The Centre for Reform and Public Advocacy has condemned plans by the Federal Capital Territory Internal Revenue Service (FCT-IRS) to collect revenue for FCT’s six Area Councils in 2025.
The group declared the plan unconstitutional and illegal. Its legal head, Mr. Kalu Agu Kalu, issued a statement Tuesday in Abuja opposing the move.
Kalu explained that the FCT-IRS Act, 2015, restricts the agency to collecting revenue for the Federal Capital Territory Administration (FCTA). He stated that the Area Councils are an independent tier of government protected by the Nigerian Constitution.
He accused FCT-IRS Acting Chairman, Michael Ango, of violating legal boundaries. The group called the plan an attempt to undermine local government autonomy upheld by the Supreme Court.
Ango had announced the plan during a 2024 media briefing in Abuja. He claimed it would improve transparency, accountability, and taxpayer compliance.
Reacting, the advocacy group dismissed the announcement as illegal. “The FCT-IRS Act does not allow revenue collection for Area Councils under directives from the ‘Almighty Wike,’” the group said.
It cited Section 2 of the Taxes and Levies Act, 2004, which makes unauthorized revenue collection a crime. The group warned Ango against violating this law.
The group revealed it had filed a lawsuit at the FCT High Court to stop the FCT-IRS. It urged businesses to ignore the directive. “Anyone paying revenue to FCT-IRS risks paying twice,” Kalu warned.
Ango defended the plan, saying revenues would go to Area Councils’ accounts. He added that it would streamline collection and improve accountability.
The advocacy group rejected his claims and called the plan unlawful. It vowed to resist any action that undermines constitutional powers.
The legal battle will determine the fate of revenue administration in the FCT.