The Northern Governors’ Forum has rejected the newly proposed distribution of Value Added Tax (VAT) in Nigeria, urging its members in the National Assembly to oppose the bill.
At a joint meeting of northern states governors and traditional rulers held on Monday, October 28, the Forum argued companies remit VAT using the location of their headquarters and tax office and not where the services and goods are consumed.
In a communiqué signed by Governor Inuwa Yahaya, the chairman of the forum, after the meeting, the northern governors called for additional transmission lines to be built to ensure diversification of energy supply.
“The Forum notes with dismay the content of the recent Tax Reform Bill that was forwarded to the National Assembly. The contents of the blare against the interests of the north and other sub-nationals, especially the proposed amendment to the distribution of Value Added Tax (VAT) to Derivation-based model. This is because companies remit VAT using the location of their headquarters and tax office and not where the services and goods are consumed. In view of the foregoing, the Forum unanimously rejects the proposed tax amendments and calls on members of the National Assembly to oppose any bill that can jeopardise the well-being of our people.
“For the avoidance of doubt, the Northern Governor’s Forum is not averse to any policies or programmes that will ensure the growth and development of the country. However, the Forum calls for equity and fairness in the implementation of all national policies and programmes so as to ensure that no geopolitical zone is shortchanged or marginalised.”
The Northern Governors’ Forum also addressed a number of issues including the End Bad Government protest, agriculture, livestock and economic hardship in Nigeria.
Read the full communiqué below.
COMMUNIQUE OF THE NORTHERN STATES GOVERNORS’ FORUM MEETING WITH CHAIRMEN OF THE NORTHERN STATES COUNCIL OF EMIRS AND CHIEFS HELD ON MONDAY 287H OCTOBER, 2024
A joint meeting of the Northern States Governors’ Forum and Northern Traditional Ruler’ Council (Emirs and Chiefs) was held today, Monday, October 28, 2024. The meeting was also briefed on the security challenges in the north by the Chief of Defence Staff, General Christopher Musa. The meeting deliberated extensively on matters of common interest and resolved to issue the following communiqué:
1. The Northern Governors’ Forum extends its deepest sympathies to the victims of the recent flood disasters in Maiduguri and other parts of the North, as well as to the families affected by the tragic tanker explosion in Jigawa State. The Forum equally commiserates with other victims of terrorism, banditry, and similar criminal activities in the North and Nigeria at large and stands in solidarity with them during these difficult times. We agreed to continue to work with the federal government and relevant agencies to provide the necessary support and relief to those affected.
2. The Northern Governors’ Forum emphasises that traditional institutions are critical in the quest for lasting peace and security in the region. Forum also acknowledged their commitment to bridging the gap between the government and the people. Forum advocates for increased roles for the traditional institutions to maximise cooperation with security agencies in the fight against kidnapping for ransom, banditry, cattle rustling, communal clashes, farmers/herder clashes, and other forms of criminality.
3. The Northern Governors’ Forum acknowledges the recent gains made against criminals, especially the elimination of bandits and terror leaders. However, we resolved to sustain these gains in order to ensure lasting peace and stability in the subregion. The Northern Governor’s Forum commends the Federal Government and security agencies for their commitment in ensuring that our communities are safe and secure. Particularly, we commend the untiring commitment of the Chief of Defence Staff, General C. J. Musa, whose professionalism and innovative approach has made a difference in the security architecture of the country at large. Nevertheless, more needs to be done to address pockets of challenges that abound in the Northern Region.
4. With the recent “End Bad Governance” protests that took place in August, the Forum resolved to scale up efforts to tackle the root causes of youth restiveness by investing in education, skills development, job creation, and pathways for the youth to channel their energy into productive ventures, thereby reducing their vulnerability to crime and social vices.
5. The Northern Governors’ Forum resolves to call on the Federal Government and relevant agencies to urgently address the current electricity power blackout affecting most of the Northern States due to vandalisation of electricity transmission infrastructure. This matter not only underscores the vulnerability of critical infrastructure but also the need to build additional transmission lines and diversify our energy supply so as to better connect our region and improve our energy resilience.
6. The Northern Governors’ Forum agrees that Northern Nigeria holds immense agricultural potentials, which, if fully harnessed, can significantly alleviate hunger and boost economic growth. To achieve this, we resolved to provide adequate support to our farmers, including access to financing, modern farming techniques, and infrastructure such as roads and irrigation systems. Agriculture should not only be seen as a means to feed our people but also as a catalyst for industrialisation and job creation across the region. That can be achieved through re-industrialisation of the North, especially by reviving the textile value chain and the development of other agro-allied industries.
7. The Northern Governors’ Forum commends His Excellency, the President and Commander-In-Chief of the Armed Forces of the Federal Republic of Nigeria, for the reform initiative in the livestock sub-sector and agrees to provide the necessary political will and commitment to ensure the success of the federal government livestock development initiatives. The Forum also agreed to sustain engagement and cross-fertilisation of ideas with the Presidential Livestock Reforms Implementation Committee to achieve greater results.
8. The Northern Governors’ Forum acknowledges the fact that climate change has greatly affected our environment, resulting in the recent flood incidents in many parts of the North, and therefore resolved to partner with the Federal Government and other stakeholders to build irrigation infrastructure like canals and waterways to divert excess water and channel it towards irrigation activities, thus enhancing rural livelihoods and safeguarding food security.
9. The Northern Governors’ Forum agrees to support and key in to any initiative aimed at addressing the challenges of out-of-school children and improving educational outcomes in the sub-region.
10. The Northern Governors’ Forum notes with dismay the content of the recent Tax Reform Bill that was forwarded to the National Assembly. The contents of the blare against the interests of the north and other sub-nationals, especially the proposed amendment to the distribution of Value Added Tax (VAT) to Derivation-based model. This is because companies remit VAT using the location of their headquarters and tax office and not where the services and goods are consumed. In view of the foregoing, the Forum unanimously rejects the proposed tax amendments and calls on members of the National Assembly to oppose any bill that can jeopardise the well-being of our people.
11. For the avoidance of doubt, the Northern Governor’s Forum is not averse to any policies or programmes that will ensure the growth and development of the country. However, the Northern Governors Forum calls for equity and fairness in the implementation of all national policies and programmes so as to ensure that no geopolitical zone is shortchanged or marginalised.
12. On the present economic hardship affecting the country, the Forum is appealing to all citizens to remain calm, as the states and federal government are working hard to implement measures that will cushion the effects of the hardship.
HIS EXCELLENCY, MUHAMMADU INUWA YAHAYA, CON EXECUTIVE GOVERNOR OF GOMBE STATE / CHAIRMAN, NORTHERN STATES GOVERNORS’ FORUM
