Why VAT and Taxes Don’t Define Development: Lessons from Igbo States and the Global Scene

When it comes to development, many people think high taxes or Value Added Tax (VAT) automatically lead to progress. But if we look closely, the reality is quite different. Development depends more on things like good governance, wise use of resources, investment in infrastructure, and creating opportunities for people, rather than just the amount of tax collected. Let’s take a look at examples of tax havens versus over-taxed countries, and then bring it home to Nigeria, especially the Igbo-dominated Southeast, to understand why they are developing quickly despite low taxation.


Tax Havens: Building Wealth Without Heavy Taxes

Some countries around the world have found ways to grow their economies without putting heavy tax burdens on their people. These places, known as tax havens, focus on attracting businesses, tourists, and investors by creating friendly policies and making smart use of resources.

Dubai (UAE): Dubai doesn’t bother its citizens with heavy taxes. Instead, it focuses on using oil revenue wisely and investing in tourism, trade, and world-class infrastructure. This has turned it into a global hub for business and luxury.

Singapore: Singapore also has low taxes, but it pairs this with excellent governance. The government supports businesses, invests in education, and ensures its trade policies remain competitive. This has made Singapore one of the most developed economies in the world, despite its small size.

Over-Taxed Countries: When Taxes Become a Burden

On the other hand, there are countries where taxes are very high. These taxes are often used to provide services like healthcare, education, and infrastructure. While this can lead to a high standard of living, it sometimes comes at a cost to economic growth.

France: France is a good example. Although it has excellent public services, high taxes have made it difficult for some businesses to thrive. Many wealthy individuals and companies relocate to countries with lower tax rates to avoid these burdens.

Sweden: Sweden also has high taxes, but it balances this with a strong welfare system. However, this model only works when there’s efficient governance and proper management of public funds.


The Igbo States: A Model for Growth Without Heavy Taxation

Now, let’s bring it back home to Nigeria. The Southeast, dominated by the Igbo people, is growing and developing quickly, even though the tax system there is not as aggressive as in other parts of the country. How is this happening?

1. The Igbo Hustle Spirit:
Igbos are naturally entrepreneurial. They don’t wait for the government to provide jobs or opportunities; they create their own. This spirit of hard work and innovation has made the Southeast one of the most economically active regions in Nigeria.

2. Informal Economy:
Many businesses in Igbo land operate in the informal sector. They don’t have to deal with too many taxes or regulations, which allows them to reinvest their profits directly into growing their businesses.

3. Diaspora Remittances:
The Igbo diaspora plays a huge role in the development of the Southeast. People living abroad send money back home to support families, build houses, and start businesses. These remittances often go straight into the local economy, creating jobs and opportunities.

4. Community Spirit:
Igbos have a strong tradition of self-help. Through town unions and community associations, they come together to build roads, schools, and health centers. This reduces dependence on government funds and accelerates development.

5. Diversified Economy:
Unlike some parts of Nigeria that rely heavily on oil revenue, the Southeast has a diversified economy. From trade and manufacturing to agriculture and services, there are multiple sources of income that keep the region’s economy growing.


The Nigerian Tax Problem

In many parts of Nigeria, governments rely heavily on taxation and federal allocations. However, the issue is not just about collecting taxes—it’s about how the money is used. Corruption, inefficiency, and poor governance often mean that tax revenue doesn’t translate into visible development.

Over-taxation, especially when paired with poor service delivery, discourages businesses and pushes people to find ways to avoid taxes. This can create a vicious cycle where both the government and the people lose out.


What We Can Learn

The key lesson here is that development isn’t about how much tax a government collects; it’s about how well those resources are managed. Countries like Singapore and regions like the Southeast of Nigeria show that with good leadership, entrepreneurial spirit, and community-driven initiatives, it’s possible to achieve rapid development without over-taxing the people.

The Igbo states are a shining example of what’s possible when people take charge of their own destiny. Their success proves that self-help, hard work, and innovation can drive development faster than any tax system ever could.

Mathew Ojo

Op they know this, they just want to gaslight the southeast.

Upon all their high vat collected and generated it's expected that ibadan should purge it self of brown roofs retardation unlike what Is obtained in southeast.

EasternActivist:
Op they know this, they just want to gaslight the southeast.

Upon all their high vat collected and generated it's expected that ibadan should purge it self of brown roofs retardation unlike what Is obtained in southeast.

it is unfortunate...we should be expecting that SW should be decent , apart from.lagos the other are stuck in the 1970s

I can never be a fan of hefty taxation because I have noticed it stiffles economic growth and trigger generational poverty for a majority of the population

It measures productivity.

SalamRushdie:
I can never be a fan of hefty taxation because I have noticed it stiffles economic growth and trigger generational poverty for a majority of the population

do you know that many companies in Lagos don't have signpost of their companies in Lagos ...and they hide their operations

Do you know why? They don't want their taxation which is too much. Go to East ,you see companies putting up their billboards and signage confidently cos they know they aren't overtaxed

Ooooohhhh! Why are my IGBO brothers so quick to be correcting all these illiterate RoNu's on here?

Please, these people have been using their songs of IGR to make yanga for years now especially someone like LegendHero (I wonder why he doesn't post such threads anymore 🤔 ) . . . Why not allow them to keep taxing themselves to death and beating their dry chest for it

Do you want them to 'get sense' and decide to stop paying the heavy taxes imposed on them by their slave-driver leaders? So you want the free billions we see in alaigbo from their collective POCKETS to stop flowing or what?

Remember, this is FREE MONEY for us and our people to squander use una head

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Standing5:
It measures productivity.

productivity isn't equal to development


Some villages are known for fishing.... that is productivity but that doesn't mean the village is developed

IGR and VAT that ends up servicing a few politician’s luxurious and reckless life styles.

Upon all the high IGR and VAT of Lagos state, majority of the roads are still bad, pipe borne water isn’t available. Expressways lack streetlights.

This current governor just spoilt many of Fashola’s achievements in sanity of our roads, refuse management etc.

They can never ever take responsibility. Just because the records indicated that a particular region VAT collection is the lowest, they have resorted to blaming game, goal post shifting.

A state with low VAT collection means that state is unproductive

These are the same people who claimed foreign investment is bullshit, now that the VAT collection have exposed their unproductivity, they want to be coming up with as usual flimsy excuse

ariesbull:
productivity isn't equal to development


Some villages are known for fishing.... that is productivity but that doesn't mean the village is developed

How would the state developed without first being productive?

This is the inverted reasoning that plagues these people from the yeast.

Paraventure you are granted leave to go and form your Bifra with its contiguous five SE states, will you be saying this rubbish ?

Aside the huge VAT surplus you get that isn't generated from your state's, you also get federal funded projects and benefit from oil receipts from majorly SS states.

The north is the undisputed food basket not only in Nigeria but West and Central Africa.

Now imagine you are in your Biafra tax haven, how will you pay for food imports from northern Nigeria ?

Are you aware that agriculture which the north dominates contributes hugely to our GDP and sustainable growth sector ?


Be coping.

ariesbull:
productivity isn't equal to development


Some villages are known for fishing.... that is productivity but that doesn't mean the village is developed

Two fishing communities, one with a cold room and industrial dryer then the other without, which do you think will be more productive based on the advancement in approach?

GBTYO:
This is the inverted reasoning that plagues these people from the yeast.

Paraventure you are granted leave to go and form your Bifra with its contiguous five SE states, will you be saying this rubbish ?

Aside the huge VAT surplus you get that isn't generated from your state's, you also get federal funded projects and benefit from oil receipts from majorly SS states.

The north is the undisputed food basket not only in Nigeria but West and Central Africa.

Now imagine you are in your Biafra tax haven, how will you pay for food imports from northern Nigeria ?

Are you aware that agriculture which the north dominates contributes hugely to our GDP and sustainable growth sector ?


Be coping.

Can the north produce a quarter of what they do if not supported by over N1Tr from SS?

ariesbull:
it is unfortunate...we should be expecting that SW should be decent , apart from.lagos the other are stuck in the 1970s

CheckOgun and Oyo figures again.

ariesbull:
productivity isn't equal to development


Some villages are known for fishing.... that is productivity but that doesn't mean the village is developed

Those villages are more sustainable to their resident fishermen than your entire SE as the people have a guaranteed and sustainable income from fishing.

This is why most other Nigerians do not see reason to flee their enclaves . Wealth is within their grasp.

And how do you measure development ? Is it by building mansions in one dead village in your SE that you only visit once or twice a year to attend a cultural event?

The fishing canoe in a typical Ijaw riverine coastal village earns revenue for the owner than your lizard and rat occupied village mansions.

If the SE is truly an engine room of commerce and trade , why are you lot not reinvesting back into it? How many times has there been a SE business forum that has been convened by your elite to call for investing into the SE and how come you guys never heed the call to do so?

Just looking at internal migration trend , you will see that the SE has been experiencing a net negative trend since the day Lugard yoked us all into one contraption compared to every other region.

There's a reason you guys left your villages, states and region.

Without VAT, how will the government pay salary earner, pay pensioners and build infrastructure? The south east is the real parasite.

You parasite should be grateful for the VATs from the South West and oil money from the Niger Delta.

Standing5:
Can the north produce a quarter of what they do if not supported by over N1Tr from SS?

That's SS to complain and not you.

Besides when SS were doing their agitation for resource control your SE politicians sided with the north against their demands and at no time did SS ever call for your help in their agitation.

SS will be ok of we get 50% but we know that you ibos will align with same north you have been castigating to oppose true restructuring.


When this VAT and Tax reform thing started , I stated categorically why SE will oppose it and it was down to the fact that you earn far more than you contribute from federal handouts.

When Lagos and Rivers secured a joint vat ruling to stop the FG from collecting VAT and successfully argued that it wa a responsibility of states to do so, your governors in the SE were all silent.


Now breeze don blow fowl yansh.

GBTYO:


That's SS to complain and not you.

Besides when SS were doing their agitation for resource control your SE politicians sided with the north against their demands and at no time did SS ever call for your help in their agitation.

SS will be ok of we get 50% but we know that you ibos will align with same north you have been castigating to oppose true restructuring.


When this VAT and Tax reform thing started , I stated categorically why SE will oppose it and it was down to the fact that you earn far more than you contribute from federal handouts.

When Lagos and Rivers secured a joint vat ruling to stop the FG from collecting VAT and successfully argued that it wa a responsibility of states to do so, your governors in the SE were all silent.


Now breeze don blow fowl yansh.

Who is SS and who is me?

So if not for the VAT coming from the South West and Oil money from the Niger Delta, how will the South East Governors be paying salaries and pensioners? How will they be building infrastructures?

Abia and Imo state would have collapsed without VATs and Oil Money from other geopolitical region.

The south east is the real parasite in Nigeria

ObosiLandlord:
Without VAT, how will the government pay salary earner, pay pensioners and build infrastructure? The south east is the real parasite.

You parasite should be grateful for the VATs from the South West and oil money from the Niger Delta.

Do you know the amount of civil servants that are housewives in Abuja Karu, and Suleja but on Imo Ebonyi and Abia state payroll?

Sw should tax themselves more
Se should pay less vat
We shall all share the sw tax
God bless the sw as they pay more tax for sharing

ObosiLandlord:
So if not for the VAT coming from the South West and Oil money from the Niger Delta, how will the South East Governors be paying salaries and pensioners? How will they be building infrastructures?

Abia and Imo state would have collapsed without VATs and Oil Money from other geopolitical region.

The south east is the real parasite in Nigeria

There is no award for paying tax. You pay, we share.

Standing5:
Do you know the amount of civil servants that are housewives in Abuja and Suleja but on Imo Ebonyi and Abia state payroll?

How will Imo and Abia state pay this civil servants without VATs from the South West and oil money from the South South?

History555:



There is no award for paying tax. You pay, we share.

Alright Parasite.

ObosiLandlord:
How will Imo and Abia state pay this civil servants without VATs from the South West and oil money from the South South?

They will print Ejemma according to Ekpa.

Standing5:
They will print Ejemma according to Ekpa.

History555:



There is no award for paying tax. You pay, we share.

There is o. Just wait until Lagos Ogun and Oyo start coming up with environmental excuses to intercept those profit they are sharing with parasitic regions.

ObosiLandlord:
Alright Parasite.

lol

They decided not to over tax themselves doesn't make them parasites

Standing5:
They is o. Just wait until Lagos Ogun and Oyo start coming up with environmental excuses to intercept those profit they are sharing with parasitic regions.

And wait till Imo, Delta, Rivers , Abia come up with excuses not to allow their natural gas flow to Egbin and other power station and review their oil in pipelines

History555:
Sw should tax themselves more
Se should pay less vat
We shall all share the sw tax
God bless the sw as they pay more tax for sharing

I don't think this is fair....I know the tax burden in Lagos...many corporate firms in Lagos operate hiding or codedly...they don't put signboard of their companies they are hidden in residential areas and they are not okay with the high taxing