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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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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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Macron Got Slapped And the World Laughed, This is Why Men Don’t Report Abuse, By Halima Layeni

If the roles were reversed, if President Macron had slapped or pushed Brigitte Macron, there would be protests.

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Earlier today, a clip surfaced online showing French President Emmanuel Macron being pushed on the cheek by his wife, Brigitte Macron.

What should have sparked outrage, concern, and deep conversations around domestic violence was instead reduced to meme fodder and crude jokes.

The reaction has been as swift as it has been disturbing: mockery, laughter, judgment, and the ever familiar chorus of

“That’s what he gets for marrying his teacher.”And just like that, a moment that should have highlighted a very real issue, domestic violence against men, was drowned in ridicule. No hashtags. No public outcry.

No feminist organizations stepping forward. No nonprofit issuing a statement. Just silence. Deafening silence.Abuse is abuse, regardless of the gender of the perpetrator or the victim.

If the roles were reversed, if President Macron had slapped or pushed Brigitte Macron, there would be protests.

There would be hashtags. There would be fire and fury from advocacy groups.

The world would come to a standstill demanding accountability and protection for women, and rightly so.

But when it is a man, a world leader no less, experiencing what can only be described as a moment of public humiliation and physical aggression, the same voices fall silent.

Why? Because society has normalized the idea that men are too strong to be victims.

That their pain is comical. That their abuse is somehow deserved. And so, they suffer not just in silence but in isolation and shame.

President Macron has long been the subject of public scrutiny because of his marriage.

This age gap, had the roles been reversed, would be celebrated as empowerment or love defying the odds. But for him, it is used as a weapon to justify abuse.

And now, when a moment of violence occurs, it is brushed off with a laugh, as if his choices have made him unworthy of dignity or protection.

This is the very heart of the crisis.

Men continue to die in silence because the world refuses to see them as victims. They are mocked when they cry out. They are told to “man up” when they break down.

They are dismissed when they seek help. This stigma is not only cruel; it is deadly. Because behind the jokes are real men, fathers, brothers, sons, husbands, who endure violence every day with no one to fight for them, no one to believe them, and no safe space to heal.

Domestic violence affects men in ways that are deeply traumatic but rarely acknowledged.

Male victims often experience depression, anxiety, post traumatic stress disorder, and suicidal ideation.

They are less likely to report abuse due to fear of not being believed or being seen as weak.

Many have nowhere to go. There are far fewer shelters for men, far fewer support systems, and almost no targeted campaigns offering help.

Men are suffering, and they are doing so alone.We need more men’s initiatives, more safe houses, more trained professionals who understand the psychological and emotional toll of abuse on men.

We need funding for shelters that serve male survivors, just as we fund shelters for women. These are not competing needs.

They are shared needs. Human needs.Mainstream media must rise above the culture of mockery and begin to treat violence against men as the serious issue it is.

This is not a laughing matter. When men are assaulted, their experiences should not become viral punchlines.

They should become urgent stories, stories that call us to confront our biases and open our eyes to the full scope of domestic abuse.

Governments also have a role to play. Policy must reflect the reality that domestic violence affects all genders.

This is not a laughing matter. When men are assaulted, their experiences should not become viral punchlines

Funding for prevention, shelters, legal aid, and trauma support should be inclusive.

It is unjust to pour millions into protecting women while completely overlooking the pain of men.

Protection should never be selective. Support should never be conditional.

If a government truly cares about the safety and mental health of its citizens, then male victims of abuse must be seen, heard, and supported with the same energy and investment.

President Macron’s case was domestic violence on full display, and it is not acceptable.

The world watched it happen. And the world laughed.

But one day, maybe not today, we must ask ourselves what kind of society we are building, one where men’s suffering is the punchline, or one where every victim matters.

It is time we stop treating abuse as a gendered issue and start treating it as a human one.

Because until we do, men will keep dying in silence, while the world keeps laughing.

Halima Layeni Men’s Mental Health Advocate Executive Director Life After Abuse Foundation

halimalayeni@gmail.com

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Nigeria Must Prioritize Local Defense Contractors for National Security and Economic Growth

While Nigeria strives for self-reliance and national security, its defense procurement landscape remains heavily tilted in favour of foreign contractors.

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BY BEM IBRAHIM GARBA

Despite the growing capacity among Indigenous defense firms, Nigeria continues to favor foreign contractors.

This pattern threatens long-term national security, economic independence, and local innovation.

While Nigeria strives for self-reliance and national security, its defense procurement landscape remains heavily tilted in favour of foreign contractors.

Despite significant strides in capacity development, manufacturing, design, and operational capability, Nigerian-owned defense companies face systemic bias and limited access to government contracts.

This preference for foreign contractors and solutions incurs costs: economically, strategically, and technologically.

If Nigeria is committed to developing a robust, sovereign, and exportable defense industry, it must start by prioritizing local contractors.

FOREIGN FIRMS STILL GET THE FIRST CALL

Today, many Nigerian companies have developed capacity.

They offer reliable, innovative, and scalable solutions, including the production of sensitive equipment/systems, tactical vehicles, protective gear, and training facilities.

Yet, when the time comes for procurement, tenders and negotiations disproportionately favour foreign companies and suppliers.

These foreign firms are not only awarded high-value contracts but are often given easier access to key decision-makers.

Local companies, by contrast, face endless social and political hurdles: excessive scrutiny, limited engagement from end-users, and a lack of pilot opportunities to prove their systems in the field.

THE COST OF MARGINALISING OUR LOCAL INDUSTRY

The consequences of this procurement imbalance are far-reaching:

Capital Flight:

Nigeria loses billions annually by supporting foreign companies instead of helping Nigerian-owned businesses.

This practice enriches foreigners economically and denies local firms the opportunity to collaborate with international partners, which could enhance technology transfer, experience, and knowledge-sharing.

Job Loss:

Neglecting local defense companies negatively impacts the Nigerian economy and leads to job losses.

Manufacturing opportunities that could employ thousands of Nigerian youth are instead given to foreign factories, resulting in the creation and maintenance of valuable jobs overseas that could have been retained in Nigeria.

Technology Dependence:

Relying on foreign suppliers undermines Nigeria’s ability to develop, control, or modify critical defence platforms.

When Nigerian companies receive support, they are encouraged to strengthen partnerships with foreign technology partners, who can provide training and opportunities for technology transfer.

This strategy is essential for helping Nigerian companies develop the necessary technology more quickly.

Export Inhibition:

Without domestic validation, Nigerian-made defense products face challenges in entering foreign markets.

Nigeria aims to promote exports across all sectors.

For exportation to be successful, our products and solutions must meet international standards.

The export of Nigerian defense products will struggle unless these items are first given a chance to succeed in Nigeria.

We need to develop our local industry, validate our products, and then actively launch them into regional and continental markets.

BRAZIL AND INDIA: CASE STUDIES IN STRATEGIC PATRONAGE

Countries such as Brazil and India have demonstrated how intentional local patronage can foster globally competitive defense industries.

In Brazil, companies like Embraer and IMBEL grew under government-backed contracts and patronage.

The Brazilian Armed Forces committed to buying local, even when products were still under development and maturing.

Today, Brazil exports military aircraft and arms globally and has become a respected defense manufacturer.

Nigerian companies require more than just praise; they need patronage. Securing contracts, creating opportunities, and engaging in long-term planning are essential for our local defense firms to thrive.

India’s ‘Make in India’ initiative transformed its defense sector by mandating local sourcing.

Companies like Bharat Forge, TATA Advanced Systems, and Larsen & Toubro received long-term government backing, which allowed them to scale and improve.

India now produces high-quality drones, tanks, and artillery systems with export potential.

The lesson is clear: Nations that support local firms boost their economies, strengthen national defense, and enhance global influence.

A CALL FOR REORIENTATION IN NIGERIA

Nigerian companies require more than just praise; they need patronage. Securing contracts, creating opportunities, and engaging in long-term planning are essential for our local defense firms to thrive.

We call on the Nigerian Armed Forces, the Ministry of Defence, the Police, and all relevant government agencies to:

Adopt a Local-First Procurement Policy: Allocate a specific percentage of all defense procurement contracts to Nigerian companies.

Award Contracts for Capability and Growth:

Support local businesses by placing genuine orders instead of merely making promises or running pilot tests.

Various procurement models can be utilized to encourage the growth of local companies while minimizing risks for buyers.

We urge the Armed Forces and relevant purchasers to explore these models in the interest of our collective growth.

Foster Strategic Partnerships with Local Leadership:

The federal government, the armed forces, the police, and all other buyers should require foreign companies to partner with Nigerian companies to secure contracts.

Similar to the laws in places like Dubai, foreign companies should not be eligible to secure defense contracts in Nigeria directly.

They must partner with Nigerian defense companies to facilitate knowledge transfer and equity sharing with Nigerian firms.

Create End-User Incentives:

Encourage military and police leaders to implement solutions made in Nigeria and provide rewards for successful adoption.

Establish a Nigerian Defence Development Fund:

The government should create a Nigerian Defence Development Fund to provide long-term capital to local firms for research and development, infrastructure, and certifications.

THE TIME IS NOW

Nigeria’s future security needs to be developed within the country. This requires us to trust our own companies and local initiatives to provide the solutions we need.

Like Brazil and India, we must be willing to support homegrown solutions and products through their early challenges, understanding that true mastery comes with experienced local companies cannot thrive on encouragement alone—they require contracts, partnerships, and a long-term belief from their own country.

We possess the talent, ambition, and drive. What we need now is opportunity.

If Nigeria aims to become a true continental power in defense and technology, the change must begin with a simple decision:

Buy Nigerian, trust Nigerian, and defend Nigerian.

This article was written by Bem Ibrahim Garba, a defense industry professional and advocate for indigenous industrial growth in Nigeria.

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