Afolabi Gambari
From time immemorial, sentiments in Nigeria have always ambushed national aspiration and expectation, tending to drag the country backwards at a time when it should be moving forward at a fast rate.
The foregoing amply highlights the current debates on the national tax reform being pursued by the Bola Tinubu administration. The advantages of the reform far outweigh the disadvantages, and this is not difficult for anyone to see. It really should not have dovetailed into these endless debates that have now begun to threaten the peace and harmony of the country – fragile as these two variables have ever always been. A question has to be asked as to why the federal government did not first subject this volatile subject to debates in villages, towns and cities to educate the ignorant and even identify those who are capable of turning it into a tool for mischief before throwing it at the National Assembly members. An answer must be provided
I have contemplated on how best to join the debates and get reckoned without adding up to heating the polity. Luckily, I found the following words from three Nigerians, two of whom are politicians and the other a technocrat with no patience for politicking. Let me hasten to say that the trio makes sense. Well, depending on who is aligning with any of them and why the alignment is necessary. However, only one of them sounds logical and reasonable; not necessarily a patriot or a statesman but just a realist with no political stake whatsoever. Note: I have refrained from tagging names to the words. Suffice it that the words require no name tags.
First speaker…
“The National Assembly must reject any attempt to cheat the North with the proposed tax reform bills. Today, we can see very clearly that there is a lot of effort from the Lagos axis to colonize the North in the guise of tax reforms. Many factory owners have been forced to relocate their headquarters to Lagos to make the South-West state claim all the taxes.
“We have seen the effort of some people to make the poor poorer and the rich richer and I believe this is very dangerous for us in the North who are suffering from a serious economic crunch, insecurity, poverty, hunger and disease. I believe this tax reform is not good for the cordial existence of our country. We are witnesses to what happened during the first term of Olusegun Obasanjo from 1999 to 2003, where members of the National Assembly were bribed into collecting a huge sum of money to support onshore/offshore in the country. That law put a huge blow on our economy in northern Nigeria and all other states.”
Second speaker…
“I am a strong member of the APC. If you are counting two governors who have been in support of Tinubu from 2019 to 2023, you can mention my name. I was the first governor to come out publicly to say that power must go to the South. Unfortunately, the President was told by many that the North was against him. About 60.2 percent of his vote came from the North. There are a lot of misconceptions about this tax issue. During the NEC, we advised the Federal Government to pause for a moment to have a deeper consultation with stakeholders. That was our statement. But later on, people have turned it upside down. I want you to believe that our consultation is central to democracy, and in a democratic setting, we are begging for the right to be consulted. This is only what has happened.
“I am not an economist. But based on the calculations we did, only Lagos will benefit from this scheme. However, we have had a series of consultations with the FIRS team and had a meeting with the tax team of Lagos State. Not only Northern Nigeria but also the South-East, South-South, and even the South-West will be severely affected. But what we are telling them is to give us time. Why are we in a rush? We need more time.”
Third speaker…
“There is one area I want to point out which has not been much tackled and which this tax reform throws up: that is the issue of VAT on agricultural products. If agriculture makes up 25% of Nigeria’s GDP and the North makes up 94% of agro-produce (according to circulating data), then the north of Nigeria is producing over 23% of Nigeria’s GDP. This is staggering. The issue here is that VAT is not taxed on agricultural products. This is unlike many other countries.
“The North is being deprived of 7.5% of 23% of GDP. Estimates say this could be well above N4 trillion, based on the current GDP (N240 trillion) and current food consumption levels. This is more than the total collected VAT today by all 36 states. Imagine what an extra N4 trillion could do in the Northern States? I know firsthand because I am from Akwa Ibom. I saw what 13% derivation did, propelling our state from one of the poorest in the country to one of the richest almost overnight. Despite very high levels of corruption, our state leaders simply had more cash and could do more. They could build roads, bridges, airports, hotels, power plants, etc.
“Thus, for the sake of justice, if the North cannot earn VAT from agriculture as it stands possibly due to the impact on food costs on the rest of the country, justice would demand the rest of the nation appreciates and acknowledges this and duly compensates the North from other income sources. If this cannot happen, then the tax bills should introduce VAT on agricultural produce. The argument that it will increase food prices is debatable because if the FG plans to increase VAT to 10% and 15% it will equally have inflationary effects. Adding VAT to agriculture would equally serve to raise more tax money without increasing the VAT percentage… This current issue is another form of ‘resource’ fight. The hawks are out against the North, with all manner of anti-North statements, claims and articles. These hawks forget that this is the region feeding the nation. A region that produces 94% of the food supply is critical to existence. A mismanagement of this issue could lead to unintended consequences such as famine! And the solution could take decades to resolve.”
Does being a politician deprive one of seeing clearly? I wonder who would answer this question.
