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Court stops FG from collecting VAT, income taxes, others in Rivers State

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The Federal High Court sitting in Port Harcourt has declared that it is the Rivers State Government and not the Federal Inland Revenue Services(FIRS), that should collect Valued Added Tax (VAT) and Personal Income Tax (PIT) in the State.

The court, presided over by Justice Stephen Dalyop Pam, has also issued an order of perpetual injunction restraining the FIRS and the Attorney General of the Federation, both first and second defendants in the suit, from collecting, demanding, threatening and intimidating residents of Rivers State to pay to FIRS personnel income tax and Value Added Tax.

Justice Pam made the assertion while delivering judgement 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).

The Court, which granted all the 11 reliefs sought by the Rivers State Government, stated that there is no constitutional basis for the FIRS to demand for and collect VAT, Withholding Tax, Education Tax and Technology levy in Rivers State or any other State of the Federation.

The court stated further that the constitutional powers and competence of the Federal Government is limited to taxation of incomes, profits and capital gains which do not include VAT or any other species of sales, or levy other than those specifically mentioned in items 58 and 59 of the Exclusive Legislative List of the Constitution.

The judge dismissed the preliminary objections filed by the defendants that the Court lacks jurisdiction to hear the suit and that the case should be transferred to Court of Appeal for interpretation.

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Justice Pam, who also dismissed objection raised by the defendants that the National Assembly ought to have been made a party in the suit, declared that the issues of taxes raised by the State government are issues of law that the court is constitutionally empowered to entertain.

He declared that after a diligent review of the issues raised by both the plaintiff and the defendants, the plaintiff has proven beyond doubt that it was entitled to all the 11 reliefs it sought in the suit.

The court agreed with the Rivers State Government that is, the State, and not FIRS that is constitutionally entitled to impose taxes enforceable or collectable in its territory of the nature of consumption or sales tax, VAT, education and other taxes or levies, other than the taxes and duties specifically reserved for the Federal Government by items 58 and 59 of Part 1 of the Second Schedule of the 1999 constitution as amended.

Also, the court declared that the defendants are not constitutionally entitled to charge or impose levies, charges or rates (under any guise or by whatever name called ) on the residents of Rivers State and, indeed, any state of the federation.

Among the reliefs sought by the Rivers State Government, was a declaration that the constitutional power of the Federal Government to impose taxes and duties is only limited to the items listed in items 58 and 59 of Part 1 of the second schedule of the 1999 constitution as amended.

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The Rivers State Government had also urged the court to declare that, by virtue of the provisions of items seven and eight of the Part II (Concurrent Legislative List) of the Second Schedule of the constitution, the power of the Federal Government to delegate the collection of taxes can only be exercised by the State government or other authority of the State and no other person.

The State government had further asked the court to declare that all statutory provisions made or purportedly made in the exercise of the legislative powers of the Federal Government, which contain provisions which are inconsistent with or in excess of the powers to impose tax and duties, as prescribed by items 58 and 59 of the Part I of the Second Schedule of the 1999 constitution, or inconsistent of the power to delegate the duty of collection of taxes, as contained in items 7 and 8 of Part II of the Second Schedule of the Constitution, are unconstitutional, null and void.

Lead counsel for the Rivers State Government, Donald Chika Denwigwe, a Senior Advocate of Nigeria (SAN), who spoke to journalists after the court session, explained that the case is all about the interpretation of the constitution as regards the authority of the government at the State and Federal levels to collect certain revenue particularly, VAT.

He said: “So, during the determination of the matter, some issues of law were thrown up like, whether or not the case should be referred to the Court of Appeal for the determination of some issues.

“The court noted that the application is like asking the Federal High Court to transfer the entire case to the Court of Appeal. In which case, if the court so decides, there will be nothing left to refer back to the Federal High Court as required by the constitution.”

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According to council Denwigwe, the court refused that prayer and decided that the case was in its proper place before the Federal High Court and to determine it.

Speaking on the implication of the judgement, Denwigwe said it is now, unlawful for such taxes as VAT in Rivers State to be collected by any agency of the Federal Government.

“In a summary, it is a determination that it is wrong for the Federal government to be collecting taxes which are constitutionally reserved for the State governments to collect. The implication of the judgement is that the government (Federal and State) as an authority under the constitution, shouldn’t be advised by the judgement that it is thet free duty of all government authorities to comply with and obey the law so long as the court has interpreted it and said what that law is.

“So, in other words, the issue of Value Added Tax (VAT) in the territory of Rivers State and Personal Income Tax should be reserved for the government of Rivers State.”

Counsel for FIRS, O.C. Eyibo said he would study the judgement and advise his client.

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OYC Warns ICPC Chairman Against Alleged Bias in Uche Nnaji Case

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The Apex sociocultural youth organization of the Igbo race worldwide, Ohanaeze Youth Council (OYC), has described the current arrest made by the Independent Corrupt Practice and Other Related Offence (ICPC) against former Minister of Science and Technology and the 2027 People Democratic Party (PDP) governorship candidate for Enugu State, Hon. Uche Nnaji, regarding his certificate, as a deliberate political witch-hunt orchestrated by the Governor of Enugu State, His Excellency Gov. Peter Mbah.

In a press address in Enugu on Wednesday, 8th July 2026, Comrade Igboayaka O. Igboayaka, National President of Ohanaeze Youth Council (OYC), called on Dr. Musa Adamu Aliyu (SAN), Chairman of the Independent Corrupt Practices and Other Related Offences Commission (ICPC), to maintain the commission’s ethical standards, threatening to seek his removal if evidence confirms the alleged bias of ICPC in favor of Governor Peter Mbah against Hon. Uche Nnaji regarding the 2027 Guber election.

*The Ohanaeze Youth Council (OYC) revealed that the fight against Hon. Uche Nnaji is a battle for the Enugu Governorship and the “Lions Building Seat” in 2027, and dismissed the certificate forgery allegations against Uche Nnaji as a political distraction and blackmail.*

The surreptitious entry into the court by the Independent Corrupt Practices and Other Related Offences Commission to obtain a court order detaining Hon Uche Nnaji is a teleguided executive overreach attributed to Gov Peter Mbah apparently aimed at silencing Hon Uche Nnaji, which is highly censurable.

The Council stated that “A court of competent jurisdiction is presently handling the unsubstantiated certificate forgery case, and the University of Nigeria Nsukka and Hon Uche Nnaji have opted for an out-of-court settlement, following recent findings of misinformation.

Therefore, Dr. Musa Adamu Aliyu (SAN), Chairman of the Independent Corrupt Practices and Other Related Offences Commission (ICPC), should maintain a neutral stance regarding the Enugu State Governorship battle to preserve his reputation built through his legal career and public service, and avoid being perceived as succumbing to Governor Peter Mbah’s alleged attempts to utilize executive power to blackmail and witch-hunt Hon. Uche Nnaji.

The Ohanaeze Youth Council(OYC) warned Governor Peter Mbah to concentrate on fulfilling his unfulfilled campaign promises to Enugu State rather than chasing Hon Uche Nnaji through the Independent Corrupt Practices and Other Related Offences Commission (ICPC)

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Governor Mbah’s Compassionate Gesture Brings Relief to Enugu Fire Victims

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Families displaced by the recent fire outbreak in the Asata area of Enugu have received immediate relief from the Enugu State Government following the intervention of Governor Peter Mbah, who directed that palliative support be provided to ease their suffering.
Chairman of the Enugu State Emergency Management Agency (ESEMA), Chinasa Mbah, disclosed that the agency promptly delivered the relief materials in compliance with the governor’s directive.
“We have given them some palliative as directed by His Excellency. Our report has equally gone in, and we await further instructions,” Mbah said.
She explained that ESEMA has completed its assessment of the incident and submitted its recommendations to the state government, adding that additional assistance for the affected families will depend on the governor’s approval of the agency’s report.
The swift response underscores Governor Mbah’s commitment to standing with citizens in times of distress. The victims, whose homes and belongings were destroyed in the fire that gutted two flats in a two-storey building on Church Road, Asata, are expected to receive further support as the government considers ESEMA’s recommendations.

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Questions Persist As Almajiri Commissions Attempts to Defend Projects Outside Its Mandate

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The National Commission for Almajiri and Out-of-School Children’s Education (NCAOOSCE) has defended the inclusion of projects outside its statutory mandate in the 2026 budget, insisting they are National Assembly constituency projects assigned to the commission for implementation.
However, the explanation has done little to quell public scrutiny, with critics questioning why a commission established to tackle the Almajiri system and out-of-school children—challenges largely concentrated in Northern Nigeria—is overseeing projects reportedly located in parts of the South-West.
The controversy has also been fuelled by concerns over the scale of the allocations, as the value of the disputed constituency projects is said to far exceed the funds earmarked for the commission’s core education programmes.
Responding to the criticism in a statement issued on Monday, the commission’s Special Assistant on Media and Communications, Nura Muhammad, said the projects were included in the 2026 Appropriation Act under the long-standing practice of assigning constituency projects to Ministries, Departments and Agencies (MDAs) for execution.
According to the commission, once such projects are approved in the federal budget and allocated to an agency, they become part of its implementation responsibilities.
“As part of a duly enacted federal budget, every project assigned to the commission forms part of its implementation responsibilities and will be executed in strict compliance with extant laws, financial regulations and due procurement processes,” the statement said.
NCAOOSCE maintained that the inclusion of the projects does not alter its statutory mandate, stressing that it remains focused on addressing the Almajiri system and reducing the number of out-of-school children across Nigeria.
The commission cited its achievements, including the profiling of more than 700,000 out-of-school children, the establishment of 119 learning centres, ward-to-ward advocacy campaigns, and the implementation of the National Policy on Almajiri Education, as evidence of its commitment to its core responsibilities.
This version attributes the concerns to critics and public scrutiny rather than stating them as established facts.

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Police Inspector Dies in Alleged Police Convoy Accident in Enugu

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A Police Inspector, Dr. Obodo Paul Ikechukwu, has reportedly died after he was involved in a fatal road accident allegedly involving a police convoy in Enugu State.

The deceased, who hailed from Nkpologu in Enugu State, was serving in the Operations Department of the Enugu State Police Headquarters at the time of the incident.

Details surrounding the circumstances of the accident remain unclear, but sources said the inspector was fatally injured after being struck by a vehicle in a police convoy.

Dr. Obodo, who was also a PhD holder, was described by colleagues and associates as a dedicated officer whose death has come as a shock to members of the police command and his community.

As of the time of filing this report, the Enugu State Police Command had not issued an official statement on the incident, while further details are being awaited.

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Mbaka Offers Prayers, Endorses Mbah’s Leadership Ahead of Election (See Video)

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The Spiritual Director of the Adoration Ministry Enugu, , has offered prayers for , praying for God’s favour, protection, and victory as the state approaches the coming elections.

Speaking during a church gathering, Mbaka declared that Governor Mbah would succeed, expressing confidence that God, whom he said had begun a great work through the governor, would bring it to completion.

“It shall be well with Peter Mbah; may the favour of God be with him. We back him with our prayers. The Adoration family throws our prayers around him, that he will succeed, in the name of Jesus. May God grant him the power of victory at the end of the whole election,” Mbaka said.

The cleric further expressed hope that Mbah’s leadership would bring joy to the Igbo people, the people of Enugu State, and the Church, adding that the Igbo economy could witness greater advancement under his administration.

According to Mbaka, the progress recorded so far gives hope that greater achievements lie ahead, stressing that God would perfect the work already begun.

His remarks come as political activities continue to gather momentum ahead of the forthcoming elections.

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