News
VAT row: FG eyes out-of-court settlement
The Federal Government has hinted that it may explore an out-of-court solution to the lingering legal battle between its agency, Federal Inland Revenue Service, and Rivers and Lagos states over the collection of Value Added Tax.
The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, noted that efforts were ongoing on the issue but she did not give details as the matter was subjudice.
Speaking in an interview on Channels Television’s Politics Today on Thursday night, Ahmed said she hoped there would be a political solution to the issue rather than a protracted court case.
The Federal High Court sitting in Port Harcourt, the Rivers State capital, had on August 9 ruled that Rivers State and not the FIRS should be the authority collecting VAT and Personal Income Tax in the state.
The FIRS then approached the Court of Appeal in Abuja to challenge the judgement. It also wrote to the Senate to seek the inclusion of VAT collection in the exclusive legislative list.
Following the failure of the FIRS to obtain a stay of execution it sought from the appellate court to prevent the state government from enforcing the verdict, the Rivers State Government enacted a law to empower the state to collect VAT. The governor, Nyesom Wike, signed the bill into law on August 19.
Lagos State, whose request for joinder as a respondent in the suit before the Court of Appeal was also granted by the court, also enacted its own VAT law. The governor, Babajide Sanwo-Olu, signed the bill into law on September 10.
Meanwhile, after approving Lagos State’s request for joinder as a party at the Court of Appeal, ordered all parties to maintain the status quo on the matter, a ruling the Rivers State Government had approached the Supreme Court to set aside.
The Court of Appeal also directed that the matter be moved from Abuja to its Port Harcourt Division for further hearing. The court has yet to decide on the substantive suit as of the time of filing this report.
But the minister said, “I’m not supposed to be talking about issues in court but I do hope that this problem can be solved by sitting on the table; not on the pages of newspaper or disagreements in court because it is possible to solve it on the table, talking of political solution.”
When asked if the Federal Government was reaching out to the governors and if its representatives had met any of the governors over the matter, she said, “There are a lot of efforts going on right now. As I said, I don’t want to discuss it because it’s in court so I have to be careful. But there will be a positive political solution. We are working towards an out-of-court solution.”
Meanwhile, the Finance Minister has clarified that the government’s decision to sell national assets is mainly to transform the assets into performing assets not only to raise revenue.
The minister said in the interview, “There is a privatisation process going on by the National Council on Privatisation, chaired by the Vice President, and an agency that is responsible for privatisation. Yes, some national assets are being sold, but the major reason we are selling national assets is not to raise revenue. It is to be able to transform those investments into performing assets.
“What is the point of having an asset you have invested in that is not performing? If you sell it to a private sector company that is able to run the business better, then the economy is better for it. So, the reason for privatisation is not just to fund the budget; it’s to turn non-performing assets into performing assets.”
When contacted, the Rivers State Government, which initiated the VAT court case, if it would withdraw its cases in court and embrace a political solution, the Commissioner for Justice, Prof Zaccheus Adangor, declined to comment on the matter. Rather, he said the Commissioner for Information should be contacted on the issue.
The Commissioner for Information, Mr Paulinus Nzirim, also declined comment on the issue, simply saying, “No comment.”
In his previous comments on the matter, however, the governor did not rule out the option of dialogue, but he hinted that all concerned would have to first agree that states should be the right authority to collect VAT.
He had said, “Some people have said be your brothers’ keeper. I have no problem with that, but let us tell ourselves the simple truth. When you agree that it is the states that should collect VAT, we can sit down to say, now we know it is the states, but look at the problems. That is a different thing.”
But the Lagos State Government, in its response to whether it would embrace a political solution, said it would consider the option provided the conditions were just and fair.
It however said it had yet to be contacted by the Federal Government on the out-of-court settlement option.
The state Commissioner for Information and Strategy, Mr Gbenga Omotosho, told one of our correspondents on Friday, “As far as I know, we haven’t got any representation from the Federal Government. But for us in Lagos, it is not a matter of us vs them. It is a matter of justice, fairness and equity. It is a matter of what is good for Nigeria.
“In Lagos, if we get it right, it will affect every corner of Nigeria. Lagos is like a giant carrying on its shoulders the responsibilities of so many others. So, if you encourage this giant to do more, it will and the effect will percolate through other parts of the country.
“If you fix roads in Lagos, goods coming from the port would get to other parts of the country fast and cost of freight would reduce; wear and tear on vehicles would reduce. An out-of-court settlement is an option so long it is going to promote equity, justice and fairness.”
Prior to the minister’s comment, the VAT row had also assumed ethnic and political colourations, with northern and southern governors taking opposing stances on the issue.
The southern governors on September 16 backed VAT collection by states but the northern governors on September 27 warned that this would cause an increase in prices of goods and services and create barriers in interstate trade, adding that they would wait till the Supreme Court ruled on the substantive suit when the matter eventually comes before it.
Meanwhile, the Minister of Finance who introduced VAT in 1993 during the late Gen Sani Abacha regime, Dr Kalu Idika Kalu, had told Sunday PUNCH in an interview that instead of allowing the issue to fester and degenerate into ethnic and political issues, the government should summon the stakeholders and get experts knowledgeable in the subject to advise on how to manage it.
“That is how a government should operate,” he said. “I also think it is better for the government to recognise that there are loopholes in the current tax structure. As I said, these are issues a small team, maybe comprising lawyers, economists and social development specialists, can quickly deliberate on within two weeks, put all the factors into cognisance and come up with the solution.
“It is better to resolve it rather than make it a legal issue. We should be hesitant to push it in a direction we know would create more cleavage in the system.”
A Professor of Economics at the Olabisi Onabanjo University, Ogun State, Prof Sheriffdeen Tella, advised against the out-of-court settlement option, which he said would give the Federal Government an upper hand that might be to the disadvantage of the states in the future.
He said, “I believe it is better for the Supreme Court to pass a judgement on the matter. With an out-of-court settlement, the Federal Government can through the National Assembly make a law that would make it impossible for the states in future to be able to exercise their rights.
“The out-of-court settlement will not be seen as legal since it was not ordered by the court. It simply means that it would be used for future reference.
“I think what the Federal Government is trying to do is to prevent a legal situation that may not be easy to resolve in the future. Maybe they cannot see a way out for now and realise that in future they will have to pass a law through the National Assembly in a way that the court cannot override. Since there is nothing approved by the National Assembly yet, whatsoever the court says becomes binding.
“The Federal Government, in the short run, is trying to prevent the state governments from having an upper hand. This would likely not lead to multiple taxation as the states may likely end up collecting taxes since it is the Federal Government that is calling for an out-of-court settlement.”
On the other hand, if an agreement was reached to continue VAT collection at the federal level, he advised the government to review the current sharing formula.
Oyedele said, “An out-of-court settlement will not provide a permanent solution to the dispute unless it is complemented by a political solution to amend the constitution to reflect the most desirable level of government to administer VAT.
“Without a political solution involving a constitutional amendment, another state may institute an action in future to challenge VAT collection by the Federal Government as other states will not be bound by the terms of an out-of-court settlement between the current parties to the VAT case.”
The Director of the Enugu State Fire and Rescue Service, Chief Okwudili Ohaa, has said the swift mobilisation of emergency resources by Governor Peter Mbah led to the rescue of five occupants trapped in a collapsed building in Enugu metropolis.
The uncompleted four-storey building, located along Ogbaru Street, by Alvan Ikokwu Street, Independence Layout, Enugu, collapsed in the early hours of Sunday.
Ohaa told newsmen on Sunday that all five occupants of the building, as confirmed by the security guard on duty, were successfully rescued.
Ohaa
He said four of the occupants were rescued alive and conscious, although they sustained injuries, while the fifth person was rescued unconscious.
Ohaa commended Governor Mbah for his swift mobilisation of emergency response agencies, including the Red Cross, Enugu State Emergency Management Agency (SEMA), Enugu State Ambulance Services, the police and the Nigeria Security and Civil Defence Corps (NSCDC).
Other agencies and organisations at the scene included the National Emergency Management Agency (NEMA), Enugu Capital Territory Development Agency (ECTDA) and a Chinese construction company, which provided four heavy-duty cranes.
According to Ohaa, the governor alerted him about the incident early Sunday morning, prompting the immediate mobilisation of officers of the Enugu State Fire and Rescue Service to the scene with extrication equipment.
“His Excellency, Dr Peter Ndubuisi Mbah, must be commended for also mobilising adequate rescue equipment such as heavy-duty cranes, bulldozers and excavators, which ensured the rescue of the five persons,” he said.
Ohaa explained that rescue officers initially relied on information from the security guard to determine how many people were trapped in the building.
“As rescue officers, what we did was to ask the security man how many people were here. He said there were supposed to be six. One person had left before it happened.
“So, we were able at that initial time to rescue four persons. Out of the four, two sustained minor injuries and they were all rushed to a health facility for proper checks,” he said.
The Chief Fire and Rescue Officer said the fifth person was eventually recovered unconscious and taken to a health facility by the Enugu State Ambulance Services.
The NEMA Information Officer in Enugu, Mr Nnanyelugo Ezeani, also confirmed that five people were rescued.
He said the situation could have been worse because the state government had earlier sealed the construction site.
“One person among the six residing in the collapsed building was not on the site at the time of the incident, while five others were rescued and taken to the hospital,” Ezeani said.
Speaking on the incident, the Executive Chairman of the Enugu Capital Territory Development Agency (ECTDA), Mr Uche Anya, described the developer as one of those who failed to comply with building regulations.
Anya said the ECTDA had earlier taken regulatory action by sealing the site, which was originally approved in 2021.
“This property was approved in 2021 before the advent of this administration. But usually, we have a habit of stocktaking and checking on every construction at every stage.
“When I personally led the team that inspected here, we found out that there were serious integrity issues and non-compliance with their 2021 approval.
“I personally issued the first ‘stop-work order,’ which, due to the violation, resulted in our sealing the place over the last six months outrightly.
“So, I think within the last 30 to 40 days, the representative of the owner, whom they say lives abroad, has been interfacing with us to remedy the situation. This is the process that we are still trying to interface on, and it came down.”
Anya added that he had handed the owner’s representative over to the police to assist with the investigation.
“This is really a very unfortunate situation,” he said.
A four-storey building under construction in Enugu has collapsed, killing at least one person and trapping several construction workers beneath the rubble.
The incident occurred on Sunday morning at the uncompleted structure, reportedly being developed as a hotel, causing panic among residents and passersby.
According to authorities, six workers were believed to have been sleeping inside the building when it collapsed. Four workers have so far been rescued, while the body of one victim has been recovered.
Authorities said one of the six workers reportedly left the site shortly before the collapse, raising hopes that fewer people may be trapped beneath the debris than initially feared.
The rescued workers were taken to the Enugu State Teaching Hospital for treatment.
Emergency responders, including the National Emergency Management Agency (NEMA), Nigerian Red Cross Society, Enugu State Emergency Management Agency (SEMA), Enugu State Capital Territory Development Authority and the police, are participating in the rescue operation.
The cause of the collapse has not yet been established, while rescue efforts continue at the scene.
The member representing Ikwo/Ezza South Federal Constituency in the House of Representatives, Chinedu Ogah, has called on the Economic and Financial Crimes Commission (EFCC) and other anti-graft agencies to investigate the financial activities and source of wealth of socialite and businessman, Paschal Okechukwu, popularly known as Cubana Chief Priest.
Ogah, who is Chairman of the House Committee on Reformatory Institutions, made the call on Thursday at a press conference in Abakaliki, Ebonyi State.
The lawmaker said the businessman’s financial dealings should be subjected to scrutiny regardless of his public profile.
“I am urging the EFCC to thoroughly investigate him, investigate his bank accounts, investigate all the things he does,” Ogah said.
He also accused Cubana Chief Priest of undermining President Bola Tinubu’s political fortunes in the South-East ahead of the 2027 general elections.
Ogah questioned the socialite’s claim to political influence in Ebonyi State and challenged him to make his membership card of the All Progressives Congress (APC) public.
The lawmaker further criticised recent comments attributed to Cubana Chief Priest on social media in which he reportedly called for the resignation of Ebonyi State Governor, Francis Nwifuru.
Ogah demanded that the comments be withdrawn and followed by an apology, warning that legal action could be taken if the businessman failed to comply.
“Who is Cubana Chief Priest? What is his address that gives him the impetus to speak against our governor, the most performing governor in Nigeria?” he asked.
According to Ogah, Cubana Chief Priest had no electoral mandate to speak on behalf of Ebonyi State or demand the resignation of its elected governor.
He also questioned the businessman’s political influence, noting that he had previously contested an election in Imo State but failed to secure the party’s primary ticket.
Ogah alleges plot against Nwifuru
The lawmaker further alleged that unnamed political actors were sponsoring campaigns aimed at discrediting the Nwifuru administration and weakening the APC ahead of the 2027 elections.
He defended the state’s security architecture, particularly the Commissioner of Police, Hope Okafor, against what he described as an orchestrated campaign for her removal.
Ogah urged the Nigeria Police Force, Department of State Services (DSS) and other relevant agencies to investigate those behind the alleged campaign and determine whether any law had been breached.
“All of us can attest to the peace and security we enjoy in Ebonyi State. The Army, the police, the Civil Defence and the DSS are doing marvellously well in Ebonyi State,” he said.
Lawmaker accuses Otu of mobilising protesters
Ogah also accused another critic of the state government, Charles Otu, of allegedly mobilising people from outside Ebonyi State to participate in a protest against the government in Abuja.
He claimed that some of those involved were presented as Ebonyians despite allegedly coming from other states.
Ogah said his lawyers had previously petitioned the DSS over allegations involving Otu and urged the agency to investigate the matter.
He also challenged Otu to substantiate allegations he allegedly made against him during an appearance on Arise Television.
“My own is that whosoever defaults the law, we take it legally. I cannot mention who I have not known. But when we get there, it is for the security agencies to investigate,” Ogah said.
Ogah lists Nwifuru’s achievements
Defending the Nwifuru administration, Ogah cited the state government’s scholarship programmes, school construction, road projects and other development initiatives as evidence of the governor’s performance.
He said hundreds of Ebonyi indigenes had benefited from postgraduate scholarships in Nigeria and abroad, while roads and schools were being constructed across the state’s 13 local government areas.
Ogah also praised Nwifuru for what he described as political tolerance, saying opposition parties had been allowed to operate freely in the state.
He argued that the people of Ebonyi should determine their political leadership through the ballot rather than through media campaigns and protests.
“Ebonyi people will choose who is their leader. They should stop using the media to castigate the governor,” he said.
Questions Nwifuru’s omission from Tinubu campaign council
The lawmaker also questioned the reported omission of Governor Nwifuru from President Tinubu’s campaign council, describing it as an error that should be corrected.
“How can a governor that has done much in APC not be included in the campaign council? How can a governor that is elected under the APC not be included?” Ogah queried.
He maintained that Nwifuru’s political influence and the APC’s electoral performance in Ebonyi made him an important stakeholder in Tinubu’s 2027 re-election campaign.
Ogah warned political actors against using the media to destabilise the state and urged all parties to pursue their grievances through legal and democratic channels.
The lawmaker, who is also the Ebonyi State Coordinator of the Tinubu Support Group (TSG), was accompanied by other members of the group at the press conference.
He reiterated his call for security agencies to investigate the various allegations raised and take appropriate action against anyone found to have violated the law.
The Federal Character Commission (FCC) has urged youths in Enugu State to disregard the belief that federal government jobs and other opportunities are already allocated before they are advertised.
FCC Executive Chairman, Hulayât Motunrayo Omidiran, gave the charge on Thursday at the International Conference Centre, Enugu, during the Peter Eze Enugu Youth Connect 2026.
Omidiran urged the youths to acquire relevant skills, embrace technology and actively pursue legitimate opportunities, stressing that federal character should promote both equity and merit.
She also warned against fraudulent recruitment schemes and advised applicants to authenticate employment opportunities before applying.
The Enugu State Deputy Governor, Ifeanyi Ossai, represented by the Secretary to the State Government, Prof. Chidiebere Onyia, challenged young people to prepare themselves for available opportunities.
Onyia said government could create opportunities, but individuals must develop the capacity to take advantage of them.
The FCC Commissioner representing Enugu State, Peter Ogbonna Eze, said the programme was designed to bridge the information gap preventing young people from accessing federal employment, scholarships, grants, fellowships and training opportunities.
Eze said many youths were discouraged from applying for federal jobs because of the misconception that such positions had already been shared among influential individuals.
He urged them to apply whenever legitimate opportunities were advertised, warning that nobody should pay money to secure a federal government job.
He also disclosed that five participants in the programme would be selected for a full scholarship opportunity.
Eze said the initiative would continue as a platform for connecting Enugu youths with credible opportunities and urged participants to become “ambassadors of opportunity” by sharing useful information with others.
The event brought together youths and stakeholders from across Enugu State to discuss federal representation, employment, education, skills development and other opportunities.
By Chinedu Sabastine
ENUGU — Umuchigbo Iji Nike Autonomous Community in Enugu East Local Government Area of Enugu State has fixed Sunday, September 13, 2026, for its annual New Yam Festival.
The cultural celebration, which is scheduled to commence at 3 p.m., is being organised under the leadership of the Executive Chairman of Umuchigbo, Hon. Chief Afam Joseph Ogbene, popularly known as Akirika Chioku 1, Na Nike Kingdom.
The festival is expected to showcase the rich cultural heritage and traditions of the people of Umuchigbo and Umuenwene in Iji Nike Autonomous Community, while promoting unity and communal bonding.
Ogbene, in an invitation to the festival, described the celebration as an opportunity for the people to preserve their cultural heritage, strengthen community ties and give thanks for the year’s harvest.
He said, “Our New Yam Festival is more than a cultural celebration. It is a time for us to come together as one people, appreciate our heritage and give thanks for the blessings of the year.”
According to him, the event will also provide an opportunity for sons and daughters of the community, as well as friends and well-wishers, to reconnect and celebrate together.
“We are inviting everyone to come and celebrate with us. It is a celebration of our culture, our community and thanksgiving for the new yam season,” he added.
According to the invitation, activities will commence at Ogbene’s residence on Akirika Chioku Avenue, Nome Ogba Aniji Road, Umuchigbo, before proceeding to Obodoeze Iji Village Square, Odangene, for the New Yam rites and masquerade display.
The event will also feature traditional cuisine, music and other forms of cultural entertainment.
The organisers urged sons and daughters of Umuchigbo, friends, well-wishers and members of the public to join the community in celebrating the festival.
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