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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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Tinubu in Abu Dhabi, Pledges Support to Build Sustainable World for All

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President Bola Tinubu has said Nigeria is ready to work with other nations to build a resilient, equitable, and sustainable world for all.

Tinubu spoke in Abu Dhabi, United Arab Emirates, on the second day of the 2025 Abu Dhabi Sustainability Week.

The president spoke on the topic, “From Climate Imperatives into Economic Prosperity: Bridging Africa with the Global Energy Future.”

He declared that no single nation could walk the road to sustainability alone, stressing that global interconnectedness demand collective action, knowledge sharing, and mutual support.

According to Tinubu, “The fight against climate change is not merely an environmental necessity but a global economic opportunity to reshape the trajectory of our continent and the global energy landscape.

“As leaders, stakeholders and citizens of our planet, we stand at a critical juncture in human history. To succeed, we must innovate, collaborate and act decisively as one global community.”

Reiterating his administration’s commitment to reducing carbon emissions, Tinubu assured the audience that the Nigerian government had developed actionable programmes in line with global expectations, bearing in mind Nigeria’s economic and political expectations.

He said, “We have embraced a vision of sustainability that aligns with global aspirations while addressing local realities. Our efforts are anchored on three pillars: Energy Transition, Climate Resilience, and Sustainable Development.

“My administration recognises the importance of reducing carbon emissions and a just transition to clean and renewable energy, promoting environmental sustainability and economic growth.

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FG Claps Back at Sanusi, Urges Emir to Rise Above Personal Interest

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The Federal Government has responded to recent remarks by Emir Muhammadu Sanusi II regarding the economic reforms implemented under President Bola Ahmed Tinubu’s administration. The Emir, speaking at a public event in Lagos, acknowledged the initiatives but stated he had chosen “not to help the government” by offering his endorsement.

In a statement released on Thursday by the Minister of Information and National Orientation, Mohammed Idris, the government acknowledged Sanusi’s right to express his views, defended its policies, emphasizing that Nigeria is at a critical juncture requiring bold and transformative actions to address entrenched economic challenges. The statement highlighted key achievements, including exchange rate unification, the removal of fuel subsidies, and a reduction in the debt service-to-revenue ratio.

“These reforms are not being implemented because they are easy but because they are essential for Nigeria’s long-term stability and growth,” the statement read. It further noted that global institutions like the World Bank have projected positive growth for Nigeria’s economy, affirming that the country is on a path to recovery.

The government expressed disappointment over Emir Sanusi’s perceived reluctance to constructively support these reforms despite his economic expertise. “It is deeply disappointing that reforms widely recognized as essential by global experts—including Emir Sanusi II himself—are now being subtly condemned because of a shift in loyalty,” the statement added.

The government called on leaders, including Emir Sanusi, to prioritize the nation’s collective good over personal interests or partisan sentiments. “Rebuilding Nigeria requires unity, focus, and sacrifice from all stakeholders,” the statement emphasized. “This administration urges esteemed leaders to refrain from rhetoric that undermines public trust.”

President Tinubu’s administration reaffirmed its commitment to fostering economic inclusivity and sustainability. The government pledged to remain open to dialogue with stakeholders while focusing on policies aimed at improving the lives of Nigerians.

“Let history record this moment as a turning point—when leaders and citizens alike choose to prioritize the nation’s destiny over personal gain,” the statement concluded.

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Economic Challenges: I Won’t Offer Any Advice, Emir Sanusi Tells Tinubu

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Emir of Kano, Muhammadu Sanusi II, has declared that he will not offer any advice to President Bola Tinubu’s government on how to tackle the economic challenges facing the country.

The emir stated this on Wednesday during the 21st Memorial Lecture of Chief Gani Fawehimi held in Lagos.

Speaking as chairman of the event, Sanusi stated that he started by helping the government, but he has now resolved not to help the government anymore.

He said: “I can give a few points here about what we are going through and how it was predictable and avoidable. But I am not going to do that. I have chosen not to speak on the economy, or reforms, or to explain anything because if I do, it will help this government. But I don’t want to help this government. They are my friends, but if they don’t behave like friends, I won’t behave like a friend.”

Emir Sanusi added: “They don’t even have people with pedigree that can come and explain to the people what they are doing. I am not going to help. I started by helping, but I am not going to help. Let them come and explain to Nigerians why they are pursuing the policies that they are pursuing.

“But I will say this one thing though. What we are going through today is at least in part, a necessary consequence of decades of irresponsible management. People were warning that if we continued the way that we were going, this is how we will end up but they refused to listen.

“Now, is everything being done correctly? No! When I am ready to talk about the economy, I will.”

Sanusi also charged lawyers to emulate the virtues of the late Gani Fawehinmi whom he described as an embodiment of good character now lacking in the legal profession.

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