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RSG, Corporate Bodies Parley As VAT Law Takes Effect – Dismisses Media Reports On Revenue Distribution

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The Rivers State Governor, Chief Nyesom Wike, has said that with the infraction of the constitutional provision on collection of Valued Added Tax (VAT) addressed, his administration has commenced full implementation of the State’s VAT Law without hesitation.
The governor, at an interactive session with representatives of corporate organisations at the Banquet Hall of Government House, Port Harcourt, last Wednesday, said it was necessary to clarify the position of the law to the business community in the state.
Such understanding, he said, would enable them not to fall prey to the antics that could be deployed by the Federal Inland Revenue Service (FIRS) officials, who think they could use force to collect what does not belong to them.
Wike explained that FIRS had in the past collected VAT in the state with impunity, knowing it was unconstitutional for them to do so.
According to him, his administration challenged their impunity in court and the Federal High Court in Port Harcourt, in its declarative ruling had stated the constitution is right in vesting powers to collect VAT in the state government within its jurisdiction.
“When we challenged the Federal Government through the Office of the Attorney-General and FIRS in court, do you know what they did? They wrote this letter dated 1st of July, 2021. Remember, it was in 2020 that we filed this action against them. But see how corrupt this country is.
“Corruption is not only about kickbacks, it is also about doing something illegally. We were in court in 2020.Then on July 1st 2021, the chairman of FIRS wrote to the National Assembly through the office of the Deputy Speaker of the House of Representatives.
“He was asking them to amend the constitution and insert VAT under item 58 of the exclusive legislative list, when we were already challenging that it is not their responsibility to collect VAT. They knew that what they were doing was not the right thing.”
Wike stated that his responsibility in office included making sure that Rivers people are not denied their entitlements.
He described as unfortunate that FIRS has resorted to writing threatening letters to intimidate corporate organisation to pay to them even after they have lost their appeal that sought a stay of execution of the declarative ruling on VAT collection in the state.
Wike urged the business community to be ready to pay VAT for the month of September, 2021, and subsequent months to the Rivers State Internal Revenue Service.
According to him, he has already assented to the Rivers State VAT law passed by the state House of Assembly.
The governor warned corporate organisations not to feign ignorance of the State VAT Law.
He declared that the state government would not hesitate to seal up the premises of any company that defaults.
“We are going to inaugurate the Tax Appeal Commission by Friday which will be headed by a retired judge of the state.”
Wike described the disparity in VAT proceeds and what is given to the states as an inexplicable form of injustice that weakens the performance potential of the states.
“Let me tell you the injustice in this country. In the month of June 2021, which we shared in July, VAT collected in Rivers State was N15.1billion. What they gave us was N4.7billion. See the gross injustice and the money includes contracts awarded by the Rivers State Government.
“This is not an issue of party; it is the issues of infraction of the constitution, issues of illegality. Look at Lagos; it is not the same party with me. In the month of June, 2021, the VAT collected in Lagos was N46.4billion but see what Lagos got, N9.3billion. Have you seen the injustice in the country? VAT collected in Kano was N2.8billion and they gave them N2.8billion. Is there any justice in this country?”
Wike described as morally offensive a situation where Rivers State Government will award contracts for state roads worth N200billion and the FIRS will illegally receive 7.5 per cent of the amount as VAT to be distributed among the states.
“So, you allow me to call the big companies, award contracts to them, then you, FIRS, come and collect the tax and then go and distribute it to other states who are not awarding contracts. How does it sound?”
The governor noted that nobody has been courageous to challenge the illegally perpetrated by FIRS and that history will be kind to Rivers State to have mustered the courage to speak out and also challenge it.
According to Wike, Nigeria is a constitutional democracy and not a military government where rule of law is grossly disregarded.
“I overheard the FIRS chairman saying that I’ll soon know the power of the Federal Government. And that they’ll show me that they have the power to muzzle the Judiciary. You can muzzle them as you want. Let the Court of Appeal and Supreme Court interpret the law so that all of us will go and rest.
“Use all the power you want to use, but history will be written one day and those who will allow themselves to be used to muzzle and misinterpret the law will face God one day.”
Wike pointed out that it is not possible for all states to be at equal standing or be mechanically placed in position of performance without allowing them to exercise their rights within the condition.
He advocated that the federating states should be allowed to explore their creative abilities in utilising the functions as provided in the constitution in order to grow.
On his words, “The powers have already been devolved in the constitution but the federal government does not allow us. All they want us to do is to come and beg and I say I will not beg. Give me what the law says I should get.”
Meanwhile, the Rivers State Government has dismissed as false, online social media reports claiming that the Rivers State Governor, Chief Nyesom Wike, had alluded that states which forbid sales of alcoholic beverages within their jurisdiction can no longer continue to enjoy Value Added Tax (VAT) receipts from Rivers State.
A statement signed by the Special Assistant (Media) Rivers State Governor, Kelvin Ebiri, last Wednesday, said that the false online publication was only a figment of the imagination of its purveyors, adding that such unprofessional report was aimed at promoting disaffection and disunity in the country, and pitching one ethno-religious group against the other.
The statement read, “The attention of the Rivers State Government has been drawn to a false online publication credited to the Governor of the state, Chief Nyesom Wike.
“In the said publication circulating on social media, the purveyors of lies alleged that Governor Wike in a state-wide broadcast on Monday, September 6, 2021, asserted that states which forbid sales of alcoholic beverages within their jurisdiction can no longer continue to enjoy Value Added Tax (VAT) receipts generated from Rivers State.
“While it is true that Governor Wike made a state-wide broadcast on the aforementioned date, shortly after the Federal High Court in Port Harcourt dismissed Federal Inland Revenue Service (FIRS) request for a stay of execution on the judgment of the court which declared Rivers State as constitutionally empowered to collect VAT and other related taxes in the state, he never said states that forbid sales and consumption of alcoholic beverages will no longer benefit from VAT generated in Rivers State.
“The Rivers State Government considers this obnoxious publication malicious, politically motivated and intended to fan the embers of hatred and cause public disaffection.
“We, hereby urge the public to disregard the said publication”, the statement added.

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FG Targets Production Of Locally Made Vehicles By Dec

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The Minister of Industry, Trade and Investment, Dr Doris Uzoka-Anite, has affirmed that Nigeria now has the capacity and materials to manufacture Made-In-Nigeria cars for local use and export.
With the enabling environment being provided by the government, she said manufacturers should be held responsible if the cars are not rolling out by December 2024.
Currently, Nigeria produces less than 10 per cent of the vehicles used in the country.
Last year, Nigeria’s vehicle assembling industry, estimated to be worth around N302billion, tanked to a new low due to increasing production costs and weakened demand for locally assembled automobiles.
According to the Manufacturers CEOs Confidence Index, activities of motor vehicles and miscellaneous assembly deteriorated further below the benchmark (50 points) from 48.6 to 46.7 points.
But speaking at the Automotive Component Manufacturers meeting in Abuja, she noted that the automobile industry is faced with both challenges and opportunities.
A statement issued last Friday by the Director of Information and Public Relations, Adebayo Thomas, said, “In a significant move aimed at fostering sustainable growth and development in Nigeria’s automobile industry, the Federal Government has issued a clarion call to all stakeholders, including manufacturers, dealers, regulatory bodies, and other players in the automobile ecosystem.
“The call comes as part of a broader strategy to enhance the sector’s contribution to the nation’s economy.”
Encouraging the stakeholders to key into the Nigerian Automotive Development Policy, the Minister said, “As far as we are concerned, the auto industry is now set to go.
“We are counting on all stakeholders to make that happen. If we do not produce made-in-Nigeria cars before the end of this year (December), it will be your fault, because I am sitting down here giving you all the assurances that this administration has created the enabling environment to make sure that the auto policy kicks off.”
Anite emphasised the need for collaboration among manufacturers, dealers, regulatory bodies, and other players in the automobile ecosystem, saying by working together, they can address challenges, streamline processes, and drive innovation.
She also urged stakeholders to maintain high-quality standards across the board, including vehicle manufacturing, safety features, emissions control, and after-sales services.
Stringent adherence to quality, she said, will boost consumer confidence and attract investment.
The minister assured all that the government would continue to encourage increased investment in research and development, adding that, innovations in electric vehicles, fuel efficiency, and alternative energy sources are critical for long-term sustainability.
On local content, she also emphasised the importance of promoting local content by sourcing materials and components locally.
By doing this, she said, the sector can create jobs, reduce import dependency, and contribute to economic diversification
In his introductory comments, the ministry’s Permanent Secretary, Nura Rimi, emphasised the significance of team action and shared vision as outlined in the Nigerian Automotive Development Policy.
He also urged stakeholders that the country “will overcome obstacles and unleash the full potential of Nigeria’s automotive component sector.”
He encouraged NADDC and other stakeholders to use the chance to form alliances, explore new areas of collaboration, and devise ways to catapult the automotive components manufacturing industry to new heights of success.
The statement added, “The government’s charge underscores the pivotal role stakeholders play in shaping its trajectory. Their commitment to sustainable practices will drive Nigeria’s automotive sector towards a brighter and more prosperous future.
“Environmental Responsibility: Stakeholders are reminded of their environmental responsibilities. Sustainable practices, recycling, and eco-friendly manufacturing processes are essential for a greener future.”

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Waive Tax On Electronic Imports, Women Engineers Appeal To Tinubu

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The Association of Professional Women Engineers of Nigeria (APWEN), Lagos Chapter, has called on President Bola Tinubu to exempt the importation of electronic components from taxation for inventive engineers.
Chairman of APWEN, Ms Atinuke Owolabi, said this a in statement yesterday in Lagos, in commenration of the 2024 World Creativity and Innovation Day, with the theme: “Step Out and Innovate”.
The Tide source reports that World Creativity and Innovation Day is a global UN Day, celebrated on April 21, to raise awareness about the importance of creativity and innovation in problem solving.
This is with respect to advancing the United Nations’ sustainable development goals, also known as the global goal.
Owolabi explained that such a measure would significantly enhance technological progress, support local innovators, and elevate Nigeria as a leading hub for innovation globally.
She stated that in a world marked by dynamic challenges and unprecedented opportunities, creativity and innovation stand as the driving forces behind progress and transformation.
According to her, women engineers recognise the critical role that innovation plays in shaping our societies and driving sustainable development.
”On this occasion, we affirm our commitment to fostering a culture of creativity and innovation within our organisation and the broader engineering community.
”Together, let us step out, innovate, and inspire the next generation of women engineers to reach even greater heights of achievement and impact.
”We believe that by stepping out of our comfort zones and embracing new ideas, technologies, and approaches, we can unlock innovative solutions to the complex challenges facing our world today,” she said.
According to her, the theme: ‘step out and innovate’, serves as a call to action for women engineers everywhere to break barriers, challenge conventions.
She noted that it would also pioneer groundbreaking solutions that would propel them toward a brighter and more sustainable future.
Owolabi disclosed that in celebration of the World Creativity Day, APWEN Lagos had inaugurated an artificial intelligence club tailored for female engineering students and young engineers.
She said that the proactive initiative aimed to inspire and equip young engineers with cutting-edge technological insights.
Th chairman said, “Additionally, we already have a 200-capacity hall to set up a resource, technology, and innovation hub to empower women and girls in engineering.
”This endeavour serves as a catalyst for encouraging aspiring female engineers to embrace innovation and stay abreast of emerging trends in the field.
”APWEN Lagos stands united in its dedication to promoting diversity, inclusivity, and excellence in engineering.
“We encourage all female engineers to seize this opportunity to unleash their creativity, explore new frontiers, and make an indelible mark on the world.”

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Pan-Igbo Group Hails Dangote Group For Reducing Diesel Price

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A pan-Igbo group, Ndigbo Unity Forum (NUF), has commended the Chairman of the Dangote Group, Alhaji Aliko Dangote, and his management for reducing the price of diesel from N1,600 to N,1000 per litre.
The Tide’s source reports that diesel is the major fuel used by heavy duty vehicles and generating sets to transport goods as well as run industries across the country.
The President of NUF, Mr Augustine Chukwudum, told The Tide’s source in Enugu, yesterday, that Dangote’s timely response to suffering masses of Nigerians, going through hell to get a meal a day, “is highly commendable”.
According to Chukwudum, Nigerians need to appreciate the patriotism of Dangote since what he has done will go a long way in reducing prices of goods, especially food stuff which has gone out of the reach of the poor.
He called on Nigerians, who wish and pray always for the betterment of the country, to appreciate and thank God for answering their prayer through Dangote’s move.
“It is clear that if Dangote Refinery starts fully and gets all the crude oil needed from Nigeria, the prices of petrol, kerosene and diesel will further reduce.
“We commend President Bola Tinubu for being a listening President and supporting the Dangote Group on our crude oil needs.
“We appeal to Tinubu to encourage Dangote by providing the company with crude oil at a reduced rate as we have been demanding,” he said.
Chukwudum said that this move and subsequent further reduction, would bring industries in comatose back to life, jobs created for unemployed youths and reduction in crime as well.
“We call on governors of oil-producing Anambra, Imo and Abia States to bring investors, who shall build refineries in each of the states to refine thousands of barrels of crude in commercial quantities,” he said.

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