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 Federal Commissioner representing Kaduna State at the National Population Commission (NPC), Hon. Sa’adatu Garba Dogonbauchi, has presented letters of permanent and pensionable appointment to three youths drawn from different local government areas of the state.
The presentation, according to a statement issued by Dogonbauchi, is aimed at expanding employment opportunities for young people and supporting youth empowerment in line with the Federal Government’s development objectives.
The beneficiaries are Shamsuddeen Abdulaziz Bagi from Igabi Local Government Area, Abdulfatah Abdulwakil from Kaduna South Local Government Area, and Aisha Adamu from Birnin Gwari Local Government Area.
Speaking during the presentation, Dogonbauchi described the appointments as more than an administrative exercise, saying they provide beneficiaries with an opportunity to build sustainable careers in public service while improving their economic prospects and contributing to national development.
She said the initiative aligns with President Bola Ahmed Tinubu’s Renewed Hope Agenda, which prioritises employment generation, economic empowerment and improved living standards for Nigerians.
The NPC commissioner expressed appreciation to President Tinubu for the opportunity to serve and represent Kaduna State, pledging to continue supporting programmes that create opportunities for young people and strengthen public institutions.
She also acknowledged Kaduna State Governor Uba Sani, Speaker of the House of Representatives Abbas Tajudeen, and Hon. James Abiodun Faleke for their support, which she said contributed to her appointment and service.
Dogonbauchi urged the new employees to discharge their duties with discipline, integrity and professionalism, while adhering to public service rules and serving as worthy representatives of their communities.
She congratulated the beneficiaries and encouraged them to justify the confidence reposed in them through excellence, accountability and dedication to public service.
Hon. Obi Aguocha, member representing Ikwuano/Umuahia North/Umuahia South Federal Constituency in the House of Representatives, is facing mounting criticism and backlash over his video in which he is seen singing and vibing to a sexually vulgar and demeaning song against women.
In the video, which is currently making the rounds online and in Ikwuano/Umuahia WhatsApp groups, Aguocha is clearly seen singing and enjoying the Ogele cultural song, whose lyrics reduce women to objects of sexual gratification.
The footage was reportedly recorded at a public gathering that had families in attendance, including children, a detail that has intensified the backlash.
The song, performed in the Ogele cultural music tradition associated with communities in Abia State, has sparked outrage among women and women’s groups who say the lyrics are not just vulgar but deeply degrading.
“This is not culture. This is humiliation dressed in tradition,” said Mrs. Ngozi Ibe, a women’s leader in Umuahia North. “We have watched the video. The words used against women in that song are not the kind of thing any serious leader should be associated with. A lawmaker representing our constituency should be defending our dignity, not promoting content that strips women of it.”
Another woman, a trader in Umuahia South who identified herself simply as Madam Grace, said the video had caused deep anger among market women.
“We heard about it and we watched it. Many of us were shocked. You cannot claim to represent women and then be seen singing and vibing to a song where women are being insulted in the most vulgar way. We are not laughing. We are insulted,” she said.
A coalition of women’s groups in the constituency, under the aegis of the Ikwuano/Umuahia Concerned Women’s Forum, also issued a statement condemning the video.
“The lyrics go beyond ordinary expressions of affection. They employ vulgar sexual references that reduce women to objects and make our sexuality the subject of degrading entertainment. For a serving federal lawmaker to be seen actively singing and enjoying such content is a serious indictment on his judgment and his respect for the women he claims to represent,” the group said.
The women’s forum also expressed concern over the presence of children at the event.
“What message does it send to our children when a leader they look up to is seen celebrating a song that reduces women to sexual objects? This is not the kind of example we should be setting for the next generation,” the statement added.
“Ogele is our heritage. But heritage is not a licence for vulgarity. Culture should uplift, not humiliate. We call on Hon. Aguocha to explain his involvement in this video and to apologise to the women and families of Ikwuano/Umuahia,” the group said.
The controversy raises questions about the judgment expected of a public officeholder and the appropriateness of associating with content that many women and families could reasonably find offensive and humiliating.
Aguocha has not responded to requests for comment as of press time.
News
National Assembly Receives Proposals for New LGAs as Lagos Seeks 37, Akwa Ibom Missing from Lis
The National Assembly has reportedly received proposals for the creation of additional local government areas (LGAs) across Nigeria, with Lagos State seeking 37 new councils, while Akwa Ibom State is conspicuously missing from a published list of submissions.
The proposals, according to a report by The Insight Lens Project, cover various communities across the country’s six geopolitical zones and reflect demands for administrative restructuring, improved grassroots representation and better access to government services.
However, the complete list of submissions has not been independently verified, and the proposals do not constitute approval for the creation of new local government areas.
In the North-East, the reported requests include Bidoma and Michika South in Adamawa State, Boi-Tapshin in Bauchi, Banki in Borno, Cham in Gombe, Gudi in Yobe and Wukari in Taraba State.
In the North-West, the proposed areas reportedly include locations in Jigawa, Piriga in Kaduna, Dankama in Katsina, as well as Moriki and other communities in Zamfara State.
The North-Central zone also features in the reported submissions, with proposals covering Agasha and other communities in Benue State, alongside several areas in Kogi, Kwara, Nasarawa, Niger and Plateau states.
In the South-East, the list includes Abiriba in Abia State, proposed councils around Obosi in Anambra State, several communities in Ebonyi State and numerous proposed local government areas in Imo State.
The South-West proposals reportedly include Eso-Obe and Gbonyin in Ekiti State, Ogijo and other areas in Ogun State, as well as additional proposed councils in Osun and Oyo states.
Lagos State stands out with a reported request for 37 new local government areas, although the published report did not provide the names and proposed boundaries of all the councils.
In the South-South, the reported proposals include Akassa and other communities in Bayelsa State, Ughievwen in Delta State, several areas in Edo State, and Ataba, Evo and Alesa in Rivers State.
Cross River State is also listed, with proposed councils around Mbube and Calabar. Akwa Ibom State, however, has no clearly identified entry in the published list, raising questions about whether the state submitted proposals or was omitted from the report.
Constitutional Requirements
The creation of new local government areas is governed by Section 8 of the 1999 Constitution of Nigeria, which prescribes a series of procedures involving consultations, a referendum, legislative approval and the submission of relevant records to the National Assembly.
The constitutional process must be completed before newly created councils can be recognised and reflected in the relevant constitutional schedules.
Consequently, proposals submitted by states or communities do not automatically translate into legally recognised local government areas.
The reported development comes amid broader constitutional review efforts by the National Assembly. In October 2025, the legislature reported receiving 278 requests for additional local government areas and 55 proposals for the creation of new states.
Nevertheless, the specific state-by-state submissions contained in the latest published list, including Lagos State’s reported demand for 37 additional councils and the absence of Akwa Ibom, remain subject to confirmation through official National Assembly records.
The proposals, if confirmed, could reopen discussions on administrative boundaries, grassroots governance and the constitutional procedures required for the creation of additional local government areas in Nigeria.
By Okey Maduforo, Awka
The Mayor of Onitsha North Local Government Area of Anambra State, Ezennia Emelie Ibekwe, has issued a stern warning to traders and residents against indiscriminate dumping of refuse and blockage of drainage channels, threatening sanctions against those who fail to comply with sanitation directives.
Ibekwe, who handed down the warning during an inspection of Ajasa Market, expressed displeasure over the deteriorating environmental conditions in parts of the commercial city, describing the situation as unacceptable and detrimental to healthy living and business activities.
During the inspection, the Mayor observed that refuse and other waste materials generated from market activities were being dumped into drainage channels, obstructing the free flow of water and exposing traders, residents and their properties to flooding.
“This practice contributes to flooding whenever it rains, putting traders, residents and their properties at risk.
“An environment of this nature is not conducive to business and healthy living. It does not speak well of a commercial city that houses one of the largest markets in sub-Saharan Africa,” he stated.
Consequently, Ibekwe directed traders and other persons responsible for the blocked drainage channels to ensure their immediate clearance, giving them until the following day to comply.
He further announced that he would return to the market for another inspection to ascertain the level of compliance with the directive.
“People should be alive to their responsibilities by ensuring a clean and healthy environment. Government alone cannot handle this effectively without the active participation of residents and traders.
“I am going to come back here to see what you have done,” he warned.
The Mayor stressed that the sanitation directive was not restricted to Ajasa Market but extended to all markets within Onitsha North Local Government Area.
He consequently charged market leaders to take responsibility for enforcing environmental sanitation regulations within their respective markets, warning that the council would no longer tolerate practices capable of worsening flooding and environmental degradation.
“It is not only Ajasa Market but all the markets in Onitsha North Local Government Area. Market leaders should ensure that this directive is not compromised,” Ibekwe declared.
The Speaker of the Cross River State House of Assembly, Rt. Hon. Elvert Ayambem, has commissioned a community market in Afi, Ikom II State Constituency, as part of his commitment to sustainable development and improved living conditions in rural communities.
The project, facilitated and completed by the Speaker, was identified as one of the priority needs of the community following consultations by the Constituency Needs Assessment Team established by Ayambem to evaluate infrastructure and identify projects that would directly benefit the people.
The team was mandated to identify critical infrastructure capable of improving the livelihoods of residents and promoting sustainable economic growth across the constituency.
According to community members, the absence of a suitable trading environment had been a major challenge for years, forcing traders to conduct business under harsh weather conditions, including rain and intense sunshine.
Speaking on behalf of the community, the village head, Chief Etta Ekawor, commended Ayambem for the intervention, describing the market as a miracle and a blessing that would transform the fortunes of the people.
In his remarks, Ayambem expressed appreciation to the Cross River State Governor, Senator Bassey Edet Otu, for his continued support for people-oriented projects and development initiatives across rural communities in the state.
He also thanked the people for their patience, support for his leadership and commitment to the All Progressives Congress (APC).
The Speaker was accompanied by the member representing Yala I State Constituency, Hon. Brian Odey; the Vice Chairman of Ikom Local Government Area, Hon. Maurice Ndome; and the Assistant Financial Secretary of the APC in Cross River State, Hon. Akanya Agbor.
Other stakeholders from Nde Ward who attended the commissioning included the former Vice Chairman of Ikom Local Government Area, Hon. Asinya Ntan, and the Community Relations Officer, Hon. Abang Neji.
Matthew Okache
Chief Press Secretary to the Speaker
October 22, 2026
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