By Simeon Mpamugoh and Nonye Nwanosike
The Federal Government has been enjoined to concede the right to explore mineral deposits to the states to create tripartite states joint venture.
This was the submission of a group comprising Human Rights Law Service (HURILAWS) and One Voice Civil Society at a media parley in Lagos. The group said, “should this be extended to oil, states should be limited to exploring the onshore oil while offshore should be left for the Federal Government.
Chairman, One Voice Media Committee, Adedeji Adeleye, while addressing journalists and civil rights activists, warned that restructuring should not be misconstrued for dismemberment, absolute autonomy for independent region or control over their resources but should properly negotiated.
He called for states to be given the economic power to carry out their increased political, social and economic responsibilities, pointing out that a system of revenue allocation to meet this might be that 50 per cent of the proceeds from oil and solid minerals should be paid to states from which they are produced, adding that, “such state’s territory includes 200 miles continental territory.”
He further said that 50 per cent of Custom and exercise duties should go to the states to which the goods are going or in the case of excise duty, the states in which the goods are produced.
He reasoned that states should collect Value Added Tax (VAT), adding that the Federal Government should have no such power. “States should retain their VAT for their own use,” he stated.
According to him, “at present, Lagos State generates 55 per cent of the total VAT accruing to the federal coffers. Yet it receives less from the federation account compared to Kano and some other states in the North. VAT is a tax on consumers of goods and services within the territory of the states.”
Adeleye said the Federal Government might only collect VAT in Federal Capital Territory (FCT), adding that all taxes made from purchases of petroleum products from a state should be remitted to that state.