The major sources of Value Added Tax (VAT) revenues generated in Lagos State are from a wide range of taxable goods and services in various sectors, as well as the huge importation activities through the sea ports and airports.
Also, the concentration of major corporate headquarters of Deposit Money Banks, Telecommunication Companies, Oil and Gas Companies and other big corporations in Lagos also contributes significantly due to the “headquarters effect” in tax remittance. Lagos State generates a majority of its VAT revenue from very diverse commercial and trading transactions.
The VAT from nationwide services provided by these oil and gas, telecommunications, banking and manufacturing companies , headquartered in Lagos state are often remitted to Lagos State, regardless of where the services were consumed.
Lagos state also hugely benefits significantly from import-related VAT because the state hosts major entry points into Nigeria, such as the Lekki, Apapa and Tin Can ports. The VAT on all imported goods is attributed to Lagos at the point of clearing, even if the goods are intended for consumption in other states (65% of all the containers cleared in Lagos originates from Onitsha , Aba and other places, and end up in those locations). But Lagos takes the VAT.
This is why I have always clamoured for us to build a $1.5billion to $2billion, 4million tons capacity River Port in the south east. A River Port that can clear 1.6million 20feet containers in a year.
This is why I have always clamoured for us to do a $3billion ring fenced rail project that links the whole of the south east to Asaba, PH and other cities of the south.
This is why I have always clamoured for us to support Governor Hope Uzodimma and Governor Dr Alex C. Otti to develop the huge gas potentials in the two states, and build up gas powered industrial estates and FTZs
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This is why I daily clamour for us to set up at the initial stage 95 agro industrial parks, each with capacity to generate at least $42million/N62billion annually in each of the 95 LGAs in the Southeast, and to expand it to the 1,246 ward locations in the South East.
This is why I clamour for us to build a massive security cover over the south east by setting up a massive $200million SECURITY TRUST FUND and putting in place the peoples selected boots on the ground to stop the madness in the land.
This is why I cry daily for the total overhaul of the fiscal, constitutional, socioeconomic, resources control, governance, and electoral framework of Nigeria back to the modified version of the 1960/63 architecture.
From Kano, to Kaduna to Ogun to Abuja, Ndi Igbo contributes hugely through commerce and trades to the VAT revenues and economies of those states.
These are not portfolio contributions , but contributions supported with huge bricks and mortar real estate and infrastructure development contributions.
Anyone, arguing otherwise or trying to belittle your modest efforts in this land.
Obiaraeri, Nnaemeka Onyeka
