Rivers State Governor, Nyesom Wike, says the state’s disagreement with the Federal Government over collection of Value Added Tax is geared towards establishing fiscal federalism as guaranteed under the Nigerian Constitution.
Wike noted that the contention is not about fighting the Federal Government or any of its agencies as being insinuated in some quarters.
I have heard a lot of comments being made that we are fighting the federal government. There is no desire or any intention of the Rivers government to fight the federal government.
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Wike, while speaking on Sunday in Abuja at a public lecture titled: “Taxing Powers in a Federal System,” said:
The principle of co-equality is fundamental to a federal arrangement, that principle leads to the principle of autonomy, autonomy leads to fiscal autonomy and fiscal autonomy leads to fiscal federalism and when you put all the principles together, what it means is that each level of government, whether federal or state are co-equal because none derives its life from the other.
The lecture was held to mark the 60th birthday of notable lawyer, Ahmed Raji (SAN).
The governor, who was represented by the Attorney-General of the State, Zacchaeus Adangor (SAN), maintained that Rivers and the Federal Government were co-equal because they both derived their life from the Constitution.
Wike said that until the Supreme Court makes a definitive pronouncement on the matter, debates will continue to linger without impact.
He said:
That is the fundamental aspect of fiscal federalism and until we get it, we will continue this journey of talking without result but I think that the court has a role to play, the court can lay this crisis and controversy to rest when it makes a pronouncement.
Also speaking at the event, Professor Abiola Sani appealed to the judiciary to make definite and pronouncement on the impasse surrounding tax collection in Nigeria’s federal system.
Mr Sani, a professor of commercial law who was the guest lecturer at the occasion, called on the National Assembly to use the on-going Constitution amendment to bring out clear taxing powers among the three tiers of government.
