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Kano beats South East in VAT collection

Published

5 years ago

November 22, 2021

Kano State collected more money as Value Added Tax (VAT) than the entire South East zone in the first eight months of 2021, an exclusive data obtained by Daily Trust show.

Records of VAT receipts from Federal Inland Revenue Services (FIRS) seen by Daily Trust indicate that the state collected N24.4bn, ahead of the five south-eastern states with accumulated collection of N20bn.

The data further revealed that Kaduna State with N19bn accrual also did better than Akwa Ibom (N9.3bn), Bayelsa (N13bn), Delta (N13bn), Edo (N9bn), and Ogun (N11bn).

For instance, Kaduna’s N19.8bn is higher than the combined collection of Abia, Cross River, Osun, Ekiti, Ondo and Imo.

Abia, according to the chart, collected N2.2bn representing 0.22%; Cross River collected N1.9bn or 0.19%; Osun collected N2.07bn or 0.20; Ekiti made N6.2bn or 0.62; Ondo collected N4.8bn or 0.48, while Imo collected 1.01bn or 0.10 %.

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Yobe in the North East collected N9.3bn rubbing shoulders with Akwa Ibom (N9.3bn), Edo (N9bn), Ebonyi (N7.2bn) and Ekiti (N6.2bn).

Lagos and the FCT, combined, contribute 65.22% of the total, while all the remaining 35 states contribute 34.78 percent of the total.

This revelation is coming amidst VAT row between the federal government and some states, and allegations that some states, majorly in the North, benefit more than what they contribute to the central pool.

The statics show that Lagos is on top of the chart with 41.5 percent of the total VAT amounting to N421.2bn while Zamfara collected the least recording, N762.5m or 0.08 percent of the total sum.

Lagos is followed by the FCT which collected N241bn or 23.74 %; Rivers collected N92.3bn or 9.09 % while Oyo followed with N61bn representing 6.01%.

Other top performers in the chart are Kano with N24.4bn or 2.40% and Kaduna with N19.8bn or 1.95%.

However, in spite of Zamfara, a state in the North West recording the least performance, more northern States performed better than the southern states as the figure indicated.

Despite the crisis in some of the North East states, the region collected a total of N27.7bn compared to N21bn collected by the south-eastern region of the country.

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Exclusive of Lagos, the other South West states collected a total of N85.8bn only while the North East and North West, which have been heavily bedevilled by insurgency and other security challenges, have collected N86.5bn within the same period.

With the exception of Lagos (N421.2bn), Rivers (92.3bn), Oyo (N61bn), Kano (N24bn) and Kaduna (19bn) most states have posted an average performance lower than N10bn.

How VAT pitched southern, northern states

A verdict by a Federal High Court in Rivers on August 9, 2021, on who has the power to collect VAT favoured the state government; a development seen as a victory for those clamouring for decentralised collection.

Daily Trust reports that both Rivers and Lagos had sued the federal government over the continued collection of VAT by the FIRS.

The controversy spiked after a meeting of the Southern Governors Forum (SGF) endorsed the position of Lagos and Rivers and insisted on allowing every state to collect its VAT revenue individually.

Members of the Northern Governors Forum (NGF) shot back at their southern counterparts, saying the southern governors were confusing the value-added tax (VAT) with sales tax.

The governors noted that the reason Lagos would account for 50 percent of VAT collection was that most telecommunication companies, banks, manufacturing and other trading activities had their headquarters in the state.

“VAT is being confused by these state governments as a sales tax. If every state enacted its own VAT Law, multiple taxations will result in increases in prices of goods and services and collapse in interstate trade. VAT is not a production tax like excise, but terminal tax which is paid by the ultimate consumer,” chairman of the forum, Governor Simon Lalong had said.

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‘Claim VAT sharing benefits northern states more than the southern erroneous’

An economist and a former presidential candidate, Mr. Gbenga Olawepo-Hashim, said those who have “managed the information about the VAT wars have created the impression that the present distribution benefits the northern states more than the southern states.

“They try to make it look like the VAT is part of the ‘hegemonic domination’ of the North. Many commentators hardly look at the data before they hit their keyboards online. Many swallowed hook line and sinker very obvious lies.”

Olawepo-Hashim argued that apart from Lagos, Rivers and the FCT who benefit from the fact that they host the headquarters of major economic, political and oil-related institutions, most states apart from Oyo are doing badly in VAT generation and a lot of southern states are woeful.

“Most states, whether they are in the North or South are doing badly in production of goods and services except for Lagos, Rivers, Oyo, Kano and Kaduna states. The present centrally collected VAT which is then distributed subsidizes everybody,” he noted.

He maintained that in comparison to eastern states, Kaduna, Kano and Katsina are doing better than Abia, Anambra, Imo, and Enugu, adding that based on available data in the past eight months, total VAT generated in Abia was N2.290b, Anambra -N5.938b, Imo -N1.941 compared to Kaduna -N18.262b and Kano -N24.492b.

“Conversely, when it came to distribution, Abia State got N20.020b for generating N2billion. Abia got 10 times what it contributed whereas Kaduna and Kano did not get as much as twice what they contributed. Lagos, Rivers and Oyo got lower.

Similarly, President of Arewa Youth Consultative Forum (AYCF), Alhaji Yerima Shettima in a chat with Daily Trust said he was not surprised with the figure, insisting the North is not doing badly as it is being portrayed in the VAT war.

He said, “We are not good at talking too much. We are more real and more practical. If there is any region who believes more in Nigeria is the Northern part of this country that believes we must work together.

“When Wike started the issue, some of us were shocked. The man who believes he wants to be a national leader, a nationalist, came up with that idea, making it as if he is fighting the North. Some of us took his pronouncements at that time very personal because the way he presented it was funny.

“The truth of the matter is that we must try as much as possible to discourage what will disunite us. Let us promote things that would unite us. Together, we can do better.

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“There is no region in this country that has nothing to bring to the table. But because you have a system that encourages people to only eye the oil and as a result of this out of 1001 things we have on the ground in terms of mineral resources, today we are receiving a lot of abuses and insults from people. We could have done better if we were running a regional system of government where all regions will go back and harness their resources, then pay 13 percent to the centre. These arrogances and abuses on our sensibilities as a nation would not come to play anymore,” he said.

States will bear the brunt of decentralised collection – Experts

Fiscal Policy Partner and Africa Tax Leader at the PriceWaterCoopers (PwC), Taiwo Oyedele said if the right to collect VAT is given to states, “the biggest losers will be the states except for Lagos. A few states like Kano, Rivers, Oyo, Kaduna, Delta and Katsina may experience minimal impact, while at least 30 states, which account for less than 20 percent of VAT collection will suffer significant revenue decline.

“The federal government may be better off given that FCT generates the second-highest VAT (after Lagos) in addition to import and non-import foreign VAT,” he said.

Commenting, Ogbeide E. Benjamin, a tax expert and former chairman, Chartered Institute of Taxation of Nigeria (CITN), Abuja Chapter, said, “The impact of this judgment on the finances of the states will be enormous.”

According to him, “VAT is consumption-based and on several items, some of which are outlawed in some states. I believe the country stands to profit by allowing states to administer VAT. By this, states will be further encouraged to scale up their economic drive to attract more foreign direct investments and local investments since they will be the ones to get the VAT benefits.”

Daily Trust

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OMAA Unveils Three CNG, Electric Buses, Offers 48-Month Vehicle Finance

Published

5 minutes ago

October 15, 2026

Trends Admin

OMAA Unveils Three CNG, Electric Buses, Offers 48-Month Vehicle Finance

…Introduces ₦890,000 monthly payment plan as Nigerian mobility firm marks sixth anniversary

Nigerian vehicle and energy company, OMAA, has unveiled three passenger vehicle models in compressed natural gas (CNG) and battery-electric variants, alongside a financing scheme offering repayment periods of up to 48 months to help transport operators and corporate organisations expand their fleets.

The new models — OMAA U3 minibus, K7 bus and V12 high-capacity city bus — are designed to serve different segments of the passenger transport market, from urban shuttles and institutional transport to large-scale mass transit operations.

The announcement, which coincides with the company’s sixth anniversary, also marks the introduction of OMAA Finance, a programme developed in partnership with Nigerian financial institutions to ease the burden of upfront vehicle acquisition costs.

Under the scheme, advertised monthly payments start from ₦890,000 for the OMAA U3 minibus, with an initial deposit of 10%. Financing terms, however, will depend on eligibility requirements, repayment tenure and the customer’s equity contribution.

The company has also opened pre-orders for the three models, giving prospective buyers the option of choosing between CNG and battery-electric powertrains according to their routes, operating costs and access to the necessary energy infrastructure.

Speaking on the development, OMAA’s Managing Director, Chinedu Oguegbu, said the launch reflected the company’s commitment to local automotive manufacturing and the expansion of cleaner, more affordable transport solutions.

“Six years ago, we set out to demonstrate that commercial vehicles could be assembled in Nigeria and powered by cleaner, more affordable energy. Today, the introduction of the OMAA U3, K7 and V12 in both CNG and electric variants, alongside our vehicle financing programme, represents another significant step towards that vision,” Oguegbu said.

He explained that the company’s objective extended beyond supplying vehicles to helping operators manage running costs, access after-sales support and build sustainable transport businesses.

“By combining locally supported servicing, parts availability and structured financing, we are creating opportunities for schools, hospitals, corporate organisations and mass transit operators to expand their fleets with greater confidence,” he added.

Three models target different market segments

The new lineup covers a broad range of passenger transportation needs.

The OMAA U3 is a 12-to-15-seater minibus designed for urban and intercity transport operators, institutional shuttle services and businesses requiring compact passenger vehicles.

The K7, with a capacity of 23 to 30 passengers, targets staff transportation, school bus services, corporate fleets and medium-capacity passenger routes.

The V12, the largest of the three models, is configured to accommodate between 43 and 70 passengers. It is designed for mass transit operators and businesses serving routes with high passenger demand.

All three models are offered in CNG and battery-electric configurations, allowing fleet owners to evaluate alternative powertrains based on fuel or electricity costs, vehicle utilisation, maintenance requirements and access to refuelling or charging facilities.

The dual-powertrain strategy comes as transport operators increasingly explore ways to manage energy expenses and improve the economics of commercial vehicle operations.

Special-purpose vehicles broaden applications

Beyond passenger buses, OMAA is offering special-purpose vehicle configurations based on the same platforms.

The options include cargo vans, ambulances, VIP transport vehicles and airport shuttles, extending the potential applications of the company’s vehicle range to logistics, healthcare, corporate mobility and airport transportation.

The use of common vehicle platforms could also help fleet owners streamline maintenance, spare-parts management and technical training, particularly where organisations operate different vehicle configurations.

Finance scheme targets high acquisition costs

OMAA Finance is a central component of the company’s strategy to lower the barriers to commercial vehicle ownership.

By spreading acquisition costs over repayment periods of up to four years, the programme is intended to help operators preserve working capital while expanding or renewing their fleets.

The advertised starting monthly payment of ₦890,000 for the U3, subject to a 10% initial deposit, provides an entry point for prospective buyers. The actual cost of financing will depend on the applicable terms, including the vehicle price, deposit, interest and other charges, where applicable.

The company is also promoting a total cost of ownership (TCO) approach, which considers not only the purchase price but also energy consumption, servicing, spare parts and other expenses incurred throughout a vehicle’s operating life.

According to OMAA, the combination of structured financing, local servicing support and spare-parts availability is intended to help customers plan operating expenses and make more informed fleet investment decisions.

However, the potential savings will vary according to the vehicle selected, financing conditions, energy prices, mileage, maintenance costs and the availability of suitable CNG refuelling or electric charging infrastructure.

Six years of operations

Headquartered in Umunya, Anambra State, with offices in Lagos, Abuja and Accra, OMAA operates in Nigeria and Ghana, serving fleet operators, institutions and businesses.

The latest launch builds on the company’s six-year operating history and its efforts to combine local vehicle assembly, alternative energy solutions and financing options in the commercial mobility market.

For transport operators contending with rising operating expenses and the high cost of fleet expansion, the new models and financing arrangements offer additional options for acquiring passenger vehicles.

The initiative’s long-term impact, however, will depend on the vehicles’ performance under local operating conditions, the accessibility and affordability of financing, reliable after-sales support and the availability of the infrastructure required to sustain CNG and electric mobility.

With the latest unveiling, OMAA is seeking to position itself beyond vehicle supply, offering an integrated commercial mobility proposition that combines vehicle acquisition, alternative energy choices, maintenance support and financing.

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FG Moves to Expand CNG Vehicle Production, Targets Cheaper Transport Fares

Published

1 day ago

October 14, 2026

Trends Admin

FG Moves to Expand CNG Vehicle Production, Targets Cheaper Transport Fares

The Federal Government has stepped up efforts to strengthen Nigeria’s automotive industry and promote more affordable transportation through collaboration with local vehicle manufacturers, following visits to two manufacturing facilities in Anambra State.

Board members of the National Automotive Design and Development Council (NADDC) inspected the facilities of Innoson Vehicle Manufacturing (IVM) in Nnewi and Kojo Motors Auto Assembly in Umunya to assess their production capacity, identify operational challenges and explore ways to support indigenous manufacturers.

The visit comes amid the Federal Government’s drive to expand the use of compressed natural gas (CNG) and electric vehicles as alternatives to petrol-powered transportation, with the aim of reducing operating costs and making public transport more affordable.

The manufacturers welcomed the government’s new policy directing ministries, departments and agencies (MDAs) to patronise locally manufactured vehicles, saying it could increase demand for their products and strengthen domestic production.

Secretary to the Government of the Federation, George Akume, had issued a circular directing government establishments to purchase vehicles from local manufacturers.

Managing Director of Innoson Vehicle Manufacturing, Chief Innocent Chukwuma, said he was encouraged by the government’s emphasis on CNG, describing the fuel as an important option for sustaining Nigeria’s automotive industry amid rising petrol and diesel costs.

Chukwuma disclosed that the company had dedicated its newest large-scale facility to producing CNG-powered trucks and electric vehicles.

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He said wider adoption of CNG could help lower transportation and operating costs while supporting local industrial growth and creating employment opportunities.

The industrialist also called for stronger backward integration in the automotive sector, arguing that manufacturers should focus on producing components that Nigeria has the capacity to manufacture competitively.

At the Umunya facility, the executive director of Kojo Motors, Chinedu Oguegbo, said the company was concentrating on commercial vehicles designed for Nigeria’s transport needs.

He said the company had begun benefiting from the government’s local vehicle procurement policy but had faced challenges arising from the sharp depreciation of the naira and exchange-rate fluctuations.

Oguegbo added that the company was developing its natural gas facility, which he expected to become operational in the future. He also expressed optimism that the company’s Omma Bus brand could eventually be exported to international markets.

NADDC Director-General Oluwemimo Joseph said the inspection was intended to give the council first-hand knowledge of the challenges confronting local vehicle manufacturers.

He explained that the council was reviewing existing policies and working on proposed legislation to improve the operating environment for the industry.

According to him, information gathered during the visits would help the council develop measures to address manufacturers’ concerns and identify vehicle components that could be produced locally.

Joseph said Nigeria had numerous small and medium-sized enterprises capable of supplying components to the automotive industry, adding that stronger partnerships could create new business opportunities and reduce dependence on imported parts.

He also acknowledged concerns about the effect of imported used vehicles on local manufacturers, noting that the council was considering measures to address the competitive disadvantages faced by domestic producers.

NADDC Chairman, Chief Emma Eneukwu, said the council was advocating legislation to protect local vehicle manufacturers from the influx of imported used cars.

He argued that local producers needed a more supportive policy environment to compete effectively and expand production.

The Federal Government’s broader CNG and electric mobility programme is designed to reduce transport costs by encouraging the deployment of vehicles powered by alternative energy sources. However, the impact on passenger fares will depend on the availability of vehicles, refuelling infrastructure, operating costs and the extent to which transport operators pass savings on to commuters.

The Anambra visits form part of efforts to strengthen local manufacturing, encourage investment and improve the availability of vehicles for Nigeria’s public transportation system. While the collaboration could support cheaper transport over time, the visits did not announce a specific new fare reduction or implementation timetable.

FG Moves to Expand CNG Vehicle Production, Targets Cheaper Transport Fares

Business

NNPC Petrol Discount: Motorists Must Download App to Save ₦66 Per Litre

Published

5 days ago

October 10, 2026

Trends Admin

NNPC Petrol Discount: Motorists Must Download App to Save ₦66 Per Litre

The Nigerian National Petroleum Company Limited (NNPC) has made access to its ₦66-per-litre petrol discount conditional on customers downloading its mobile application and paying digitally, meaning motorists who pay directly at the pump may have to pay the higher displayed price.

Checks at NNPC retail outlets in Abuja showed that petrol was selling for ₦1,405 per litre for customers paying directly at the pump, while motorists using the company’s mobile application paid ₦1,339 per litre, according to a report by Saturday PUNCH published on October 10, 2026.

The difference of ₦66 per litre means motorists must complete the required digital payment process to benefit from the discount. The price reduction is not automatically applied to customers paying directly at the pump.

A fuel attendant at the NNPC mega station along Obasanjo Way in Abuja reportedly confirmed that customers had to download the application and pay through it to qualify for the lower price. Similar arrangements were observed at other NNPC outlets in the Federal Capital Territory.

The payment condition has raised questions about access to the relief initiative, particularly for motorists who prefer cash transactions or do not have smartphones, reliable internet access or experience using mobile payment applications.

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NNPC introduced the petrol discount on October 1, 2026, as part of activities marking Nigeria’s 66th Independence Anniversary. The company subsequently announced that the offer would continue until October 31, 2026, at its retail stations nationwide.

The company said the initiative was intended to provide temporary relief to households and businesses facing rising fuel costs amid increases in global crude oil prices linked to tensions and conflict in the Middle East.

The Federal Government also announced a 30-day relief measure under which NNPC Retail would forgo its retail profit margin and sell petrol at cost. Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, said the intervention was designed to cushion the impact of rising fuel prices on Nigerians, particularly vulnerable households and commercial transport operators.

NNPC has maintained that the discount is a temporary relief measure and does not represent a return to the petrol subsidy regime.

However, requiring motorists to use a mobile application to access the price reduction means that customers’ ability to benefit depends on their access to and use of the approved digital payment channel.

For commercial drivers and other frequent petrol buyers, the difference could add up over time. A motorist purchasing 20 litres, for example, would save ₦1,320 at the discounted rate compared with the higher price reported at the Abuja outlets.

The discount also carries a financial cost for NNPC. According to Saturday PUNCH, the company could forgo an estimated ₦4.62 billion in gross revenue if its average monthly petrol sales qualified for the reduction.

The observed prices in Abuja do not necessarily represent the pump price at every NNPC station nationwide, as retail prices may vary by location and prevailing supply conditions.

Motorists intending to benefit from the offer before its scheduled end on October 31 should confirm the payment requirements at participating NNPC stations and ensure they are using the company’s approved application.

The initiative comes as Nigerians continue to face pressure from petrol prices and the resulting effects on transport fares, food distribution, household expenses and business operating costs.