The Federal government has been advised to stop actions and policies that impede the practice of true federalism in Nigeria.
The advice was contained in a press statement by the pan-Yoruba sociopolitical organisation, Afenifere, signed by its National Publicity Secretary, Jare Ajayi, in which it also commended the Rivers State government for initiating the legal process.
According to Afenifere, the rulings by Justice Stephen Dalyop Pam of the Federal High Court, Port Harcourt, on August 9 and on September 6, 2021, have earned the judiciary an epaulette as an institution that is not only capable of ensuring justice but also working on deepening federalism in the country.
Justice Pam, while delivering judgments on August 9 in Suit No. FHC/ PH/CS/149/2020, filed by the Attorney General for Rivers State (plaintiff), against the Federal Inland Revenue Service (first defendant) and the Attorney General of the Federation (second defendant), had said that allowing the Federal Government, through the FIRS, to continue collecting VAT will be negating the spirit of the federal system of government being practised.
The judge reiterated this position while ruling on Tuesday, September 7, in the case brought by the FIRS. Afenifere, while commending the judgment, observed that the manner of distributing VAT revenue is patently unfair, unjust and is pitched against the hardworking while rewarding the indolent. “For instance, Lagos State which generates as much as 55 per cent of this revenue receives less than 10 per cent while most states where less than five per cent is generated get the same amount that Lagos gets. It is quite distasteful.
“The sum collected by the FIRS is shared among the three tiers of government, with the Federal Government taking 15 per cent, states 50 per cent; local governments, 35 per cent. From the foregoing, it would be seen that the Federal government is taking undeserved larger chunk because when 50 per cent is shared among the 36 states, what each state gets is a paltry sum. Same for 774 local government councils that share 35 per cent.”
Ajayi further called on the state governments to use the opportunity provided by these landmark judgments to explore other areas that the constitution empowers them to assert themselves as federalists.
“In other words, they should step up actions that will liberate the states from the stronghold of the Federal Government that has turned Nigeria into a unitary state – in contradistinction to the federal spirit prescribed by the constitution.
“They should be rest assured of Afenifere’s support as they give vent to power devolution and entrenchment of true federalism in Nigeria.
“Areas in which the states need to assert themselves include agriculture, health, education, electricity, physical planning, title registration, registration and production of vehicle number plates and casino licensing etc as Lagos State government did in the past.
“To us in Afenifere, the attempt by the Federal government to establish so called farm estates in all the 109 senatorial districts is another way of imposing the rejected cattle colony and RUGA on Nigerians. It is also another way of defying the federal spirit of the constitution as lands are vested in the state governors.
“If the governors granted the lands being asked for, cattle colonies would be established in these estates as revealed in the view expressed by Prince Paul Ikonne, the Executive Secretary of the National Agriculture Land Development Agency (NALDA). States should reject this attempt particularly since the farm estates NALDA is using as an excuse to grab lands for the Federal government ‘are familiar territory for many states especially in the South-West that inherited farm estates from the defunct regional government of late Chief Obafemi Awolowo’,” he said.
The organisation called on the FIRS to resist any temptation to keep appealing the judgment that empowers states to collect local taxes, as such a step is another assault on the federal system that we are supposed to be running.
Simlilarly, a Lagos based lawyer, Ebun-Olu Adegboruwa (SAN), has commended the Rivers State governor, Nyesom Wike for his unwavering stance and his efforts to get judicial pronouncement restraining the Federal Inland Revenue Service (FIRS) from collecting Value Added Tax (VAT) and Personal Income Tax (PIT) in the state.
Adegboruwa who gave the commendation in a statement on Thursday added that the battle that the Rivers State government embarked upon is in line with the yearnings and clamour of the people for restructuring.
He emphasised that the ruling of the court is a step in the right direction towards the much-desired restructuring needed in the country.
He said: “State VAT law is a form of restructuring. It is restructuring and I support it 100 per cent. We have been shouting and crying for this lopsided federalism to be made equitable. Those who make peaceful change impossible make violent change inevitable.
“I commend Governor Wike who started this revolution. I also commend Governor Sanwo-olu, and the Lagos House of Assembly. Other laws should follow.
“The Lagos State government should go to Lagos High Court to seek an order for immediate compliance with the VAT law by all persons and authorities doing business in Lagos State.
“It is a good beginning. Enough of feeding-bottle federalism and Abuja financial pilgrimage,” Adegboruwa declared.