Connect with us

Opinion

That Rivers’ Landmark Victory On VAT

Published

on

Whether the recent ruling of the Federal High Court which stated that the state governments should collect Value Added Tax (VAT) and Personal Income Tax (PIT) will lead to a legal tussle between the states and the federal government is almost a given. Already, the Federal Inland Revenue Services (FIRS), speaking through its Director, Communications and Liaison Department, Dr Abdullahi Ismaila Ahmed, had made it clear that they would appeal the court’s decision and the Office of the Attorney General of the Federation and Minister of Justice, Abubakar Malami (SAN), may also do the same sooner or later.
Of course, it is the right of any individual or group to challenge whatever court ruling they do not agree with up to the highest court in the land, the Supreme Court, just as it was the right of the Rivers State Government to seek the interpretation of the section of the constitution that wasn’t clear to them pertaining the collection of taxes.
During an interview on national television on Tuesday, Governor Nyesom Wike, stated unequivocally that the state needed a judicial pronouncement on the issue of VAT and PIT collection that had been a controversial issue for decades. He said, “We felt, as a state, that look, states have been encapsulated. States have been enslaved. States have been turned into beggars. Every state that is broke runs to the federal government when, in the real sense, you have areas where you should raise revenue to take care of your state. Such areas have to do with collection of taxes; part of it is the VAT.
“And there has been the contention that VAT should be or is within the purview of the Federal Government and we said, let us go to court and ask for the interpretation of who actually is responsible for the collection of these taxes. And it is not just for the interest of Rivers State. It is for the interest of the entire states”.
Not a few persons have asked where Nigeria got her own version of federalism which gives so much power to the federal government while the other two components – states and the local governments — must depend on the centre for their existence and sustenance, almost turning the country to a unitary state. Some analysts argued that though it is the constitutional responsibility of the states to collect VAT and PIT; VAT law was introduced in 1993 because only the federal government had the capacity to collect them. What that “lack of capacity” means even when states like Rivers have structures and qualified personnel who have competently been handling revenue and tax-related matters for ages, remains vague.
The truth is that there is no way our federalism can be strengthened if the three tiers of government are not allowed to carry out their responsibilities as empowered by the constitution. Not too long ago, Edo State Governor, Godwin Obaseki, raised alarm over the practice of states converging in Abuja at the end of every month to share revenue allocation, saying that such convention is no longer tenable and it will continue to hinder development in the states and country at large.
Our federation is such that monthly revenue accruing from oil, corporate taxes, VAT, customs, and other levies are shared across the three tiers of government- federal, states and the local governments after 13% of any revenue made from natural resources is paid to the origin states of those resources and other deduction associated with collecting revenues is made. In line with the sharing formula, the federal government takes 52.68%, the states share 26.72% while the local governments get 20.60%. Each state gets its own share of the revenue based on a “Horizontal Allocation Formula” with a few factors put into consideration.
With the assurance of the monthly income, many states hardly look inward for other sources of income. Reports have it that up to 14 states fund at least 90% of their budget with their FAAC allocations. Agriculture, manufacturing and other economic activities that sustained the states before the discovery of oil have been neglected and what some state chief executives virtually do is wait for the month end to go for the allocation, a chunky percentage of which will be embezzled.
The Port Harcourt Federal High Court’s ruling has, therefore, presented an opportunity for the governors to know that they can actually take charge of how VAT is generated in their states and use it to develop their states. It has opened the financial door for all the states in the country to increase business activities in their areas so as to generate more VAT.
Of course, that does not mean that state governments should start breathing down the necks of Small and Medium Enterprises (SMEs) with all manner of taxes. These businesses are already groaning because of multi taxes they are compelled to pay, originating from the state, local government and all that and adding to that may be counterproductive.
There is hardly any state in the federation that is not endowed with abundant untapped resources. It is time the state governors put their personal interests behind and think of how to utilize the human and material resources in their domains for the betterment of their states.
It is, therefore, hoped that other states will file behind River State, putting politics, ethnicity or other biases behind and fight for the restoration of their constitutional rights. They should seek out other provisions of the constitution that need interpretation and ensure that is done so as to deepen our democracy and federalism. The federal government, on the other hand, is expected not only to gloss over these constitutional matters but rather let the states evolve in the interest of all and sundry.

By: Calista Ezeaku 

Continue Reading

Opinion

FG’s Transport Support And Rivers Workers

Published

on

The Federal Government’s approval of a N70,000 monthly transport intervention for public service workers for six months, beginning in November 2026, offers hope to employees struggling with the rising cost of living. The agreement with the Nigeria Labour Congress (NLC), reached at a conciliation meeting in Abuja on October 27, is intended to cushion transport costs and ease pressure on workers’ incomes. But for public servants in Rivers State, it raises a familiar question: will the State Government key into the intervention and ensure that its workers benefit? The agreement provides for N70,000 monthly across all levels, for six months. The Federal Government also approved peculiar allowance arrears effective from May 1, 2026, to be paid in three equal instalments beginning in November.
The parties agreed to reconvene after one month to assess implementation. Ultimately, the value of these resolutions will be measured not by announcements but by whether eligible workers receive the money. Transport costs consume a substantial share of many civil servants’ earnings before they can meet household needs. Support for commuting is therefore not a luxury or political favour; it is temporary assistance to help workers remain at their jobs without sinking further into hardship. For lower-paid employees, transport costs can turn modest salaries into a daily exercise in difficult choices and sacrifice.
The agreement also urges State and Local Governments to participate and unions to press for implementation. The federal agreement does not automatically guarantee that every State and Local Government employee will receive the support. State authorities must clarify how it will apply to their workforce, make the necessary arrangements and publish a payment timetable. Rivers State must approach the arrangement with urgency and transparency. The Government should State whether it will implement the intervention and when payments will begin. Any administrative or financial question should be addressed promptly with organised labour, not allowed to become excuses for delay.
The concern is sharpened by the earlier N35,000 monthly wage award introduced by the Federal Government in 2023 after petrol subsidy removal. It was intended as temporary relief pending a new national minimum wage. While several States negotiated and paid wage awards or related sums, implementation nationwide was uneven. Reports in 2024 indicated that many States had failed to pay the federal award, while others provided different amounts. In Rivers, labour and media reports raised concerns about implementation of the N35,000 award for State workers, amid separate announcements and arrangements concerning Local Government employees.
The wage award was meant to ease the immediate effects of subsidy removal, yet workers faced uncertainty over whether the promised relief would reach them. In February 2024, the Rivers State Government announced approval of the N35,000 award for local government workers, but subsequent reports showed that implementation across worker categories remained a concern. The lesson is clear: approval and implementation are not the same. A declaration at a meeting offers little comfort to a worker whose account does not reflect the promised payment. For workers who travel to their offices daily, the implications of delayed support are significant. Transportation expenses compete with food, rent, school fees, healthcare and other essential household needs.
As fares rise, employees may be forced to reduce spending on necessities or borrow to sustain their families. A timely transport intervention would therefore provide practical relief and demonstrate that government understands the economic pressures confronting its workforce. Its temporary nature makes prompt implementation even more important. It is fair to acknowledge that this transport intervention is a new agreement and that its administrative details may require clarification. Rivers State should not be condemned in advance for a failure that has not occurred. Nevertheless, the earlier experience gives workers legitimate grounds to seek assurances before the November commencement date. The State should avoid allowing uncertainty to persist until workers begin asking why the promised assistance has not arrived.
The NLC and unions in Rivers State should engage the State Government immediately and seek a written commitment, an implementation plan and a process for reporting missed payments. If clarification from the Federal Government is needed, the State should seek it without abandoning the goal of providing relief. Labour leaders must also keep members informed about progress and insist that any agreed arrangements are applied fairly and transparently. The Rivers State Government should treat this intervention as an opportunity to rebuild confidence. Timely support would show that workers’ welfare is more than a talking point and that the State recognises the economic realities confronting its employees.
Silence, delay or selective implementation, by contrast, would revive frustration over earlier relief measures and weaken trust between government and labour. Every month lost to administrative delay leaves workers facing the same transport burden without the intended assistance. The State should consult labour, publish arrangements and pay eligible workers on time. Rivers workers should not have to wonder whether federal relief will reach them. The Federal Government has announced the support; now the State must make its position clear. We hope the N70,000 monthly transport intervention will not follow the troubling path of the earlier wage award. Rivers State should learn from that experience and ensure that this time, relief is not merely promised but delivered.

 

Sylvia ThankGod-Amadi

Continue Reading

Opinion

Ancestorial Worship: My Take (1)

Published

on

Everyday, Christians call on Abraham, Isaac and Jacob as they pray to God in the privacy of their homes across our multicultural, multiracial and multiethnic world. On Sundays and almost everyday of the week in the new-found full freaking fanaticism in Pentecostalism, they gather in the more than four million churches or congregations in the world to worship God, invoking the spirits of the ancestors of Jews. Meanwhile, in the scaremongering antics of institutional religion, the African has allowed himself to be hoodwinked into believing that invoking the spirit of his ancestors in prayers is idolatry and patently evil. He is mind-controlled into believing that indulgence in what the Christian clergy calls ”Satanic Act” is a sure ticket to Hell, where the individual is tormented, burnt and charred till eternity on the orders of a loving Father; what a laughable irony.
Come with me on my experience of what the Christian clergy contemptuously calls ancestorial worship. One Monday in September 1988, I drove from Port Harcourt to Owerri, accompanied by Chief AM Abasi who was the general manager of Delta Holdings Ltd, a company owned by Chief Ranami Abah, (Abadifeni III). Our mission was a meeting with Mr. Nwaorgu, the marketing manager of 33 Breweries Ltd for a dealership for Mrs. Alice Abah, whose husband, Chief Ranami Abah, had substantial equity shareholding in 33 Breweries Ltd. At the end of the meeting, we agreed to return on Wednesday with Mrs Alice to sign a contract for the dealership. When Chief Abasi and I stepped out to the parking lot, it hit me that I could not recollect how I drove from Port Harcourt through Igwuruta, Isiokpo and Elele to Owerri.
First, I waved the feeling off, ascribing it to the aerodynamic and slippery nature of the super slick German machine, a Mercedes-Benz 280 SLC convertible owned by Chief Ranami Abah. But on a second thought, I sensed a premonition; an ominous feeling. Then a sense of foreboding hit me, leaving me with the chilly feeling that something wrong was in the air. For a person who does not know fear as a result of having had out-of-body experience (OBE) in 1975 and considering the threshold of death the most beautiful experience in my life, it was a very worrisome feeling, to say the least. I quickly shook those thoughts out of my head, engaged the gear of the ever-ready German machine and zapped through Owerri traffic, attracting the same attention that trailed us all the way from Port Harcourt.
At Control Post, an inner voice instructed me not to return to Port Harcourt through the route we came. In reflexive obedience to the mysterious inaudible voice, I turned right (northwards) and stepped heavily on the gas. The straight six-cylinder engine roared in dutiful obedience; the automatic transmission immediately dropped into a lower gear, thereby giving the engine a very powerful pull that enabled the small-bodied car to dust every other vehicle on the road. Through the rear view mirror, I saw the vehicles we overtook recede speedily and virtually disappear behind us. In almost a whisper, Chief Abasi asked if I wanted to visit the 33 Brewery factory at Awo Omamma; I said ”no” without explaining the movement in the opposite direction of our journey.
Strangely, Chief Abasi did not pry further. We raced on, northwards; in thunderous silence. At Ogbaku junction, I turned left, drove westwards past Ejemekwuru and Izombe, turned left at Oguta and headed southwards on the Oguta Lake–Egbema–Omoku–Ahoada Federal Road. Carefully navigating the potholes that generously punctuated the road vis-a-vis the very low clearing of the car, I entered Egbema territory at Opuoma, drove through Mmahu, Abacheke, Okwuzi and turned eastwards to Mgbede, my home town. There, I quickly introduced Chief Abasi to my parents, left him with them and briskly walked a few metre to the grave of Osai, my grandfather. At the graveside, I solemnly told Osai that I sense something wrong in the air.
Then, in furious rage, I threatened him and my uncle, Lazarus, who lay beside him, that if they remained sleepy-eyed in that dimension and I am forced out of this world, that I will scatter their ribcage with penknife. My cousin and age mate, Luke Ofere, came out of his house and asked what was wrong and why I was in tears. With hot tears running down my cheeks, I turned around and left the graveside without a word to him; shock, surprise and confusion were boldly written on his face. On my way back to my father’s house, Nze Romanus Ogboh caught up with my brisk strides and, viciously pulling his right ear, he warned me to be careful on the road; that he dreamt that I died in a motor accident but that he administered a potion on me and I came back alive.
He was completely confused when I replied ”I know” and continued walking in tears towards my father’s house without a further word. Still in the holy rage, I called out Chief Abasi to join me in the car. Back to Port Harcourt through Omoku, Ahoada, Elele Alimini and Emohua, I told my spouse that something wrong is certainly around the corner. As we planned, Chief Abasi travelled to Calabar on Tuesday to inform Auntie Alice of the development and request her to come to Port Harcourt on Wednesday for onward journey to Owerri to effect the dealership contract. On Wednesday, I waited for them but they did not show up. I called Chief Abah and complained about the development. Thursday morning, they pulled up in front of my apartment in a blue Peugeot 504.
To be continued in our next edition.

Jason Osai
Osai lectures in Rivers State University.

Continue Reading

Opinion

Checking Voter Apathy In Nigeria’s Electoral Process 

Published

on

Quote:“Apathy may express frustration, but surrendering our votes only gives others greater power to determine our future. Nigeria needs credible elections, accountable leaders and citizens who refuse to abandon their democratic rights.”
“I actually don’t know what is wrong with this country called Nigeria. Nothing will ever make me go out under the scorching sun to vote for anybody again. After all, my vote doesn’t count. “We go out and vote, but in the end, they announce whatever result they want and tell the opponents to go to court. Is this the Nigeria we all want?” These are the frustrations of many Nigerians who have lost faith in the electoral process. For them, elections have become a cycle of high expectations, alleged irregularities and disappointing outcomes. Consequently, many are becoming indifferent to how political leaders emerge and what they do after assuming office. This growing voter apathy poses a serious threat to Nigeria’s democracy and must be addressed before the 2027 general election.
Some politicians, including councillors, local government chairmen, members of the House of Representatives, senators and governors, have disappointed the people they were elected to represent. Constituents who expect their representatives to address pressing community needs often complain of neglect, poor performance and limited engagement after elections.bAs Chinua Achebe’s celebrated novel, “Things Fall Apart”, suggests, things appear to be falling apart in Nigeria’s electoral system. Yet, withdrawing from the electoral process is not the solution. Rather, it could worsen the situation by allowing a relatively small proportion of voters to determine the country’s political future. Recently, the National Orientation Agency (NOA) launched a nationwide grassroots mobilisation campaign to address voter apathy, vote buying and electoral violence ahead of the 2027 general election.
The campaign, themed “Your Vote, Your Voice, Our Future: Say No to Apathy, Vote Buying and Violence. Let’s Build a United Nigeria in 2027,” was inaugurated in Abuja. Speaking at the event, the Minister of Information and National Orientation, Mohammed Idris, commended the agency for the initiative, emphasizing that citizens must recognize the importance of their votes in determining the country’s political leadership and future. He warned that voter apathy, vote buying and electoral violence threatened democratic development, calling for stronger collaboration among government institutions, electoral authorities, security agencies, community leaders and citizens. The Director-General of the NOA, Mallam Lanre Issa-Onilu, explained that the agency would deploy its state directorates across the 36 states and the Federal Capital Territory to promote responsible electoral participation.
The campaign will use local languages, radio programmes, town hall meetings, community dialogues, drama and digital platforms to reach Nigerians in both urban and rural communities. The Chairman of the Independent National Electoral Commission (INEC), Prof. Joash Ojo Amupitan, also reaffirmed the commission’s commitment to conducting free, fair, transparent, inclusive and credible elections in 2027. He stressed the importance of early preparation, stakeholder collaboration and active citizen participation. These initiatives are commendable. However, their success will depend on sustained implementation rather than public announcements alone. Voter education must continue beyond election periods, while electoral institutions must demonstrate through their conduct that citizens’ votes deserve protection.
The government, political parties, electoral authorities and civil society organisations (CSOs) all have important roles to play. First, governments must demonstrate genuine commitment to credible elections by rejecting electoral manipulation, vote buying and the use of thugs to intimidate voters. Electoral offences must be investigated and prosecuted in accordance with the law. Security agencies must also remain professional and impartial throughout the electoral process. Beyond elections, elected officials must deliver the dividends of democracy. Reliable electricity, accessible healthcare, quality education, good roads and employment opportunities can help restore public confidence in governance. Citizens are more likely to participate when they see that democracy can improve their lives.
Political officeholders must also change their attitude towards their constituencies. Representatives should maintain regular contact with their constituents, explain their activities and demonstrate how they address local concerns. Representation should not end with election campaigns, nor should elected officials remember their constituents only when another election approaches. CSOs and political parties must intensify voter education, helping citizens understand that voting is a fundamental democratic right and an important means of holding leaders accountable. Voters should also learn to verify electoral information, report irregularities through appropriate channels and reject inducements that compromise their choices.
The electorate, too, has responsibilities. Voters must resist the temptation to sell their votes for money, food or other temporary benefits. Although economic hardship makes such inducements attractive to some, selling a vote undermines the opportunity to demand accountable leadership. Equally important is the rejection of electoral violence and misinformation. Nigerians must learn to disagree politically without becoming enemies. Citizens should verify claims before sharing them, particularly on social media, and report suspected electoral malpractice to the appropriate authorities. Participation also extends beyond voting. Citizens can attend community meetings, question elected representatives, monitor public projects and demand transparency between elections.
Nevertheless, citizens cannot be expected to sustain enthusiasm when credible complaints are ignored or electoral processes lack public confidence. INEC must therefore strengthen transparency, improve election logistics, communicate promptly and ensure that electoral complaints are handled in accordance with the law. Where disputes arise, the courts must provide lawful remedies. Nigeria’s democracy cannot thrive when eligible voters surrender their voices out of frustration. Restoring participation requires more than urging people to turn out on election day. It demands credible elections, responsible leadership, effective civic education and accountability. The 2027 general election presents an opportunity to rebuild public trust.
The NOA campaign is a welcome step, but all stakeholders must translate its message into action. Every eligible Nigerian should understand that a vote is not merely a mark on a ballot paper; it is an opportunity to influence the country’s future. Apathy may express frustration, but active and responsible participation offers a better chance of achieving change. The time to restore confidence in Nigeria’s electoral process is now. The earlier we act, the better for our democracy and future generations.
By: Calista Ezeaku
Continue Reading

Trending