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

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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.

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Obasanjo Knocks Tinubu’s Govt over Inability to Protect Lives, Property

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Former President Olusegun Obasanjo has lambasted the administration of President Bola Tinubu over insecurity bedeviling the country.

In an interview with News Central, Obasanjo said any government that cannot protect lives and property of its citizens has no basis to exist.

The former leader was reacting to the recent wave of insecurity, which has confronted Nigeria, resulting in the killing of several citizens and abduction of others.

“Let me tell you, the government that cannot give security of life and property of its citizen has no right of existence.

“The elected members of our National Assembly have no right to fix their own salary and their own emolument.

“It’s not in our constitution for them to do that. It’s the revenue mobilization and allocation commission that should do it,” he said.

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2027: NDC Woos Obi, Kwankwaso with Presidential Ticket

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The Nigeria Democratic Congress (NDC) has offered its presidential ticket to Peter Obi and Rabiu Kwankwaso ahead of the 2027 elections, signaling intensifying efforts to forge a united opposition as key political deadlines approach.

In a post on X on Sunday, the party indicated a two-week window for both politicians, currently linked to the African Democratic Congress (ADC), to defect and secure its platform’s presidential ticket.

“All we need right now. Just all we need. Two weeks to deadline,” the NDC said, accompanying the message with an image of Obi and Kwankwaso and the caption: “Nigeria will be OK.”

The development comes amid renewed calls for opposition consolidation ahead of the next general elections. Supporters of both men recently launched the “OK Movement”, aimed at mobilising support for a possible joint ticket.

Organisers of the movement have begun setting up national, zonal and State structures, suggesting early groundwork for a broader political alliance.

However, the ADC is currently grappling with internal divisions that could affect its participation in the elections. The party is facing a leadership crisis, with competing factions contesting control of its structure.

The dispute is now before the Supreme Court of Nigeria, which has reserved judgment in an appeal arising from the leadership tussle.

The uncertainty comes as the Independent National Electoral Commission (INEC) maintains its timetable for the 2027 polls, setting May 30, 2026, as the deadline for political parties to submit membership registers and nominate candidates.

Opposition parties, including factions of the Peoples’ Democratic Party (PDP) and the New Nigeria Peoples Party (NNPP), have called for an extension of the timeline, arguing that the schedule is too tight given ongoing internal restructuring and legal disputes.

The NDC’s offer highlights the shifting dynamics within Nigeria’s opposition landscape, where alliances remain fluid and negotiations are ongoing.

Both Obi and Kwankwaso are influential political figures with significant regional support bases, and any alignment between them could reshape the balance of power ahead of the elections.

INEC has yet to indicate whether it will adjust its timetable, as preparations for the 2027 general elections continue to gather momentum.

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Atiku Raises Alarm over Alleged Plot to Disenfranchise Northern Voters

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Former Vice President Atiku Abubakar has expressed concern over reports that the Senate is considering the suspension of political campaigns in eight Northern states under the pretext of rising insecurity.

Atiku, in a statement issued by his Senior Special Assistant on Public Communication, Phrank Shaibu, described the development as deeply troubling and fraught with dangerous implications for Nigeria’s democracy.

He noted that while insecurity remains a serious national challenge that must be confronted decisively, it must never become a convenient justification for undermining constitutional rights or selectively restricting democratic participation.

“Let it be clearly stated: the right to vote and participate in the electoral process is fundamental and cannot be abridged under any guise. Any attempt—whether deliberate or disguised—to suppress political activities in parts of Northern Nigeria raises legitimate concerns about disenfranchisement,” Atiku said.

The Waziri Adamawa recalled that credible intelligence had earlier pointed to possible plans to weaken electoral participation in key Northern states, warning that recent developments appear to be lending credence to those fears.

“This is not merely about campaigns; it is about representation, inclusion, and the integrity of our democratic process. You cannot cure insecurity by silencing the voices of the people. Democracy must not become a casualty of government failure,” he added.

The former Vice President stressed that the people of Northern Nigeria, like all Nigerians, deserve both security and full participation in the democratic process — not one at the expense of the other.

He added that it is the responsibility of government to provide security for its citizens, while it remains the duty of citizens to freely exercise their civic rights without fear, intimidation, or unlawful restriction.

“At a time when citizens are already battling hardship and insecurity, the least the government can do is to guarantee their right to be heard — not to restrict it. Any policy that creates the impression of targeted exclusion will only deepen distrust and national division,” he warned.

He called on the Independent National Electoral Commission, security agencies, and the administration of Bola Ahmed Tinubu to immediately clarify their position and reassure Nigerians that no region will be denied its constitutional rights.

“Nigeria must never descend into a situation where elections are shaped by exclusion, fear, or administrative manipulation. The consequences of such actions are far-reaching and better imagined than experienced,” Atiku cautioned.

He urged all stakeholders to uphold the principles of fairness, equity, and national unity, emphasising that democracy must remain inclusive, transparent, and credible across every part of the country.

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