Nation
Auto Policy: FG Dragged To Court Over Finance Act 2020
The Abuja division of the Federal High Court has been asked to strike down Section 38 of the Finance Act 2020 which gives legal basis to the implementation of the 5 percent levy on some categories of cars which is reduction from 35 percent implemented by the government of Nigeria since 2020.
President Muhammadu Buhari had assented to the Finance Act 2020 on December 31, 2020.
Following the Presidential assent, the Nigeria Customs Service had planned the implementation of the policy.
But dissatisfied with the policy, Pan Nigeria Limited, Lafbart Innovation and Consulting Limited, Mikano International Limited and the Incorporated Trustees of Global Integrity Crusade Network, the Incorporated Trustees of Global Integrity Crusade Network (GICN) dragged the government to court to challenge the policy.
Defendants in the suit are the National Assembly, the Federal Government, Ministry of Industry Trade and Investment, Ministry of Finance and the Nigeria Custom Service.
The Finance Act 2020 reduced tariff on the importation of Fully Built Vehicle (FBU) from 35% to 5% whereas import duty for Semi Knocked Down (SKD) remains at 10%.
The implication of the policy is that all the businessmen who have invested in the assembly of SKD commercial vehicles including tankers for which Nigeria has a history of competence beyond the New Automotive Industry Development Plan (NAIDP) will suffer.
However, dealers in FBU can now import freely without recourse to Nigerian assemblers, including body builders that have existed for generations.
In a suit marked FHC/ABJ/CS/157/2021 and filed on February 10, 2021, the plaintiffs, through their counsel, Ayodele Akisanya and Adamson Adeboro, want the court to determine the following questions: “Whether by the provisions of Section 13(1) of the Customs and Excise Tariff ETC (Consolidated) Act, the failure of the President to rely on the recommendation of the Tariff Review Board to modify duties and levies as mandated by the said Section 13(1) before transmitting the Finance Bill 2020 as an Executive Bill to the 1st Defendant for passage into law and which Finance Bill 2020 includes Section 38 whereat the President purports to modify duties and levies, did not incurably contaminate the said Section 38 of the Finance Bill 2020 now Section 38 of the Finance Act 2020 and render same null and void ab initio and liable to be struck down.
“Whether by the provisions of Order 77(3) of the Senate Standing Order as Amended 2015 the 1st Defendant ought not to have received and if not provided by the Executive, demanded information or evidence of compliance with the statutory condition precedent set in Section 13(1) of the Customs and Excise Tariff ETC (Consolidated) Act as a precondition for passing the Finance Bill 2020 to an Act which Act now contains Section 38 whereat the President purports to exercise the powers granted by in Section 13(1) of the Customs and Excise Tariff ETC (Consolidated) Act but ignored the accompanying responsibility to rely on recommendation of the Tariff Review Board”.
The plaintiffs also sought the following reliefs from the court: “A declaration that Section 38 of the Finance Act 2020 is the by-product of non-compliance with statutory conditions precedent set in Section 13 of the Customs and Excise Tariff ETC (Consolidated) Act and therefore null and void ab initio rendering said Section 38 of the Finance Act 2020 liable to be struck down.
“A declaration that the President, subject to compliance with the precondition set in Section 13(1) of the Customs and Excise Tariff ETC (Consolidated) Act has the powers to modify tariffs, duties and levies without any reference, recourse and or resort to the 1st Defendant for approval or ratification.
“An order striking down all the provisions of Section 38 of the Finance Act 2020 as being invalidly made, null and void ab initio.
“An order of perpetual injunction restraining the 1st, 2nd, 3rd and 4th Defendants either by themselves, or agencies under them, parastatals and or organization, privies and assigns from implementing, enforcing, giving effect howsoever to the provisions of Section 38 of the Finance Act 2020”.
No date has been fixed for the hearing of the case.
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Haniel Jack Foundation Awards Five Rivers Indigenes Scholarship
The Ibanibo Haniel Jack Foundation has awarded scholarships to five Rivers State indigenes in different tertiary institutions.
The scholarship programme was announced on Easter Sunday by Rev. Dr. Samuel Wachukwu, who is also the presiding pastor of Redeemer Baptist Church, at No. 44/46 Lumumba Street, Mile Two Diobu, in Port Harcourt.
Speaking, the chairman of the occasion, Barrister Karibi George, advised the recipients to justify the scholarship by ensuring that they put in their best and finish at the expected time.
George reminded them that opportunity comes but once and they should take advantage of the opportunity that comes their way judiciously.
“Those of you who are beneficiaries of this scholarship should also remember to help others and the resurrection of our Lord Jesus Christ.
“I advise you to justify the opportunity given to you and make the man who gave you the scholarship, yourself, and your family proud,” Barrister George said.

He explained that the scholarship spans undergraduate and postgraduate levels in various high institutions in Nigeria. He thanks Sir Jack for the gesture.
The scholarship is to promote education in our society, most especially for Rivers indigenes, and equally assist those who cannot immediately afford tuition fees.
It will interest you to know that
The scholarship was borne out of God’s blessings, and this is a way to give back to the society. Besides, two of the beneficiaries are direct employees of the chairman of the foundation, sir.
Ibanibo Haniel Jack, who is also the chief executive officer (CEO) of White House Hotel, in Port Harcourt.
Chief Prezi Diffa, while presenting the awards, commended Sir Ibanibo Haniel Jack, who has deemed it necessary to give back to society.
Chief Diffa equally advised the beneficiaries to take their academics seriously and count themselves lucky.
“The man who has given you this scholarship wants to better your lives, so please put in every effort to ensure you finish the school with flying colors,” Chief Diffa said.
The beneficiaries are Isoboye Haniel Douglas, Naomi Douglas, Charles Batubo, Ajé Sokari, and
Dakoru Owen Amachree.
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