In response to a public notice issued by the Federal Inland Revenue Service (FIRS) that it will recover unremitted tax deductions by States and Local Governments, the Body of Attorneys-General of the 36 States of the Federation (BOAG), has warned the Federal Government agency to stop issuing threats to State Governments.
The group, which gave the warning in a communiqué issued at the end of its meeting in Lagos,  condemned the public notice, asserting that they (States) are equal and not subservient to the Federal Government.
BOAG said it will send a written response to the FIRS, highlighting the agency’s erroneous position, saying that it lacks the power to impose any penalty on the states.
The communique was jointly signed by BOAG’s Chairman and Secretary, the Attorneys-General and Commissioner for Justice, Lagos State, Moyosore Onigbanjo, and his Nasarawa State counterpart, Dr Abdulkarim Kana.
On the Federal Government’s attempt to deduct states’ funds to offset a purported consultancy fee of N418 billion arising from the London/Paris Club Loan refunds, the conference resolved to continue to resist, through all legal means, the wrongful deductions of their funds under any guise.
The body advised the Federal Ministry of Justice, the Central Bank of Nigeria (CBN), and other relevant agencies to cease all further action on the matter pending the final resolution of an appeal filed on behalf of the States.
Regarding the court action over the right of states to collect Value Added Tax (VAT) and the subsisting judgment to that effect, the conference resolved that given its absence from the 1999 Constitution, VAT is a residual matter that falls within the exclusive legislative competence of each federating state.
Meanwhile, though the conference affirmed that the judgment of the Rivers Division of the Federal High Court supported the constitutional position that VAT is a residual matter, it added that it was not opposed to a political resolution of the dispute to balance fiscal federalism with equity.
According to the communique, “Regarding the FIRS’ threat to recovering unremitted Tax Deductions by States and Local Governments, the Conference stresses that State Governments are equal and not subservient to the Federal Government.
“BOAG condemns the constant and destabilising threats by Federal Government agencies to the Federating States.
“To that end, BOAG will send a written response to the FIRS, highlighting the agency’s erroneous position and that it lacks the power to impose any penalty on the states.
“Regarding current developments in the Administration of Justice across the 36 States/Inter-State Collaboration and the activities of the Lagos State Domestic and Sexual Violence Agency, BOAG encouraged the States to continue to share experiences on critical matters and areas of commonality in the administration of justice.’’
“BOAG encouraged all states on the use of technology in Court proceedings.  It also commended inter-state collaboration in facilitating virtual hearings for police officers and witnesses outside the jurisdiction of the adjudicating court.

“On the issue of stamp duties, BOAG resolved to send its position paper opposing the proposed amendments to the Chairmen of the appropriate Senate and House of Representatives committees in the National Assembly.

“BOAG will write to the Senate president and speaker of the House stating its opposition to proposed amendments to the Stamp Duties Act. BOAG will publicly announce its opposition to the federal government’s proposed amendments to the Stamp Duties Act.

“BOAG will sensitize the governors of the various states concerning the detrimental effects of the Federal Government’s proposed amendments to the Stamp Duties Act. The consultant should present a position paper to BOAG outlining the appropriate steps to take on the matter”.

The conference also resolved to send a delegation to the National Assembly to make representations on the proposed amendment at the public hearing of the Amendment Bill adding that if the Bill crystallised into an Act, all 36 State Attorneys-General will file an action to declare the enactment null and void.