Governor Nyesom Ezenwon Wike is not your regular run-off-the-mill political leader. He has a touch of bohemian aloofness mixed with a dose of radicalism in his DNA and that strikes you from a distance.
You are not unlikely to consider him unrefined, perhaps even dedecorous, obtrusive and precocious. But all that is a facade. He is much more. Behind that garrulous mien is an erudite learned lawyer. Take it or leave it, Gov. Wike could be blunt to a fault when in his elements. He does not give in to the niceties of political diplomacy. He confronts his foes with the aggression of a pugilist. He says it in your face, the way it is irrespective of whose ox is gored.
A few months ago, Governor Wike stirred the hornet's nest by charting a new course in our collective demand for fiscal federalism. And by default the twin call for restructuring of the political economy of the country.
In his characteristic manner, Wike dragged the Federal Inland Revenue Service (FIRS) to the Federal High Court in Port Harcourt with the aim of stopping the agency from collecting the Value Added Tax (VAT) in his domain. Don't forget, FIRS has been saddled with the responsibility of collecting VAT, a consumption tax initiated by Military President Ibrahim Badamasi Babangida in 1983 when the VAT Decree was promulgated.
It is important to also note that VAT was first articulated by the government of France as a measure to raise critical funds for developmental purposes. Today, VAT is a common phenomenon all over the world. It is a charge on consumption of goods. While other countries use the funds for capital projects, we expend ours on lifestyle consumption.
Judgement was however, given in favour of the plaintiff, the Attorney General of Rivers State. Dissatisfied with the ruling of the lower court, the FIRS appealled the matter. The court of appeal in a swift reaction unanimously upturned the decision of the high court. The appellate court enjoined the parties to maintain status quo ante bellium. And nothing more. Unsure of the precise interpretation of the ruling, Gov, Wike approached the apex court court for a declarative decision on the matter.
Incidetally, the Supreme Court is yet to give a final verdict on the issue. No matter which way the pendulum swings the decision is likely to affect the fundamentals of the agitation for "true" federalism.
While, the nation awaits the position of the apex court, the ruckus generated by the Governor's action has continued to inflame passions across regional and religious divides. The southern governors are beginning to call for decentralisation of the VAT regime since it is clearly a matter within the purview of the Concurrent Legislative List. Hence, it is conspicuously absent on the Exclusive List.
Unfortunately, Mr. Abubakar Malami, the Attorney General of the Federation would not hear of this. For him, the federal government is better placed to collect and distribute same through the collective pool. In the same vein, the northern governors also share in this sentiment. The claim, it is unconstitutional to decentralise the collection process. How do you say something is unconstitutional when it is not contained in a subsisting law which may be at variance with the provisions of the grundnorm? Of course their fear is quite understandable. Given the fact that very little business activities are going on in most parts of the north due in part to the insurgency and the banditry there.
Only Kano State may be an exception as production activies are still thriving in the state. Be that as it may, for how long do we rob Paul to pay Peter? The federal government is playing the role of father Christmas here. It takes revenue generated from the rich states in the form of subvention or lifeline to sustain the poorer states both in the north and south. How long shall we spoon feed the poorer states? The realities of the times demand that every state must fend for themselves, ultimately.
One nagging question that begs for answer is: why share VAT revenue, largely derived from alcohol consumption and other consumables in the south with those who forbid alcohol to be sold or consumed in their states? It does not make economic sense to do so moreso, alcohol is said to be Haram. The revenue so derived is equally abominable.
There is no constitutional grounds for FIRS to collect the value added tax under whatever guise. The wide hands of the federal government have been shackled owing to items 58 and 59 which restricts it's powers to taxation of incomes, profits, and capital gains. This obviously does not include VAT or any other species of sales or levy other than those captured in items 58 and 59 in the Exclusive Legislative List of the 1999 constitution as amended. The only window open to the government is to initiate moves for the amendment of the constitution. Unless the constitution is amended to accommodate VAT in the Exclusive Legislative List, FIRS has no iota of right to indulge in the collection of the VAT. The act will amount to illegality. And the consequencies may be grave for the nation.
For too long the agency got away with blue murder, and largely unchallenged. But now, the states are no longer ready to turn blind eyes especially in the face of the monumental injustice, lack of fairness and equity in the management and distribution of the wealth of the nation. We are equal stakeholders in the Nigeria project, therefore every part of the country should be treated equally.
It gladdens the heart to note that Lagos and Rivers States have enacted laws mandating the administration of VAT matters in both states. Sooner than later other states may also join the fray. This, if you will, shall be beginning of a new of new dawn in the clamour for true federalism. By the way, lagos State has enacted a law prohibiting EFCC from meddling in its affairs. The implication of this law is that EFCC will no longer harass or arrest its state officials. By this step, we are already setting in motion the process of redefining the specie of our federalism.
What we practice here is a corruption of federalism and i must say is an aberration. It has no place in the lexicon of global political philosophy. No where in the world, does the component units in a federation go cap in hand every now and again to the central government for handouts. It's unheard of except in Nigeria. If we must pitch our tent with federalism, then we have no option than to jettison the toga of unitary system of government. There is no room for any form of hybrid system of government.
Having said that, our northern brothers must wake up from their slumber. They must put on their thinking caps now. Afterall, there is no more free launch anywhere not even in Freetown.
It is my sincere hope and prayer that the federal government will not medle with the course of justice as the Supreme Court is at the verge of making a landmark judgement that will shake the foundation of our union. Head or tail, Gov. Wike has shown leadership. He has opened a new chapter and a new vista in our journey to maturity and democratic splendour. The ball is now in our court. We need to line-up behind the torch bearer of the moment, who is treading on an unbeaten path.
This is my stand.
Thomas Ebikabowei Peretu
A social commentator and political analyst