Nasarawa State Governor, Abdullahi Sule, has explained that governors under the Northern Governors Forum (NGF) are against the proposed Value Added Tax (VAT) bill, citing concerns that it would disadvantage the northern region.
Speaking on Politics Today, a Channels TV programme, Governor Sule clarified that the opposition to the bill is not a move against President Bola Tinubu, emphasizing that the governors had played a key role in bringing him to power.
“We can’t bring in President Tinubu and then oppose him,” Sule said. “If you look at the composition of the meeting, you will see people from the APC, PDP, and even individuals without political affiliations. We sat down and took the decision together.”
During a recent NGF meeting, chaired by Gombe State Governor Inuwa Yahaya, the governors unanimously rejected the proposed VAT distribution model, which is based on derivation principles. They expressed concern that the approach, currently under consideration in the National Assembly, would negatively affect states with low VAT generation.
Sule elaborated, “If you look at the law, it will be unfair to the north. By the time you take something out of the Federation Account (FAC) allocation and implement a similar model—like the 13% derivation—it will leave states with low VAT revenues at a disadvantage.”
He further explained that the majority of the 19 northern states generate minimal VAT compared to other regions, making the bill problematic for their economies.
“It’s very clear,” Sule continued. “I worked for some of these multinationals. I know how VAT is paid. When we were importing raw materials at Dangote’s Apapa port, we paid VAT upfront, and the finished product also had VAT added to it.”
