A civil society organization, the Centre for Reform and Public Advocacy, has announced plans to sue the Minister of the Federal Capital Territory (FCT), Nyesom Wike, over the alleged collection of outdoor advertisement and signage fees in the six area councils of the FCT.
In a letter addressed to the minister on January 22 and copied to the Director of the Department of Outdoor Advertisement and Signage, the group demanded an immediate halt to the fee collection, which it claims is illegal. The organization gave a seven-day ultimatum, threatening to commence legal proceedings against Wike if the practice continues.
Mr. Kalu Kalu Agu, legal counsel to the group, argued that the collection of these fees is not authorized by law.
“With the greatest respect, Your Excellency, the issue of collection of the Outdoor Advertisement and Signage fees is not only constitutionally provided for but also enjoys a statutory flavour as encapsulated in the Taxes and Levies Act, 2004, LFN and the Laws of the Federal Capital Territory, 2006.
“Interestingly, none of these laws and/or any other, donated any powers to your office to so collect the said fees in the six area councils of the Federal Capital Territory, Abuja.
“But it is shocking to know that despite these constitutional and statutory provisions that empower the six area councils to collect the outdoor advertisement and signage fees, the Director, in conceit with other staff of your administration, are moving around the entire six area councils collecting the said revenue without any legal backing,” Agu stated.
The activist emphasized that the 1999 Constitution, the Taxes and Levies Act, and the Local Government Act grant exclusive authority to the six area councils to collect these fees. He described the alleged actions of the FCT administration as economic sabotage and criminal.
“Take notice that in the event you fail to heed to this demand after seven (7) days of receipt of this letter, we shall resort to legal actions to restrain you and the Director of Outdoor Advertisement and Signage from extorting money from the unsuspecting business community and diverting public revenue to personal usages.
“We are hopeful that you will heed to our demand and allow wise counsel prevail. Please, do accept the assurances of our warmest regards,” Agu added.
This development follows the Centre’s earlier criticism on January 7 of the Federal Capital Territory Internal Revenue Service (FCT-IRS)’s plan to collect all revenues on behalf of the six area councils in 2025. The group labeled the move as unconstitutional and unlawful, stating that it violates the autonomy of the councils.
“For the purposes of clarity and emphasis, the six area councils are not departments of the 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 area councils, with a total disregard to the Constitution and the law,” the group said.
At a 2024 end-of-year media briefing, Acting FCT-IRS Chairman, Mr. Michael Ango, announced that the service would collect all revenues on behalf of the area councils starting in 2025. He explained that the measure aimed to simplify taxpayer compliance and improve transparency and accountability in revenue collection.
Ango also noted that a similar arrangement was being discussed with other Secretariats, Departments, and Agencies under the FCT Administration, in line with the directive of Minister Wike.
