Headline

Exclusive: VAT Controversy: FG Plots To Move Case File To Abuja

Published

4 years ago

September 8, 2021

Editor

Following the landmark decision by Justice Stephen Pam of the Federal High Court sitting in Port Harcourt to throw out the stay of execution suit brought before the honourable court by the Federal Internal Revenue Service(FIRS), The Boss can exclusively reveal that plans are being made to move the case file from Port Harcourt to Abuja, the nation’s capital.

We are told that there is panic in the seat of power following the order of court that granting the request of the FIRS was akin to committing murder and the fact that Lagos State which is the largest contributor to the Value Added Tax (VAT) pool is already on the verge of passing a new law like Rivers State to start VAT Collection.

The Boss learnt from very reliable sources that though the FIRS has kept insisting on its legal right to collect the said tax and actually held a press conference today after losing the suit against the Rivers State Government, panic-stricken top functionaries of the federal government are designing plans to frustrate the implementation of the judgment because it will not only lead to serious revenue shortfall but throw FG’s financial projections overboard.

It will be recalled that on August 9, 2021 the Federal High Court sitting in Port Harcourt had declared that it is the Rivers State Government and not the Federal Inland Revenue Services (FIRS), that should collect Valued Added Tax (VAT) and Personal Income Tax (PIT) in the State.
The court, presided over by Justice Stephen Dalyop Pam, had also issued an order of perpetual injunction restraining the Federal Inland Revenue Service and the Attorney General of the federation, both first and second defendants in the suit, from collecting, demanding, threatening and intimidating residents of Rivers State to pay to FIRS, personnel income tax and Value Added Tax.
Justice Pam made the assertion while delivering judgement in Suit No. FHC/PH/CS/149/2020, filed by the Attorney General for Rivers State (plaintiff), against the Federal Inland Revenue Service (first defendant) and the Attorney General of the Federation (second defendant).
The Court, which granted all the eleven reliefs sought by the Rivers State Government, stated that there is no constitutional basis for the FIRS to demand for and collect VAT, Withholding Tax, Education Tax and Technology levy in Rivers State or any other State of the Federation, being that the constitutional powers and competence of the Federal Government is limited to taxation of incomes, profits and capital gains which does not include VAT or any other species of sales, or levy other than those specifically mentioned in items 58 and 59 of the Exclusive Legislative List of the Constitution.
The judge dismissed the preliminary objections filed by the defendants that the Court lacks jurisdiction to hear the suit and that the case should be transferred to Court of Appeal for interpretation.
Justice Pam, who also dismissed objection raised by the defendants that the National Assembly ought to have been made a party in the suit, declared that the issues of taxes raised by the State government are issues of law that the court is constitutionally empowered to entertain.
He declared that after a diligent review of the issues raised by both the plaintiff and the defendants, the plaintiff has proven beyond doubt that it is entitled to all the eleven reliefs it sought in the suit.
The court agreed with the Rivers State Government that it is the State and not FIRS that is constitutionally entitled to impose taxes enforceable or collectable in its territory of the nature of consumption or sales tax, VAT, education and other taxes or levies, other than the taxes and duties specifically reserved for the Federal Government by items 58 and 59 of Part 1 of the Second Schedule of the 1999 constitution as amended.
Also, the court declared that the defendants are not constitutionally entitled to charge or impose levies, charges or rates (under any guise or by whatever name called) on the residents of Rivers State and indeed any state of the federation.
Lead counsel for the Rivers State Government, Donald Chika Denwigwe (SAN), who spoke to journalists after the court session, explained that the case is all about the interpretation of the constitution as regards the authority of the government at the State and Federal levels to collect certain revenue particularly, VAT.
“So, during the determination of the matter, some issues of law were thrown up like, whether or not the case should be referred to the Court of Appeal for the determination of some issues.
“The court noted that the application is like asking the Federal High Court to transfer the entire case to the Court of Appeal. In which case, if the court so decides there will be nothing left to refer back to the Federal High Court as required by the constitution.”
Speaking on the implication of the judgement, Denwigwe said it is now, unlawful for such taxes as VAT in Rivers State to be collected by any agency of the Federal Government.
FIRS has revealed to journalists today that it has begun the process of appealing the judgment, but from all indications, the agency which is now beginning to fight like a wounded lion is bent on taking unusual steps to continue with what the high court has termed an illegality.

Related Topics:lagos state Rivers State VAT

Up Next

A Seminar to End All Seminars – Tribute to Adebayo Williams at 70

Don't Miss

How We Intercepted N6bn Insurgents’ Drugs in Lagos port – NDLEA Boss, Marwa

Click to comment

Headline

2027: Obi Warns Against Rigging, Urges Voters to Be Vigilant

Published

5 days ago

February 17, 2026

Eric

A former Governor of Anambra State, Peter Obi, has issued a stern warning to election officials and stakeholders, urging Nigerians to ensure that every vote counts in the 2027 general election.

Obi stressed that anyone who attempts to manipulate or obstruct the counting of votes will be held accountable for undermining the country’s democracy.

“Unlike in the past, in 2027 our votes MUST count, and all those who are there not to count the votes will be counted among those destroying Nigeria,” he wrote on X on Monday, February 16, 2026.

Obi, who has declared that he will contest the 2027 presidential election, advised voters to stay at polling units after casting their ballots to observe the counting and transmission of results, emphasising that preventing the proper tallying of votes would attract legal consequences.

The former Labour Party presidential candidate said: “I encourage everyone to remain at the polling units after voting to count and witness the counting and transmission of results. Those who refuse to allow the votes count will be made to count the full weight of the law against rigging.

“Let me reiterate: if you do not count our votes, we will count you among those who destroy our democracy, thereby destroying our future, and you must answer to the law.”

Headline

APC National Secretary Basiru Demands Wike’s Resignation As FCT Minister

Published

5 days ago

February 17, 2026

Eric

The National Secretary of All Progressives Congress (APC), Senator Ajibola Basiru, has called on the Minister of the Federal Capital Territory (FCT), Nyesom Wike, to resign from President Bola Tinubu’s cabinet, accusing him of undue interference in the ruling party’s internal affairs.

Basiru’s demand followed Wike’s warning earlier on Monday, in which the former Rivers State governor cautioned the APC scribe to “leave Rivers State alone” and refrain from meddling in its politics. Wike, while addressing supporters during a thank-you visit to Oyigbo Local Government Area of Rivers State, described Rivers as a “no-go area,” warning that those who interfere “may burn their hands.”

But, responding to the FCT Minister’s warning in a statement issued from Osogbo, Osun State, Senator Basiru fired back, describing Wike’s remarks as a “tirade” and “uncouth.”

“My attention has been drawn to the tirade of the Minister of the FCT against my person and my office as National Secretary of the APC,” Basiru said. “It is shocking that such an innocuous statement could elicit such uncouth responses from no less than a member of the Federal Executive Council.”

The APC National Secretary defended his earlier remarks, insisting he merely reaffirmed that governors, regardless of political differences, deserve respect as leaders of the party in their respective states.

“For the avoidance of doubt, our records indicate that Minister Nyesom Wike is not a member of our party, the APC. He therefore lacks the locus to dabble into the affairs of our party,” he declared.

“As National Secretary of the APC, I am imbued with the responsibility to protect the interests of the party and all its members. My activities cannot be confined to my home state, Osun State.”

Basiru also dismissed Wike’s allegation that he and other APC leaders were scrambling for a N600 billion “largesse” in Rivers State’s coffers, describing it as “cheap blackmail.”

“My background and track record are of unquestionable integrity,” Basiru stated. “I challenge him to prove his allegations or we may meet in court.”

The APC chieftain further warned Wike against issuing threats, saying he would not be intimidated.

“Wike is not God and may be overplaying his political card,” Basiru cautioned. “My faith is in God, and I will not succumb to cheap threats such as the one from him.”

He maintained that Wike’s support for President Tinubu does not make him an APC member.

“Millions of non-APC Nigerians also support the President, and Wike’s case is no different,” Basiru said. “He cannot bring the spirit of the PDP into the APC or destabilize our structures in Rivers State.”

Concluding his statement, Basiru said Wike must make a choice between serving as a non-party technocrat or interfering in APC matters.

“He cannot be in the Federal Executive Council of an APC government and be causing confusion within our party. The honourable thing to do is to resign his appointment as Minister,” he declared.

Headline

Alleged N432bn Fraud: El-Rufai Spends Monday Night in EFCC Custody

Published

5 days ago

February 17, 2026

Eric

Former Kaduna State Governor, Nasir El-Rufai, spent Monday night in the custody of the EFCC following hours of interrogation over alleged financial misappropriation amounting to N432 billion.

El-Rufai arrived at the EFCC headquarters in Jabi, Abuja, around 11:00 a.m. on Monday, February 16, 2026, in response to an invitation reportedly issued in December.

Although he presented himself voluntarily, sources within the anti-graft agency disclosed late Monday that he would remain in custody until investigators reached what they described as “advanced stages” of their questioning.

The probe is said to stem from a 2024 report by the Kaduna State House of Assembly, which accused El-Rufai’s administration between 2015 and 2023 of diverting public funds through multiple state channels.

A senior EFCC official confirmed that investigators are reviewing contracts and financial transactions executed during his eight-year tenure.

Tension flared at the EFCC premises as hundreds of supporters and critics gathered shortly after news of his appearance broke.

Supporters accused the Federal Government of political persecution, chanting solidarity slogans, while a group identified as the Mega National Movement for Good Governance demanded accountability, insisting that no public official is above the law.

Security operatives deployed teargas to disperse the crowd after clashes reportedly broke out between the opposing groups.

In a related development, the Department of State Services (DSS) filed a three-count charge against El-Rufai at the Federal High Court in Abuja.

The charges, marked FHC/ABJ/CR/99/2026, reportedly concern the alleged unlawful interception of telephone communications belonging to the National Security Adviser, Nuhu Ribadu.

The filing followed a recent interview in which the former governor claimed he had listened to conversations in which Ribadu allegedly directed security operatives to arrest him upon his return from Egypt last week.

El-Rufai’s legal team, led by Ubong Akpan, has described the investigations as arbitrary and a violation of his constitutional rights.

Meanwhile, indications emerged that the Independent Corrupt Practices Commission (ICPC) has also scheduled him for questioning on Wednesday, February 18.

As of Tuesday morning, it remained unclear whether the EFCC would seek a court order to extend his detention or proceed with formal charges. Several of his former aides are reportedly already in custody as investigations continue.