The issue many are not putting in proper perspective on this VAT ruling by Port Harcourt Federal High Court is that the advantage Lagos, Rivers and FCT have over other states per VAT is the fact that Nigeria’s formal economy is concentrated in these places while others run an informal economy, largely.
It is not that there are no economic and consumptive activities in these other States. Ekiti State economy according to NBS is worth $2.7b in GDP size, Osun is worth $7.5b, Kano $12b, Borno $5b, Niger $6B. There is no State in Nigeria that is less that $2b in size of GDP. There is enough in these other States to VAT in terms of economic activities contrary to what many are saying.
The main issue with the States outside Lagos, Rivers and FCT is the fact their economic activities are mainly informal. It is much more difficult to track and collect VAT from informal sector operators. ~ By Ajayi Temitope
I will urge the FG not to appeal the VAT case again. Let the States collect it. This is good. It will start a healthy competition for prosperity among States. ~ By Ayekooto Akindele
Those states should better sit and work with those figures and make as many business as possible formal, get things sorted out instead of crying. The FG will also take actions to embrace devolution of power to the States as the funding of the center reduces. FG will likely lose at Supreme Court and Lagos will make more money on VAT. States like Ekiti will make less money and so they won’t want the removal of VAT from FG. ~ By Olusoga Owoeye
It is an indictment on the leadership of the other States that refused to utilize their comparative advantage to increase IGR and attract foreign investment by putting in place enabling environment for such. With this, they will become more proactive. It is the responsibility of their leaders across their States to formalize the informal sector like Bola Tinubu did as Governor of Lagos and led to IGR increase. ~ By R. Atanda Quadri
Actually, there’s nothing so difficult to track. It takes hard work and focus and systems. Lagos before Tinubu was no different. Let the other States do the hard work so we can grow the economy for the benefit of all. ~ By Chris Adetayo
Just like local government autonomy, I think this conversation around VAT collection also forms part of the restructuring we are clamoring for. State Governors must get to work; gone are the days were they rush to Abuja to share money. How can one state generate 40bn a month and be given 9bn, where as another State generates 5 billion and gets same as allocation? It amounts to robbing Peter to pay Paul. ~ By Alexander Aghedo
I’ve said it multiple times that all Nigerian states can survive on their own if those in charge are honest, sincere, and creative. Create enabling environments that can attract investors, give out incentives to investors. It’s not a rocket science but sincerity of purpose. ~ By Biodun Caston-Dada
They should start formalizing now, that commonsensical realities are setting in. We shouldn’t continue giving ourselves excuses for not pushing things forward.
If those states have numbers to win votes and rig elections, they should have enough to generate VAT. ~ By Prince Israel Jimmy
If both Rivers and Lagos states can pass this VAT bill into law and enforce it adequately, then the fiscal restructuring of the country we have been craving for must has started tactically. ~By Salman Wumi
First Baba Isa a Legal Practitioner from Ogoja LGA, Cross River State and wrote from Abuja via fbilegalfirm@gmail.com.
NB: Opinions expressed in this article are strictly attributable to the author, First Baba Isa and do not represent the opinion of CrossRiverWatch or any other organization the author works for/with.
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