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Afenifere Backs Rivers On VAT
A pan-Yoruba socio-political organization, Afenifere has hailed the ruling of a High Court sitting in Port Harcourt, Rivers State on Value Added Tax (VAT), saying that it would enhance true federalism in the country.
The group also called on the Federal Government to stop its actions and policies that are impeding the practice of true federalism in Nigeria.
In a press release issued by Afenifere, signed by its National Publicity Secretary, Comrade Jare Ajayi and made available to newsmen in Ibadan, yesterday, the group also commended the Rivers State Government for initiating the legal process.
Afenifere noted that the rulings by Justice Stephen Dalyop Pam of the Federal High Court, Port Harcourt on August 9 and on September 6, 2021 have earned the Judiciary in Nigeria an epaulet as an institution that is not only capable of ensuring justice but is actually working on deepening federalism in the country.
The group noted further they observed that the manner of distributing VAT revenue is patently unfair, unjust and is pitched against the hardworking while rewarding the indolent by a manner of speaking citing an example of Lagos State which generates as much as 55 per cent of this revenue receives less than 10 per cent while most states where less than 5 % is generated get the same amount that Lagos gets.
They described it as distasteful.
They added that the sum collected by the FIRS is shared among the three tiers of government, with the Federal Government taking 15 per cent, states 50 per cent; local governments, 35 per cent adding that the Federal Government is taking undeserved larger chunk because when 50 % is shared among the 36 states, what each state gets is a paltry sum, adding that same applies for 774 local government councils that share 36 per cent.
Ajayi then called on the state governments to use the opportunity provided by these judgments to explore other areas that the Constitution empowers them to assert themselves as federalists, adding that states should step up actions that will liberate them from the stronghold of the federal government that has turned Nigeria into a unitary state.
He listed areas in which the states need to assert themselves to include agriculture, health, education, electricity, physical planning, title registration, registration and production of vehicle number plates and casino licensing e.t.c. as Lagos State Government did in the past.
Afenifere also said that the attempt by the Federal Government to establish farm estates in all the 109 senatorial districts in Nigeria was another way of bringing back the rejected cattle colony and RUGA.
According to Ajayi, “To us in Afenifere, the attempt by the Federal Government to establish so-called Farm Estates in all the 109 Senatorial Districts is another way of imposing the rejected cattle colony and RUGA on Nigerians. It is also another way of defying the federal spirit of the Constitution as lands are vested in the state governors.
“If the governors granted the lands being asked for, cattle colonies would be established in these estates as revealed in the view expressed by the Executive Secretary of the National Agriculture Land Development Agency (NALDA), Prince Paul Ikonne.
“States should reject this attempt, particularly since the farm estates NALDA is using as an excuse to grab lands for the Federal Government “are familiar territory for many states, especially in the South-West that inherited farm estates from the defunct regional government of late Chief Obafemi Awolowo.”
Afenifere, however, told the Federal Government to stop its actions and policies that are impeding the practice of true federalism in the country, adding that the Rivers State Government has further enhanced the practice of true federalism bases on the litigation it initiated against the Federal Government on Value Added Tax (VAT).
According to Afenifere, the rulings by Justice Stephen Dalyop Pam of the Federal High Court, Port Harcourt on August 9 and on September 6, this year, have earned the Judiciary in Nigeria an epaulet as an institution that is not only capable of ensuring justice but is actually working on deepening federalism in the country.
Justice Pam had while delivering judgments on August 9, in Suit No. FHC/PH/CS/149/2020, filed by the Attorney-General for Rivers State (plaintiff), against the Federal Inland Revenue Service (first defendant) and the Attorney General of the Federation (second defendant) had said that allowing the Federal Government, through FIRS, to continue to collect VAT would negate the spirit of the federal system of government that Nigeria is supposed to run.
The judge reiterated the position, while ruling on Tuesday, September 7, the case brought by the FIRS.
“Afenifere commends the judge for this. Going by to item 62, Part 1, 2nd Schedule of the 1999 (constitution as amended) and the VAT Act, Cap. V1, LFN, 2004 (as amended by the Finance Act, 2020), the states are empowered to collect VAT. The power of the federal government on taxes is limited to the profits/income of persons/companies, capital gains and stamp duties on instruments, but does not extend to VAT as attested to by a Federal High Court judgment delivered on December 11, 2020 in a case between Emmanuel Chukwuka Ukala v. FIRS.
“Afenifere observes that the manner of distributing VAT revenue is patently unfair, unjust and is pitched against the hardworking people, while rewarding the indolent by a manner of speaking. For instance, Lagos State, which generates as much as 55 per cent of this revenue receives less than 10 per cent while most states where less than five per cent is generated get the same amount that Lagos gets. It is quite distasteful.
“The sum collected by the FIRS is shared among the three tiers of government, with the Federal Government taking 15 per cent, states 50 per cent; local governments, 35 per cent. From the foregoing, it would be seen that the Federal Government is taking undeserved larger chunk because when 50 per cent is shared among the 36 states, what each state gets is a paltry sum. Same for 774 local government councils that share 36 per cent.”
Afenifere also called on the state governments to use the opportunity provided by the landmark judgments to explore other areas that the constitution empowers them to assert themselves as federalists, saying they should step up actions that will liberate the states from the stronghold of the Federal Government that has “turned Nigeria into a unitary state – in contradiction to the federal spirit prescribes by the constitution. They should be rest assured of Afenifere support as they give vent to power devolution and entrenchment of true federalism in Nigeria.
“Areas in which the states need to assert themselves include agriculture, health, education, electricity, physical planning, title registration, registration and production of vehicle number plates and casino licensing, as Lagos State Government did in the past.”
Afenifere, however, suggested that a roundtable discussion could be held between states and Federal Government to clear the fear on possible multiple taxation. The group also advised FIRS to resist the temptation to keep appealing the judgment that empowers states to collect local taxes, saying “such a step is another assault on the federal system that we are supposed to be running.”
Nigeria’s crude oil production has surged to an 11-month high in May, 2026, with the country exceeding its Organisation of the Petroleum Exporting Countries (OPEC) production quota.
The average crude oil production recorded during the month of May represents 102 per cent of Nigeria’s 1.5mbpd of production quota allocated by the OPEC.
The production report released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), yesterday, disclosed that Nigeria’s oil production averages 1,530,354 barrels of crude oil and 170,446 barrels of condensates per day (bpd).
According to the report, this brings the total combined production to 1, 700, 800 barrels per day and consolidating Nigeria’s position as Africa’s largest oil producer.
The report said the production performance during the review period remained robust, with combined crude oil and condensate output ranging between a low of 1.51 million bpd and a peak of 1.86 million bpd.
It said the May 2026 production figures represented the highest recorded by Nigeria since July 2025, when output surged to 1,712,282.
“In strict crude oil terms (excluding condensates), the 1.53 million barrels recorded in May 2026 represents the highest Nigeria has witnessed since January 2025 when crude oil production hit 1.538mbpd.
“The latest crude oil production statistics thus represents a 15-month high on a month on month basis, production rose by 2.77 per cent in May 2026 as against 1.48mbpd in April,” it said.
The report said the broader production trend over the last five months had also remained positive.
It said combined crude oil and condensate output increased from 1.48 million bpd in February to 1.54 million bpd in March, 1.66 million bpd in April, and then 1.7 million bpd in May, underscoring sustained growth in Nigeria’s hydrocarbon production levels.
According to the report, among production streams, Bonny Terminal led the pack with a total blend of 293,870 bpd, closely followed by Forcados Terminal at 289,900 bpd, Qua Iboe ranked third with 173,360 bpd, while Escravos Oil Terminal contributed 135,470 bpd.
It said the Odudu (Amenam Blend) completed the top five production streams, accounting for 63,250 bpd during the month under review.
The NUPRC attributes the rise in production to a sustained positive momentum as operations remained stable throughout the reporting period with no significant pipeline or facility outages recorded.
Additionally, all previously scheduled turnaround maintenance activities had been successfully completed, contributing to improved operational reliability and production efficiency.
The House of Representatives, yesterday passed a landmark constitutional amendment bill to establish state police nationwide, marking a significant milestone in Nigeria’s decades-long debate over decentralising policing and strengthening internal security.
The bill, titled “A Bill for an Act to Alter the Constitution of the Federal Republic of Nigeria, 1999 to Provide for the Establishment of State Police and for Related Matters (Sixth Alteration) Bill, 2026,” was approved during consideration at the Committee of the Whole, presided over by Speaker of the House, Rt. Hon. Tajudeen Abbas.
Voting commenced after the Deputy Speaker and Chairman of the House Committee on Constitution Review, Hon. Benjamin Kalu, presented the report on the proposal and canvassed support from lawmakers, stressing the need for a more decentralised policing framework to effectively address the country’s growing security challenges.
The exercise was conducted manually, with members raising their hands to indicate their positions. At the end of the voting, 289 lawmakers voted in support of the bill, one member abstained, while none voted against it, reflecting overwhelming bipartisan backing for the far-reaching reform.
The proposed amendment seeks to fundamentally restructure Nigeria’s policing architecture by creating both Federal and State Police formations.
One of the bill’s key provisions amends Section 214 of the 1999 Constitution to formally establish the Federal Police and the State Police. Under the proposal, the National Assembly would be empowered to prescribe the structure, organisation, administration and powers of the Federal Police, while also providing the legal framework and minimum standards for the establishment and operation of state police services.
The bill stipulates that no state police formation shall commence operations unless it is established by a law enacted by the relevant State House of Assembly and certified as complying with national minimum standards prescribed by an Act of the National Assembly.
It further provides that until a state police force becomes operational, the Federal Police shall continue to exercise policing powers and responsibilities within such states.
In a bid to preserve the autonomy of state police formations and prevent undue federal interference, the bill limits federal intervention in states’ internal security affairs. Under the proposal, the Federal Police may intervene only where there is a complete breakdown of law and order, upon the request of a governor or where a state police force becomes unable to function due to administrative, financial or other operational challenges.
The amendment also proposes significant changes to the police’s appointment and command structure.
Under the amended Section 215 of the Constitution, the Inspector-General of Police would be appointed by the President on the advice of the Nigeria Police Council from among serving members of the Federal Police, subject to confirmation by the National Assembly.
Similarly, a State Commissioner of Police would be appointed by a governor on the advice of the Nigeria Police Council from among serving officers of the State Police, subject to confirmation by the respective State House of Assembly.
The bill empowers governors to issue lawful directives to State Commissioners of Police on matters relating to public safety and the maintenance of law and order. However, where a commissioner considers such directives unlawful or inconsistent with accepted policing standards, the matter may be referred to the Nigeria Police Council, whose decision shall be final.
The proposal also amends Section 84 of the Constitution by replacing references to the “National Police Council and the Federal Police Service Commission” with the “Nigeria Police Council and the Police Service Commission.”
The passage of the bill by the House represents one of the most far-reaching security reforms contemplated since the return to democratic rule in 1999 and is expected to rekindle nationwide debate on issues relating to funding, accountability, operational control and safeguards against abuse.
With the House’s approval, the constitutional amendment bill will now proceed to the Senate for concurrence. Thereafter, it must secure the endorsement of at least two-thirds of the State Houses of Assembly and receive presidential assent before becoming part of the Constitution of the Federal Republic of Nigeria.
If eventually enacted, the legislation would usher in a new era of multi-layered policing in Nigeria and could redefine the country’s approach to tackling banditry, terrorism, kidnapping and other forms of violent crimes through a more localised security architecture.
The Federal Government has declared today, public holiday to commemorate Nigeria’s 27 years of unbroken democratic rule.
This is contained in a statement in Abuja, by the Permanent Secretary, Ministry of Interior, Magdalene Ajani.
Ajani said that the Minister of Interior, Dr Olubunmi Tunji-Ojo, made the declaration on behalf of the federal government.
Tunji-Ojo reaffirmed the federal government’s commitment to the preservation of democratic ideals, rule of law, transparency, accountability and inclusive governance.
He assured that the ministry in collaboration with relevant security agencies woulsd continue to take appropriate measures in maintaining and strengthening Nigeria’s internal security.
The minister noted that a secured and stable environment was essential to democracy and national development.
He urged Nigerians to see the holiday as an opportunity for civic reflection.
“As we mark this historic day, every Nigerian is encouraged to remain law-abiding, uphold the institutions that sustain our democracy, and remember that the strength of any democracy lies ultimately in the character of its citizens,” he said.
He also said that June 12 every year remained a significant day in Nigeria’s history in honour of the courage, resilience and sacrifices of Nigerians whose efforts made democratic governance possible.
“Their legacies continue to inform the values and responsibilities of the Nigerian state,”Tunji-Ojo added.
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