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 )
Opera News is a free to use platform and the views and opinions expressed herein are solely those of the author and do not represent, reflect or express the views of Opera News. Any/all written content and images displayed are provided by the blogger/author, appear herein as submitted by the blogger/author and are unedited by Opera News. Opera News does not consent to nor does it condone the posting of any content that violates the rights (including the copyrights) of any third party, nor content that may malign, inter alia, any religion, ethnic group, organization, gender, company, or individual. Opera News furthermore does not condone the use of our platform for the purposes encouraging/endorsing hate speech, violation of human rights and/or utterances of a defamatory nature. If the content contained herein violates any of your rights, including those of copyright, and/or violates any the above mentioned factors, you are requested to immediately notify us using via the following email address operanews-external(at)opera.com and/or report the article using the available reporting functionality built into our Platform See More