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VAT: A’Court Order Against RSG, Endorsement Of Illegality, RSIRS Laments …Status Quo Means Rivers Should Collect Tax -Ozekhome …FG’ll Obey Court’s Final Verdict On VAT -Adesina
The Acting Chairman of the Rivers State Internal Revenue Service (RSIRS), Mr Chibuzor Aholu, has described last Friday’s verdict of the Court of Appeal, ordering the Rivers State Government to suspend the collection of Value Added Tax (VAT), as an endorsement of illegality which has been perpetuated by the Federal Inland Revenue Service (FIRS), for a very long time.
But Aholu said unlike the FIRS, Rivers State was governed by a law-abiding government, and would obey the Court of Appeal order.
He, however, said the appropriate law officers of the state government would take necessary judicial steps to address the issue.
Aholu made the position known in an interview with newsmen in Port Harcourt, last Friday.
He said it was shocking that the FIRS had tried to get an endorsement of its illegal collections of VAT from states, through the backdoor, by writing to the National Assembly, seeking the amendment of the nation’s Constitution.
While reacting, however, a Senior Advocate of Nigeria, Mike Ozekhome, made serious attempt to interpret the ruling of the Court of Appeal in the case involving the Federal Inland Revenue Service and the Rivers State Government over who has the right to collect VAT.
The human rights lawyer stated his position on the ruling in a statement he made available to newsmen, last Saturday.
It would be recalled that a Federal High Court sitting in Port Harcourt had in a judgment in suit number FHC/PH/CS/149/2020, held that the Rivers State Government had the powers to collect VAT within its territory.
The Rivers State Governor, Chief Nyesom Wike had also assented to the Rivers State Value Added Tax Law 2021 in August, after it was passed by the state House of Assembly.
The FIRS had then gone to the Court of Appeal where Justice Haruna Tsammani, last Friday, told the parties to the dispute to “maintain status quo”.
But according to Ozekhome, the ruling of the Court of Appeal sitting in Abuja, last Friday, meant that the Rivers State Government has the power to collect VAT until the court decides otherwise.
He said in the statement, “Clearly, the status quo ante bellum was before the breakout of the hostilities.
“The hostilities broke out when the FIRS dragged the Rivers State Government to court, arguing that it cannot collect VAT based on its law. The said law was already duly passed and made operational by Rivers State House of Assembly, that it has the constitutional competency under Section 4 of the Constitution to do so.
“The FHC, Port Harcourt, Rivers State, had earlier held that it was the Rivers State Government that was competent to collect VAT, not the FIRS.
“The law was already, therefore, in operation before the FIRS challenged the validity of an FHC judgement, PH, that had given the Rivers State Government the power to collect the VAT.
“So, the status quo is that it is the Rivers State Government that has the power to collect VAT, until perhaps, the Court of Appeal rules otherwise and set aside the FHC judgment.”
Meanwhile, the Special Adviser to the President on Media and Publicity, Femi Adesina, yesterday, said that President Muhammadu Buhari would abide by whatever final verdict the judiciary passes on the ongoing Value Added Tax (VAT) legal tussle.
Adesina, who spoke on a live current affairs programme on Arise Television, This Day Live, however, predicted that the matter has the likelihood of ending up at the Supreme Court.
He assured that President Muhammadu Buhari would allow the legal matter run its full course as he is not in the habit of muzzling institutions.
Adesina, who was reacting to a question on the matter, which had generated some heat in the last few days, also took a swipe at critics who would rather pick holes in the announced audited report and profit after tax of the Nigerian National Petroleum Corporation (NNPC), instead of appreciating a positive happening for the first time.
Giving his personal opinion on the tussle on VAT, the presidential spokesman noted that the tug could be seen in the light of fulfilling some of the several citizens’ demands of all times, which is fiscal federalism.
He, however, noted that achieving fiscal federalism bust must be done within the ambits of the law.
“I think the VAT issue is good because there have been talks about restructuring and fiscal federalism in the country. If states eventually get their demands in respect of VAT, there will be something like fulfilling fiscal federalism. But then, fiscal federalism itself must be done within the ambits of the law.
“That is why this issue may, and will likely, end up in the Supreme Court and when the Supreme Court pronounces, that is what the law says. If it’s in favour of the states, fine. If it’s in favour of the Federal Government, fine. You know that even all these states are not unanimous. You have heard some governors speaking out against the position of certain states who are so militant on this VAT issue.
“So eventually, we will have a legal pronouncement, which may come from the highest court in the land and whatever that court says, then is the law in the country. Knowing the Buhari administration, it will obey the rule of law,” he said.
Earlier, the Abuja Division of the Court of Appeal, had last Friday, ordered the Rivers State Government, the Federal Inland Revenue Service (FIRS) and the Attorney-General of the Federation, to maintain status quo, pending the hearing and determination of applications before it in respect of the Valued Added Tax (VAT).
The Federal High Court, Port Harcourt, had on August 9, declared that it was the Rivers State Government, and not FIRS that should collect VAT and Personal Income Tax in the state.
The three-man panel of Appeal Court justices led by Justice Hassan Tsammani, ordered all parties to maintain status quo, and refrain from taking any action that would give effect to the judgment of the Federal High Court, Port Harcourt.
Justice Tsammani held that since all parties in the matter had submitted themselves before the court, it was proper and the law for the court to preserve the res (subject matter) from being rendered nugatory.
Consequently, the court held that parties should refrain from giving effect to the judgment of the trial court in Port Harcourt, pending the hearing and determination of the application of the FIRS to stay execution of the trial court’s judgment.
Parties are also to maintain status quo pending the hearing of an application by the Attorney-General of Lagos State to be joined as a party in the matter.
Counsel to the appellant/applicant, Mr Mahmud Magaji (SAN), made an oral application for an order that status quo be maintained, pending the hearing and determination of the motion for injunction and stay.
However, Mr Emmanuel Ukala (SAN), counsel to Rivers State Government and Mr Oyosore Onigbanjo (SAN), counsel to Lagos State Government, both opposed the application for status quo.
Mr Tijani Ghazali (SAN), who represented the attorney-general for his part, supported the application for status quo to be maintained.
The applicants have been given two days to file their written addresses in respect to the pending applications, just as the respondents have also been given two days to file, and the applicant has one day to reply on points of law.
The matter has been adjourned until September 16.
Rivers State Governor, Sir Siminalayi Fubara, has declared that his administration will ensure the delivery of developmental projects and the prevalence of peace in all parts of Rivers State.
The Governor emphasized that the achievement of these lofty ideals can only occur through the unwavering contributions of all Rivers stakeholders.
Speaking during the commissioning of the 10.7-kilometre Egbeda–Omerelu Road constructed by his administration, the governor said Rivers State can only move forward when its people choose unity over division.
He assured Rivers people that development projects would reach every part of the State but cautioned that progress cannot thrive where conflict persists.
Reflecting on the project, Governor Fubara recalled that the road was a promise he made during the inauguration of the first phase about a year ago.
“We made a promise that we were going to do this project, and today I am happy that the government has fulfilled that promise made to Emohua people, Egbeda community and Omerelu people,” he said.
He noted that the essence of governance is service to the people, adding that responding to their needs is a core responsibility of any administration.
“We decided to do this because you know where we are coming from, and if we don’t tell our story, many won’t know what we are doing. Even in the face of tribulations, we have remained focused on delivering the dividends of democracy. We will continue to serve our people with respect and honour,” he affirmed.
Governor Fubara also reiterated his support for President Bola Ahmed Tinubu, pledging to back all groups working towards securing the President’s victory in 2027.
Giving technical details of the project, the Permanent Secretary of the Ministry of Works, Dr. Austin Ezekiel-Hart, explained that the contract was awarded on October 27, 2024, to Messrs Johnson Roadworks Limited.
He said the road links communities in Emohua and Ikwerre LGAs and shortens travel time for motorists commuting from Ahoada East, Ahoada West and Omoku through Egbeda to Owerri in Imo State.
He added that the infrastructure features a 12-metre clearing width and an 8-metre asphalt surface, comprising a 50mm binder course and a 40mm wearing course. It is complemented by 24 kilometres of drainage channels with a 1.05m² cross-sectional capacity to ensure durability and efficient water flow.
In his remarks, the Chairman of Emohua Local Government Area, Dr. Chidi Lloyd, described the road as a crucial link for surrounding communities, significantly easing movement for residents.
He praised the governor for demonstrating continuity and consolidation and prayed for God’s strength to enable him to achieve even more for the people.
Governor Siminalayi Fubara says Rivers State remains the best investment destination for investors in the oil and gas sector.
Governor Fubara stated that since the economic development of Rivers State is closely connected to the growth of the oil and gas industry, his administration has continued to collaborate with the Federal Government and host communities to protect natural assets in the sector.
The Governor stated this during the Nigeria and Entrepreneurship Summit and Honours (NESH) Foundation Oil and Gas Roundtable in Port Harcourt.
Represented by the Secretary to the State Government, Dr. Benibo Anabraba, he pointed out that since the economy of Nigeria relies substantially on the oil and gas sector, his administration will continue to collaborate with relevant stakeholders to ramp up production.
“The Nigerian oil and gas sector is the lifeblood of our nation’s economy, contributing over 90% of Federal Government’s foreign exchange earnings. Similarly, Rivers State, home to numerous national and multinational oil and gas companies, is the centre of Nigeria’s hydrocarbon industry, with the State’s oil and gas resources generating over 40% of the country’s revenue.
“?Considering this, the survival and economic development of Rivers State are closely connected to the growth of the oil and gas industry. That is why, since the beginning of this administration, we have focused on safeguarding the national oil and gas assets in collaboration with the Federal Government, security agencies, communities and other stakeholders, and we will maintain this commitment for as long as it is necessary.
“Furthermore, we have established and maintained a conducive, peaceful, and secure environment for companies to open and flourish in the State as part of a strategic plan to stimulate our economy, generate jobs, and enhance the well-being of our citizens.
“We therefore recognise and applaud the vital role that indigenous companies are currently playing in bridging gaps and advancing the development of Nigeria’s oil and gas industry,” he stressed.?
Governor Fubara affirmed that Nigerian-funded companies can only succeed and make meaningful contributions to the nation’s economic prosperity when challenges that limit the nation are effectively tackled, and expressed his administration’s stand to support indigenous organisations such as the Nigeria and Entrepreneurship Summit and Honours (NESH) Foundation.
Declaring the roundtable open, the Governor assured the Nigerian-Owned companies in the oil and gas sector, that “we are ready and willing to respond positively to any administrative, policy, or legislative recommendations within our jurisdiction as a subnational State.”
The Founder of the Nigeria and Entrepreneurship Summit and Honours (NESH) Foundation, Mr Emeka ugwu-Ozu, disclosed that the summit, held only in an oil and gas producing place, is a forum for all in the industry to brainstorm and suggest best practices for local players.
“This roundtable discussion takes place in only oil and gas producing states, and it is intentional. And that is to make sure that sooner, it becomes like what we say is the equivalent of Houston in the United States of America.
“I would say that from what I have seen so far, Rivers State is back and open, safe and good for business. The oil and gas players should come and see what we have seen,” he said.
Wife of the Rivers State Governor, Lady Valerie Fubara, has lauded the commitment, solidarity and pivotal role of women in promoting peace and enterprise development in Rivers State.
Lady Fubara spoke at the second edition of ‘Women Converge,’ a special programme organized by Rivers Women Unite for Sim, an NGO, at the main bowl of the Alfred Diete-Spiff Sports Complex in Port Harcourt, last Thursday.
She said women in the state had tremendously impacted the state positively through their prayers, careers, contributions to the home fronts, and expressed appreciation to Rivers women, for their unwavering support to her husband, Sir Siminalayi Fubara, the Governor of Rivers State, while urging them to continue to pray for the state.
“Once again, let me use this occasion to thank Rivers women for their support both in prayers and solidarity with me and my family. You have been wonderful. I can’t reward all that you do, but God in heaven who sees in secret will surely reward you openly.
“Truly today, marks another milestone in our effort to shape the society for good and lending our support for the sustenance of peace and development of Rivers State in particular and Nigeria at large. Without doubt, the prayers of our women avails much in every situation.
“Let me enjoin our women to remain prayerful because God is ever ready to answer our prayers. In all that we do, we must not forget the hand of God and often seek Him for direction and help. You have always been steadfast and I urge you not to relent, and together we will move our society forward. Whatever you do, putting your trust in God will certainly succeed”.
The Rivers State first Lady described the theme of the event, “Women in An Evolving World” as apt and, deeply reflective of the very essence of actions and strategies that women adopt to navigate the new world order.
She noted that despite the complexities of managing the home front and the constraints of economic realities, women had demonstrated formidable strength and resilience to confront the odds of life.
“This Converge underscores the resilience of our women to succeed no matter the odds, especially with absolute faith in God and determination for greater accomplishments.”
“Whether in the industry, business, agriculture, public service or even in politics, they have always shown strong determination to adapt and to accomplish like others.
“Our natural state notwithstanding our focus has always been to reach for the sky like every other person and as Rivers women we have always been pacesetters.
The Keynote Speaker, Pastor Eno Jerry Eze, described women as the foundation of every society, noting that the development of every society depends on the strength of womanhood.
In their good will messages, notable Rivers women who attended the event expressed optimism over the prospects of sustainable peace and development in Rivers State, and reiterated their support for the administration of Governor Siminalayi Fubara.
Some dignitaries that attended the event include former Commissioner for Environment in Rivers State, Prof Roseline Konya; foremost activist, Ann Kio Briggs; wife of the former Deputy Governor of Rivers State, Dr Mrs Christie Toby; President of the Port Harcourt Chambers of Commerce Industry, Mines and Agriculture, PHACCIMA, Dr Chinyere Nwoga; Pastor Ene Secondus, among others.
Highlights of the event were ministrations, cutting of cake and special prayers for Rivers State.
