Group Challenges FCT-IRS Plan to Collect Revenues for Area Councils

The Centre for Reform and Public Advocacy has condemned the Federal Capital Territory Internal Revenue Service (FCT-IRS) over plans to collect revenues on behalf of the six Area Councils in the FCT, calling the move unconstitutional and illegal.

In a statement released on Tuesday in Abuja, the group’s Head of Legal Unit, Mr. Kalu Agu Kalu, argued that the FCT-IRS Act of 2015 limits the agency’s authority to collecting revenues solely for the Federal Capital Territory Administration (FCTA).

“For clarity, the six Area Councils are not departments under the FCTA but are constitutionally established as the third tier of government, with their functions and powers clearly defined by the Constitution,” Kalu said.

The group criticized Acting FCT-IRS Chairman, Mr. Michael Ango, for attempting to undermine the autonomy of the Area Councils, which had been affirmed by the Supreme Court.

Ango had announced during the FCT-IRS 2024 end-of-year media briefing that the agency would take over revenue collection for the Area Councils starting in 2025. He explained that the goal was to simplify compliance for taxpayers and improve transparency and accountability.

Ango added that the decision was based on the directive of FCT Minister, Mr. Nyesom Wike, and included plans to harmonize revenue administration across the FCT.

In response, the advocacy group rejected the justification, insisting that such powers were not granted by the FCT-IRS Act or the Nigerian Constitution.

“The Taxes and Levies Act, LFN 2004, explicitly makes revenue collection by unauthorized persons a criminal offense,” Kalu stated.

The group revealed it had filed a lawsuit at the FCT High Court seeking an injunction against the FCT-IRS to prevent it from implementing the policy. It also warned taxpayers that payments made to the FCT-IRS instead of the Area Councils could lead to double taxation.

“Any taxpayer who pays revenues meant for the Area Councils to the FCT-IRS does so at their own risk and should be ready to pay again when approached by the Area Councils,” Kalu warned.

The group further threatened to initiate private criminal prosecution against the FCT-IRS chairman if the agency proceeds with the controversial policy.

“We call on all stakeholders to resist any unlawful policy aimed at undermining Nigeria’s constitutional order and the autonomy of local government authorities,” Kalu said.

The case is currently before the FCT High Court, and the group urged the FCT-IRS to maintain the status quo pending the court’s decision.