The VAT saga, Wike reveals the bitter truth

PORT HARCOURT, Rivers, Nigeria – The Rivers State Governor,  Mr. Nyesom Wike has explained the reason he took the Federal Inland Revenue Service, FIRS to court over Value Added Tax, VAT collected in the  state.

Wike who was addressing residents of Rivers State in a well televised meeting disclosed that for the month of June 2021,  a total of N15. 7 billion was generated and contributed to Federal Government but Rivers State received only N4. 7 billion as its own share of VAT.  

Wike explained that the total VAT collected includes the contracts awarded in Rivers State. According to him, the explanation made  for the remaining money was that it was due to the  high cost of deploying software in the system.

“ It is total fraud. I am paying the contractors and deducting VAT. Stop that software, we don’t need it again”, he said, adding that the issue transcends politics. “it is the issue of infraction on the constitution. Allow the states to be creative to use laws and functions provided in the constitutions. The powers are in the constitution but the FG does not allow us –  all they want us to do is to come and beg every day and I said I will not come and beg”, he said.

Kano State, he continued generated N2.8 billion VAT and received N2.8 billion as it own share from the Federal Government.  Lagos on the other hand, he said generated  N46.7 billion which it paid through FIRS to the Federal Government but only received N9.3 billion  as its own share of VAT.

“So, where is the justice. I will not be governors for forever, the  highest time I will spend in office is May 29, 2023.  It is not about me but it is about the system, let the right thing be done and that will give the states the opportunity to develop”, Wike pleaded, adding that it does not make sense to believe what is happening.

“ Nigerians must hear it. No man can die two times, it is only once, only Christ died and resurrected. I cannot participate in it. They said don’t do our Federal roads again, if I don’t do it who will suffer, it is my people. Some of these things cannot be defended. I will stand by the truth no matter how bitter.  Nobody can come after me. If you come after me, the greater person will come after you”, he said.

Wike added,  “from this September we must collect all our VATs.  I will seal off their premises, I will shut them down on this VAT issue. It has nothing do with police, we have our security outfit.  If you say go to court, we have gone to court. It is now your turn to go to court. Even if they appeal,  it is until they brought  court orders stopping us.  They said pay back what you collected before.  All the ones they have taken before. So, we are appealing that they should pay us back all what they have collected. All those states that are loyal should wait”, he said, stressing that the states don’t perform because the Federal Government has turned the states into beggars.

“There is no state that cannot stand on its own, just the opportunity to harness the potentials s you have.  The Federal government has collected all things. They have gone to the states to say don’t agree, because people will suffer.  But If you allow this law to succeed we will survive and I will turn this state around.  Abuja cannot solve your problem”, he insisted.

Wike told the gathering that he will circulate the Rivers State Value Added Tax Law and that very soon the state Electronic Tax Law will be passed.  “ We are asking God to reduce this people who have so much muscles. Reduce their muscles whether in the day or in the night”, he pleaded, adding that Rivers State will apply sanctions if any corporate entity fails to comply with the  law.