Group to Wike: You Lack Powers to Collect Area Councils’ Revenues

Alex Enumah in Abuja

A social rights group has described as illegal and unlawful planned moves by the Federal Capital Territory Administration (FCTA) to collect revenues on behalf of the six Area Councils of the FCT.

According to the group, Centre for Reform and Public Advocacy, the move contravenes the Constitution as well as the law which established the Federal Capital Territory Internal Revenue Service (FCT -IRS).

In a 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 FCTA.

“For the purposes of clarity and emphasis, the six area councils 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 councils/local governments, 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 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 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 (6) Area Councils on the “directive” of the FCT minister.

“Maybe Mr. Michael Ango does not know that all the revenues he intends to collect on behalf of the six Area Councils … 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.

“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 person 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 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 FCT IRS 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.”

Meanwhile, Kalu disclosed that if Ango thinks otherwise, the group shall be left with no other option than to commence a private criminal prosecution against him for collecting revenue which the law does not support.

Besides, Kalu advised the business community in the Federal Capital Territory to disregard the press statement by the FCT – IRS boss on his purported plans to take over collection of revenues constitutionally donated to the six Area Councils, because such plans are not only unconstitutional, but unlawful, illegal and criminal.

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