The CNPD argues that this formula does not take into account productivity and economic growth, which are critical factors in determining a state’s contribution to the national economy. They believe that this formula may inadvertently penalize states that are making efforts to diversify their economies and promote economic growth.

Instead, the CNPD urges the National Assembly to adopt a more nuanced approach that rewards productivity and economic growth. They also appeal to Nigerians to support the proposed legislation, which they believe will ultimately reduce the tax burden on the poor and ensure that funds are available for public services that benefit marginalized communities.

Some of the key points from the CNPD’s statement include:

• Rejection of the proposed VAT sharing formula: The CNPD believes that the formula does not take into account productivity and economic growth.
• Call for a more nuanced approach: The CNPD urges the National Assembly to adopt a more nuanced approach that rewards productivity and economic growth.
• Support for the proposed legislation: The CNPD appeals to Nigerians to support the proposed legislation, which they believe will ultimately benefit marginalized communities.
• Concerns about government credibility: The CNPD notes that the government’s credibility challenge is responsible for the lack of buy-in from Nigerians.

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