VAT: How Northern Elders may have contradicted themselves with recent statement on their population

A couple of weeks ago, the Governor of Rivers State, Governor Nyesome Wike, stirred up reactions after he made remarks on his move to take control of the Value Added Tax VAT being generated in his state.

According to him, this was because of the perceived injustice that is taking place in the system such as in the case where Rivers State generated 15.1 billion naira as taxes in June but was given 4.7 billion naira as allocation, while Kano State generated 2.8 billion naira as tax and was given 2.8 billion naira as allocation.

In response to this, some northern states like Gombe state are of the opinion that the southern states should reconsider their push to keep VAT generated in their states and allow the federal government to continue its allocation of funds. Much of this opinion, perhaps, borders on the fact that some states are not as capable as others in terms of revenue generation. For them, this is a case of “being a brother’s keeper” as well as ensuring equal development in the country.

Gombe State Governor, Mohammed Inuwa [Photo credit: Premium Times]

To this, the recent statement made by Northern Elders Forum that the population of the northern region of Nigeria is higher than the southern region, and as such, is capable of giving them the seat of the next President of Nigeria, makes one begin to wonder if it is not as well possible that since the north is claiming to have more population than the south, that they should as well be able to generate more tax than the southern region of Nigeria?

In my opinion, the Northern Elders Forum may have unknowingly contradicted themselves

by emphasizing their numeric prowess over the southern region of Nigeria. It now seems as though, that the southern region of Nigeria which is less populated, generates more VAT, while the northern region with its population strength, generates less VAT, and still has to depend on what the south gives to them, for survival.

What is your opinion about this?

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