Friday, April 24, 2009

of VAT and Socialism

I took a look at the just released Nigerian Revenue allocation to all theirs of Govt for the Month of February 2009 and shared in March 2009.
Let’s pick two states Delta and Jigawa, Delta is one Nigeria richest states (Lagos is the richest), Jigawa is Nigeria poorest state[i]. Now what is being shared is statutory allocation (oil money) plus VAT, if we agree that oil money is for the whole of Nigeria, (which it is) then lets look at VAT. Delta got N366 as VAT which is internally generated income, while Jigawa which generates nothing got N374m in VAT. (Lagos got N2.6billion, but they generate 65% of VAT Collection and got 13% of allocation).

Now my concern is this, how do we justify that Jigawa gets more VAT than Delta? or are the CBN figures wrong? This is not about resource control ooh, VAT is revenue collected by states on value added by the merchants in that state on transactions. Hence if Delta puts street lights (which it did), a shop owner can work at night, charge more VAT which he remits to the VAT federal office, who is then supposed to give it back to Delta state, as reward for adding value to that transaction. If Lagos also build roads it attracts business men who stay in hotels, eat food and buy groceries in Lagos, thus Lagos generates VAT as reward for building roads.

Now this is not to accuse Jigawa of not building roads, nor of being lazy, Jigawa state did not write the VAT bill. But if we keep on rewarding states for doing nothing, then they will continue to do nothing.

Already if you create a state today, you are simply taking money away from viable states. Same as VAT. If you look at the papers you see all sort of pressure groups calling for state creation be it Apa, Ijebu, Anioma, Okija states etc. All this request will do is simply drain money away from Lagos, Delta, Kano and Rivers and send to the other 32 who cannot pay salaries to teachers. We have to reward good managers and at least discourage wastage.
We can have a formula which ties your VAT receipts as a function of your own Internally generated Revenue, Hence Jigawa will have a provisional allocation of N374 m, but can only get 100% of that amount if the state internally generates 25% of their expenditure budget. That way the governor cannot just get VAT and spend, but he has to make the state viable enough to generate revenue to qualify to receive a VAT grant from the centre.
Quite frankly if all a governor has to do is to spend then any idiot can do that, the governors are called Chief Executive of their states because they are supposed to manage the resources and people of their states in a manner reflective of the trust placed on them. If we go on like this then we will not only have a balkanization of the states, but a balkanization of the resources of the federation
There are some other data there that is quite interesting,
1. all state have foreign borrowing; Oyo in particular has a total foreign debt deduction of N142m ( wetin dem buy), Yobe has N4m
2. Rivers gets N12 billion a month extra as excess crude! N12billion! Why does PH look like Kabul?
3. Kano has 44 LGA, Lagos has 20 hmmmm
4. Imo state is paying N358m every month as interest to banks for loans collected! That’s more than they get from VAT (negative VAT)
5. Ekiti has the lowest Gross Statutory allocation in Nigeria; Education does not pay.
6. Richest Local government in Nigeria is Alimosho in Lagos state, they get N258m a month. Outside Lagos (and Abuja) the richest LGA is Bauchi LGA which gets 117m a month, more than PH LGA which gets 106m.
7. Poorest LGA is in Osun, called EGBEDORE just a paltry N46M a month! Sack your senator guys.

It’s our problem, we can fix it

Kalu

Saturday, April 4, 2009

of visas and terrorists

“Pastor, this man was unemployed , he prayed and he got a job in Chevron (applause), Pastor this man had AIDS but he prayed, and he got well (louder applause), Pastor this man went to the US embassy for a visa and he got a 6 month single entry visa. (Standing ovation, loud clapping and applause, whelps of joy)”

Obama said that it was the treatment of detainees in Guantanamo Bay that was breeding terrorist across the world, I disagree, and it’s the treatment of visa applications that breeds terror.There is a 98% chance that if you apply for a US Visa you will be denied. Why I don’t know? Even if you got the visa, you cannot say why they gave you. It’s not a lottery, it’s a lottery where if you win, you then go for an interview to see if you are worthy to collect your winning check.

The need for a US visa has created an economy on its own. First there are the facilitators , ie those that offer for a fee to assist you in getting a visa, this includes the guys that will “buy “ up all the available online appointment so you have to pay them to get an appointment, the visa agents, who escort you to the door of the embassy, and the special prayer houses where “dry” fasting is done to sway the spirit of the Oyinbos to smile favorable on the soul of the poor Nigerian applicant.

Then there are the providers; who offer fast internet links to secure an appointment, US standard passport photos, Visa lamination, and even scented powder to make your face glow like Abraham and influence the godless American small girl. Then the financiers; this is where the big boys play, this is controlled by the banks. Banks now offer holiday loans and you can charge your visa fees to the loan package. You basically pay $100 per visa application, successful or not, you appear for the interview or not. if there are 1,000 visa applicants a day the embassy makes $10,000 a day, $50,000 a week, $200,000 a month, $2.4m a year minimum, no wonder they can afford the SUVs.

You see the American dream starts by you believing you qualify for a visa, what a fallacy. the British want to give you a visa, it’s your job not to mess up, the Americans don’t want to give you a visa, and it’s your job to convince them otherwise.

Consider this scenario, Olu gets a job he want to travel to the US to see Manhattan, he promises he will return. Yeah right! So he wants to apply for his visa, but he is advised against using a “virgin” passport to apply. So he goes to Ghana (for a week), then to South Africa (for the jazz festival) then to UK (to of course buy an original Arsenal Jersey and mug).

Now the small matter of his passport disvirgined taken care of, he then proceeds to build up his cash (credit) history. So he simply borrows money form his friends every pay day, and slowly pays them back, so his current account will always read N200,000 a month, instead of N20,000 a month. That done Olu will surf facebook and get an old classmate in NY to write him a letter of invitation, that done, he invest in a new Banana Republic suit, new Calvin Klein blue shirt, to match his DKNY red tie, and Sebago shoes (he’s buying American). Then he tunes his DSTV to series to watch Seinfeld, Desperate House wives, and ESPN, f#@k Arsenal, he becomes a Knicks fan.
He then begs his friend who works with a bank to allow him free time on his PC so he can book his visa appointment on the banks broadband link up, and then the most important part. Heaven they say helps those who helps themselves (not in the bible ooh) so he goes to his Pentecostal pastor who tell him to walk by faith and buy his return ticket, and go on 21 day “power will change hands “ fast. He for good measure also visits his mother Catholic priest who after confession prescribes 21 Hail Maries.

So Olu is now rejection proof, he has his padded pay slips, his well versed letter of introduction from his company he got from the HR girl he promised a bottle of perfume form Macys, his shares certificates, his C of O of his land in Mowe, his car particulars, a framed citation form his secondary school, and an Obama badge. He has learned to say Gas instead of Petrol, Pants instead of Trousers and oops instead of yee! He has memorized the pledge of allegiance and knows where Mount Rushmore is. At this time of his life, Olu is at his peak, bring them in he says.

He gets in the line 5.30 am in Lagos, well b4 the sun is up, because he was advised that people who sweat are denied visa, he is speaking in tongues under his breath, and is carrying the white “miracle hankie his girlfriend firm Mountain of Fire gave him. He gets past security, gets into US soil proper (the embassy grounds) he claims that wherever his feet have touched is his, as stated in the bible. He sits in line and then it all goes horribly wrong.

First the banker GM is denied, then the commissioners wife is booted out. then the guy dressed in full NY Yankees attire is axed, its cold but Olu starts to sweat, then next is the half cast girl born in France, she too is axed, Olu he is barely able to keep his bladder shut with fear, if half Oyinbos can fall…. Next the guys from EFCC who wanted to attend a seminar of fire prevention are also axed, its 10 am, no one b4 him has got a visa, he starts to mumble under his breath “ yes I can, yes I can” its his turn.

The young lady asks him “what is the purpose of your visit to the United States?”
At this time, his shoulder are sagged, his lips are dry, he cannot remember Seinfeld first name, and he does not know when he answers “to become a Senator”
The lady waste no time, “sorry Sir, at this time you do not qualify for a United stares Visa” she stamps his passport and says “next”. The mighty are clearly fallen. Olu goes straight home.
He awakes the next day, first order of day is to return his DSTV to BBC news, he bans all US products from his house, Mobil and Texaco filling stations are boycotted, Arik with her Boeing planes are avoided. All Jay Z CD are replaced with Nanto C, he pledges allegiance to the Queen once again, and vows never to eat a burger again.

At this point he wants to drive a molue into the US consulate. First there is the shame, a 3 year project destroyed in 3 seconds, then the explanation to all who ask, then the fee charged by the airline to refund his ticket. He changes churches, and regrets telling his mother priest he slept with the house girl during confession. Olu is clearly a candidate for Al Qaeda.

So Obama the actions of just one consular officer using a secret formula has turned Olu , a western educated, young man into a terrorist. Who would have thought?

The Nigerian Immigration officials have family whose American dream have ben shattered just lke Olu, they deny US applicants visa just as well and with a vengeance. Bill Gates, yes the Microsoft guy was initially denied a Nigerian visa because he failed to prove he would not reside in Nigeria.

We feel you Olu.

Kalu Aja
“It is easier for a camel to pass through the eye of a needle than for a Nigerian man to get a US visa.” Nigerian proverb