‘It negates the constitution’ Northern governors reject president rotation principle, faults state government decision on VAT

Governors of Nigeria’s northern states have rejected the principle of rotational presidency, saying it is against the constitution of the country.

The governors also opposed the position of their southern counterparts on value added tax (VAT).

They made the statement during a meeting of the Northern Governors’ Forum (NGF) in Kaduna.

Plateau State Governor Simon Lalong, the forum’s chairman, released a statement on the meeting’s result.

“Some Northern State Governors have previously voiced ideas for a power shift to the three geopolitical zones in the South in order to promote unity and harmony in the country,” he added.

“Despite their statements, the Forum unanimously condemns the Southern Governors Forum’s assertion that the presidency must be returned to the South.

“The statement is quite contradictory with the provision of the Constitution of the Federal Republic of Nigeria (1999) as amended that the elected President shall:- score the majority votes; score at least 25% of the votes cast in 2/3 States of the Federation.

“In the case of run-up, simple majority wins the election,” the statement said.

The governors also deliberated on the controversy on the collection of Value Added Tax (VAT) on which Lagos and Rivers States have made laws.

“As responsible leaders, while we are constraint by the fact that the matter is subjudice, we however for the purposes of educating the public make the following observations:

“The judgement of the Federal high Court calls to question the constitutionality of VAT, withholding tax, education tax, Niger Delta Development Commission, National Information Technology Development Agency, 13% derivation, National Economic Development Council and many other currently levied and collected by the Federal Government of Nigeria, Federal Inlands Revenue Service.

“Rivers and Lagos State Governments had enacted their own VAT laws and the Southern Governors Forum have expressed support for this course of action;

“VAT is being confused by these State Government as a sales tax. If every state enacted its own VAT Law, multiple taxation will result in increases of prices of goods and services and collapsed in interstate trade. VAT is not a production tax like excise, but terminal tax which is paid by the ultimate consumer;

“Another confusion is ignoring observation above and its ‘overall effect’. The reason Lagos account for our 50% VAT collection is because most of the telecommunication companies, banks, manufacturing and other trading activities have their headquarters in Lagos with the resultant and wrongful attribution of VAT

“Until and unless the Supreme Court pronounces judgement on the substantive matter between Rivers State and Federal Government, the matter is subjudice and Northern States Governors Forum would respect this,” the statement said.

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