerians were slaughtered at Benue State, at a period when insecurity is spreading everywhere, all that interest the Nigerian Senate, the police, the Nigerian justice system is to send Senator Natasha to jail. President TINUBU, is this the democracy you fought for?
There's something those planning this don't understand, Senator Natasha is about to be turned into a symbol of the struggle, the pains, the hardship, the insecurity and the high cost of foods items. When that happens most of these people cheering will join the social movement demanding for her freedom.
Most importantly Mr. President, long after all these people planning to jail her has disappeared, the history book will record, the international social discussion will be that at the TIME TINUBU WAS PRESIDENT, a Nigerian Lady politician was sent to jail for freedom of speech. This instance might be sited by the authors and designers of this crude art because those there who clapped for Abacha later turned around to deny him.
Make that record, send a sitting Nigerian Senator to jail in your anger and bitterness let other legislative arms and members stay there and watch their highly respected office reduced. But, your anger you think it's just about punishing Natasha. I dey laugh.
What is even the issue? Man toast woman that was mishandled that's why the entire Nigerian Senate, the office of Attorney General, the Nigerian Police, the office of the Inspector General of Police, the presidency are being dragged at a time we're having this state of insecurity.
Does this mean there's not a single senator with respect enough to call these two people together and make peace? I mean, these are two families that has been the best of friends for years.
Does it mean that the rush to jail Natasha outweighs everything else in the country now?
Nigerians could have been clapping if we heard one terrorists leader has been arrested and the process of justice against him is being fastened. But there's none in detention even.
Nigerians could have been happy to hear that Senator Natasha stole so, so, and so billions of naira and the process to jail her is being fastened. No! If it's about stolen Nigerian money the process to jail the person will take over 20 years.
Go Jail Natasha! To rush her to jail in such a hurry thinking you're humiliating her is to jail the voice of every single woman that has cried and will ever cry about sexual harasment. Why should they complain when they will end up in jail?
Then you will see some ignorant people jump in here, who don't even know that they abandoned the sex harasment case and prompt up other charges and are rushing it to extract revenge, screaming let her proof it in court. I wrote this last because they're normally lazy readers. They won't get to this point, even if they scrapped through they will still be confused in understanding the entire narrative.
By Peter Agba Kalu
Stop typing rubbish. Show proof of the sexual harassment and everyone will support you. Being a woman doesn't give you the right to tarnish others image.
Politics › Re: Nigerians Earning Below N250,000 Monthly Exempted From Tax — Oyedele by Misterone: 9:04am On Jun 27, 2025
. People just yapping nonsense because they want to gain popularity!
