VAT Debacle: Our Southern Colleagues ‘Confused’ — Northern Governors

The New Diplomat
Writer

Ad

$4.5bn: Court Admits More Evidence Against Emefiele

Justice Rahman Oshodi of the Special Offences Court sitting in Ikeja, Lagos, on October 9,2025, admitted more evidence against a former Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, in an alleged $4.5bn fraud. Emefiele is standing trial on a 19-count charge bordering on receiving gratification and corrupt demand preferred against him by…

NEITI Warns of Deepening Transparency Crisis, Says Nigeria Lost $3.3bn to Oil theft, Sabotage

By Obinna Uballa Nigeria lost an estimated 13.5 million barrels of crude oil valued at $3.3 billion to theft and pipeline sabotage between 2023 and 2024, the Nigeria Extractive Industries Transparency Initiative (NEITI) has revealed. Executive Secretary of NEITI, Dr. Ogbonnaya Orji, disclosed this on Thursday at the 2025 Association of Energy Correspondents of Nigeria…

Oil Eases over 1.5% after Gaza ceasefire

Summary Israel and Hamas agree to Gaza ceasefire, return of hostages US oil product supplied highest since December 2022, EIA says Stalled peace talks in Ukraine underpin prices Oil prices edged slightly lower on Thursday after Israel and the Palestinian militant group Hamas signed an agreement to cease fire in Gaza. Brent crude futures were…

Ad

The Northern States Governors Forum (NSGF) has risen from its joint emergency meeting with traditional rulers of the region, condemning the position of their Southern counterparts as they said “the Southern Governors are confused on the Value Added Tax (VAT) collection”.

They said the reason Lagos accounts for our 50% VAT collection was because most of the telecommunication companies, Banks, manufacturing and other trading activities have their headquarters in Lagos with the resultant and wrongful attribution of VAT.

The Governors, while noting that, “it is constraint by the fact that, the VAT mayor is subjudice”, it was important for them to speak on it to educate the general public, warned that if every state enacts its own VAT Law, multiple taxation will result in increase of prices of goods and services and collapse in interstate trade.

In a communiqué read by the Forum’s Chairman and Governor of Plateau state, Simon Lalong on Monday in Kaduna, the Northern Governors said they will only respect the outcome of judgement on the VAT row from the Supreme Court.

According to the Forum, “The Northern State Governors Forum considered the on-going National debate on the collection of Value Added Tax (VAT). As responsible leaders while we are constraint by the fact that the matter is sub judice we however for the purposes of educating the public make the following observations:

“The judgement of the Federal high Court calls to question the constitutionality of VAT, withholding tax, education tax, Niger Delta Development Commission, National Information Technology Development Agency, 13% derivation, National Economic Development Council and many other currently levied and collected by the Federal Government of Nigeria, Federal Inlands Revenue Service.

“Rivers and Lagos State Government had enacted their own VAT laws and the Southern Governors Forum have expressed support for this course of action;

“VAT is being confused by these State Government as a sales tax. If every State enacted its own VAT Law, multiple taxation will result in increases of prices of goods and services and collapsed in interstate trade. VAT is not a production tax like excise, but terminal tax which is paid by the ultimate consumer.

“Another confusion is ignoring observation above and its “overall effect”.  The reason Lagos account for our 50% Vat collection is because most of the telecommunication companies, Banks, manufacturing and other trading activities have their headquarters in Lagos with the resultant and wrongful attribution of VAT

“Until and unless the Supreme Court pronounces judgement on the substantive matter between Rivers State and Federal Government, the matter is sub judice and Northern States Governors Forum would respect this,” he said.

Ad

Unlocking Opportunities in the Gulf of Guinea during UNGA80
X whatsapp