VAT: Southern governors affirm collection falls within the powers of state governments

ABIODUN OBA

The Federal Inland Revenue Service (FIRS) may already be losing political traction over its control on Value Added Tax collection, as Governors from the south of Nigeria supported the states. 

Governors from the south of Nigeria resolved and affirmed that the collection of VAT falls within the powers of state governments.

At the end of a meeting in Enugu, Gov. Rotimi Akeredolu of Ondo who read the communique of the forum said,  “We resolved to support the position that the collection of VAT falls within the powers of the state. 

“The meeting reaffirmed its earlier commitments to fiscal federalism and emphasised the need to pursue its inclusion in the Nigerian Constitution through the on-going constitutional amendment,’’ he said. 

Akeredolu urged states in the south to leverage on the competence of their houses of assembly and representation at the National Assembly to pursue the goal. 

He said that the meeting reviewed the state of the nation and the progress made in the implementation of the ban on open grazing of cattle in the south of Nigeria.

“The meeting expressed satisfaction with the rate at which states in the south of Nigeria are amending or enacting the anti-open grazing law. 

“This aligns with the uniform template and aspiration of governors in the south and we encourage the states that have yet to enact the law to do so expeditiously. 

“The meeting agreed to encourage the full operationalization of the already agreed regional security which will share intelligence and collaborate toward the safety and security of the region,’’ he said.

Akeredolu said the governors were satisfied with the handling of issues surrounding the Petroleum Industry Act and ownership of the Nigeria National Petroleum Corporation by the larger Nigerian Governors Forum. 

“The meeting reiterated its earlier position that the next president of Nigeria will come from the south of Nigeria in line with the politics of equity, justice and fairness,’’ Akeredolu said. 

Nine governors and seven deputy governors out of the 17 states in the southern Nigeria attended the meeting. 

Governors present were Ifeanyi Ugwuanyi of Enugu State, Nyesom Wike of Rivers, Emmanuel Udom of Akwa Ibom, Babajide Sanwo-Olu of Lagos State and Ifeanyi Okowa of Delta.

Others were Govs. Rotimi Akeredolu (Ondo State), Adegboyega Oyetola (Osun State), Douye Diri (Bayelsa) and Dapo Abiodun (Ogun State). 

The deputy governors in attendance were Mr Bisi Egbeyemi (Ekiti State), Mr Rauf Olaniyan (Oyo State), Dr Kelechi Igwe (Ebonyi), Chief Ude Oko-Chukwu (Abia), Mr Philip Shuaibu (Edo), Prof. Ivara Esu (Cross River) and Prof. Placid Njoku (Imo). 

Anambra was not represented at the meeting. 

The next meeting of the governors will hold in Rivers in November.