VAT In Nigeria: Court To Resume Hearing On FIRS, Rivers Suit

Wike Approves Immediate Dismissal Of 21 FCTA Heads

The Court of Appeal in Port Harcourt, Rivers, will on Monday, May 9, 2022, resume the hearing on the appeal filed by the Federal Inland Revenue Service (FIRS) against the state government over the collection of Value-added Tax (VAT) in Nigeria and Personal Income Tax (PIT).

Emmanuel Ukala, a senior advocate of Nigeria and lawyer representing Rivers state, confirmed this development on Saturday, April 30.

According to a senior official of the appeal court, representatives of respected parties in the suit have been asked to submit their applications to the court ahead of the sitting.

What you should know about the VAT in Nigeria controversy

VAT in Nigeria collection had generated a heated argument across the country after a federal high court issued an order restraining FIRS from collecting it. Hence, directing the Rivers state government to take charge of the collection.

The landmark judgment also implies that other state governments could follow and collect VAT in their jurisdictions.

Following the judgment, the FIRS had filed an appeal on the issue.

Not too long after, on September 10, 2021, the Lagos state government applied to the court of appeal in Abuja to be joined as a co-respondent in the appeal filed by FIRS — a request later granted on September 30, 2021.

Oyo state government had also applied to be joined as a respondent.

However, the court of appeal ordered both Rivers and Lagos states to maintain status quo, pending the determination of an appeal filed by the FIRS.

But, the Rivers state government had asked the supreme court to set aside the order of the court of appeal. The matter is still in court.


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