Editorial
VAT Judgment: FG May Lose N92bn To States
If the judgement of the Federal High Court asking state governments to collect Value Added Tax (VAT) in their domain is upheld by the Appeal Court, the Federal Inland Revenue Service (FIRS) will lose about N92 billion which it is expected to earn as cost of collection.
The law setting up the FIRS allows the agency to a percentage, as determined by the National Assembly, as its cost of revenue collection from non-oil taxes before remitting same into the Federation Account.
A report on FIRS official website revealed that the service collects four per cent as cost of collection for non-oil revenue collected.
In the 2016 fiscal period, the FIRS received the sum of N85.99 billion as cost of revenue collection, while it got N100.3 billion as the cost of revenue collection in 2017.
In the 2018 fiscal year, the service got N114.1billion as the cost of revenue collection out of the N5.32 trillion actual revenue it generated for that year.
According to documents obtained from the Budget Office, the FIRS received an estimate of N112 billion and N121 billion as cost of revenue collected in 2019 and 2020 respectively.
With a projected VAT pool of N1.3 trillion in 2021, the FIRS is expected to earn N68 billion in the 2021 fiscal period based on the cost of collection rule.
Based on the Medium-Term Expenditure Framework/Fiscal Strategy Paper 2022-2024, the Federal Government is proposing to generate the sum of N2.3 trillion from VAT in 2022.
With the FIRS entitled to four per cent as cost of collection, it implies that the service is expected to earn N92 billion in 2022 as cost of revenue collection.
A Federal High Court sitting in Port Harcourt, Rivers State, had dismissed an application by the FIRS, seeking to stop the state governments from commencing collection of VAT in the state.
Consequent upon the court ruling last Monday, Governor Nyesom Wike, had directed the Rivers State Revenue Service, to immediately commence collection of VAT from corporate bodies and businesses in the state.
Already, the dispute between the FIRS and Rivers State over the collection of VAT has inspired some more states such as Lagos, Ogun and Akwa Ibom States, to enact laws that will enable them to collect the tax in their states.
It was learnt that stripping the FIRS of the power to collect VAT would reduce the commission the agency will be receiving.
The Executive Chairman of the Federal Inland Revenue Service, Muhammad Nami, had penultimate week, told the Senate Joint Committees working on the Medium Term Expenditure Framework and Fiscal Strategy Paper, that the agency would soon approach the nation’s legislature with a bill to amend the Finance Act 2021.
The amendment, according to Nami, will centre basically on the issue of Stamp Duty and how to drag those transacting businesses on the social media to the tax net.
Editorial
2027: Beyond IGP’s Billboards Protection Order
It was, therefore, welcome news when the Inspector-General of Police, Olatunji Disu, warned politicians, political thugs and others against destroying, defacing or removing campaign posters, banners and billboards. In a statement issued in Abuja by the Force Public Relations Officer, CSP Ani Iniedu, the police condemned such acts as political intolerance, directed Commissioners of Police in all 36 States and the Federal Capital Territory to take preventive measures, and warned that sponsors would also face prosecution. The police rightly described such vandalism as a criminal act that undermines parties’ and candidates’ freedom to canvass for votes.
But billboards are replaceable; human lives are not. While applauding the IGP’s stance, we urge him to extend the same stern warning and enforcement zeal to thugs who assault opposition members during campaigns. A police force that punishes the tearing of a poster but ignores the breaking of a skull will have its priorities questioned. Allowing such attacks to continue could erode the foundations of our democracy.
Consider the African Democratic Congress (ADC) presidential campaign flag-off in Sokoto State on November 4, 2026. The party alleged that the State Government denied it access to public facilities, sealed its campaign venue and pressured hotels to reject its delegates, forcing it to hold the rally at its secretariat. The Sokoto authorities, however, denied instructing hotels to turn guests away. More seriously, two suspected ADC supporters were reportedly shot along the Sokoto–Wurno Road while travelling to the venue, allegedly by operatives of the Sokoto State Community Guards.
Whatever the truth of these competing accounts, a shooting demands more than press statements. It requires a transparent, independent investigation and prosecution where warranted. Sokoto was not an isolated incident. The following day in Birnin Kebbi, the ADC presidential campaign convoy was reportedly attacked by armed gangs. Amnesty International said vehicles were vandalised, people assaulted with cutlasses and roads blocked, while the party’s Kebbi governorship candidate, Abubakar Malami, alleged that media equipment was destroyed and tear gas deployed. His convoy had suffered a similar attack in the city in September 2025.
The Nigeria Democratic Congress (NDC) has suffered similar attacks. On November 4, hoodlums stoned the motorcade of its presidential candidate, Peter Obi, and running mate, Rabiu Musa Kwankwaso, at Watt Market roundabout in Calabar, Cross River State. Police reported arresting a 27-year-old suspect, Victor Edet, although it remains unclear whether he has been arraigned. The State Government has denied suggestions that ruling-party supporters were responsible. Worse, in Asaba, Delta State, one person was killed and five injured when suspected thugs attacked an NDC rally. A death at a political rally is no longer a warning; it is a damning indictment of the prevailing political climate.
Even critics of the establishment who are not frontrunners have not been spared. Omoyele Sowore, presidential candidate of the African Action Congress (AAC), was attacked by suspected thugs at a restaurant in Ado-Ekiti on October 30. He alleged that the assailants were linked to the Ekiti State Government House and that the Department of State Services leaked his location. Both the State Government and the security service denied involvement, while the police reported a minor injury and a discreet investigation. These conflicting accounts make an independent, publicly reported inquiry indispensable.
What deepens the concern is the Federal Government’s apparent silence. We are unaware of any specific, forceful condemnation of these assaults, even as All Progressives Congress (APC) rallies appear to proceed nationwide without incident. Such silence can easily be misconstrued as complicity, regardless of intent.
According to the Centre for Democracy and Development, 109 election-related deaths were recorded in the build-up to the 2023 polls. The Kimpact Development Initiative separately documented 238 incidents and 24 deaths during the general elections. Beyond Nigeria, Kenya’s 2007–08 post-election violence claimed more than 1,000 lives, according to the Waki Commission. Ghana, by contrast, enacted the Vigilantism and Related Offences Act in 2019 to curb party vigilante groups, a model worth studying.
The remedies are neither exotic nor expensive. The IGP should extend his directive to cover assaults on individuals and disruptions of rallies, while establishing a dedicated investigative unit to probe the Sokoto shooting and the attacks in Kebbi, Calabar, Asaba and Ado-Ekiti. It should publish the status of each case within a fixed period. Suspects must be prosecuted and their sponsors, regardless of party or position, brought to justice. State-backed security outfits, including the Community Guards, should be audited and barred from partisan duties.
The Federal Government must speak and act unequivocally. President Tinubu should specifically condemn attacks on opposition candidates and direct all security agencies to guarantee equal protection for every party. Governors must ensure equal access to public facilities for registered parties. The Independent National Electoral Commission (INEC), which has warned of fines and imprisonment under the Electoral Act 2026 for inflammatory campaign conduct, should enforce the Code of Conduct for Political Parties. Working with the Inter-Agency Consultative Committee on Election Security, it should publish a joint security plan covering campaigns, polling, and collation. Parties must discipline their supporters, courts expedite electoral-violence trials, and civil society and the media maintain a public record of incidents and their outcomes.
The credibility of the 2027 elections is at stake. An election is credible only when every contender can campaign, travel, assemble and speak freely, without fear. Without a free opposition, there can be no meaningful democracy. Nigeria is not a one-party State, and law enforcement agencies must demonstrate their neutrality through action, not communiqués. The campaign atmosphere is too tense to be left to chance. Billboards deserve protection, certainly, but citizens deserve it far more.
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