The Centre for Reform and Public Advocacy has kicked against the 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 group in a statement maintained that the move to collect taxes on behalf of the Area Councils is unconstitutional, illegal and unlawful.

In the statement released on Tuesday in Abuja by its Head, Legal Unit, Mr Kalu Agu Kalu, the group clarified that the FCT – IRS ACT, 2015 limits the powers of the service to collect revenues to the Federal Capital Territory Administration.

“For the purposes of clarity and emphasis, the Six Area Council are not departments of Federal Capital Territory Administration, but a 3rd 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 council / local government, it is laughable that Mr. Michael Ango, the Acting Chairman of the FCT – IRS seeks to undermine the pronouncement of the Supreme Court by usurping the powers and functions of the of the Area council, with a total disregard to the Constitution and the law”, the group said.

The acting chairman of the Federal Capital Territory Internal Revenue Service (FCT -IRS) Mr Michael Ango had announced at the 2024 end of year media briefing in Abuja, that FCT-IRS will be responsible for the collection of all revenues on behalf of the six area councils of the FCT in 2025.

Ango said that 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 on the “directive” of the “Almighty Wike”

“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, advert 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 an unauthorized 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 Revenue 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 sub-judice, 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.
If Mr. Michael Ango thinks otherwise, the Centre for Reform and Public Advocacy shall only be left with the option commencing a private criminal prosecution against Mr. Michael Ango for collecting revenue which the law does not support,” the group said.

The group pointed out that it is their responsibility to educate the business community in the Federal Capital Territory to disregard the press statement by the Acting Executive Chairman of the FCT – IRS on his purported plans to take over collection of revenues constitutionally donated to the six Area Councils as such plans are not only unconstitutional, it is also unlawful, illegal and criminal.

It warned that anyone paying revenue meant for the Area Councils to the FCT IRS is doing so at his or her peril and should be ready to pay the Area Councils when they come for the collection of their revenues.

“Let us all unite against any unlawful policy of the government aimed at destroying the institutions that bind us together,” Kalu urged.

Ango had also claimed among others, that the FCT-IRS would upon collection of revenues on behalf of the Area Councils disburse to them in their various accounts.

The FCT-IRS boss further said that the service would also focus on harmonisation of revenue administration in the FCT from 2025.

“We will also have one central revenue reporting point to ensure better transparency and accountability for revenues collected,” he said.