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.”
According to a statement issued on Saturday by the Acting Director of Army Public Relations, Colonel Appolonia Anele, the reshuffle is part of efforts to strengthen national security and improve operational effectiveness across the country.
The statement added that the postings affected field commanders, school commandants and principal staff officers at the Army Headquarters.
It noted that the Chief of Army Staff, Lieutenant General Waidi Shaibu, approved the strategic redeployment of senior officers, saying the move was aimed at enhancing the Army’s capacity to address emerging security challenges.
Under the new appointments, Major General WM Dangana has been named the General Officer Commanding (GOC) 3 Division Nigerian Army and Commander of Joint Task Force Operation ENDURING PEACE, replacing Major General EF Oyinlola.
Similarly, Major General EI Okoro has been appointed GOC 6 Division Nigerian Army and Land Component Commander of Joint Task Force South-South Operation DELTA SAFE, succeeding Major General EE Emeka.
The statement also announced the appointment of Major General JR Lar as Commander, Army Headquarters Garrison, while Brigadier General OM Oyekola will serve as Acting Military Secretary (Army). Brigadier General I Waziri retains his position as Chief of Staff in the Office of the Chief of Army Staff.
As part of efforts to strengthen operational leadership and combat readiness, Brigadier General IB Buhari was appointed Commander of Headquarters 63 Brigade, while Brigadier General K Rabiu was named Commander of Headquarters 31 Artillery Brigade.
In a move reflecting the Army’s growing emphasis on technology and emerging security threats, Major General SA Emmanuel was appointed Commander of the Nigerian Army Space Command.
Major General O Adegbe was also appointed Director of Intelligence and Security at Defence Headquarters.
In the area of military education and institutional development, Major General KE Chigbu was appointed Deputy Commandant of the National Defence College, while Major General SD Makolo became Commandant of the Nigerian Army Armour School.
Other appointments include Major General SO Adejimi as Commandant of the Nigerian Army School of Supply and Transport and Major General FS Etim as Chief of Training at the Headquarters Training and Doctrine Command, Nigerian Army (TRADOC).
Brigadier General U Ahmad has also been appointed Commandant of Depot Nigerian Army, Zaria.
The reshuffle further saw Major General KO Ukandu appointed Managing Director and Chief Executive Officer of Post Housing Development Limited, while Major General AI Allison was named Managing Director of Defence Properties Limited.
The statement added, “The COAS charged the newly appointed senior officers to justify the confidence reposed in them by demonstrating exemplary leadership, professionalism, innovation and unwavering commitment to the Nigerian Army’s constitutional mandate of defending Nigeria’s sovereignty, protecting its territorial integrity and supporting civil authority in maintaining peace and security across the nation.
“The Nigerian Army remains resolute in its transformation drive and commitment to building a highly professional, combat-ready and people-oriented force capable of effectively addressing contemporary and future security challenges in pursuit of Nigeria’s national security objectives.”
The First Lady, Senator Oluremi Tinubu, has come under criticism on social media after encouraging Nigerians to consider small-scale businesses such as selling akara, roasted corn and kuli-kuli, saying they require little capital to start.
Tinubu spoke while addressing State House Correspondents after the Renewed Hope Initiative’s second-quarter meeting with wives of state governors, held at the State House, Abuja, on Wednesday.
She stated this while highlighting the efforts of the Renewed Hope Initiative to support vulnerable Nigerians through grants and other interventions.
According to her, beneficiaries of the initiative were given grants, not loans, to enable them to start businesses.
“We’re trying to give hope, and to start Akara business doesn’t take a lot of money. To start roasting corn, or somebody even said kuli kuli doesn’t take much. We didn’t give them a loan; we gave it to them as a grant.
“So we’ve encouraged Nigerians as best as we could. What is within our hands, I have given, and I keep giving,” she said.
The First Lady said the initiative had also supported interventions in healthcare, agriculture, education and social investment.
She said she donated N2bn to tackle tuberculosis, N1bn for breast cancer interventions and N500m to address malnutrition.
“I remember giving for TB. When I heard there were so many TB cases, I gave N2 billion. To breast cancer, I gave a billion. For food malnutrition, I gave half a billion.
“So those are the things we’ve been doing and making sure we can make sure that whatever this government is trying to do, it will see the light of day,” she stated.
Tinubu added that the initiative had also provided scholarships, ICT training and support for agriculture and social investment programmes.
She urged Nigerians not to lose hope despite the country’s economic challenges.
“The narrative has really changed, has changed to challenge the average man, whereas the average man is supposed to have hope. So I like the idea that Mr President say this is the Renewed Hope Agenda.
“We have to renew our hope, and that’s how we renew our hope, you know, and that’s what I have to tell Nigerians,” she said.
The remarks, however, triggered swift backlash on social media, with many Nigerians accusing the First Lady of trivialising the economic hardship facing ordinary citizens.
A user on X, @ADCVanguard_, said the video showed “exactly how disconnected Nigeria’s ruling class has become from the reality of ordinary citizens.”
Another user, @ireteeh, contrasted the initiative with private-sector efforts, saying, “The First Lady is empowering people with akara, corn, and kuli-kuli, while an ordinary citizen with limited resources is equipping people to build thriving careers in cybersecurity.”
A user identified as Nefertiti (@firstladyship) said, “Nigerians are in big trouble. There is fire on the mountain but the people are tired of running.”
See also Fire guts Anambra timber market
However, some social media users, especially on X, defended the First Lady, insisting there was nothing wrong with encouraging Nigerians towards such businesses.
A user, @Akikanju1568901, said akara is “one of the most lucrative businesses in Nigeria,” with a low startup cost and high profit margin, adding that “akara sellers sent many kids… to universities, built houses, bought cars.”
Another user, @PemiOladapo, said, “There’s dignity in labour… these are our local snacks! People should start it and scale it!”
A user, @TossynBankz_, however, argued that the criticism was not about the businesses themselves but about timing.
“Nobody is mocking akara, roasted corn, or kuli-kuli. Those are honest businesses. The problem is that Nigerians are asking for a better economy, more jobs, and lower prices. Telling people to start selling akara in this situation just feels like the government doesn’t understand what people are going through,” the user wrote.
By Okey Maduforo, Awka
Scores of buildings obstructing natural waterways in Onitsha and Ogidi are facing demolition as the Anambra State Government steps up efforts to permanently tackle flooding and erosion in the affected communities.
The affected areas are located in Onitsha North, Onitsha South and Idemili North Local Government Areas, where authorities say illegal developments have worsened recurring flood disasters.
The state government also warned land grabbers and property speculators to desist from activities that contribute to environmental degradation and undermine approved urban development plans.
The warning came during a joint inspection of flood- and erosion-prone communities in Ogidi and Onitsha by the Commissioners for Works and Infrastructure, Physical Planning and Urban Development, and Environment.
The inspection team visited several vulnerable locations, including Ogidi Market, Building Materials Market, Opi Stream, the Marine Area and Trans-Nkisi Layout, to assess the extent of damage and identify areas requiring urgent intervention.
Speaking during the inspection, the Commissioner for Works and Infrastructure, Arc. Okey Ezeobi, said Phases Two and Three of the Ogidi Flood Control Project had been completed, while the design for Phase One was ready. He assured residents that the government was committed to providing a lasting solution to the perennial flooding in the area.
Ezeobi blamed much of the erosion damage on land grabbing, unregulated developments and alterations to approved master plans. He urged property owners to preserve designated drainage corridors and support ongoing government remediation efforts.
Also speaking, the Commissioner for Physical Planning and Urban Development, Barr. Chijioke Ojukwu, disclosed that investigations revealed that some traders at the Building Materials Market in Ogidi had erected plazas and shops on designated drainage channels, obstructing the natural flow of stormwater and worsening flooding.
He warned that all structures encroaching on waterways would be removed to enable the government reclaim and restore critical drainage networks in line with Governor Chukwuma Soludo’s vision of building clean, orderly and sustainable communities.
Ojukwu also expressed concern over the growing threat of gully erosion in Trans-Nkisi GRA, Onitsha, describing environmental degradation as a major challenge requiring urgent intervention and strict compliance with planning regulations.
The Commissioner for Environment, Barr. Clem Aguiyi, identified illegal construction, indiscriminate waste disposal and the destruction of vegetation that naturally controls erosion as major factors worsening flooding and erosion across the state.
He called on residents to take collective responsibility by planting erosion-control trees, protecting drainage infrastructure and supporting government initiatives aimed at achieving sustainable environmental management.
The International Human Right Protection Service (IHRPS), Anambra State Chapter, has raised concern over the plight of Nigerians allegedly stranded in South Africa amid renewed xenophobic attacks, urging the Federal Government to urgently evacuate affected citizens and provide each returnee with a N5 million resettlement package.
The group claimed that since the first evacuation flight, no further arrangements have been made to bring more Nigerians home, leaving many stranded despite continued attacks and growing fears for their safety.
It also appealed to President Bola Tinubu and the Minister of State for Foreign Affairs, Ambassador Bianca Ojukwu, to intensify efforts to protect Nigerian citizens in South Africa and facilitate their safe return.
The organisation, in a statement signed by its Anambra State Chairman, Hon. Dr. Amb. Prince Ekwunife, and Director of Special Duties, Mr. Ikenna-Daniel Okonkwo, said many Nigerians had lost their livelihoods, sold their properties, and were living in fear following recurring xenophobic attacks. It urged the Federal Government to provide a N5 million starter package for each returnee to help them rebuild their lives.
Recent criticisms of the Niger Delta Development Commission (NDDC) over the oil spill in Bille Kingdom have generated considerable public debate. While concerns about environmental degradation and the welfare of affected communities are valid and deserve attention, it is important that public discourse on the matter is guided by facts, a clear understanding of institutional responsibilities, and the realities of environmental remediation in the Niger Delta.
Bille Kingdom, like many communities in the Niger Delta, has faced the devastating consequences of oil spills over the years. These incidents have impacted livelihoods, fishing activities, farmlands, and the overall ecosystem upon which residents depend. Understandably, community members and stakeholders expect swift interventions from government agencies and development institutions.
However, attributing sole responsibility for responding to oil spills to the NDDC overlooks the specific mandates assigned to various agencies within Nigeria’s environmental and petroleum sectors.
The NDDC was established primarily as an interventionist agency tasked with facilitating sustainable development in the Niger Delta through infrastructure projects, social programmes, economic empowerment initiatives, and regional development planning. While environmental sustainability forms part of its developmental agenda, the direct containment, investigation, and cleanup of oil spills are responsibilities that largely fall under regulatory agencies and oil operators, in accordance with existing laws and environmental regulations.
This distinction is crucial. Oil spill response typically involves technical assessments, environmental impact studies, joint investigation visits, remediation procedures, and regulatory approvals. These processes are often coordinated by specialised environmental agencies in collaboration with oil companies operating in the affected areas. The NDDC’s involvement is generally complementary, focusing on long-term development interventions, community support programmes, and, where applicable, environmental restoration initiatives.
Furthermore, it is important to recognise that the NDDC has invested significant resources over the years in projects aimed at improving the quality of life in the Niger Delta communities. Across the region, the Commission has undertaken road construction, educational support programmes, healthcare initiatives, skills acquisition schemes, and various environmental projects designed to address the developmental deficits that have historically plagued oil-producing communities.
Critics are right to demand accountability and effective action whenever environmental disasters occur. Public institutions must remain responsive to citizens’ concerns, and affected communities deserve transparency in efforts to address ecological damage. Nevertheless, constructive criticism should be based on an accurate understanding of each institution’s statutory role.
Holding the NDDC responsible for functions outside its primary mandate risks diverting attention from those entities legally obligated to prevent, manage, and remediate oil spills.
Rather than assigning blame without a full appreciation of institutional responsibilities, stakeholders should encourage greater collaboration among oil companies, environmental regulators, state and federal authorities, community leaders, and development agencies, including the NDDC. Such collaboration offers the most practical pathway toward lasting environmental restoration and sustainable development in Bille Kingdom and the wider Niger Delta.
The people of Bille Kingdom deserve solutions, not confusion over mandates. As discussions continue, it is essential that all parties focus on facts, accountability, and coordinated action that delivers meaningful relief and long-term environmental recovery for affected communities.
Martins Ogolo
Public Affairs Analyst
martins.ogolo@yahoo.com
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