Centre kicks, approaches court

Centre for Reform and Public Advocacy has kicked against moves by the Federal Capital Territory Internal Revenue Service (FCT-IRS) to collect all revenues on behalf of the six area councils of the FCT in 2025.

The centre, in a statement, argued that the move was unconstitutional, illegal and unlawful. According to the statement released, yesterday, in Abuja by its Head, Legal Unit, Mr Kalu Agu Kalu, the FCT-IRS ACT, 2015 limits the powers of the service to collect such revenues for the Federal Capital Territory Administration.

“For the purposes of clarity and emphasis, the six area councils are not departments of Federal Capital Territory Administration, but a third tier of Government, constitutionally enshrined and established, and whose functions and powers are delineated by the same Constitution.

“While the Supreme Court had granted autonomy to area councils/local governments, it is laughable that the acting Chairman of the FCT-IRS, Mr Michael Ango, seeks to undermine the pronouncement of the Supreme Court by usurping the powers and functions of the area councils, with a total disregard to the Constitution and the law,” the group said.

Ango had announced at the 2024 end of year media briefing in Abuja that FCT-IRS would be responsible for the collection of all revenues on behalf of the six area councils of the FCT in 2025.

He said the goal was to ease compliance by taxpayers in the FCT and improve transparency and accountability for all revenue collection. He said that a similar arrangement was being worked out with the various secretariats, departments and agencies in the FCT Administration.

He explained that the decision was in compliance with the directive of the FCT Minister, Mr Nyesom Wike.

But while reacting to the announcement, the Advocacy Group said: “There is no provision in the FCT–IRS that empowers the FCT–IRS to collect revenues on behalf of the six area councils.

“Maybe Mr Michael Ango does not know that all the revenues he intends to collect on behalf of the six area councils on the “directive” of the ‘Almighty Wike’ are functions of the provisions of the Fourth Schedule to the 1999 Constitution of the Federal Republic of Nigeria (as altered), which were undoubtedly donated to the six area councils, but we must forgive him because he is ignorant.

“May we, at this juncture, draw the attention of the acting Executive Chairman of the FCT-IRS to Section 2 of the Taxes and Levies (approved list for collection) Act, LFN, 2004, which makes the collection of revenue by unauthorised persons as a criminal offence.

“The said Taxes and Levies Act clearly sets clear boundaries on revenues the Acting Executive Chairman of the FCT – IRS and his Almighty Wike should collect and should not in any guise dive into other revenue collection not donated to the Federal Capital Territory.

“Let us also use this medium to place it on record that the Centre for Reform and Public Advocacy had already filed a civil suit against the Federal Capital Territory Internal Revernue Service at the High Court of the Federal Capital Territory, Abuja, seeking injunctive reliefs against the FCT-IRS from collecting any revenue on behalf of the six area councils.

“Since this matter is subjudice, Mr Michael Ango, the Acting Executive Chairman of the FCT-IRS should respect the law and maintain status quo pending the hearing and determination of the said case.”