₦airaland Forum

THE WAR OVER VALUE ADDED TAX: THE FACTS AND THE FICTIONS
By Olawepo Hashim

The current controversy over who should collect Value Added Tax (VAT) between States and Federal Government is the latest mud thrown into Nigeria’s political water in an attempt to muddle the water more.

Those who have managed the information about the VAT wars have created the impression that the present distribution benefits the Northern States more than the Southern States. They try to make it look like the VAT is part of the “hegemonic domination” of the North.

Many commentators hardly look at the data before they hit their keyboards online. Many swallowed hook line and sinker very obvious lies.

From available data published in Vanguard Newspaper of 18th September, 2021, apart from Lagos, Rivers and Abuja who benefit from the fact that they host the headquarters of major economic, political and oil related institutions, most States apart from Oyo State are doing badly in VAT generation and a lot of Southern States are woeful. Most States, whether they are in the North or South are doing badly in production of goods and services except for Lagos, Rivers, Oyo, Kano and Kaduna States. The present centrally collected VAT which is then distributed subsidises everybody.

In comparison to Eastern States, States such as Kaduna, Kano and Katsina are doing better than Abia, Anambra, Imo, and Enugu. Based on available data reproduced below, in the past eight months, total VAT generated in Abia was N2.290b, Anambra -N5.938b, Imo -N1.941 compared to Kaduna -N18.262b and Kano -N24.492b.

Conversely, when it came to distribution, Nnamdi Kanu’s Abia State got N20.020B for generating N2billion, yet he wants to leave Nigeria that is “oppressing” him. Abia got 10 times what it contributed whereas Kaduna and Kano did not get as much as twice what they contributed. Lagos, Rivers and Oyo got lower.

Interestingly, Ebonyi where the Governor is more supportive of national integration is infact the State that generated more VAT in the South East, possibly owing to the activities of mining related industries.

A major fact showing in the data is also that regions who have been fortunate to benefit from the industrialization policies of fore-sighted leaders during the period of independence tend to do well today in VAT collection and Internally Generated Revenue (IGR). Such States as Oyo, Ogun, Lagos that benefitted from Chief Obafemi Awolowo’s industrialization policy between 1955-1960 stand out. Likewise, even though some of the industries are now moribund, but we see evident success of the industrialization policies of the NPC government in the period of limited self government and country's Independence in States like Kaduna and Kano, with some spillover effects in Jigawa and Katsina. It is curious that despite the insurgency challenges, Yobe generated more VAT than Enugu and Anambra respectively. As a matter of fact Kano's VAT generation is bigger than that of all the 5 Eastern States put together.

We are talking economic history and analysing economic data, not ethnic passion and propaganda. The VAT issue is not a South versus North thing. Whatever formula that will be worked out in future must be with the objective of bringing benefits to all Nigerians in all States and challenging States to make industrialization their priority as well as agricultural production and processing. We need a VAT collection and distribution system that will benefit ALL.

https://www.facebook.com/100050227010971/posts/392987769052120/

I see vat reaching 80% in the coming months, I see government officials being chased out of their homes, I see the youths burning down the country, I see smoke and ashes everywhere.

This I have seen.

Northern states are nothing but leeches

Okay

Fulanis and Ibos share so much similarities in Nigeria than people admit..

SouthEast. And North.. just look at the figures



..

This bros needs a gag in his mouth ASAP. I understand his political ambition however, it will be nice to meddle into things more objectively. He should address the reasons why those who are against VAT being centrally collected for redistribution are complaining.

In addition, I would have wanted him to challenge the governors of our various states to work harder to increase their IGR than encouraging the ongoing laziness.

Na wa

Damnnn niggar
Hmmmmmmm

A real niggar is dumb founded after perusing through the article while blazing his damnnn weed

But all the same every gadmnnn state should be in charge of their gadmnnn vat

Most States, whether they are in the North or South are doing badly in production of goods and services except for Lagos, Rivers, Oyo, Kano and Kaduna States.

In Other words, Other states are parasites

All we know is no more VAT to the FIRS wether they like it or not. We don't care if heaven falls. If I were the northern govs I will start thinking inwards on how to generate my own tax in my state cos the writing is already on the wall.
They only believe in running to Abuja for money every now and then, some don't even live in their state.

IGR and VAT are different.
The fact that he lumped IGR figures to explain his VAT theories is him muddying the water.

The call for VAT domiciliation by respective states is the crux. Rivers State that initiated this isn't looking at it as Northern vs Southern states performances as he has done here.

Northerners are parasites, that's all they want to hear.
Even though they themselves are more parasitic.

Yes... We agree

Let's just divide and see who suffers

After all person wey suffer go get sense

LongT:
Mr. Divide. Divide wont do any good than unite.

Oga the unite is doing more harm than good, let's taste the other side, at least if it fails, everybody head go correct, there will be no more agitations and we will negotiate our union

Your analysis has political undertone, I know that. This Olawepo Hashim guy is from Kwara State. In 2018, he was sent by Bukola Saraki to ANN Party then with plenty money to disrupt the party. He came for the Presidential Party ticket. He was disgraced out of the party when Fela Durotoye defeated him with 203 votes to 7 votes.

Tomorrow makes it three years this event happened.

https://www.vanguardngr.com/2018/10/durotoye-duly-elected-anns-presidential-candidate-says-party-chairman/

Ok

Noted...but can they now allowed resource control?....

In comparison to Eastern States, States such as Kaduna, Kano and Katsina are doing better than Abia, Anambra, Imo, and Enugu. Based on available data reproduced below, in the past eight months, total VAT generated in Abia was N2.290b, Anambra -N5.938b, Imo -N1.941 compared to Kaduna -N18.262b and Kano -N24.492b.

South West-2 States
North West- 2 States
South South- 1 State...
North East- Parasites(Honorable mention(Yobe)
North Central-FCT
South East- All Parasites

Okay

Jerryherd:



Fulanis and Ibos share so much similarities in Nigeria than people admit..

SouthEast. And North.. just look at the figures



..

You believe the nonsense up there abi?

So abia state now belongs to Nnamdi Kanu
This guy is aboki

Rubbish so oyo is ranked above Ogun state this man just open mouth say shits

It's now evidently clear that, the EAST contribute zero to the Economy. But they enjoy from what Kaduna, Kano, Katsina, Abuja, Lagos, Oyo and River State jointly make. I wonder how Biafra Republic will survive.

Las las na Nigeria go dey give them aids.

Huh?

To be frank, at the point of break up, the south east may eventually come to the realization that Nigeria was the best gift they ever had!

Jerryherd:

Fulanis and Ibos share so much similarities in Nigeria than people admit..
SouthEast. And North.. just look at the figures
..

Fulani is not northern states.

to each his own is what we are saying.. Not East � North that the writer is portraying. If Abia generates N2B, let them enjoy their N2B, when it's not enough, their leaders will leave partisan politics and blame game and come up with solutions to boost the state revenue. That will in turn make people think twice before killing others all in the name of getting political posts because you'll have to have something upstairs to eat fat in the new dispensation

It does not still solve it all. Most states are lazy to attract investors because they know that the sharing formula does not require them to do much whereas other states like Lagos and Rivers are busy attracting foreign investors..

Obviously South West alone generates the most of the VAT being share. More reason why regional government should be considered. Apart from Kano and Kaduna from the North, others are nowhere to be found and ain't doing much to bring investments.