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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.
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We’re Genuinely Opening Up Kalabari Land For Development, Says Fubara

Rivers State Governor, Sir Siminalayi Fubara, has explained that his administration is courageously executing strategic projects that are opening up Kalabari land for unprecedented development and economic growth.
Governor Fubara made the explanation when he received on solidarity visit, a delegation of monarchs, political leaders, elders, women and youths of Kalabari Ethnic Nationality, led by the Amanyanabo of Abonnema, King Disreal Gbobo Bobmanuel, at Banquet Hall of Government House in Port Harcourt, last Tuesday.
The Governor stated that while previous administrations avoided executing the original plan for the Trans-Kalabari Road project due to cost implications, he has ventured into it, and driving the process steadily in order to link Kalabari land to the State capital.
Governor said: “Somebody said, if I don’t do it for my people, who will do it for them. We ventured into the Trans-Kalabari Road, we didn’t close our eyes. Our eyes were open because we knew what we were entering into.
“It is not a joke; it is a big project. We believe that at the end of that project, the level of development that it will attract to that line of entry into Kalabari will be very unprecedented.
“Issues of insecurity from our waterways will be reduced because, at that point we are doing road, people won’t be using the river anymore. The cost of living will also be cheaper.”
Governor Fubara further asserted: “So, you understand that your interest, your safety, your development is key to us. It is not about the number of years that we are going to be here; what is important to this government is the impact we make while we are here.”
Responding to their unanimous endorsement to see him run for a second term in office, Governor Fubara said power belongs to God, and He gives it to whoever finds favour in His sight.
Governor Fubara, however, stated that if God so approved of it, even those who are regrouping against him will not see the path God will lead him because they cannot scuttle such plan.
He added, “Power belongs to God. So, you see, I like believing that we don’t have any problem. When we get to the bridge, we will cross it. If we can break the bridge, Moses will come and create a road for us. So, you don’t need to worry.
“We will cross the bridge. We will cross it in a way that our enemies will be struggling; they won’t see where we are passing. So, don’t worry.”
Governor Fubara acknowledged the immense support to him by Rivers Ijaw, and urged particularly the Kalabari people to stand with honour in their unalloyed support for his administration, which will neither abandon them nor fail to deliver quality projects to the people.
Governor Fubara also responded to their requests and informed them that his administration has completed the Emohua/Tema Junction Road project, and ready to inaugurate the Degema Zonal Hospital in May.
He said the Health Commissioner has been directed to assess the state of the Abonnema General Hospital for immediate rehabilitation, while promising to address the issues of shore protection in the area.
Governor Fubara assured that with the Abonnema sandfilling works completed, the phase two will commence that will include Buguma, explaining that the Commissioner for Works has been tasked to do the assessment immediately.
On the request for the establishment of tertiary institution in the area, Governor Fubara said his administration is already inaudated with memos asking that the off-campus of Rivers State University established previously be revised because it has become difficult to sustain them, but quickly added that the government will consider the establishment of a viable institution that will provide technical and entrepreneurial skills to the people in a sustained manner.
Reading the address of Kalabari Ethnic Nationality, Chief Pawariso Samuel Horsfall, announced that the entire Kalabari people have unanimously endorsed Governor Fubara for a second term, and vowed to mobilise Rivers people to ensure electoral victory for him in the 2027 gubernatorial election.
In his speech, the leader of the delegation and Amanyanabo of Abonnema, King Disreal Gbobo Bobmanuel, expressed the profound thanks of the Kalabari people to Governor Fubara for his genuine love for them, as evidenced in the types and quality of development projects delivered or being executed in the area.
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Senate Passes N54.9trn 2025 Appropriation Bill

The National Assembly, yesterday, passed the N54.9 trillion 2025 Appropriation Bill.
The Tide source reports that this followed the adoption of the report of the Committee on Appropriations on the bill.
The report was presented by Chairman of the Committee, Sen. Solomon Adeola (APC-Ogun).
The Tide source reports that highlights of the passed 2025 appropriation bill indicates an aggregate expenditure of N54.9 trillion, statutory transfers of N3.6 trillion, with recurrent expenditure put at N13.6 trillion.
While the sum of N23.9 trillion was earmarked for capital expenditure, debt servicing was put at N14.3 trillion, fiscal deficit N13.8 trillion, while 1.52 per cent was approved as deficit and GDP.
Olamilekan, while presenting the report, said that the senate debated the general principles of the bill on Dec. 19, 2024.
This, he said, had resulted in the second reading of the bill after which it was referred to his committee for further legislative action.
The senator said that the initial proposal of the executive was N49.7 trillion.
He, however, said while processing the bill, the joint committee on appropriations met the president’s economic team to discuss the revenue projection and expenditure of the appropriation bill.
“After series of meetings, the Committee on Finance, in conjunction with our committee, sourced for additional revenue from some revenue-generating agencies,” he said.
Adeola said that the additional fund was made possible because of the increase in revenue by some of the revenue-generating agencies.
He further stated that some agencies of government provided funds to take care of critical needs.
The lawmaker said that the upward review of the budget from N49.7 trillion to N54.9 trillion was to cater for the difference between the details and the bill, procurement of vaccines and additional funding to some government agencies.
“The joint committee worked harmoniously with the leadership of the National Assembly and the executive arm of government in the processing of the bill.
“This ensured maximum collaboration of the two arms in the utilisation of additional revenue projection.
”This is to improve the funding of some critical projects which could not be adequately funded in the budget proposal earlier submitted by Mr President due to funding constraints,” he said.
Adeola said that the 2025 appropriation bill was presented late as against the 2024 appropriation bill.
He urged the executive to present the budget to national assembly not later than three months before the beginning of the next financial year.
“This will help return the country to the January-December budget circle,” he said.
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CBN Retains N100 ATM Fee For Withdrawal Below N20,000

The Central Bank of Nigeria (CBN) has announced that Nigerians withdrawing less than N20,000 from another bank’s Automated Teller Machine will still be charged a fee of N100 per transaction.
This is according to a FAQ document published by the apex bank on its website, yesterday, which provides further information on a new CBN’s directive.
The directive is part of the newly revised ATM transaction fees set to take effect from March 1, 2025, as contained in the CBN circular dated February 10, 2025.
Under the revised fee structure, withdrawals from one’s bank ATMs will remain free of charge.
However, customers using ATMs of other banks will be subjected to a charge of N100 per withdrawal of N20,000 or less at on-site ATMs, which are located within or directly affiliated with a bank branch.
Off-site ATMs, which are positioned outside bank premises such as shopping malls, fuel stations, and other public spaces, will attract an additional surcharge of up to N500 per transaction.
For international ATM withdrawals, charges will be based on cost recovery, meaning customers will bear the exact fee applied by the international acquirer.
The CBN stated that the charge on withdrawals below N20,000 is intended to prevent customers from splitting withdrawals into smaller amounts to avoid fees.
The FAQ document read, “Yes, the fee of N100 will apply if you withdraw less than N20,000 from another bank (a bank other than the one that issued your payment card).
“The reason for applying the fee for every N20,000 withdrawal is to prevent customers from being compelled to break their withdrawals to less than N20,000 per withdrawal.
“In other words, ATM transactions will incur a base fee of N100 per transaction. It is also important to note that a tiered fee structure will apply for transactions exceeding N20,000, with an additional N100 charged for each subsequent withdrawal of N20,000 or portion thereof.”
Customers withdrawing more than N20,000 from another bank’s ATM will be charged an additional N100 for every subsequent N20,000 or portion thereof.
Another significant change in the revised structure is the removal of the three free monthly withdrawals previously allowed for customers using other banks’ ATMs.
From March 1, 2025, all withdrawals at another bank’s ATM will attract charges, potentially increasing costs for customers who frequently use ATMs outside their primary bank.
The apex bank has clarified that financial institutions are not permitted to charge more than the prescribed fees, although banks may reduce charges depending on their business strategy.
Any bank found in violation of the directive, including compelling customers to withdraw less than N20,000 per transaction despite sufficient funds in their account, will be sanctioned accordingly.
Customers who experience such restrictions are encouraged to report complaints to the CBN Consumer Protection Department via cpd@cbn.gov.ng.
To minimise transaction fees, the CBN has advised customers to prioritise withdrawals from their bank’s own ATMs.
It also encouraged Nigerians to explore alternative payment methods such as mobile banking applications, POS transactions, and electronic transfers to reduce reliance on cash withdrawals.
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