There is one interesting state in Nigeria that needs to be discussed when the issue of Value Added Tax (VAT) is being talked about.
This state is quite interesting that it deserves to be talked about in view of how much it generates through VAT and how much it actually receives from the federal government for the past eighth months in the year 2021.
Image credit: The Punch
It would be recalled that Governor Nyesom Wike of Rivers State was the person that kicked against the collection of VAT by the federal government through the Federal Inland Revenue Service (FIRS). He went ahead to sign a law to back the state government to collect VAT. He also got a court order backing him to collect the money and stopping FIRS from collecting VAT in his state.
Before taking those steps, Wike had earlier claimed that there is a serious injustice by the federal government in the way it shares VAT. The Rivers Governor revealed that the way the money is shared is unfair to states that generates more money from VAT. He went ahead to mention few states that generate less money and get more from the federal while his state and Lagos have been among the most unfairly treated states in terms of how much they get despite generating huge amounts of money from VAT.
Image credit: Peoples Gazette
The state that make least amount from VAT.
The state is Zamfara. Zamfara State is in the North West part of Nigeria and it is currently governed Bello Matawalle. According to a report by Vanguard, Zamfara generated N598.133 million naira in eighth months. That amount is far lass than N1 billion naira. That is the lowest in the whole of Nigeria as all the other 35 states make up over N1 billion mark. Despite making that lowest amount of money through VAT, there is something curious about Zamfara.
Image credit: Premium Times
It is the fact that the state received N35.716 billion within the period under review. Based on this revelation by the report, it means that Zamfara received about 70 times the amount it generated within the period. On the contrary, Wike's state (Rivers) generated N90.293 billion but received N46.270 billion. Also, Lagos State ruled by Babajide Sanwo-Olu generated N429.203 billion but received only N139.587 within the period.
Image credit: BBC
From the analysis above, it is clear that Wike's claim or argument that some states are treated unfairly in sharing VAT money by the federal government is totally correct. Little wonder why Governor Sanwo-Olu was quick to throw his support behind Wike on the VAT issue. Governor Sanwo-Olu is the first Governor to strongly back Wike on the State collection of VAT. He adopted Wike's idea, signed the bill into law and joined Wike to fight the legal battle against the federal government.
Image credit: Kanyi Daily
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