Northern Govs.,Traditional rulers condemn Southern counterparts on zoning principle
…Southern Govs. confusing VAT for sales tax — NSGF
By Moses Adeniyi & Uthman Salami
Leaders of Northern Nigerian including the Governors of the 19 States of the region and traditional rulers have vehemently condemned the unanimous resolution of the Governors of the Southern States of the Nigerian Federation that the 2023 presidency be zoned to the south.
The castigation which came from a meeting held in Kaduna under the aegis of the Northern State Governors’ Forum (NSGF) on Monday, saw the Governors and the traditional rulers across the region unanimously “condemning the statement by the Southern Governors Forum that the Presidency must go to the South.”
According to the forum in an 11 point resolutions, which had in attendance Chairmen of the Northern States Traditional Council led by the Sultan of Sokoto, “the statement is quite contradictory with the provision of the Constitution of the Federal Republic of Nigeria (1999) as amended which provides that the elected President shall “score the majority votes; score at least 25% of the votes cast in 2/3 States of the Federation and in the case of run-up simple majority win the election.”
The forum further distanced itself from the earlier position of some Northern States Governors who expressed views for a power-shift to three Geo-Political Zones in the South with a view to promoting unity and peace in the Nation.
It would be recalled that the Governors of the Southern States under the aegis of the Southern Governors’ Forum had insisted on their resolution of having the 2023 presidential seat zoned to the South at their last meeting on Thursday, 16th September 2021, held in Enugu.
Southern Govs. confusing VAT for sales tax
On the controversy trailing the national debate on the collection of Value Added Tax (VAT), the Northern Governors at the emergency meeting held at the Council Chamber Sir, Kashim Ibrahim House, Kaduna, argued that the Southern State Governors have confused VAT for sales tax.
The Governors stated that though the matter was presently contested within the jurisdiction of the Supreme Court for determination, enlightenment was important, arguing that if every State enacted its own VAT Law, multiple taxation will result in increases of prices of goods and services and collapse in interstate trade.
“As responsible leaders while we are constrained 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 accounts 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,” the forum argued.
The subject on State collection of VAT has continued to generate controversies since River States took the lead to pass legislation to empower it to collect VAT, a development that was replicated in Lagos State. Contention by the Federal Government have led to court struggles to determine the legality or otherwise.
In addition to the 2023 presidency and VAT, among other subjects Nigerian NewsDirect gathered were discussed at the meeting revolved around issues relating insecurity challenges, peace, progress, development and well-being of the Northern States, open grazing, drug abuse and the Renewable/Solar Energy Project.
Insecurity
On security, the forum in their resolution assured its readiness to work in synergy with the Federal Government of Nigeria in finding lasting solution to the current security challenges, mentioning that perpetrators of crimes should be dealt with irrespective of their status in the society.
The Forum which “appreciated the ongoing onslaught against banditry, kidnapping and Boko Haram especially in the North East and parts of North West and North Central States,” however, urged the “Armed forces and other security agencies to sustain the tempo to enable the security challenges be permanently addressed in the shortest time.”
In a communique issued by the forum, signed by its Chairman and Governor of Plateau State, Simon Lalong, it was disclosed the “the Forum took stock of progress made in handling challenges of Banditry, kidnapping, armed robbery and insurgency.
“The forum decried the high level of conspiracies being perpetrated by some Judicial Officers in releasing/granting bail to arrested criminals. This attitude sabotages the fight against criminality, therefore, there the need to develop good and robust intelligence mechanism amongst States was identified as a panacea.
“The forum calls on Agencies to leave up to their responsibility, Traditional rulers are to equally mobilize their various communities in checkmating the ugly trend of criminality in their domains.”
On updates regarding the Renewable/Solar Energy Project, the forum noted that request for land for the project had been submitted and are being processed by the Northern States.
Noting that the Committee had commenced negotiations in a public private arrangement and sovereign guarantees to ensure bankability of the project by multilateral financial organisations, the forum called on States yet to process the request for allocation of land for the project to expedite action.
Highlights of the resolutions as contained in the communique reads partly: “The forum reviewed security updates from the Region and observed the need for sustained synergy and coordinated efforts between the Federal and Northern States Governments while noting success of recent measures.
“The meeting also noted with concern the constraint of the security services and urged the Armed Forces to embark on simultaneous operations and resolved to share the plans of the Frontline States come up with common with other Region; and assured of its readiness to work in synergy with the Federal Government of Nigeria in finding lasting solution to the current security challenges.
“The forum appreciated the ongoing onslaught against banditry, kidnapping and Boko Haram especially in the North East and parts of North West and North Central States and encouraged the Armed forces and other security agencies to sustain the tempo to enable the security challenges be permanently addressed in the shortest time.”
The Communique read further that: “The Traditional Rulers Councils appreciated the efforts made so far by the NSGF in addressing the key areas of challenges facing the Northern States; they expressed their willingness, solidarity and collaboration with the Governors’ in addressing these challenges particularly the issue of security. It was equally resolved that perpetrators of crimes should be dealt with irrespective of their status in the society.
“The Forum noted the ugly trend in the spread of drugs and consumption amongst the teeming youth and therefore, calls on all levels of Governments and communities to raise to the occasion by stemming the tide.”
On open grazing, the forum called on the Federal Government “to expedite action on the well establish National Livestock Transformation Programme as a spring board in transiting from the open grazing system as widely practice in the North.”
