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Mkpoikana Udoma
Port Harcourt — Governors of the South-South region have called on President Bola Tinubu to extend Value Added Tax, VAT, derivation to oil and gas-producing states as part of his administration’s tax reforms.
The demand was made during the South-South Governors’ Forum meeting in Yenagoa, Bayelsa State, where the governors deliberated on key economic and infrastructural issues affecting the region.
In a 10-point communique issued at the end of the meeting, the governors expressed their support for Tinubu’s Tax Reform Bill but insisted that the proposed VAT sharing formula should be expanded to include revenue from oil and gas.
“We support Mr. President’s Tax Reform Bill. However, we urge him to extend the proposed VAT sharing percentages to other areas of derivation such as oil and gas,” the communique stated.
The governors argued that oil-producing states bear the environmental and economic burdens of crude oil exploration and should receive a fair share of VAT revenues generated from the sector.
Beyond tax reforms, the governors commended President Tinubu for awarding and commencing the Coastal Highway project, but they urged that construction should also begin from the Calabar axis to ensure balanced regional development. They emphasized that the project is a critical infrastructure that will not only improve connectivity but also boost economic activities in the region.
On transportation and environmental concerns, the governors appealed to the Federal Government to fast-track the completion of the East-West Road, describing it as the major link between South-South states.
They also called for the expansion of environmental remediation efforts beyond Ogoniland, urging the government to extend clean-up initiatives to other oil-producing communities affected by pollution in the region.
The Forum also emphasized the need for better railway connectivity, calling on the Federal Government to activate the Port Harcourt railway line and extend it to other South-South states to enhance trade and mobility.
Security was another major discussion point, as the governors stressed the need for a structured South-South security network to tackle crime, protect businesses, and foster a stable economic environment. They underscored the importance of regional collaboration in ensuring peace and security.
On economic diversification, the governors encouraged member states to broaden their economic focus beyond oil and gas, urging investments in alternative industries to drive sustainable development.
They also resolved to revive the BRACED Commission, a regional development body aimed at representing the interests and aspirations of the South-South communities.
During the meeting, Governor Douye Diri of Bayelsa State was elected Chairman of the South-South Governors’ Forum, while Governor Bassey Otu of Cross River State emerged as Vice Chairman.
The governors reaffirmed their commitment to regional unity and economic advancement, vowing to work together to secure a better deal for the South-South.