Wike Signs Anti-Open Grazing, VAT Collection And Other Laws

Rivers State Governor, Nyesom Wike, has signed into law bills on
Value Added Tax (VAT) collection, Open Grazing Prohibition in
Rivers State.

He has maintained that the judgement of the Federal High Court
sitting in Port Harcourt had sufficiently addressed the illegality
perpetrated by the Federal Inland Revenue Services (FIRS) on behalf
of the Federal Government in the collection of VAT in States.

The governor stated this at the Government House, Port Harcourt,
shortly after signing into law on Thursday, the Valued Added Tax
Law No. 4 of 2021; The Open Rearing and Grazing Prohibition Law No
5 of 2021; The Child’s Rights Amendment Law No 2 of 2021; The
Residents Registration Agency Law No 6 of 2021 and the Naming and
Renaming of Infrastructure Law No3 of 2021.

The signed bills were recently passed by the Rivers State House
of Assembly.

The State Governor pointed out that when agencies of the Federal
Government are allowed to illegally demand and collect taxes meant
for states to collect, they strangulate the States financially and
turn them to be beggars.

He said: “But, we (Rivers State) are standing on the part of
history as representatives of the state to have taken the bull by
the horn to challenge the illegality of the of the Federal
Government through the Federal inland Revenue Services (FIRS).

“Of course, we are all aware that the states have already been
strangulated. Most states depend on allocation from federation
account. States have been turned to beggars. Hardly will any day
pass that you won’t see one state or the other going to Abuja to
beg for one fund or the other.”

The governor said no campaign of calumny or blackmail on the
part of FIRS will make what is illegal to become legal.

He dismissed FIRS’ propaganda that 30 states would suffer, if
some states are allowed to collect VAT.

Governor Wike pointed out that the concerns should be on
establishing whose duty is it to collect VAT and the
constitutionality of such position before talking about who is
going to suffer or not.

“In this (Rivers) state, we awarded contract to companies and
within the last month we paid over N30 billion to the contractors
and 7.5 percent will now be deducted from that and to be given to
FIRS.

“Now, look at 7.5 percent of N30billion of contracts we awarded
to companies in Rivers State, you will be talking about almost N3
billion only from that source. Now, at the end of the month, Rivers
State government has never received more than N2 billion from VAT.
So, I have contributed more through the award of contract and you
are giving me less. What’s the justification for it.”

Speaking further, Governor Wike said there are plans already for
FIRS to introduce Road Tax and this is likely to take away more
duties from the States, and further emasculating them
financially.

“Which are the roads? Are they the roads the State government is
paying for or the roads Federal Government has constructed? So, at
the end of the day, they have taken over the functions of the State
government and the State is left with nothing.”

The governor remarked that the State have been so emasculated
that they could barely survive without monthly revenue received
from Federation Accounts Allocation Committee (FAAC).

Governor Wike stressed that the overbearing attitude of the
Federal Government, impinges on attaining financial autonomy for
the legislature and the judiciary, since the States are not allowed
to collect due revenues as specified by the country’s
constitution.

According to Governor Wike, with the Petroleum Industry Act
(PIA) passed and signed into law, there shall be unbundling of
NNPC, which means that NNPC remittance to the federation account
will be less, requiring every state to look inwards on how to
survive.

Governor Wike, while thanking the state lawmakers for their
courage to have given the bill speedy passage, assured that every
area that the law allows the state to collect revenue will be
maximised for the survival of the state.

Speaking on the Open Rearing and Grazing Prohibition law, No.5
of 2021, Governor Wike said it is inimical to development and
peace, for any state to condone opening grazing of cattle.

Governor Wike said cattle rearing is agricultural business and
the law, which has specified ranching, is so intended in order to
stem clash between herdsmen who go to destroy farmland, crops, and
having problems with farmers that lead to fighting and killing of
themselves.

“It is no longer a story. All of us know what our people have
suffered in terms of this open grazing. Today all Nigerians have
come to accept the reality that open grazing is no longer
fashionable. Even our brothers in the north have agreed that it is
no longer fashionable.”

On the Child’s Rights Amendment Law No 2 of 2021, Governor Wike
noted that with such law in place now, family courts can become
operational in the State.

Governor Wike said the Naming and Renaming of Infrastructure Law
No 3 of 2021 will promote the naming of public facilities after
prominent Rivers people.

The governor also said that with the Residents Registration
Agency Law No 6 of 2021, every resident in the State would be
registered, so that the State Government can know their status,
what they do and where they reside for purposes of security
planning.

On his part, the Speaker of the Rivers State House of Assembly,
Ikuinyi-Owaji Ibani said, described the collection of VAT by FIRS
as the worst form of retrogressive tax in any tax regime.

He commended the governor and the state government for
challenging the constitutionality of FIRS collection of VAT in
States. According to him, the signing of the VAT law will ensure
that Rivers’ people are not plunged into extreme poverty.

“I am tempered to believe that Nigeria, the world over, is the
only country professing federalism but with a unitary constitution.
Which is the very opposite of what federalism stands for.”

Speaking further, he said the law banning open grazing in Rivers
State will serve as both cure to the symptom and the disease of
herders and farmer bloody conflict.

He said lawmakers will continue to partner the executive in
providing requisite laws that will advance the state for the good
of posterity.

Leader of the Rivers State House of Assembly, Martins Amaewhule,
said lawmakers delineated and gave speedy passage to the bills
because of their relevance to the socioeconomic progress of the
State.

Rivers State Governor, Nyesom Wike, has signed into law bills on
Value Added Tax (VAT) collection, Open Grazing Prohibition in
Rivers State.

He has maintained that the judgement of the Federal High Court
sitting in Port Harcourt had sufficiently addressed the illegality
perpetrated by the Federal Inland Revenue Services (FIRS) on behalf
of the Federal Government in the collection of VAT in States.

The governor stated this at the Government House, Port Harcourt,
shortly after signing into law on Thursday, the Valued Added Tax
Law No. 4 of 2021; The Open Rearing and Grazing Prohibition Law No
5 of 2021; The Child’s Rights Amendment Law No 2 of 2021; The
Residents Registration Agency Law No 6 of 2021 and the Naming and
Renaming of Infrastructure Law No3 of 2021.

The signed bills were recently passed by the Rivers State House
of Assembly.

The State Governor pointed out that when agencies of the Federal
Government are allowed to illegally demand and collect taxes meant
for states to collect, they strangulate the States financially and
turn them to be beggars.

He said: “But, we (Rivers State) are standing on the part of
history as representatives of the state to have taken the bull by
the horn to challenge the illegality of the of the Federal
Government through the Federal inland Revenue Services (FIRS).

“Of course, we are all aware that the states have already been
strangulated. Most states depend on allocation from federation
account. States have been turned to beggars. Hardly will any day
pass that you won’t see one state or the other going to Abuja to
beg for one fund or the other.”

The governor said no campaign of calumny or blackmail on the
part of FIRS will make what is illegal to become legal.

He dismissed FIRS’ propaganda that 30 states would suffer, if
some states are allowed to collect VAT.

Governor Wike pointed out that the concerns should be on
establishing whose duty is it to collect VAT and the
constitutionality of such position before talking about who is
going to suffer or not.

“In this (Rivers) state, we awarded contract to companies and
within the last month we paid over N30 billion to the contractors
and 7.5 percent will now be deducted from that and to be given to
FIRS.

“Now, look at 7.5 percent of N30billion of contracts we awarded
to companies in Rivers State, you will be talking about almost N3
billion only from that source. Now, at the end of the month, Rivers
State government has never received more than N2 billion from VAT.
So, I have contributed more through the award of contract and you
are giving me less. What’s the justification for it.”

Speaking further, Governor Wike said there are plans already for
FIRS to introduce Road Tax and this is likely to take away more
duties from the States, and further emasculating them
financially.

“Which are the roads? Are they the roads the State government is
paying for or the roads Federal Government has constructed? So, at
the end of the day, they have taken over the functions of the State
government and the State is left with nothing.”

The governor remarked that the State have been so emasculated
that they could barely survive without monthly revenue received
from Federation Accounts Allocation Committee (FAAC).

Governor Wike stressed that the overbearing attitude of the
Federal Government, impinges on attaining financial autonomy for
the legislature and the judiciary, since the States are not allowed
to collect due revenues as specified by the country’s
constitution.

According to Governor Wike, with the Petroleum Industry Act
(PIA) passed and signed into law, there shall be unbundling of
NNPC, which means that NNPC remittance to the federation account
will be less, requiring every state to look inwards on how to
survive.

Governor Wike, while thanking the state lawmakers for their
courage to have given the bill speedy passage, assured that every
area that the law allows the state to collect revenue will be
maximised for the survival of the state.

Speaking on the Open Rearing and Grazing Prohibition law, No.5
of 2021, Governor Wike said it is inimical to development and
peace, for any state to condone opening grazing of cattle.

Governor Wike said cattle rearing is agricultural business and
the law, which has specified ranching, is so intended in order to
stem clash between herdsmen who go to destroy farmland, crops, and
having problems with farmers that lead to fighting and killing of
themselves.

“It is no longer a story. All of us know what our people have
suffered in terms of this open grazing. Today all Nigerians have
come to accept the reality that open grazing is no longer
fashionable. Even our brothers in the north have agreed that it is
no longer fashionable.”

On the Child’s Rights Amendment Law No 2 of 2021, Governor Wike
noted that with such law in place now, family courts can become
operational in the State.

Governor Wike said the Naming and Renaming of Infrastructure Law
No 3 of 2021 will promote the naming of public facilities after
prominent Rivers people.

The governor also said that with the Residents Registration
Agency Law No 6 of 2021, every resident in the State would be
registered, so that the State Government can know their status,
what they do and where they reside for purposes of security
planning.

On his part, the Speaker of the Rivers State House of Assembly,
Ikuinyi-Owaji Ibani said, described the collection of VAT by FIRS
as the worst form of retrogressive tax in any tax regime.

He commended the governor and the state government for
challenging the constitutionality of FIRS collection of VAT in
States. According to him, the signing of the VAT law will ensure
that Rivers’ people are not plunged into extreme poverty.

“I am tempered to believe that Nigeria, the world over, is the
only country professing federalism but with a unitary constitution.
Which is the very opposite of what federalism stands for.”

Speaking further, he said the law banning open grazing in Rivers
State will serve as both cure to the symptom and the disease of
herders and farmer bloody conflict.

He said lawmakers will continue to partner the executive in
providing requisite laws that will advance the state for the good
of posterity.

Leader of the Rivers State House of Assembly, Martins Amaewhule,
said lawmakers delineated and gave speedy passage to the bills
because of their relevance to the socioeconomic progress of the
State.