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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.”
Governor Peter Mbah of Enugu State has reassured the public that safety remains the overriding priority of Enugu Air following Thursday’s runway excursion involving one of the airline’s aircraft at Benin Airport.
Reacting to the incident for the first time in a statement personally signed on Friday, the governor expressed sympathy with the passengers and crew members on board the aircraft, while thanking God that no lives were lost and no injuries were recorded.
The Embraer E170 aircraft, operating as Flight 4264 from Lagos to Benin, experienced a runway excursion after landing at Benin Airport on Thursday.
Mbah said the state government was closely monitoring the situation and pledged full cooperation with aviation authorities investigating the incident.
“The Enugu State Government is aware of the incident of a runway excursion affecting Enugu Air, Embraer E170, Flight 4264, operating into Benin Airport from Lagos on Thursday, July 23, 2026.
“The government empathises with the 63 passengers and five crew members on board the aircraft over the traumatic experience and is thankful to God that no life was lost and no injuries have so far been reported,” the governor said.
He commended the Nigerian Safety Investigation Bureau (NSIB) for swiftly launching an investigation to determine the circumstances surrounding the incident, assuring that Enugu Air would cooperate fully with investigators and relevant regulatory agencies.
“The government commends the swiftness of the Nigerian Safety Investigation Bureau (NSIB) in embarking on the ongoing investigation to determine the circumstances and factors that may have led to the incident. The government will ensure the full cooperation of its going concern, Enugu Air, with the investigation and regulatory authorities,” Mbah stated.
While urging the public to await the outcome of the investigation, the governor maintained that the airline operates under stringent safety protocols that place passenger welfare above commercial interests.
“While the outcome of the investigation is awaited, the government assures the public that the operations of Enugu Air are guided by the highest safety standards. The airline is founded on a corporate culture that places safety above profit and schedule, and its quality assurance and quality control systems stipulate a safety threshold that is considerably higher than the industry benchmark,” he said.
Mbah said the airline’s uncompromising safety culture had contributed significantly to the growing confidence and patronage it had enjoyed since commencing operations.
“This accounts for the growing confidence and patronage the airline has continued to enjoy from both passengers and industry stakeholders. Enugu Air will therefore continue to serve its teeming customers and abide by its utmost commitment to safety, professionalism, and a sense of hospitality,” he added.
The governor also expressed appreciation to Nigerians for the widespread support and goodwill shown to the airline in the aftermath of the incident, noting that many passengers had continued to share positive experiences about flying with Enugu Air.
“We wish to express our profound gratitude to Nigerians for the outpouring of solidarity since the unfortunate incident. Quite uncommonly, Nigerians have continued to share their positive experiences with Enugu Air since it was launched a year ago. This matters so much to us as a government at this time,” Mbah said.
The runway excursion involving the state-owned carrier has drawn national attention. However, with all 63 passengers and five crew members safely evacuated, attention has now shifted to the outcome of the ongoing investigation by aviation authorities.
Amupitan gave the assurance during a courtesy visit to former Head of State and Chairman of the National Peace Committee, General Abdulsalam Abubakar (retd.), at his residence in Minna, Niger State, on Friday.
The commission’s chairman led a delegation comprising National Commissioners, the Secretary to the Commission, directors and his technical aides.
Amupitan described Abubakar as “the father of democracy in Nigeria”, noting that his transition to civilian rule in 1999 marked a defining moment in the country’s democratic history.
The INEC chairman said the commission regarded the former Head of State “not merely as a statesman but as a pillar of support for INEC.”
He also commended Abubakar’s role as Chairman of the National Peace Committee, describing its Peace Accord initiative as “a moralising influence on Nigeria’s political ecosystem.”
According to INEC, Amupitan said the initiative had provided political actors with a platform to commit to non-violence, thereby strengthening “the sovereignty of the will of the Nigerian people.”
The INEC chairman told Abubakar that, regardless of the pressures confronting the commission, it remained committed to ensuring that the will of Nigerians as expressed at the polls would prevail.
He said, “The Commission’s determination under my leadership was to see ordinary Nigerians go out and vote, confident that their votes would be duly counted and reflected in the outcome of elections,” describing this as “the core assurance INEC owed the electorate.”
Amupitan also formally confirmed the dates for the 2027 general elections.
According to INEC, the Presidential and National Assembly elections will hold on January 16, 2027, while the Governorship and State Houses of Assembly elections will take place on February 6, 2027.
Abubakar, in turn, called on Nigerians to support INEC ahead of the 2027 general elections.
President Bola Ahmed Tinubu, GCFR, Commander-in-Chief of the Armed Forces of the Federal Republic of Nigeria, has approved the expansion of the Nigerian Army’s structure from eight to twelve divisions—a landmark move to enhance the country’s security architecture and improve the operational effectiveness of the Nigerian Army.
In a statement, Special Adviser to the President on (Information & Strategy) Bayo Onanuga says, “this approval underscores the President’s unwavering commitment to equipping the Armed Forces to address Nigeria’s evolving security challenges effectively and to strengthen national defence capabilities further.”According to the statement, “the expansion builds on the Administration’s sustained investments in the Armed Forces, including approval for the recruitment of 28,000 additional personnel, acquisition of critical military platforms and equipment, improvements in troop welfare, and ongoing support for operational readiness and force modernisation.”Under the new structure, the Nigerian Army will operate twelve divisions, strategically positioned across the country as follows:1. 1 Division Headquarters – Kaduna (Kaduna, Kano, Katsina and Jigawa States)2. 2 Division Headquarters – Ibadan (Oyo, Osun, Ekiti and Ondo States)3. 3 Division Headquarters – Jos (Plateau, Bauchi and Gombe States)4. 5 Division Headquarters – Makurdi (Benue, Nasarawa and Kogi States)5. 6 Division Headquarters – Port Harcourt (Rivers, Akwa Ibom and Cross River States)6. 7 Division Headquarters – Maiduguri (Borno and Yobe States)7. 8 Division Headquarters – Sokoto (Sokoto, Kebbi and Zamfara States)8. 9 Division Headquarters – Ilorin (Kwara and Niger States)9. 10 Division Headquarters – Jalingo (Taraba and Adamawa States)10. 81 Division Headquarters – Lagos (Lagos and Ogun States)11. 82 Division Headquarters – Enugu (Enugu, Anambra, Abia, Ebonyi and Imo States)12. 83 Division Headquarters – Benin City (Edo, Delta and Bayelsa States).The establishment of the new Divisions in Makurdi, Ilorin, Jalingo and Benin City will significantly improve command and control, decentralise operational decision-making, strengthen border security, enhance the protection of critical national infrastructure, improve counter-insurgency and internal security operations, and ensure faster military response to emerging threats nationwide.Implementation of the new force structure will be done in two phases.
The Ndigbo Unity Forum (NUF) worldwide, a pan-Igbo socioeconomic pressure group, has urged the Federal Government to direct the Nigeria National Petroleum Corporation Limited (NNPCL) to supply Dangote Petroleum Refinery adequate crude.
The Chairman of NUF, Chief Augustine Chukwudum, made the call on Wednesday in Enugu while reacting to Dangote Petroleum Refinery’s move to start direct sales of refined Petroleum products in dollars.
It would be recalled that a top management official of the Dangote Group said that its refinery was receiving just four million barrels of crude oil monthly under the arrangement, instead of about 13 million barrels envisaged after President Bola Tinubu’s 2024 directive.
The refinery had attributed its decision to switch from naira-denominated fuel sales domestically to dollar transactions to the crude supply shortfall, saying it would also increase exports of refined petroleum products to earn foreign exchange.
Chukwudum called on the Federal Government to intervene urgently before things get out of hand and Nigerians suffer the more.
According to him, fuel price remains major determinant of prices of other commodities and services in the country as transport cost depends on.
“Things are bound to get worst if the Federal Government neglect to take immediate and decisive actions meant to better the life of the citizens.
“NUF is rasing this alarm because this administration is behaving as if they are not answerable to the people their are supposed to be serving.
“The Federal Government should direct NNPCL to supply all the crude oil needed by Dangote Refinery since the company has the capacity to meet local or domestic petroleum needs of the country.
“The government must stop all forms of fuel importation because that money been used for importation is a waste and put a pressure on our fragile foreign reserve as a nation,” he said.
The NUF boss noted that the refinery company must be allowed to pay in naira with this move, suffering of citizens would be curtailed.
Chukwudum also reiterated the call of the group for the Federal Government to set up judicial panel of inquiry to look into the account of NNPCL for some years now.
A commotion reportedly erupted at the Independent National Electoral Commission (INEC) office in Onitsha South Local Government Area of Anambra State after some officials were accused of demanding ₦2,000 from applicants before processing voter registration and Permanent Voter Cards (PVCs).
The allegation surfaced in a video circulating on social media, which showed what appeared to be a heated confrontation between applicants and officials at the electoral commission’s office.
According to a resident who narrated the incident in the video, some INEC officials allegedly insisted that applicants pay ₦2,000 before their voter registration or PVC processing could be completed.
The situation reportedly escalated when one of the applicants challenged the alleged demand, insisting that voter registration and PVC-related services are free and should not attract any payment.
The applicant was said to have confronted the officials and attempted to record the exchange with a mobile phone, triggering a heated argument that attracted other applicants and bystanders.
Although raised voices and a commotion could be heard in the footage, the circumstances surrounding the incident could not be independently verified.
The video has since sparked reactions on social media, with many Nigerians condemning the alleged extortion and calling on INEC to investigate the incident and sanction anyone found culpable.
INEC has consistently maintained that voter registration services are free of charge. These include fresh registration, collection of PVCs, transfer of voter information, correction of personal details, and replacement of lost or damaged PVCs.
The commission has also repeatedly urged members of the public to report any cases of extortion, bribery or illegal charges involving its permanent or ad hoc staff during voter registration and PVC distribution.
As of the time of filing this report, INEC had not issued an official statement specifically addressing the allegations involving its Onitsha South Local Government Area office.
The incident comes as the electoral commission continues its nationwide Continuous Voter Registration (CVR) exercise ahead of the 2027 general elections.
INEC has also introduced an online self-service platform to enable prospective voters and existing registrants to complete several registration-related processes conveniently, while reiterating that voter registration services remain free of charge.
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