Rivers VAT Judgement: Afenifere Asks States To Rise, Defend Federalism

Pan Yoruba organisation, Afenifere, has called on states of the federation to explore areas in the 1999 Constitution they can use to deepen federalism in Nigeria.

The group which was speaking against the backdrop of the recent Federal High Court which gave the Rivers State Government right to collect value added tax (VAT) within the state called on states of the federation to use the opportunity provided by the Rivers State judgements to explore other areas that the Constitution empowers them to assert themselves as federalists.

In a statement by its National Publicity Secretary, Jare Ajayi, Afenifere said, “The states 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 prescribes by the Constitution. They should rest assured of Afenifere 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.”

It condemned the sharing formula of the VAT even as it is undeservedly collected by the Federal Government. It said the formula “is patently unfair, unjust and pitched against the hard-working while rewarding the indolent.”

He further said, “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 an 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 36 per cent.

“Lagos State for instance which generates as much as 55 per cent of this revenue receives less than 10 per cent while most states where less than 5 per cent is generated get the same amount that Lagos gets. It is quite distasteful.

The rulings by Justice Stephen Dalyop Pam of the Federal High Court, Port Harcourt on August 9 and on September 6, this year have earned the Judiciary in Nigeria an epaulette as an institution that is not only capable of ensuring justice but is actually working on deepening federalism in the country.”

The group charged the Federal Government to desist from actions and policies that impede the practice of true federalism in Nigeria.

He further said, “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.”

Afenifere urged the states not to give any land for the so-called Farm Estates as such land will be turned to cattle colonies.

“If the governors granted the lands being asked for, cattle colonies would be established in these estates. States should reject this attempt particularly since the farm estates the National Agriculture Land Development Agency (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”, Afenifere said.