36 State Governors Battle FG in Supreme Court, Disclose Reasons for Legal Fight

36 State Governors Battle FG in Supreme Court, Disclose Reasons for Legal Fight

  • All the 36 state governments in Nigeria have accused the AGF Malami of failing to remit stamp duties proceeds into their accounts
  • The accusation is contained in a suit filed against the federal government before the Supreme Court
  • The states, among other things, want the apex court to declare that the federal government is not to entitled to collect stamp duties in their domains

FCT, Abuja - The 36 state governments have sued the federal government over the proceeds of the stamp duties collected between 2015 and 2020 which they put at 176 billion naira.

Channels TV reported the state governments demanded a refund of the proceeds in a suit filed before the Supreme Court on Thursday, September 9.

Stamp Duty Revenue: 36 States Drag FG to Court, Demand N176bn Refund
The 36 state governments in Nigeria ask the federal government to refund over N176 billion said to be proceeds of stamp duties between 2015 and 2020. Photo credit: Abubakar Malami, SAN
Source: Facebook

Legit.ng gathers that the states through their attorneys-general asked the apex court to determine whether or not they are the sole authority to administer and collect stamp duties within their respective states.

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According to The Punch, the states accused the Attorney General of the Federation, Abubakar Malami, of failing to remit stamp duties proceeds into their accounts.

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Among other things, the states want the court to declare that the federal government is not entitled to collect or keep the proceeds of stamp duties within their respective domains.

The Supreme Court is yet to fix a date for the matter to be heard.

Nigerians react

Adekoya Mayowa Jacob said on Facebook:

"The States are rising from their slumber."

Amuro Eric said:

"Gradually we are getting there."

Emekoro Michael said:

"A government that doesn't obey court orders is rushing to the same court for succour hmmm."

VAT: Wike threatens showdown with FIRS

In a related development, Governor Nyesom Wike of Rivers state has threatened to “take over” all offices of the Federal Inland Revenue Service (FIRS) in the oil-rich south-south state if the government agency continues with its “bullying”.

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The governor spoke at a stakeholders’ meeting in Port Harcourt, the state capital while addressing business owners in the state.

Legit.ng gathered that the governor told the oil firms, construction companies and other business owners operating in the state to start remitting their Value Added Tax (VAT) to the state government beginning this September.

Lagos Assembly passes VAT

Meanwhile, the Lagos State House of Assembly has passed the state’s Value Added Tax (VAT) bill.

Also, the House passed the bill that prohibits open cattle grazing in the state. The two bills were passed after unanimous votes by the lawmakers.

This was disclosed in a statement made available to Legit.ng.

Why VAT law will be beneficial to Lagos, Obasa, residents reveal

In another related report, the speaker of the Lagos House of Assembly, Mudashiru Obasa, has revealed how the VAT law would impact the state.

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Obasa noted that states have always felt financially strangulated and unfairly treated by the federal government.

According to him, the Lagos state government generates an excess of N500 billion in Value Added Tax (VAT).

Source: Legit.ng

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