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Northern govs reject proposed model for VAT distribution

Published

1 year ago

October 29, 2024

Northern govs reject proposed model for VAT distribution

The Northern Governors Forum chaired by Gombe state Governor has rejected the derivation-based model for Value Added tax (VAT) distribution in the new tax bill currently in the National Assembly for deliberation.

In a communique signed by the Chairman of the Forum, Muhammed Inuwa Yahaya, Governor of Gombe state after the meeting between the elders and Governors of the Northern states, the forum frowned at the proposition stating it is against the interest of the North and other sub-nationals.

The forum called on members of the National Assembly to oppose the legislation and any other that jeopardise the interest of the people of the North.

It states, “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 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 National Assembly to oppose any bill that can jeopardise the well-being of our people.”

The new tax bill currently on the floor of the National Assembly proposed a derivation principle in the distribution of VAT accruals between the federal government and subnationals.

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VAT distribution formular in Nigeria

Currently, according to Section 40 of the VAT Act, revenue is allocated as follows: 15% to the Federal Government, 50% to the States and FCT, and 35% to Local Governments. The distribution to states and local governments reflects a derivation principle of at least 20%.

Although not explicitly outlined in the VAT Act, other factors influencing the distribution include 50% based on equality and 30% based on population. Additionally, a 4% collection fee is allocated to the FIRS, and 2% to the NCS for import VAT.

States dissatisfaction with current VAT distribution formular and issues arising

Some states mostly in the South have expressed dissatisfaction with the current VAT distribution formular noting that they do not get their fair share.

In 2021, the Rivers state sued the Federal Inland Revenue Service (FIRS) to the federal high court in Port Harcourt where it got judgement in its favour stating that the Rivers state government is entitled to collect VAT in Rivers state.

The judgment implied that each state would be responsible for administering VAT within its territory. Consequently, the FIRS would oversee VAT administration in the FCT and on non-import foreign transactions, while the Nigeria Customs Service would continue collecting import VAT on international trade.
The FIRS successfully appealed the judgement of the Port Harcourt high court in the appeal court.

Northern govs reject proposed model for VAT distribution

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Social Media Star Peller Arrested in Lagos for Live-Streamed Car Crash

Published

3 hours ago

December 17, 2025

Trends Admin

Nigerian TikTok star Peller

Social Media Star Peller Arrested in Lagos for Live-Streamed Car Crash

The Lagos State Police Command has arrested popular social media influencer Habeeb Hamzat, known as Peller, following a viral video showing him driving recklessly and crashing his vehicle during a live-stream.

According to a statement by the Police Public Relations Officer, SP Abimbola Adebisi, the arrest comes after public outrage over the dangerous road crash, which occurred on Sunday, December 14, 2025. The police described Peller’s actions as life-threatening, endangering both himself and other road users.

“The Lagos State Police Command has arrested and detained Habeeb Hamzat aka ‘PELLER’ for further investigation, following the viral video in which he was seen driving recklessly, resulting in a dangerous accident while live-streaming,” the statement partly read.

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The incident is now under investigation by the State Criminal Investigation Department (SCID), with the outcome to be made public. The suspect is expected to face charges in a court of competent jurisdiction.

Commissioner of Police, Lagos State, CP Olohundare Jimoh, warned social media influencers and members of the public against using online platforms to engage in reckless or unlawful behaviour. “Such lawlessness will not be tolerated, and the full weight of the law will be applied on any offender,” he stated.

The crash has reignited debate over the rising trend of risky stunts by content creators, with many Nigerians calling for stricter enforcement to curb similar incidents.

Authorities continue to emphasize road safety, urging all drivers to comply with traffic regulations and warning that anyone endangering lives on the state’s roads, regardless of social status or online influence, will face prosecution.

This latest incident highlights the urgent need for responsible social media usage, public safety awareness, and stronger law enforcement against dangerous behaviour on Nigerian roads.

Social Media Star Peller Arrested in Lagos for Live-Streamed Car Crash

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Femi Falana Demands Arrest of Soldiers, 400 Terror Financiers Shielded Under Previous Administration

Published

3 hours ago

December 17, 2025

Trends Admin

Human rights lawyer and Senior Advocate of Nigeria (SAN), Femi Falana

Femi Falana Demands Arrest of Soldiers, 400 Terror Financiers Shielded Under Previous Administration

LAGOS — Prominent human rights lawyer, Mr Femi Falana, SAN, has petitioned the Attorney-General of the Federation and Minister of Justice, Prince Lateef Fagbemi, SAN, demanding the immediate arrest and prosecution of 10 soldiers accused of killing three police officers in Taraba State, as well as 400 alleged terrorism financiers whose cases were reportedly abandoned under the previous administration.

In his petition, Falana accused former AGF Abubakar Malami, SAN, of deliberately shielding the suspects from justice despite “overwhelming evidence.” Copies of the petition were also sent to the National Security Adviser, Mallam Nuhu Ribadu.

“The withdrawal of terrorism charges against these soldiers and the failure to prosecute hundreds of terror financiers amount to a grave abuse of prosecutorial powers and a betrayal of public trust,” Falana said.

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Falana recalled that in August 2019, 10 soldiers led by an Army Captain ambushed and killed three police officers in Jalingo, Taraba State, after they had arrested notorious kidnapper Bala Hamisu, also known as Wadume. Although the soldiers were initially charged with terrorism offences at the Federal High Court, Abuja, the case was abruptly terminated after Malami entered a nolle prosequi, which Falana described as unconstitutional.

He noted that while the United Arab Emirates convicted six Nigerians for financing Boko Haram—two sentenced to life imprisonment and four jailed for 10 years—Nigerian authorities failed to bring a single financier to justice.

Falana accused Malami of failing to prosecute the 400 suspected terrorism financiers arrested after investigations by the Nigerian Financial Intelligence Unit (NFIU) and Department of State Services (DSS), despite assurances that trials would commence after a judicial workers’ strike.

“The case files of these suspected financiers are reportedly still in the Office of the Attorney-General, while many of the suspects have regained their freedom. Nigeria cannot win the war against terrorism while protecting those who finance and execute it. The era of impunity must end,” Falana added.

Femi Falana Demands Arrest of Soldiers, 400 Terror Financiers Shielded Under Previous Administration

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Updated: Nationwide Electricity faces threat as Gas Companies Cut Supplies

Published

4 hours ago

December 17, 2025

Trends Admin

Updated: Nationwide Electricity faces threat as Gas Companies Cut Supplies

Nigerians may experience power shortages this Yuletide as gas-to-power debt issues disrupt electricity generation across the country.

Gas companies have begun cutting supplies to thermal power plants over unpaid debts, forcing electricity distribution companies (DisCos) to reduce daily power supply.

On Tuesday, the Enugu Electricity Distribution Company (EEDC) informed customers across the South-East that low system frequency, caused by gas supply constraints, had necessitated load shedding by the Transmission Company of Nigeria (TCN). EEDC subsidiaries affected include MainPower, TransPower, FirstPower, NewEra, and EastLand.

Similarly, the Port Harcourt Electricity Distribution Company confirmed that poor generation and allocation from generation companies (GenCos) were causing load shedding in its franchise areas.

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The Association of Power Generation Companies (APGC) confirmed that gas producers had started cutting supply due to outstanding debts owed by the government, despite a recent approval of N185 billion by the Federal Government for payment of arrears to gas suppliers, announced on December 4, 2025, by Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo.

The Nigerian Independent System Operator (NISO) further disclosed that gas pipeline vandalism in the upstream network has worsened the situation, causing reduced output from gas-fired power plants and a decline in national grid generation capacity. Emergency measures, including increased hydroelectric dispatch and voltage control interventions, have been activated to maintain system stability.

With over 80 per cent of grid-connected power plants relying on natural gas, the sector remains highly vulnerable to gas supply disruptions, raising fears of sustained power outages during the festive season unless liquidity issues and infrastructure vulnerabilities are urgently addressed.

The current development signals a critical need for government intervention, stakeholder coordination, and investment in gas infrastructure to prevent widespread electricity shortages across Nigeria.