•Dr Nnimmo Bassey
A renowned Nigerian environmental activist and poet, Dr Nnimmo Bassey, has slammed the Nigerian Governor’s Forum for rejecting an increase in the Value Added Tax (VAT) but turn around to propose an ‘unacceptable’ revised sharing formula for same.
The Frontier reports that the governors’ decision was an outcome of a meeting between the NGF and the presidential tax reform committee, convened yesterday, Thursday, January 16, 2025, to deliberate on critical national issues, including the reform of Nigeria’s fiscal policies and tax system.
In the said meeting, The NGF rejected the move by the federal government to increase Value Added Tax (VAT).
The governors also expressed support for the ongoing legislative process of the Tax Reform Bills, just as it proposed what it called an “equitable sharing formula for VAT to ensure equitable distribution of resources: 50% based on equality, 30% based on derivation, and 20% based on population.”
Reacting to the proposal by the governors on revised VAT distribution, the Founding Director of Health of Mother Earth Foundation (HOMEF), Nnimmo Bassey in a chat with The Frontier said there’s a gap between the aspirations of politicians and actual needs of socioeconomic justice on the VAT matter.
In his words: “There appears to be a vast gap between the aspirations of politicians and the actual needs of socioeconomic justice on the VAT matter. The debates and conclusions continue to show the fissures in our national fiscal architecture.
“The governors are happy with 50% based on equality when it comes to sharing the VAT. Why not 50% in terms of expected VAT generation? Again, they applaud 30% based on derivation. Why not the same ratio for oil/gas and solid minerals revenue? At least part of that would empower ecologically damaged states to take remediation actions rather than wait for a federal government that is reluctant when it comes to environmental remediation. And the 20% of VAT based on population again shows why states will always angle to have the highest possible population figures and why our national population figures are difficult to trust.”
