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VAT: 2 Tools Northern Governors Can Use To Overtake Southern States In Revenue Generation

The issue of VAT (Value Added Tax) has caused a lot of arguments between the federal government and some state governors in Nigeria. These state governors are insisting that they should be collecting VAT revenues by themselves instead of FIRS (Federal inland Revenue Service) in their respective states.

(Wike And Sanwo-Olu: Credit: Afriknews).

Recently, Governor Nyesom Wike And Sanwo-Olu signed the new VAT law in their states after a federal high court in Port Harcourt gave a judgement that FIRS should stop collecting VAT in some states. Also, the federal government of Nigeria challenged this this ruling given by the federal high court in Port Harcourt.

However, Governor Wike claimed that there is injustice in the sharing of monthly allocations within the country. He said that his state (Rivers) collected N4.7 billion after generating about N15.1 billion in the month of June. Wike also claimed that Kano State received about N2.8 billion after generating N2.8 billion as VAT in June.

(Wike And Northern Governors Forum. Credit: Infonow).

Nevertheless, the amount of VAT revenue generated by Lagos and Rivers State is almost bigger than all the VAT revenue generated in all the northern states.

So, in this article, I will be discussing two major tools northern leaders can use to overtake southern states in revenue generation.


The number of people residing in a particular state can positively influence the amount of revenue generated from the area. According to statistics, Northerns have the highest population in Nigeria which could be seen during election periods.

(Population Data. Credit: Infogist).

So, I believe that Northerners have enough human resources to generate more VAT revenues in their states. Some countries like China and other nations made use of their high population density to become an industrialized nation. Therefore, Northern governors should use the high population in their states as an advantage to generate revenue.

Natural Resources And Agriculture.

The Northern part of Nigeria is blessed with a lot of Natural Resources which they can harness to generate enough revenue in their states.

(Photo Credit: Adrikgist).

However, most of these national resources are neglected because there are no modern technology to harness them. Therefore, Northern governors should employ more experts that can mine these resources.

Also, the Northern part of Nigeria is among the major producers of some food items within the country. Therefore, they should invent more ways to generate revenue from their agricultural products.

Content created and supplied by: Skygist (via Opera News )

Kano State Nyesom Wike Rivers Sanwo-Olu Value Added Tax


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