Abia North Senator Orji Kalu has urged Nigerian governors to shift their focus from extravagant spending on luxury vehicles to attracting investors who can drive economic development in their states.
In an interview with Arise Television on Saturday, Mr Kalu said rather than relying heavily on federal allocations, state governments should harness their unique economic potentials to generate wealth and employment opportunities.
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Mr Kalu’s remarks come in response to a question on whether the Nigeria Governors’ Forum’s (NGF) position on the Value-Added Tax (VAT) revenue-sharing formula would encourage competition and productivity among states, particularly in the North, where there is the assumption that many of the states depend largely on federal allocations.
After a meeting with the Presidential Tax Reform Committee on Thursday, the governors affirmed their support for the proposed tax reform bills, provided that the VAT sharing formula is adjusted to allocate 50 per cent based on equality, 30 per cent on derivation, and 20 per cent on population.
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The bill originally proposed distributing 60 per cent of collected VAT to states based on derivation.
However, several governors, especially from the Northern region, strongly opposed this arrangement, arguing that it would significantly reduce their revenue and make it difficult for them to pay salaries and fulfill other financial obligations.
Mr Kalu, a former governor of Abia State, dismissed the claim that some states are unviable, arguing that every state has the capacity to be self-sufficient if its leadership prioritises economic development.
“Governors and people in government should stop buying luxurious cars every year. They should put money in investment. When we’re able to invest heavily, people can go back to where they are.
“There is no state out of the 36 states that is not viable. All the states are viable. It’s just made for our leaders, our governors, our sub-leaders to go back to the states and sit in the states and put their thinking boxes (sic). They think out what they will do within their areas and do long-term planning,” Mr Kalu said.
The senator’s comments highlight growing concerns about the extravagant lifestyles of top government officials, including governors and lawmakers, at a time when millions of Nigerians are struggling with severe economic hardship.
Despite the increasing rate of poverty in the country, many political leaders continue to allocate large sums of public funds to luxury vehicles, residences, and foreign trips.
Reports have shown that several governors approve millions, sometimes billions of naira annually for the purchase of bulletproof SUVs for themselves, their aides, other government officials, and traditional rulers often at the expense of critical sectors like education, healthcare, and infrastructure.
Last October, Kebbi State Governor Nasir Idris donated new SUVs to emirs, lawmakers, and heads of MDAs in the state. Kebbi is one of Nigeria’s poorest states, yet the governor prioritises the purchase of cars rather than investing in the people.
PREMIUM TIMES reported how Nigerian lawmakers purchased new vehicles for themselves in 2023, while the Tinubu administration was appealing to citizens to bear the consequences of the economic hardship caused by government policies. The question Mr Kalu was asked pertained to state governments, and so his response did not include the extravagant spending of lawmakers
The administration has also faced criticisms for spending N21 billion on a new residence for the vice president, buying a new presidential jet, and making other controversial expenditures.
Tax reforms promoting competition among states
Mr Kalu said the tax reform bills will promote competition among states when passed by the lawmakers.
He referenced China’s rapid economic rise, attributing it to the intense competition among its provinces.
“For the past 35 to 40 years, China has been growing at 10 per cent income every year, and if you look at it, it is because there is competition. All the provinces in China are competing against each other,” he said.
Comparing Nigeria’s past records, the senator noted that during the first republic, the Northern, Eastern, Midwestern, and Western regions actively competed which increased economic growth and industrialization.
“The federal government can have a reserve fund to put to any state that is not meeting up its obligations. This is possible. But let me be honest with you – when people say that the first republic, that they did wonders, I agree they did wonders, because there was competition.
“The Northern region, the Eastern region, the Midwest region, the Western region were competing with each other. If we don’t bring back that competition, we cannot grow. We will be wasting our time,” he added.
Untapped natural resources
The senator said there are many untapped natural resources in Northern Nigeria.
“And every state is viable. I don’t agree with you. Zamfara is one of the richest states. You go to Sokoto, it is one of the richest states. You go to Kebbi, the amount of lithium in Kebbi is unbelievable. I deal with international organisations and I have a survey of almost everywhere in Nigeria. There is no state in Nigeria that is not viable, very, very, very viable. So, I don’t believe in this,” he said.
He criticised the negative narrative surrounding northern Nigeria, arguing that the region has many solid minerals and agricultural potential that, if properly harnessed, can make the states self-sustaining.
“People should stop putting northern Nigeria down to say it will offend them. They have a lot of solid minerals that are untouched. It’s just to go out and look for investors,” he said.
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