₦airaland Forum

The oil producing states were giving only 3% in the PIA act under Buhari, the Niger delta requested for only 10% which was fair but they gave them 3%. everyone was Ok and nobody termed it anti-south.

What is good for Greece is good for Uganda

richmond500:
The old producing states were giving on 3% in the PIA act, everyone was Ok with it because the bill was not anti north.

What is good for Greece is good for Uganda

This bill isn't Anti North, it's anti lazy, greedy politicians. Some of which can be found in the South.

On a positive note, it's pro dynamism and efficiency, let's see those all over the country that will take the bait and start working harder and smarter.

richmond500:
Just like a lot of northerners didn't see anything wrong in the Petroleum industrial act that gave oil producing states only 3%.

What is good for Greece is also good for Uganda

Truth is that Northern Political, cultural and religious leaders with their tacit support of terrorism, and practices deepening banditry, poverty and deprivation at an alarming rate, will destroy Nigeria if not confronted by all well-meaning Nigerians, to include progressive Northerners, to shape up.

They must not be allowed to take the rest of us down because of how Northern leaders, at all levels, only wish to be agents of retrogression, mass illiteracy, hopelessness, socio-economic stagnation and our descent into becoming a fully-fledged Afghanistan or Somalia.

If the North is not forced to change then they will turn Nigeria, to include the South eventually, into a nation there will be physical stampedes to flee. It really is time all progressive Nigerians develop the bravery to stand up to the North and tell the region "enough is enough".

https://www.youtube.com/watch?v=hhIb_NwZGYo?si=Qi4799Glp1vG4ts8

Those who have issue with the new tax bill should watch this video for enlightenment

Increase the tax base with reduction tax

The Tax exemption of products mostly consumed by low income earners would be deducted from those who are living above average moderately. Tax exemption also waiting for them in the expansion of their business, even in employing more people.

Garri and pencil are both priorities.

This bill make sense die

richmond500:
The oil producing states were giving only 3% in the PIA act under Buhari, the Niger delta requested for only 10% which was fair but they gave them 3%. everyone was Ok and nobody termed it anti-south.

What is good for Greece is good for Uganda

The open secret about most states (and regions) in this country is that most of them don't rely on IGR...they rely on cash from the center. (Only Lagos and Kano can survive on IGR to some extent).

The tax act apparently would reduce the allawee they would get from the center...and force them to rely more on IGR

Which means, that more people pay taxes, and taxes, and taxes.

Not popular nationwide.

richmond500:
The oil producing states were giving on 3% in the PIA act under Buhari, the Niger delta requested for only 10% which was fair but they gave them 3%. everyone was Ok and nobody termed it anti-south.

What is good for Greece is good for Uganda

Nobody was ok with 3 percent for oil producing states in the petroleum bill. What happened was that the South West formed an alliance with the North to force that evil law through the National Assembly. Because you two formed the majority during voting, it was an easy thing for you to do. Today, you are frustrated that the same North has refused to form the same kind of alliance with you over Tinubus tax bill, and you are cleverly trying to frame that as a North vs South thing. When South West legislators were supporting northerners to shortchange the rest of the South over the petroleum bill, why didn't you care about the interest of the rest of the south?
Treacherous chameleons.

nairalanda1:
The open secret about most states (and regions) in this country is that most of them don't rely on IGR...they rely on cash from the center. (Only Lagos and Kano can survive on IGR to some extent).

The tax act apparently would reduce the allawee they would get from the center...and force them to rely more on IGR

Which means, that more people pay taxes, and taxes, and taxes.

Not popular nationwide.

Lagos, Kano, Rivers, Delta can survive on IGR

richmond500:
Lagos, Kano, Rivers, Delta can survive on IGR

Even then, those that can surivie on IGR don't have enough....

20% of revenue nationwide comes from tax paid to state and federal government, the rest comes from oil. Unless oil is at a high of 130 dollars per barrel, or more, the money would not be enough.

Meanwhile about 70% of Nigerians do not pay tax to federal and state governments. That is why governments from time inmemmorial borrow.

The North has more of the poor people than the South does...and it is not like the South too has rich people all over.

Now imagine what happens when a state like Borno has to raise IGR for its needs...once the bill is passed. The short term way to do it is by...you guessed it borrowing. And taxes, especially on the poor and even rich.

Going back to regions won't make the matter better. All the regions are going to rely on raw materials sale...oil included. Who sets the prices of those things? (When Ghana tried to set the price of its cocoa to get more money it saw shege.Real shege.). So, taxes again. (The NA is going to be collecting every day).

nairalanda1:
The open secret about most states (and regions) in this country is that most of them don't rely on IGR...they rely on cash from the center. (Only Lagos and Kano can survive on IGR to some extent).

The tax act apparently would reduce the allawee they would get from the center...and force them to rely more on IGR

Which means, that more people pay taxes, and taxes, and taxes.

Not popular nationwide.

Every single oil producing states can easily stand on their own with their earnings, if you take into consideration the fact that all the oil monies collected by the government from the multi nationals, should be for the states, who can then pay certain levels of taxes to the center. There was nowhere it was agreed that the federal government should be taking such monies. The military willed that barbarity into law.

So it's jejune to say that the states are unproductive when they're the ones filliing your federal purse with dollars everyday. You don't come from Ogbomosho as the president to collect all oil receipts coming from Imo or Abia States, and then turn around to accuse the states of being incapable to stand alone. They can stand alone with their oil. You Gerrit? It is you and the federal government who actually can't stand alone if issues are dealt with critically and honestly.

nairalanda1:
Even then, those that can surivie on IGR don't have enough....

20% of revenue nationwide comes from tax paid to state and federal government, the rest comes from oil. Unless oil is at a high of 130 dollars per barrel, or more, the money would not be enough.

Meanwhile about 70% of Nigerians do not pay tax to federal and state governments. That is why governments from time inmemmorial borrow.

The North has more of the poor people than the South does...and it is not like the South too has rich people all over.

Now imagine what happens when a state like Borno has to raise IGR for its needs...once the bill is passed. The short term way to do it is by...you guessed it borrowing. And taxes, especially on the poor and even rich.

Going back to regions won't make the matter better. All the regions are going to rely on raw materials sale...oil included. Who sets the prices of those things? (When Ghana tried to set the price of its cocoa to get more money it saw shege.Real shege.). So, taxes again. (The NA is going to be collecting every day).

Any state that can't pay salaries will merge

MadPolitician:
Every single oil producing states can easily stand on their own with their earnings, if you take into consideration the fact that all the oil monies collected by the government from the multi nationals, should be for the states, who can then pay certain levels of taxes to the center. There was nowhere it was agreed that the federal government should be taking such monies. The military willed that barbarity into law.

So it's jejune to say that the states are unproductive when they're the ones filliing your federal purse with dollars everyday. You don't come from Ogbomosho as the president to collect all oil receipts coming from Imo or Abia States, and then turn around to accuse the states of being incapable to stand alone. They can stand alone with their oil. You Gerrit? It is you and the federal government who actually can't stand alone if issues are dealt with critically and honestly.

Even the oil producting states are running at a risk

(I am not here to play North vs South by the way, so calm down).

Who controls the price of oil? Plus, if oil prices go down to less than 50 dollars per barrel, would it sustain the oil producing states? (It won't).

Even if we had resource control, the oil producing areas have about at most probably 50-100 million people. (assuming the oil goes to the states in the old Eastern region.). That is 1.7 million bpd for 50 million people...which is not enough by any metric. (Saudi has 40 million people, produces 10 million bpd, and still has a large poor underclass ).

Personally, I believe that the oil producing states should control their oil. But the problem I have with that is that control of oil does not mean control of prices, which means that when oil prices drop, problem starts.

That's why I favour Nigeria taxing its gdp more, and also eventually becoming a country that exports manufactured goods and services. Yes, even the oil producing areas. Like Norway, which earns a big lot of money from exporting manufactueed goods and services, despite having enough 'go to hell money' from oil.

richmond500:
Any state that can't pay salaries will merge

Which won't solve the problem...as merging just means more hungry mouths to feed.

State merger may give a large income, which still won't be large enough.

At the end, short term...taxes. And more taxes. Taxing the large informal sector in the new merged states.

You guys have to realize that Nigeria does not have enough money to start with. A budget of 30 trillion naira is not enough for 230 million people, or even 100 million people.. That is why we must fight corruption, because they steal from a small pot already.

And why we have to improve tax revenue, and long term purusure polices that make every state an exporter of...manufactured goods and services.

nairalanda1:
Which won't solve the problem...as merging just means more hungry mouths to feed.

State merger may give a large income, which still won't be large enough.

At the end, short term...taxes. And more taxes. Taxing the large informal sector in the new merged states.

You guys have to realize that Nigeria does not have enough money to start with. A budget of 30 trillion naira is not enough for 230 million people, or even 100 million people.. That is why we must fight corruption, because they steal from a small pot already.

And why we have to improve tax revenue, and long term purusure polices that make every state an exporter of...manufactured goods and services.

states like Kano and Kaduna can merge with other northwestern states, they both have what it takes to grow.
Anambra and Abia could merge with other states like Ebonyi too in the east, though Anambra and Abia have low IGR but they have potential
Lagos and Ogun can merge with some southwest states like Osun.

The only region that can survive is SS, while north east is the most affected.
We will survive, the leaders need to think outside the box

nairalanda1:
Even the oil producting states are running at a risk

(I am not here to play North vs South by the way, so calm down).

Who controls the price of oil? Plus, if oil prices go down to less than 50 dollars per barrel, would it sustain the oil producing states? (It won't).

Even if we had resource control, the oil producing areas have about at most probably 50-100 million people. (assuming the oil goes to the states in the old Eastern region.). That is 1.7 million bpd for 50 million people...which is not enough by any metric. (Saudi has 40 million people, produces 10 million bpd, and still has a large poor underclass ).

Personally, I believe that the oil producing states should control their oil. But the problem I have with that is that control of oil does not mean control of prices, which means that when oil prices drop, problem starts.

That's why I favour Nigeria taxing its gdp more, and also eventually becoming a country that exports manufactured goods and services. Yes, even the oil producing areas. Like Norway, which earns a big lot of money from exporting manufactueed goods and services, despite having enough 'go to hell money' from oil.

The Buhari Petroleum law was made having the emerging realities associated with the recent massive gas finds in the East. Several states have recently discovered gas in very big commercial quantities. Gas is going to revolutionise earnings in the coming decades. So these states may not have all it takes to be extremely comfortable, but if their earnings are managed responsibly, they will be in a position to live easy.

Problems with pricing goes beyond the international realities associated with oil trade. You also have to look at all the primitive agreements signed by Nigerias ruling elite with western multi national. These dumb "joint ventures" rubbish has more or else left the right to determine prices even for petroleum products consumed locally in the hand of the foreign oil majors. The whole of the Nigerian oil infastructure is basically western owned as a result.

MadPolitician:
Every single oil producing states can easily stand on their own with their earnings, if you take into consideration the fact that all the oil monies collected by the government from the multi nationals, should be for the states, who can then pay certain levels of taxes to the center. There was nowhere it was agreed that the federal government should be taking such monies. The military willed that barbarity into law.

So it's jejune to say that the states are unproductive when they're the ones filliing your federal purse with dollars everyday. You don't come from Ogbomosho as the president to collect all oil receipts coming from Imo or Abia States, and then turn around to accuse the states of being incapable to stand alone. They can stand alone with their oil. You Gerrit? It is you and the federal government who actually can't stand alone if issues are dealt with critically and honestly.

lies.

richmond500:
states like Kano and Kaduna can merge with other northwestern states, they both have what it takes to grow.
Anambra and Abia could merge with other states like Ebonyi too in the east, though Anambra and Abia have low IGR but they have potential
Lagos and Ogun can merge with some southwest states like Osun.

The only region that can survive is SS, while north east is the most affected.
We will survive, the leaders need to think outside the box

This is something that has been missed in all this discussions so far, well I have missed it, and I thank you for accentuating it.

States don't have to stand alone, they can set up joint ventures etc in taking advantage of the tax reforms.

I vaguely remember Lagos state wanting to be part of Odua investments a while ago, not sure what came of it but Ndi Yoruba have a head start on such. Doesn't mean they can't be overtaken.

Who says they didn’t?

They are the reason it dragged that long

A very backward region

aswani:
This is something that has been missed in all this discussions so far, well I have missed it, and I thank you for accentuating it.

States don't have to stand alone, they can set up joint ventures etc in taking advantage of the tax reforms.

I vaguely remember Lagos state wanting to be part of Odua investments a while ago, not sure what came of it but Ndi Yoruba have a head start on such. Doesn't mean they can't be overtaken.

We are asking federal govt to give powers to states for competitive environment but when a bill like this is passed, we still reject it.
Some of these governors are against the bill cos they are lazy and not innovative.
Recently a bill for states to generate its own electricity was passed, only Abia, Lagos and Rivers state has tried to do something about this, what is wrong with other states like Kebbi and Adamawa, don't they have leaders?

Few of these governors don't even live in their state, they govern from Abuja and at the end of the month, they wait for allocation and dip their fingers in local govt funds without doing anything tangible for the state.

Every state needs to go back to the drawing board and attract investors, if your state can't survive, then u merge with other states to survive. Simple as ABC

richmond500:
The oil producing states were giving only 3% in the PIA act under Buhari, the Niger delta requested for only 10% which was fair but they gave them 3%. everyone was Ok and nobody termed it anti-south.

What is good for Greece is good for Uganda

complain ke ? The PIB was passed only after the north had their way on communities with PIPELINES passing through them being designated as host communities instead of the normal practice of those with oil wells alone