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Cry not north. Smell the coffee and act (II)

Suspension of market levies, produce sale tax... highlights of Oyedele committee's proposals Suspension of market levies, produce sale tax... highlights of Oyedele committee's proposals

BY HASSAN GIMBA

The north and its leaders seem happiest and satisfied when led by the nose. As in every election cycle, vote seekers would come and put a black liquid in a syrup bottle and, with fanfare, tell you they have gotten “crude oil” so we can re-elect them or that they should elect leaders based on tribe or religion.

Because we have become so allocation-dependent, sheer laziness has become our lot because of the easy money that the monthly allocation has become to us. Our brains have frozen in time. We lack the imagination, the initiative, and the drive for enterprise, which is why the north is all worked up. This tax matter should be a blessing in disguise; we need to turn adversity into advantage. We must wake up and smell the coffee—to explore the many ways out, as we shall subsequently see.

The north is blessed with arable land and an abundance of mineral resources. From the undulating hills of the plateau to the temperate heights of Gembu, down to the plains of Borno, up to the dunes of Sokoto, and through the troughs of the Benue, there is a variety of arable land and a variety of weather to cultivate all kinds of plants and breed all types of livestock.

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The north, which boasts of Kainji Dam—the largest in the country—has many dams and reservoirs, with Kano alone having at least 20. There are river basins as well. They can support high-level agricultural activities all year round. All these, properly utilised, can turn the north into the world’s bread basket with unimaginable financial gains that could dwarf those from crude oil and its derivatives.

It would also be a wise decision to recapitalise collectively-owned ventures like the Northern Nigerian Development Corporation (NNDC), Interim Common Services Agency (ICSA), Arewa Hotels, etc, with the mandate to industrialise the north, starting with agriculture where farmers would be encouraged to adopt mechanised farming practices for producing cash and food crops as well as livestock. That would serve as the bedrock for supplying raw materials to industries that should be rebuilt, like the ginneries, the hospitality sector, textiles, oil processing, etc. Or for building new ones in information technology, communications, banking, insurance, construction, power and aviation.

While the north, especially those in the Great Green World Belt trajectory, must intensify the fight against desertification, efforts can be made to obtain a chunk of the carbon claims. According to the African Carbon Markets Initiative, Nigeria could earn more than $500 million annually by 2030 if it produces 30 million carbon credits annually at $20 per credit.

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Who says several northerners would not migrate to a sound communication provider founded in the north? Power generation can be achieved through solar or wind, which the north is blessed with in abundance.

The mineral resources sector is also neglected by northern governors, perhaps because of their fixation with the monthly dole-outs from Abuja. The mineral resources buried in northern soils alone are enough to power a serious nation into the group of developed countries. France, currently enmeshed in debts and looking for another lifeline – because its sources of cheap solid minerals in Africa have been cut off- would soon come and grab them from under our noses.

Apart from concerted efforts by our governors, with the traditional institutions mobilising the people’s buy-in and wholehearted support from our money bags, all these are possible.

Our wealthy sons, who are bent on impressing foreigners and donating for chairs in faculties abroad, could do well to consider erecting meaningful businesses that would provide employment and serve as catalysts for a productive region.

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Even our governors, especially the former ones, should put on their thinking caps and be more production-oriented. In Nigeria, a person who has served as a governor for two terms can legally be a billionaire or, at least, a multi-millionaire without committing fraud or any crime using his exalted office.

Therefore, we need to see more of them invest in ventures that can drive production and generate employment in their states. It is the least they can do to pay back to society. It is amoral to run to other states to invest, leaving the people who made you who you are in harsh, unproductive environments.

The north must have boards or agencies to control and moderate the sales of farm produce, from seeds to processed products.

One of the most common “points” used against the north is receiving a share of the taxes on beer while it does not support its consumption. What do brewers use in making beer, and where do you get them? Why should we not add value to our farm produce to get more profit and taxes from them? Why sell them raw? Why sell tomatoes, peppers, and onions just like that? Why not process them into pastes and powder and collect more money and taxes? Instead of selling bags of beans or cereals, we can process them into flour or other products. Value addition greatly multiplies the price of any produce. Conversely, states can charge a certain percentage of tax on any raw product being taken out of its borders while not losing focus on ultimately going for value addition.

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Why should we allow livestock to roam about instead of having well-equipped ranches with modern amenities like hospitals, markets, houses, schools, etc., so that we can collect and process manure, milk and its derivatives?

Why transport livestock hundreds of kilometres for sale, losing their value before arrival? We should have modernised abattoirs with modern machinery to process meat, bones, blood, marrows, skins, hoofs, and horns, sell them more valuably, and collect taxes.

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While all these are happening, our traders must be guided on modernising their businesses and registering them appropriately. Apart from the advantage of accessing capital, the issue of tax by consumption would be relatively addressed. A trader from Potiskum, Biu, Bajoga, Kebbi, or Lamurde may buy 100 tonnes of materials from a registered distributor in Kano or Lagos. However, because he is not on any database, consumption would reflect Kano or Lagos, as the case may be. But that may also be contingent on the Nigerian Bureau of Statistics (NBS) or any relevant body to be made by the Tax Reform Bill purposely for collecting data on consumption and who consumes what.

Hassan Gimba, anipr, is the publisher and CEO of Neptune Prime.

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Views expressed by contributors are strictly personal and not of TheCable.
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