Why state governors must embrace new revenue reality

Recently, the news broke that Northern governors opposed a proposed tax reform bill, describing it as "against the interest of the North and other sub-nationals." This bill introduces a derivation-based model for distributing Value Added Tax (VAT) revenue, and it is currently awaiting approval by the National Assembly. According to Nojeem Yusuf, a UK tax expert, “Derivation means VAT returns to where it was paid by consumers." Under the proposed VAT arrangement, 10% of VAT revenue would go to the federal government, while the remaining 90% w