VAT Responsible For 60 percent Of Nasarawa Allocation – Governor Sule

Nasarawa State Governor, Abdullahi Sule has said that his administration is at the forefront of the current debate against the tax reforms initiated by President Bola Ahmed Tinubu because Value Added Tax (VAT) is responsible for 60 percent of Nasarawa State‘s monthly federation allocation.

Governor Sule made this known while launching the domestic resource mobilization for the adoption of additional 250, 000 poor and vulnerable persons into the state‘s health insurance scheme, in Lafia.

He said if the ongoing reforms succeeds, his administration may not be able to sustain lofty programmes such as the insurance scheme that can touch the lives of the poor and vulnerable in the society.

In Nasarawa State, the VAT has always contributed over 60 percent of our FAAC allocation. You can understand why Nasarawa is also at the forefront in the issues of VAT.

We are not doing it to antagonize anybody. We are not doing it to make anybody look bad. We are doing it because we believe that even some of these things that we are doing to touch the lives of the vulnerable would be affected the moment the VAT is affected,“ he stated.

He equally lamented the impasse involving civil servants in the state who proceeded on strike even after his administration approved N70,500 as the new minimum wage, with workers having issues regarding the consequential adjustment.

This is a state where we have approved N70, 500 as minimum wage but we still have our workers on strike because of the aspect of consequential adjustment which they believe what we are giving as consequential adjustment is not enough for them.

I am happy that some of them are here. I wish the union leaders were also here to hear you. That the only way we would be able to achieve this is if we have it as a first line charge. Whether we have it as a first line charge, the resources that they think we are getting will not even be there if the tax reforms succeed in their current forms,“ he added.

Governor Sule said his administration established the Nasarawa State Health Insurance Agency through the Nasarawa State Health Insurance Law 2021 to provide access to the needed health services that is of sufficient quality to all the citizens of Nasarawa State.

He explained that the scheme is also to ensure that the poor and vulnerable in the society are protected from further impoverishement in view of the emergent health care cost.

The Governor listed various other interventions geared towards inclusivity and efficient health care services, especially for the poor and vulnerable, with his administration initially launching an equity fund for vulnerable groups,

additional release of N500m as contribution to offset premium for the state‘s health insurance scheme, aside of the 0.5 percent of the consolidated revenue of the state as equity fund to cover the health care needs of the vulnerable persons in the state, in line with the enabling law establishing the health insurance scheme.

We are also gathered here today to launch the Nasarawa State Health Adoption Programme for the Poor and Vulnerable in the state as part of our sustained efforts in the health sector, believing that the provision of health services is very critical to any responsive government,“ he stated.
While appreciating other donors at the event, including stakeholders, non-governmental organizations, as well as spirited individuals, launched the programme with the sum of one hundred million naira.