Featured

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

Published

4 years ago

September 13, 2021

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.

Featured

Tinubu committed to unlocking Nigeria’s potential – Shettima

Published

13 mins ago

May 1, 2025

The Tide

Vice-President Kashim Shettima says President Bola Tinubu is committed to unlocking Nigeria’s full potential and position the country as a leading force on the African continent.

Shettima stated this when he hosted a delegation from the Hertie School of Governance, Berlin, led by its Senior Fellow, Dr Rolf Alter, at the Presidential Villa in Abuja last Wednesday.

He said Nigeria was actively seeking expertise from the global best institutions to enhance policy formulation and implementation, particularly in human capital development.

The Vice-President noted that President Tinubu was determined to elevate Nigeria to its rightful position as a leading force in Africa.

“The current crop of leadership in Nigeria under President Bola Ahmed Tinubu is ready and willing to unleash the full potential of the Nigerian nation on the African continent.

” We are laying the groundwork through strategic reforms, and at the heart of it, is human capital development.”

He described the Hertie School as a valuable partner in the journey.

According to him, Hertie School of Governance, Berlin, has track record and institutional knowledge to add value to our policy formulation and delivery, especially in this disruptive age.

Shettima reiterated the government’s priority on upskilling Nigerians, saying ” skills are very important, and with our Human Capital Development (HCD) 2.0 programme.

“We are in a position to unleash the full potential of the Nigerian people by enhancing their capital skills.”

The Vice-President acknowledged the vital support of international development partners in that effort.

” I want to thank the World Bank, the European Union, the Bill and Melinda Gates Foundation, and all our partners in that drive to add value to the Nigerian nation,” he maintained.

The Vice-President said human capital development was both an economic imperative and a social necessity.

Shettima assured the delegation of the government’s readiness to deepen cooperation.

” We need the skills and the capacity from your school. The world is now knowledge-driven.

“I wish to implore you to have a very warm and robust partnership with the government and people of Nigeria.”

Shettima further explained recent economic decisions of the government, including fuel subsidy removal and foreign exchange reforms.

“The removal of fuel subsidy, the unification of the exchange rate regime and the revolution in the energy sector are all painful processes, but at the end of the day, the Nigerian people will laugh last.

“President Tinubu is a very modern leader who is willing to take far-reaching, courageous decisions to reposition the Nigerian economy,” he added.

Earlier, Alter, congratulated the Tinubu administration for the successful launch and implementation of the Human Capital Development (HCD) strategy.

The group leader described the development as ambitious and targeted towards the improvement of the lives of the citizens.

He expressed satisfaction with the outcome of his engagements since arriving in the country.

He applauded the zeal, commitment, energy and goodwill observed among stakeholders in the implementation of Nigeria’s HCD programme.

Alter said the Hertie School of Governance would work closely with authorities in Nigeria across different levels to deliver programmes specifically designed to address the unique needs of the country.

He, however, stressed the need for government officials at different levels to be agile and amenable to the dynamics of the evolving world, particularly as Nigeria attempted to successfully accelerate its human capital development aspirations.

Featured

FG To Seize Retirees’ Property Over Unpaid Housing Loans

Published

7 days ago

April 25, 2025

The Tide

The Federal Government Staff Housing Loans Board says it has begun the compilation of list of retired civil servants who have defaulted on the full repayment of housing loans obtained.
Head of Information and Public Relations, FGSHLB, Mrs Ngozi Obiechina, disclosed this in a statement in Abuja, yesterday.
Obiechina quoted the Executive Secretary of the Board, Mrs Salamatu Ahmed, as saying that the move was aimed at recovering mortgaged properties from retirees who failed to meet their loan obligations.
Ahmed noted that the decision followed a recent memo issued by Mrs Patience Oyekunle, Permanent Secretary, Career Management Office, Office of the Head of the Civil Service of the Federation.
According to her, the memo reminded public servants of the mandatory requirement to obtain a Certificate of Non-Indebtedness to the FGSHLB and MDA Staff Multipurpose Cooperative Society as a precondition for retirement.
The Executive Secretary said that the board would take necessary legal steps to repossess properties where applicable, in line with the terms of the loan agreements.
She said this was in line with the provisions of the Public Service Rules 021002 (p), issued by the Office of the Head of the Civil Service of the Federation.
“I am directed to bring to your attention the provision of Public Service Rule (PSR) 021002 (p), which mandates all public servants to obtain a Certificate of Non-Indebtedness as a prerequisite for retirement.
“The Federal Government will commence the seizure of mortgaged properties belonging to retiring federal public servants who have failed to fully repay housing loans obtained from the board,” she said.
Ahmed explained that the FGSHLB reserves the legal right to repossess any mortgaged property in cases where a public servant exits service without fully repaying the loan.
She reiterated that the directive also applied to already retired officers who were still indebted.
She urged all affected public servants to regularise their loan status and obtain the required clearance certificate without delay.
“The board is currently compiling a list of such retirees, which will be forwarded to relevant regulatory agencies for debt recovery.
“The FGSHLB remains committed to enforcing compliance and ensuring proper loan recovery procedures are followed, “ she added.

Featured

FG Begins Induction For New Permanent Secretaries, Accountant-General

Published

7 days ago

April 25, 2025

The Tide

The Federal Government has kicked off a three-day induction programme for newly appointed Permanent Secretaries and the Accountant-General of the Federation, aimed at equipping them for strategic leadership and effective policy implementation.
The induction, according to a statement yesterday by the Director, Information and Public Relations, Federal Ministry of Information and National Orientation, Eno Olotu, which commenced on Wednesday, is being held at the National Counter Terrorism Centre in Abuja.
Speaking at the opening session, the Head of the Civil Service of the Federation, Mrs. Didi Esther Walson-Jack, congratulated the new appointees and described their roles as pivotal to governance and national development.
“Permanent Secretaries are the engine room of the government. They are critical to driving policy implementation, institutional performance, and reform across the service”, she said.
The Federal Government has kicked off a three-day induction programme for newly appointed Permanent Secretaries and the Accountant-General of the Federation, aimed at equipping them for strategic leadership and effective policy implementation.
The induction, according to a statement yesterday by the Director, Information and Public Relations, Federal Ministry of Information and National Orientation, Eno Olotu, which commenced on Wednesday, is being held at the National Counter Terrorism Centre in Abuja.
Speaking at the opening session, the Head of the Civil Service of the Federation, Mrs. Didi Esther Walson-Jack, congratulated the new appointees and described their roles as pivotal to governance and national development.
“Permanent Secretaries are the engine room of the government. They are critical to driving policy implementation, institutional performance, and reform across the service”, she said.
“The expectations are high, and the responsibility is immense. But with commitment and teamwork, we can deliver a more efficient, accountable, and citizen-centred public service.
“This final lap of FCSSIP 25 calls for urgency, accountability, and strategic focus. You must translate vision into measurable results,” she stated.
In her welcome address, the Permanent Secretary, Career Management Office, Mrs. Fatima Sugra Tabi’a Mahmood, described the programme as a strategic investment in leadership capacity and institutional effectiveness.
The sessions featured expert-led discussions, simulations, and strategic briefings facilitated by a distinguished faculty, including Engr. Suleiman Adamu, former Minister of Water Resources; Dr. Hadiza Bala Usman, Special Adviser to the President on Policy and Coordination; Mrs. Beatrice Jedy-Agba, Solicitor-General of the Federation and Permanent Secretary, Federal Ministry of Justice; Alh. Yusuf Addy, retired Federal Director; Alhaji Bukar Goni Aji, former Head of the Civil Service of the Federation; Amb. Mustapha Lawal Suleiman, Mr. Adesola Olusade, and Dr. Ifeoma Anagbogu, all retired Permanent Secretaries.
Participants include Dr. Obi Emeka Vitalis, Mrs. Fatima Sugra Tabi’a Mahmood, Mr. Danjuma Mohammed Sanusi, Mr. Olusanya Olubunmi, Dr. Keshinro Maryam Ismaila, Dr. Akujobi Chinyere Ijeoma, Dr. Umobong Emanso Okop, Dr. Isokpunwu Christopher Osaruwanmwen, Mrs. Oyekunle N. Patience, Dr. Kalba U. Danjuma, Mr. Nadungu Gagare, Mr. Onwusoro I. Maduka, Dr. Usman Salihu Aminu, Mr. Ogbodo Chinasa Nnam, Mr. Ndiomu Ebiogeh Philip, Dr. Anuma N. Ogbonnaya, Mr. Adeladan Rafiu Olaninre, and Mr. Mukhtar Yawale Muhammed, alongside the Accountant-General of the Federation, Mr. Shamseldeen Babatunde Ogunjimi.
The induction programme will feature sessions on public sector leadership, policy delivery, ethics in service, digital transformation, and performance management.