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Home | Decentralization of VAT Collection Will Favour Every State – Udom Emmanuel

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Decentralization of VAT Collection Will Favour Every State – Udom Emmanuel

Daily Report Nigeria
Daily Report Nigeria
Published: June 13, 2025
Last updated: June 13, 2025
2 Min Read
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Decentralization of VAT Collection Will Favour Every State - Udom Emmanuel
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Governor Udom Emmanuel of Akwa Ibom state, says the decentralisation of value-added tax (VAT) collection “will favour every single state” in Nigeria.

The Federal Inland Revenue Service (FIRS) has been in a legal battle with Lagos and Rivers state governments over the collection of Value Added Tax (VAT)

Speaking on the matter on Thursday during a programme on Arise TV, Udom said: “If my brother states have gone to court, we are all one and in the same basket. All the 36 states will not need to join at the same time. As of today, my brother in Rivers has gone far enough. I don’t rush to sign that into law. For now, let me allow the rule of law. Let’s allow the rule of law to take its course,”

“Some states saying that this is not needed is probably because people don’t see the hidden treasure in VAT. There are so many things, and we’ve discussed this at so many fora.

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Also Read: VAT: Lagos, Rivers Are Nothing Without Other States – Masari

“For example, If I sell a house in Uyo, and the value of the property is enhanced because of good roads, electricity and security that’s been provided by the state government and when VAT is taken out of that property, why shouldn’t that tax 100% come to me? Why should I take it to go and share?

“It’s the same thing everywhere, so those who are saying that VAT cannot favour everyone; it will favour every single state in this country. There’s no exclusion at all. Because it’s a consumption tax, and whenever there are human beings, there must be activities. And where there is activity, there must be consumption, and where there is consumption, VAT follows, which will lead to revenue.”

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