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VAT Debates And The Future of Nigeria’s Federalism

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By Muhammad Jibrin Barde

The ongoing Value Added Tax (VAT) debate in Nigeria exposes deeper issues about governance, fiscal responsibility, and the structure of federalism.

This debate isn’t just about revenue; it goes to the heart of how we understand and apply federal principles in the Nigerian context.

The push for a derivation-based VAT system raises critical questions about constitutional integrity, equity, and the economic realities of interdependence among states.

Amidst this discourse, Mr. Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has added a layer of inconsistency and hypocrisy to the debate.

While Oyedele acknowledges the importance of constitutional reforms, his stance on revenue-sharing mechanisms appears contradictory, prioritizing political expediency over sustainable federal principles.

Mr. Oyedele, in his capacity as a tax expert and reform advocate, has publicly emphasized the need for equity and fairness in tax administration.

However, his position on VAT appears to undermine these principles. His advocacy for a derivation-based sharing formula, particularly benefitting economically advanced states, disregards the constitutional framework and federal values of redistribution.

1.Contradictions in Equity Arguments:

Oyedele often stresses the importance of supporting less-developed regions through equitable tax policies.

Yet, his support for derivation in VAT allocation contradicts this stance, as it would disproportionately benefit wealthier states like Lagos and Rivers while marginalizing less-developed states that rely heavily on VAT allocations for public services and infrastructure.

2.Ignoring Interdependence:

VAT is a consumption tax that thrives on the interconnectedness of Nigeria’s economy.

Wealthier states benefit significantly from goods and services supplied by less-developed regions.

By advocating for derivation, Oyedele fails to acknowledge the contributions of these regions to the broader economic ecosystem.

3.Political Expediency Over Principles:

Oyedele’s position appears to align with powerful political interests rather than sound fiscal principles.

This inconsistency weakens the integrity of his broader reform agenda and raises doubts about the credibility of the committee he leads.

At the Heart of the Debate: Federalism and Revenue Allocation

The VAT debate transcends Oyedele’s inconsistencies, touching on fundamental questions about Nigeria’s federal structure:

1. Current VAT Collection and Allocation

VAT is centrally administered by the Federal Inland Revenue Service (FIRS) and distributed as follows:

•15% to the Federal Government,

•50% to State Governments,

•35% to Local Governments.

Allocation to states is based on population, equality, and landmass—not derivation.

This structure aligns with the revenue-sharing principles enshrined in the 1999 Constitution (as amended), ensuring redistribution to promote equitable development.

2. The Push for Derivation-Based Sharing States like Lagos and Rivers argue for a derivation-based VAT model, claiming that states generating the most VAT should retain a higher share.

However, this argument overlooks the unique nature of VAT as a consumption tax that reflects economic interdependence.

Extending the derivation principle to VAT would require a constitutional amendment.

The principle currently applies only to resource revenues, such as oil, where 13 percent is allocated to resource-producing states.

Attempting to apply it to VAT without constitutional reform undermines the legal framework of the federation.

3. Risks of a Derivation Model Introducing derivation-based VAT sharing raises serious economic and equity concerns:

•Widening Inequalities: Wealthier states would benefit disproportionately, exacerbating regional disparities and leaving less-developed states unable to meet basic developmental needs.

•Undermining Interdependence:

The interconnected nature of Nigeria’s economy means that VAT generated in one state often relies on contributions from others. A derivation model ignores this synergy.

•Threatening National Cohesion:

A derivation-based model could deepen divisions among states, fostering resentment and undermining the unity of the federation.

The Way Forward: Constitutional Reform

The VAT debate highlights the need for a comprehensive review of Nigeria’s fiscal and constitutional framework. Key steps include:

1.Clarifying Revenue Allocation Principles:

The Constitution must explicitly define how VAT revenues should be allocated, balancing fiscal autonomy with redistribution.

2.Addressing Regional Disparities:

Fiscal reforms should prioritize reducing inequalities, ensuring that all states, regardless of their economic capacity, have access to resources for development.

3.Strengthening Federalism:

The debate underscores the importance of cooperative federalism, where states recognize their interdependence and work towards shared goals.

Conclusion: Building a Fair and Sustainable Federal System

The VAT debate is not merely about tax revenue; it is a question of how we interpret and apply federal principles within our governance framework.

Changes to revenue-sharing mechanisms like VAT must emerge from a broader constitutional review that reflects the realities of Nigeria’s federal structure.

Anything short of this risks undermining the legal and institutional foundation of the federation. Mr. Oyedele’s position exemplifies the dangers of politicizing critical fiscal debates.

For Nigeria to move forward, leaders must prioritize principles over expediency, ensuring that fiscal policies promote equity, sustainability, and national cohesion.

The proper course of action is constitutional reform—not short-sighted adjustments—that uphold the integrity of our federal system and ensure equitable development for all regions.

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Buhari’s Death Abroad Reflects a Nation That Starves Its Healers by Dr. Adunmoye Ayoade

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Former President Muhammadu Buhari died abroad, far from home, in a foreign hospital. His death, while solemn, is also symbolic.

It reflects a painful irony: the same country whose leaders refuse to invest in its healthcare system continues to starve its own healers.

Nigerian doctors and health professionals, the true lifeblood of the nation, are underpaid, overworked, and systemically ignored.

While political elites escape abroad for care, those who remain behind to hold the fragile system together are left to struggle in silence with little support and even less dignity.

The Nigerian health system is in a state of emergency, crippled by gross underfunding and a mass exodus of medical professionals.

While public hospitals deteriorate, political elites indulge in medical tourism, flying abroad for treatments that could be managed locally.

This is an insult to every Nigerian who has no choice but to rely on poorly funded public hospitals.

The masses bear the brunt of this collapse, facing endless queues, dilapidated infrastructure, and overworked doctors who themselves are victims of a broken system.

The “Japa” syndrome has led to the departure of thousands of our best healthcare providers due to inadequate pay, poor welfare, and lack of adequate security.

Those who remain are stretched thin and overwhelmed, expected to perform miracles under frustrating conditions.

Moreover, beyond exhaustion, many doctors feel frustrated, undervalued, and financially insecure.

A frustrated doctor can inadvertently become a dangerous one, not out of intent, but because the environment fosters mistakes, burnout, and emotional detachment.

Medicine may be a humanitarian profession, but using that to justify poor pay and welfare neglect is moral injustice at its worst.

The poor pay has forced many medical professionals to work at multiple hospitals, often to the detriment of their health and family.

Health workers in Nigeria deserve much more: better pay, housing, and car loans, opportunities for professional development, and mental health support.

These are not luxuries, they are critical investments in the nation’s survival and well-being. The masses, civil society organizations, and religious bodies should join the advocacy for this.

No country mistreats its health workers and thrives. A nation that cannot protect its healers is ultimately unfit to protect its people.

The fact that political elites chose foreign hospitals over local ones is a damning confession: they do not believe in Nigeria.

They do not trust the system they have created, nor do they care for the lives of the ordinary citizens they swore to protect. This is a profound betrayal that cannot be ignored.

In light of this disgraceful reality, the Nigerian Medical Association (NMA) must take urgent action. A bill should be sponsored to prohibit public office holders from seeking medical care abroad for any condition that can be managed in Nigeria.

Our leaders should be compelled to use the same system they oversee. If they can subject themselves to our justice system, they should do the same with our health sector.

Nigerians have internalized years of pain and disillusionment, and their reaction to the death of their leaders reflects the raw emotion of a people long abused and neglected.

If the time ever comes when Nigerians decide to channel their pain into action, history will not be kind to those who failed to act when they had the chance.

The ruling class cannot afford this, and hence the need for them to demonstrate patriotism and a genuine care for the masses.

Now that former President Buhari has been buried, we must also bury the years of neglect, poor remuneration, and systemic disregard for the welfare of our medical personnel.

Let his passing signal a new era where those who hold up our healthcare system are valued, respected, and adequately rewarded.


A reformed health system with good remuneration for its personnel is not a luxury; it is the foundation of a nation that values life, justice, and its people.

Contact email: princeayoade@gmail.com

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One Million Teachers (1MT) Sparks National Policy Conversation with Transformative Education Model

Let There Be Teachers” Conference is expected to gather over 60,000 teachers—the largest congregation of educators ever on African soil.

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At a time when Nigeria’s education system faces unprecedented challenges, 1 Million Teachers (1MT) is offering not just hope—but a proven, homegrown solution.

With an ambitious vision to train and empower one million teachers across underserved communities, 1MT is redefining how education can transform society by placing teachers at the heart of national development.

Rooted in the belief that empowered teachers are the foundation of any thriving society, 1MT’s model has already reached over 100,000 educators across Africa. Its bold target?

One million teachers within five years—creating a ripple effect that will impact millions of learners and entire communities.

A Multi-Pronged Strategy Anchored in Innovation 1MT’s growth is built on five core pillars:

• Blended Learning: A hybrid training model combining online courses with offline community hubs for maximum reach.

• Gamified Teacher Development: The 1MT Blackbelt Program motivates teachers to grow through a merit-based, badge-earning system.

• Community Mentorship: Graduates become mentors, creating self-reinforcing networks of leadership and support.

• Strategic Global Partnerships: Collaborations with institutions like Queen’s University, HP, and Girl Rising extend 1MT’s footprint and credibility.

• Anchor Schools: Designated excellence hubs that serve as real-world laboratories for pedagogy and innovation.

The 1MT Village: Turning Vision into Tangible ChangeMore than just a campus, the 312-acre 1MT Village is a living, breathing demonstration of what happens when visionary thinking meets localised, Afrocentric action.

The Village serves as the “flywheel” of the 1MT mission—its engine room and proving ground.

• A Talent Pipeline: It houses the Centre for Teaching Excellence, Blackbelt educator residencies, the Green School, and a vocational institute—all designed to nurture future education leaders.

• A Regenerative Revenue Model: With businesses in agriculture, tourism, and cultural enterprise, the Village funds its growth sustainably.

• A Magnet for Global Collaboration: Donors, researchers, government officials, and major brands like HP and Mastercard Foundation are drawn to its tangible impact.

• A Policy Laboratory: The Village tests and demonstrates education reforms—from curriculum co-creation to budget simulations—grounded in local realities and teacher leadership.

As Nigeria seeks answers to its educational crisis, 1 Million Teachers are not waiting for change.

Let There Be Teachers’ Conference:

National Advocacy on a Global Stage Slated for September 20, 2025, at Tafawa Balewa Square, Lagos, the “Let There Be Teachers” Conference is expected to gather over 60,000 teachers—the largest congregation of educators ever on African soil.

Aiming for a Guinness World Record, the event is more than symbolic; it’s strategic.

The conference will spotlight the 1MT Blackbelt Graduation—a celebration of master educators trained through the 1MT model—and push for policy reforms including:

• Teacher-led education ministries.• Increased education funding

• Higher entry standards for teacher colleges

• Curriculum design co-owned by teachers.

• Official recognition of October 5 (World Teachers’ Day) as a national holiday.

One Movement, Many Voices

The synergy of 1MT, the Village, and the Conference is no accident. Together, they form a powerful ecosystem:

• 1MT is the heart—training teachers with world-class tools.

• The Village is the body—housing the mission in a living curriculum.

The Conference is the voice—speaking truth to power and the world.

As Nigeria seeks answers to its educational crisis, 1 Million Teachers are not waiting for change.

It is building it—acre by acre, teacher by teacher, voice by voice.Let there be teachers. Let them breathe. Let them lead.

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Who Will Bell The Cat? By Emeka Monye

Whether we belong to one religious group, political party or ethnicity is inconsequential because the harsh economy is hitting hard on everyone.

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The phrase “Who will bell the cat?” originates from a medieval fable about mice who decided to put a bell on a cat to warn them of its approach.

However, they realize that the difficult part is finding a volunteer to actually bell the cat.

The story is a classic fable that teaches a valuable lesson about courage, responsibility, and the challenges of implementing a good idea.

In modern usage, the phrase is often used metaphorically to ask who will take bold action or assume responsibility for a difficult or risky task.

In the story, a group of mice gather to discuss ways to protect themselves from a sly cat that has been terrorizing them.

One clever mouse suggests attaching a bell to the cat’s neck, so the mice can hear it coming and scurry to safety.

The plan seems brilliant, but when the mice are asked who will actually bell the cat, no one volunteers.

Here lies the challenge, everyone was scared of being the victim. The mice realize that it’s easy to propose a plan, but much harder to put it into action, especially when it involves risk.

This fable highlights the importance of considering the practicalities and potential consequences of a plan, as well as the need for courage and willingness to take action.

This is the reality we have found ourselves in modern day Nigeria.

Everyone is complaining, complaining and lamenting about the harsh economic and political disequilibrium, yet no one is bold enough or has summoned the gut to take charge and offer a real solution to the present socio-economic quagmire.

Every day on various social media, the ranting is hitting the high heavens, ceilings are being shattered and walls are being broken by people, mostly the common man, about the state of affairs in the country.

Unfortunately, and like the proverbial mice, no one seems to have summoned the courage to face the Intimidators of the large chunk of the people.

Many of those caught in this web of animal oppression have been divided along fault lines, including politics, tribe, ethnicity and worst of all, religion.

Whether we belong to one religious group, political party or ethnicity is inconsequential because the harsh economy is hitting hard on everyone.

Everyone is complaining, complaining and lamenting about the harsh economic and political disequilibrium, yet no one is bold enough or has summoned the gut to take charge and offer a real solution to the present socio-economic quagmire.

People are on a daily basis dropping dead, either by committing suicide or accidental, because they cannot afford the basic needs of life such as food.

While the political leaders have been fingered as the architect of this present economic circumstance, the reality existing among the followers who in this context can be likened to the mice, is that most of them have not been able to summon the courage to take action.

At best what we hear is false courage on social media, people hiding under pseudonyms to call on unsuspecting and naive Nigerians to go out and cause mayhem, yet these same faceless groups of people oftentimes turn around to betray the people’s trust.

And When groups or individuals in positions of power prioritize their own interests over the trust placed on them, it can lead to feelings of betrayal and disillusionment.

This phenomenon can be seen in various contexts, including politics, business, and social movements.

When leaders or representatives fail to uphold their responsibilities or act with integrity, it can erode trust and undermine the relationships between those in power and the people they serve.

To mitigate these risks, it’s essential to establish robust systems of accountability, transparency, and checks and balances.

This can help ensure that those in power act in the best interests of the people they serve and not make them live like the proverbial MICE seeking for a VOLUNTEER to bell the CAT

Emeka Monye Is A Journalist And Works With ARISE NEWS

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