₦airaland Forum

Nazgul:
Watch how clowns would flood here to brag about how their region contributes the highest vat in Nigeria.

Yet more than 60% of the populace are still living in abject poverty. What then is all the billions for if it can't improve the standard of living of the common man?

The answer is: those billions are diverted to parasitic regions to save them from collapse. Are you relieved?

So the NE and NW wouldn't mind if the VAT comes from sales of alcohol and pork, seeing that they're getting more than 3 times of what they're contributing?

Nothing to say.
Just reading comments.
But it surprising Lagos alone generate such kinda vat.
Truly, it's the centre of excellence in Nigeria.
Now my question is, why do Igbos love travelling so much far from thier region? There is no country you will not find an Igbo man. Asia, Europe, Africa etc.
Why don't they find the need to develop thier region with thier exposed business ideas?
I have no doubt they contributed at least 10% of every states vat in Nigeria because they are every where even in the North East.

IduNaOba:
SE is flourishing because we know not to kill businesses with tax! All in the name of bat abi na VAT

Ignorance is really in the zoo

wiseoneking:
95% of VAT In Lagos is from sea port importation which is large controlled by the igbos. They deserve the whole stuff because they are the people making and paying the tax

Ok seaport dey oyo too arbi!?

Iceberg3:
See them,old men....
Everyday of their lives and existence,Igbo Igbo Igbo Igbo Igbo Igbo Igbo Igbo Igbo Igbo Igbo Igbo Igbo Igbo Igbo Igbo Igbo!!!!!
Shior!!!!!

Their tiny limp pencils can never function without something Igbo to make "unlimp" 🤣🤣🤣🤣🤣🤣🤣🤣

😆😆😆why are now crying? Who beat you?😆😆

Accept my sin party 😆😆😆

Don't mind them. Only ignorance will not believe that Ibadan alone is economically viable than the entire southeast.

Judolisco:
Ok seaport dey oyo too arbi!?

Tinubu2027Agend:
Avoid the tendency to explain

South yeast is a dead zone.

DeOTR:
So the NE and NW wouldn't mind if the VAT comes from sales of alcohol and pork, seeing that they're getting more than 3 times of what they're contributing?

The North is actually a more productive zone despite their challenges. Their VAT collection is hampered because their is no VAT on food. They feed the rest of the country. Agriculture is the biggest contributor to our GDP but there is no VAT and the North feeds the rest of the country.

What I find really shocking is the decline of Kano. When I was young, Kano was toe to toe with Lagos in economic activity despite not having a port with Kaduna not far behind. Having said that, those versions version ofKano and Kaduna has been cannibalised into katsina and jigawa so that explains a part of the fall. Nonetheless

NoIgboSoundTueh:
They don't have any natural resources they contribute zero to national purse yet they want to break up from Nigeria.
If not that we don't want Biafran kids eating red sand for dinner we would have granted them their biafra with farewell party and some grains as parting gift

Feed your old parents first before talking about igbos who are more productive than your folks...

December is here, igbos will flex and your people will line up at bourdillon for crumbs

IduNaOba:
SE is flourishing because we know not to kill businesses with tax! All in the name of bat abi na VAT

VAT is a federal tax. Igbo business in lagos dont pay it? Dey play

Fake! Fake! Fake!!!
Why not list all the states and what they received? Propaganda, deceit, manipulation...

Raise a motion for regional governments, they will be the first to bring it down. Just few days ago, it happened in the national assembly.

Raise a flag for Biafra, they deploy every tools know to man to bring it down.

With all the so called generated utopian revenues, why are you people so scared of being on your own? Why?

Despite all the so called imaginary contributions, they continue to borrow. Nansense.

adamusuleiman3:
#Statisense
(FIRS)

Enugurangers:
I am highly disappointed in the SE region. Even NE that's plagued by Boko Haram did better

You don't have to be disappointed ☹️

We hope the proposed tax reform bill will address some of the anomalies around the VAT management.

Paliamentary system is good for this country. Not that monkey dey work while baboon dey chop

Enugurangers:
I am highly disappointed in the SE region. Even NE that's plagued by Boko Haram did better

Because a large population of Easterners do business and pay VATs in others states like SW .

IduNaOba:
SE is flourishing because we know not to kill businesses with tax! All in the name of bat abi na VAT

Yeye

No wonder these Ipob secessionists are fighting to drag south-south region into their contraption called biafra. Shishi they don't have, shishi they don't give. The only things they do well are baby factories and drug trafficking business which has made many of them to be languishing in Indian, Indonesian, and Malaysian prisons. Their Ohaneze recently begged President Tinubu to release one million Igbos in Indian prisons. That's just in one country alone

IduNaOba:
SE is flourishing because we know not to kill businesses with tax! All in the name of bat abi na VAT

yet igbos are still escaping the south east

jmoore:
All these stats are misleading by the time you dig deeper.

Eg. An mtn consumer in Abia pays VAT which is counted under Lagos.

Obviously Lagos is your headache

SW and SS are the only 2 regions carrying the whole burden of this contraption. Shame 😔

jmoore:
All these stats are misleading by the time you dig deeper.

Eg. An mtn consumer in Abia pays VAT which is counted under Lagos.

Let me try and coming in here. My explanation may be a bit longer, so that you can understand it.

If your assertion is true, it means all VAT on MTN transactions throughout Nigeria would be recorded for Lagos

It doesn’t happen that way.

Revenue and Taxes on your MTN recharge are categorized using location (state) where the rig ( MTN tower) that transmitted your call is based.

When ever you buy a recharge card or you load data, what you paid to MTN etc is put in an account called DIFFERED income account. It is a liability account.


The base station of the state where you bought the card/data is the state where MTN has generated the revenue (deferred).

As you are using your card/data little-by-little, MTN will be recognizing ONLY the revenue accruing to it, using the tower ID of the location where you are using the card/data.

Where you use your card/data across e.g. 8 states in NIgeria, those revenue would be split in the accounting records of MTN into those 8 states.

Revenue recognition is not only particular to MTN, in this case. It affects all businesses worldwide.

You can read more about IFRS 15 or IAS 18 accounting standards.

Before you recognize any revenue as yours (even though you have sold goods/ services), there are 5 certain conditions that must be fulfilled.

These conditions are:

1)
Risks and rewards of ownership have been transferred from the seller to the buyer.

This means the risks attaching to the goods or services you are selling must have left ‘your hand’ and become the risk of the buyer. The buyer must also be the one enjoying the reward of the goods/services you sold to him or her.

E.g. if you sell a car to me, you must have delivered the car to me (risk has left you). I must have have been using the car for whatever needs or the car is fully in my possession (the rewards)

2)
The seller loses control over the goods sold.
It means the seller does not have control over what has been sold to you.

3)
The collection of payment from goods or services is reasonably assured.

This means that there is a reasonable assurance that you will pay the price.

4)
The amount of revenue can be reasonably measured.

This means the revenue can be measured by the seller, using one of the appropriate means of measuring revenue in accounting.

5)
Costs of revenue can be reasonably measured.

It means cost of such goods/ services can also be reasonably measured, using one of the appropriate cost of inventory measurement.

You will record the invoice you sent to a customer o but it is the month in which those conditions are fulfilled that any money made can be called your revenue. That’s why revenue can be recognized in piecemeal. Even contractors use this method.

For MTN, it is after all these conditions happen in the recharge card/data you bought from MTN that MTN would be able to say they have sold you data or recharge cards.

Any portion of your card/data you have not used is not recorded as revenue for MTN. It still sits in MTN’s record as a liability. The moment you use it, it leaves the liability account and goes to assert (current) account. Accountants know this better.

One more time, the state where you are using the data/recharge card is the state that would share from that VAT paid to federal government.

VAT is not paid to states directly. It goes to FG.

FG collects all. MTN or NCC or whichever body given this task of running the report will run and send it to the appropriate office of our FG (may be IFRS).

In a nutshell, without fulfilling those 5 conditions, you cannot call any money you make from your business as your FULL money.

You can see that since MTN doesn’t know when you will finish your card/data and it doesn’t know WHERE (the location) you will use the card/data, MTN won’t record everything for LAGOS.

jmoore:
All these stats are misleading by the time you dig deeper.

Eg. An mtn consumer in Abia pays VAT which is counted under Lagos.

That is part of what the newly proposed tax reform law is to correct but some uninformed people are against it

Snake001:
South East — ₦8.16bn | ₦29.03bn [356%]


356% and they contribute nothing to the progress of the country.
Bambiala of the South.
Parasites!!!

But once they mention Biafra you and your entire family go shit for pant, why?

Burruchaga71:
South east really tried with ONLY 5 states

LMAO.
Take out Anambra and add, Ebonyi, Imo, Abia, and Enugu. They are not up to Ekiti State.

adamusuleiman3:
#Statisense
(FIRS)

How can Ebonyi contribute more than Imo does it all those hotels and eateries numerous VAT paying businesses don't remit their the VAT they charge customers? Something is amiss.

This is misleading. I work in a certain processing company in Kebbi. I dispatched more than 13 billion naira goods. That's a vat duty of about 1 billion naira in the month of August 2024.
The company is located in kebbi. It sources bulk of it's raw material from same kebbi State. And it only transport it's final products all over the country. The head office is located in Lagos. So all these accruing vat is cited as Lagos contribution to federation.
Thos is just one company in kebbi. And we have 2 branches. I only work in one plant. There are also 6 other companies in the same business in the same kebbi State.

I think the SE is paying too much VAT.

The people of SE should not allow themselves to be unnecessarily taxed, they should resist. Let those who have FG presence pay the taxes.

Enugurangers:
I am highly disappointed in the SE region. Even NE that's plagued by Boko Haram did better

Disappointed that SE is not making some stupid contributions to a wasteful venture? For the first time, SE has made me proud.

gbengene1234:
Nothing to say.
Just reading comments.
But it surprising Lagos alone generate such kinda vat.
Truly, it's the centre of excellence in Nigeria.
Now my question is, why do Igbos love travelling so much far from thier region? There is no country you will not find an Igbo man. Asia, Europe, Africa etc.
Why don't they find the need to develop thier region with thier exposed business ideas?
I have no doubt they contributed at least 10% of every states vat in Nigeria because they are every where even in the North East.

Competition friend. If all of us are selling stuff, who will buy from the other? Igbos go abroad to seek fresh opportunities. Any adventurous business man will understand that

Igbos by nature are nomadic people. Though this data is an indictment on the porous level of governance in the south east not so much an indictment on south eastern investors. South eastern investors just like any rational investor would try to cash in on opportunities in Yola, Cameroon or in the North Pole if exists. We all can learn a thing or two from the enterprising spirit of the Igbo man as they are the ones that drive major markets such as Alaba International, Jankara, Ladipo, Oyingbo, Computer village, etc and even the ports. But their governance has to be better.

1. Northern states have proximity to country’s capital Abuja and there is a huge market in the Kardashian states that any investor would likely want to exploit such that even if the government does nothing, the business climate will still thrive

2. South-South states are blessed with natural oil resources such that even if the government is sleeping, there is enough VAT to be generated

3. South West’s proximity to Lagos (former state capital and always the country’s commercial capital coupled with an ever ready market of opportunities for any business man). Even if government sleeps, enough can be generated.

South-East is the other hand has no special advantage so the ineptitude of their governance is being exposed seriously. Their sit-at-home stances and migration away to other locations will ensure that they score low on the VAT front.

I think we should do a survey on state of origin of the actual contributors (business owners) to the VAT purse per state. E.g. for Lagos State, which states contribute the most VAT, etc. That will give us a better idea. @statisense, take note.

Iceberg3:
Bro the truth is,they are all miserable and serious losers..they are poor and very sad and bitter in life...

People who are well to do and living well don't have time for such crying, lamenting and sorrows that we see from these losers on here everyday!
I mean, everyday you see them expressing their sorrows!

I am not Igbo o but honestly,we don't really understand these Agbado people! Imagine lamenting over a single certain people from Jan to Dec!!! HHaaa!!!!
When Jonathan was president,they lamented and lamented...
Their own buhari became president,their Lamentations got worse.
Their very own Tinubu is president today and their Lamentations got much much worse!!!

See,in life, people only get jealous of and attack and attack those who are way better than they can ever dream to be like... 😁😁😁

Exactly that's ignoring them is the best antidote

They are always lamenting

We will live anywhere in Nigeria and add value to the country as long we are one Nation


Focusing on getting better should be everyone s watchword

They can continue crying

NoIgboSoundTueh:
They don't have any natural resources they contribute zero to national purse yet they want to break up from Nigeria.
If not that we don't want Biafran kids eating red sand for dinner we would have granted them their biafra with farewell party and some grains as parting gift

Pls let's grant them