Southern Govs Back Wike, Insist On VAT Collection …A’Court Urges Rivers To Submit Written Application For Receiver

Southern Governors met in Enugu, yesterday, and declared their support for Rivers State Governor, Chief Nyesom Wike, insisting that it is within their purview to collect the Value Added Tax (VAT).
This is coming amid row between the Rivers State Government and the Federal Government, a case that is now subject of litigation.
The governors also reaffirmed their stand on open-grazing ban, urging every state in the region to quickly pass a law to that regards.
The resolution by the Southern Governors Forum is part of the six-point communique reached at its meeting at the Government House, Enugu, Enugu State, and read by Chairman of the Forum and Ondo State Governor, Rotimi Akeredolu, SAN.
The meeting of the Southern Governors Forum, which reviewed the state of the nation and the progress of the implementation of the decisions reached in its previous meetings, expressed satisfaction with the rate at which the states in Southern Nigeria were enacting and amending the anti-open grazing laws which allowed a uniform template and aspiration of Southern Governors, and encouraged the states that were yet to enact the law to do so expeditiously.
Reading the communique after the closed door meeting to journalists, Akeredolu said that the meeting reiterated its earlier position that the next President of Nigeria most come from the southern part of Nigeria, in line with politics of equity, justice and fairness.
According to the communique, the Southern Governors agreed to encourage the full operationalization of already agreed regional security outfit which will meet, share intelligence and collaborate to ensure the security and safety of the region.
Akeredolu opined that the meeting also reaffirmed its earlier commitment to stick to fiscal federalism as resolved at the inaugural meeting of the forum held on Tuesday, May 11, 2021, at Asaba, Delta State, and emphasize the need for the Southern States to leverage the legislative competence of their respective state Houses of Assembly, as well as representation in the National Assembly to pursue its inclusion in the Nigerian Constitution, through the ongoing constitutional amendment.
The communiqué, according to the forum’s chairman, expressed satisfaction with the array of issues around the Petroleum Industry Act (PIA) and ownership of NNPC by the larger Nigerian Governors Forum.
The forum thanked the host Governor, IfeanyiUgwuanyi, and chose Rivers State as the next host for the Southern Governors Forum meeting in November, 2021.
Present at the meeting were Rivers StateGovernor, Chief NyesomWike; Delta StateGovernor, Dr.IfeanyiOkowa;AkwaIbom StateGovernor, Chief Emmanuel Udom; and Osun StateGovernor, IsiakaAdegboyegaOyetola.
Others were Enugu StateGovernor, IfeanyiUgwuanyi;Bayelsa StateGovernor, Senator DuoyeDiri;Lagos State Governor,BabajideSanwo-Olu; and Ogun State Governor,EngrOluwaseyiAbiodun.
The governors of Oyo, Ekiti, Edo, Imo, Abia, and Ebonyistates were represented by their deputies.
The communiqué read in full, “The Nigerian Southern Governors’ Forum at its meeting of Thursday, September 16, 2021 held in the Government House, Enuqu, Enugu State, reviewed the state or the nation and the progress of implementation of the decisions reached in her previous meetings and further resolved as follows:
“Expressed satisfaction with the rate at which the states in the Southern Nigeria are enacting or amending the Anti-Open Grazing Laws which align with the uniform template and aspiration of Southern Governors and encouraged the states that are yet to enact this law to do so expeditiously.
“Encouraged the full operationalization of already agreed regional security outfits; which would meet, share intelligence and collaborate, to ensure the security and safety of the region.
“Reaffirmed its earlier commitment to structural and fiscal federalism as resolved at the inaugural meeting of the Forum held on Tuesday, May 11, 2021 at Asaba, Delta State, and emphasized the need for the Southern States to leverage the legislative competence of their respective State Houses of Assembly as well as representation in the National assembly to pursue its inclusion in the Nigerian Constitution through the ongoing constitutional amendment.
“Following from paragraph 3 above, the meeting resolved to support the position that the collection of VAT falls within the powers of the states.
“Expressed satisfaction with the handling of issues around the Petroleum Industry Act (PIA) and ownership of Nigerian National Petroleum Corporation (NNPC) by the larger Nigerian Governors’ Forum.
“Reiterated their earlier position that the next President of Nigeria must come from the Southern part of Nigeria in line with politics of equity, justice and fairness.
“The forum thanked the host Governor, IfeanyiUgwuanyi, and chose Rivers State as the next host for the Southern Governors’ Forum meeting in November, 2021″.
However, the Court of Appeal, yesterday, declined to accede to the request of Rivers and Lagos states for the appointment of Receiver or Manager for the purpose of collecting and keeping Value Added Taxes (VAT) in place of the Federal Inland Revenue Services (FIRS) pending the resolution of all legal disputes in the matter.
The two states separately canvassed that the order of status quo ante bellum granted on September 10 in favour of FIRS to continue the collection be put on hold given the appeal already lodged at the Supreme Court against the order.
Counsel to Rivers State, IfedayoAdedipe, SAN, in his oral application, pleaded with the appellate body to exercise its power under Order 4 Rule 6 of the Court of Appeal to appoint a Receiver or Manager to take custody of the VAT in the interest of justice to parties in the matter.
The Attorney General of Lagos State, Mr MoyosoreOnigbanjo, SAN, who stood for his state, toed the path of Rivers in canvassing that the court be fair and just in the pending appeal.
Onigbanjo specifically asked the Appeal Court to restrain FIRS from further collecting the tax and replace it with a Receiver or Manager that would act for parties that are locked in the legal battle.
The Lagos Attorney General predicated his expressed fear of unjust treatment on the fact that FIRS apart from collecting the tax has been sharing it among the 36 states and the Federal Capital Territory (FCT) despite the pendency of the legal tussle.
“I think it is also necessary to restrain the FIRS, because they collect the VAT, distribute to all the states and keeps their own 4 per cent.
“If, at the end of the day, the court agrees with the judgment of the Federal High Court, how do we retrieve the funds that have been shared?”,Onigbanjo added.
The appeal by the FIRS is against August 9, 2021 judgment by Justice Steven Pam of the Federal High Court in Port-Harcourt, voiding the Value Added Tax (VAT) Act and holding that states could collect VAT.
Justice Haruna Simon Tsanami, who led a three-member panel, directed them to make the application formal by providing the necessary facts, including ascertaining the amount being collected as VAT.
Other members of the panel are Justices BatureGafai and Peter Affen.
Meanwhile, the court has reserved ruling on an application by Lagos State to be made a respondent in the appeal filed by the Federal Inland Revenue Service (FIRS).
The court, after listening to arguments by lawyers to parties, yesterday, said they would be informed when the ruling was ready.
In arguing Lagos’ application, Onigbanjo (SAN) said his client was a necessary party as it would be affected by the outcome of the case.
He noted that, as a federating unit/state in Nigeria, Lagos was entitled to collect VAT by virtue of the judgment of the Federal High Court that annulled VAT Act.
Onigbanjo argued that even the appellant (the FIRS) recognised that Lagos State has an interest in the case, which he said, was evident in the affidavit it filed, wherein copious reference was made to the Lagos State Government.
He further argued that since FIRS, in an affidavit supporting its application for stay of the judgment, recognised the interest of the Lagos State Government in the case, “it cannot now turn around to say the Lagos State Government has no interest in this case and should not be joined. It cannot blow hot and cold or speak from both sides of its mouth.”
Onigbanjo also contended that it was unfair for the FIRS to oppose Lagos’ request to be heard in the case after making allegations against the state.
He added that even the court recognised the interest of Lagos State in the case when it extended its order on maintenance of status quo to Lagos State, which was not yet a party in the case.
Onigbanjo prayed the court to join his client as a respondent.
Adedipe adopted Onigbaajo’s argument, and urged the court to allow the application by Lagos State.
Following the observation by Onigbanjo that the written address filed by the Attorney General of the Federation (AGF) was incompetent, the lawyer representing the AGF, TijaniGazali (SAN), withdrew the address, subsequent upon which the court struck it out.
Lawyer to FIRS, Mahmud Magaji (SAN), objected to the joinder application filed by Lagos State, arguing, among others, that the state was not a necessary party.
Magaji faulted the competence of the application, and urged the court to discountenance it.
On second thought, Magaji said if the court was willing to join Lagos; it should extend such indulgence to the other states of the federation.