VAT Disputes Erupt Between Nigerian States and Federal Government Over Tax Collection Rights

The ongoing controversy between Nigerian state and federal governments centers on the collection of Value Added Tax (VAT) on infrastructure across the country. Southern states, including Lagos, have demanded the right to collect taxes at the state level to boost their revenue. These states argue that being allowed to manage their tax collection will help address their economic challenges.

Many states believe that having control over their taxes would significantly benefit them, not only in job creation but also in development and reducing their dependence on the federal government. However, the Nigerian government has expressed strong opposition and dissatisfaction with this proposed system, causing deep concern among the states advocating for these changes.

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