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Northern Governors Oppose VAT Bill, Call It Unfair to Northern States

Governor Abdullahi Sule of Nasarawa State has stated that the 19 governors under the Northern Governors Forum (NGF) oppose the proposed Value Added Tax (VAT) bill, arguing that it disproportionately disadvantages northern states. Speaking on Channels TV’s Politics Today, Sule emphasized that the NGF, chaired by Gombe State Governor Inuwa Yahaya, had collectively rejected the derivation-based VAT model currently under review in the National Assembly.

Explaining the opposition, Sule noted that a VAT distribution model based on derivation would leave northern states, which generate relatively low VAT revenue, with a reduced share of federal allocations. “If the VAT system changes, northern states will bear the brunt,” he said, adding that this distribution method would be similar to the 13% oil derivation model, favoring states with higher VAT collections.

Sule also clarified that the NGF’s position is not intended to oppose President Bola Ahmed Tinubu, stating, “We supported bringing President Tinubu into office. This decision reflects the collective stance of all NGF members, regardless of party affiliation.” The VAT bill remains under deliberation in the National Assembly, with northern leaders urging for a system that considers regional economic disparities.

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