Business News
VAT Not Administered at Sub-National Level Anywhere in the World – FIRS
By Tony Obiechina, Abu
The Federal Inland Revenue Service (FIRS) on Wednesday insisted that it has the sole responsibility to collect and administer Value Added Tax (VAT) in the country.
Addressing journalists in Abuja, the Group Lead, Special Operations Group, FIRS, Mathew Gbonjubola, said there is nowhere in the world where the administration of VAT is done at the sub-national level.
A Federal High Court sitting in Port Harcourt, Rivers State, had on Monday dismissed an application by the FIRS, seeking to stop the state government from commencing collection of VAT in the state.
Following the court ruling, Governor Nyesom Wike directed the Rivers State Revenue Service, to immediately commence collection of VAT, from corporate bodies and businesses in the state threatening to shut down any concern that fails to comply.
Speaking on the development, Gbonjubola said the that contrary to misconceptions in some quarters, the FIRS administers VAT on behalf of the three tiers of governnment and not for the Federal Government alone.
He said the decision of the Federal High Court to grant powers to states to administer Value Added Tax will make it difficult for businesses to operate under the new dispensation.
According to him, the revenue from VAT is administered under an arrangement that allows the Federal Government to collect 15 per cent, States 50 per cent and Local Government 35 per cent.
He said by implication the State and Local Government take about 85 per cent of VAT proceeds leaving the Federal government with only 15 percent.
“The VAT is not paid to the Federation Account but to VAT pool account for distribution to the three tiers of governnment. It is after the sharing that the portion of the Federal Government is paid to the Consolidated Revenue Fund Account.
“VAT works only at a national level but not at a sub-national level. There is no country in the world where VAT works at the sub-national level”, he said.
According to him, the VAT Act differentiates between two kinds of VAT; Input VAT and Output VAT, pointing out thatthe input VAT is the tax paid to suppliers on the purchase of taxable goods and services, while output VAT is the tax received from customers on the value of taxable goods and services sold or rendered.
Gbonjubola stated that the VAT Act allows taxpayers to offset their input VAT (Allowable Input VAT) against their output VAT, to the extent that such input VAT only relates to such goods that are purchased or imported for resale or form the taxpayers’ stock-in-trade used for the production of new products on which output VAT will be charged.
He explained that the output VAT exceeds the recoverable input VAT, while the taxpayer is expected to remit the excess to the FIRS.
In the instance where the input VAT exceeds the output VAT, he further explained that the taxpayer will be entitled to a refund of the excess after following the due process as contained in the FIRS Establishment Act.
But with the decision of some states to go ahead with the implementation of the Court Judgement, he said that such refund may not be possible because the administration of VAT will be done by different states tax authorities.
He attended the media chat with the Group Lead, Digital and Innovation Support Group, FIRS, Mrs Chiaka Ben-Obi.
He said, “The VAT is not paid to the Federation Account but to VAT pool account for distribution to the three tiers of governnment. It is after the sharing that the portion of the Federal Government is paid to the Consolidated Revenue Fund Account.
“VAT works only at a national level but not at a sub-national level. There is no country in the world where VAT works at the sub-national level.”
He said the VAT Act differentiates between two kinds of VAT; Input VAT and Output VAT.
Put simply, he said the input VAT is the tax paid to suppliers on the purchase of taxable goods and services, while output VAT is the tax received from customers on the value of taxable goods and services sold or rendered.
According to Gbonjubola, the VAT Act allows taxpayers to offset their input VAT (Allowable Input VAT) against their output VAT, to the extent that such input VAT only relates to such goods that are purchased or imported for resale or form the taxpayers’ stock-in-trade used for the production of new products on which output VAT will be charged.
He said where the output VAT exceeds the recoverable input VAT, the taxpayer is expected to remit the excess to the FIRS.
In the instance where the input VAT exceeds the output VAT, he explained that taxpayer will be entitled to a refund of the excess after following the due process as contained in the FIRS Establishment Act.
But with the decision of some states to go ahead with the implementation of the Court Judgement, he said that such refund may not be possible because the administration of VAT will be done by different states tax authorities.
His word, “The VAT bill of 1993 which was a federal law and came into effect in 1994 and according to the law established in the VAT, the FIRS is the legitimate authority to administer. The VAT law abrogated all sales tax as at the time it was enacted and upon the advent of the current democratic dispensation.
“The VAT decree became an act of the NASS and remain so until now. VAT is administered on behalf of the federation and not on behalf of the federal government and by that I mean that VAT is administered on behalf of the three tiers of the government we half in Nigeria. The 774 local governments, the 36 states and the FCT and the federal government of Nigeria.
“The revenue arising from VAT is shared amongst the 3tiers of government base of extra provisions and currently 35% goes to the local government, 50% goes to the state government while 15% goes to the federal government and so in actual effect the 85% of VAT collected goes to state and local government while only 15% goes to the federal government. The VAT revenue is not paid into the federation account at inception, it goes into a VAT pool account.
” It is only after the sharing and allocation that the portion that falls to the federal government goes to the relevant cost delegated revenue account. As to the incidence of VAT, VAT is practiced on an input-output mechanism. What it means is for a business either importing or buying products for …… that business will pay VAT either at the port if its importing or to the manufacturer if it is buying from a local manufacturer and when that business pay VAT it is accounted for that business as an input tax such that when it began to sell in any part of Nigeria and charges VAT to its own customers, it is able to recoup the input tax paid either at the port if it is an imported item or paid to the manufacturer if it is an item bought locally and it works only at a national level”.
Business News
UBA Wins N156bn Debt Recovery Case Against Stallion Group
The Court on Friday ruled in the Bank’s favour on all issues and granted all its prayers.
United Bank for Africa (UBA) Plc has secured a significant legal victory in its debt recovery proceedings against Stallion Group, following a court judgment which upheld the Bank’s position on all issues submitted for determination.
In a sweeping decision, delivered by by Justice Daniel Osiagor of the Federal High Court sitting in Ikoyi, Lagos on Friday, the Court granted all the reliefs sought by UBA, affirming the validity of the appointment of a Receiver/Manager, the enforceability of the mortgage security and the liability of the guarantors.
The Court observed that the Defendants did not dispute the existence of their indebtedness to the Bank but challenged the amount claimed. It further held that the reconciliation of accounts between the parties did not extinguish or negate the underlying indebtedness.
In a major affirmation of UBA’s enforcement rights, the Court upheld the appointment of the Receiver/Manager and confirmed his entitlement to take possession of the mortgaged property and seek appropriate protective orders.
The Court also dismissed objections raised by the 12th Defendant, holding that it had failed to establish any proprietary rights over the mortgaged property. Consequently, its consent was not required for the creation of the mortgage, and its objections were rejected.
Significantly, the Court restrained the Defendants from diverting receivables due to them from government agencies, thereby reinforcing the Bank’s ability to protect its recovery interests.
The judgment also affirmed the liability of the guarantors, strengthening UBA’s legal position in pursuing recovery of the outstanding obligations.
The decision represents a comprehensive victory for UBA, with the Court resolving all issues in the Bank’s favour and granting all the reliefs sought.
The ruling is particularly significant for the enforcement of creditors’ rights in Nigeria, underscoring the legal validity of properly constituted security arrangements and the authority of duly appointed receivers to enforce creditors’ interests.
It also reinforces the principle that disputes over the precise amount of an outstanding debt do not, by themselves, invalidate the underlying indebtedness or prevent creditors from exercising their lawful recovery rights.
The judgment marks a major milestone in UBA’s efforts to recover its exposure to Stallion Group and safeguard the interests of the Bank and its stakeholders.
Business News
Budget Office Defends Tax Reform Acts, Seeks Due Process
By Tony Obiechina, Abuja
The Budget Office of the Federation has reaffirmed the integrity of Nigeria’s newly enacted Tax Reform Acts, cautioning against what it described as governance by speculation and unverified claims following allegations of post-passage alterations.
In a statement on Wednesday, the Budget Office said it had taken note of concerns raised by the Minority Caucus of the House of Representatives, stressing that the sanctity of the law is central to constitutional democracy and not a mere procedural formality.
According to the Office, any suggestion that a law could be altered after debate, passage, authentication, and presidential assent without due process would strike at the core of the Republic and undermine citizens’ right to be governed by transparent and stable laws.
However, it warned that democratic integrity is also endangered by the careless amplification of unverified claims. “A nation cannot be governed by insinuation or sustained on circulating documents of uncertain origin,” the statement noted, adding that public confidence, once shaken by speculation, is often difficult to restore.
The Budget Office emphasized that both government and citizens share a common interest in truth, clarity, and due process, noting that public finance depends heavily on trust in the legality and clarity of fiscal laws. It welcomed the decision of the National Assembly to investigate the allegations, describing institutional inquiry, not conjecture as the appropriate response to claims of illegality.
On public access to the law, the Office agreed that Nigerians and the business community are entitled to clear and authoritative texts of all laws they are required to obey. It clarified, however, that the authenticity of legislation is determined by certified legislative records and official publication processes, not by informal or viral reproductions.
The statement also underscored the importance of separation of powers, warning that claims suggesting Nigeria is being governed by “fake laws,” if not backed by established facts, risk eroding confidence in democratic institutions.
At the same time, it stressed that legislative scrutiny should not be dismissed by the executive, noting that oversight is a constitutional duty, not an act of hostility.
From a fiscal perspective, the Budget Office said legal certainty is essential for revenue projections, macroeconomic stability, budget credibility, and investor confidence. While it is not the custodian of legislative records, it maintained that uncertainty around operative tax provisions directly affects economic planning.
To restore confidence, the Office proposed a set of measures, including the publication of verified reference texts in a single public repository, orderly access to Certified True Copies for stakeholders, clear public explanations where discrepancies are alleged, and strict alignment of all implementing regulations with authenticated legal texts.
Addressing calls for suspension of the tax reforms, the Budget Office cautioned against allowing prudence to slide into paralysis. It argued that properly implemented tax reform is necessary to reduce dependence on borrowing and inflationary financing, while easing indirect burdens on vulnerable citizens.
“Where clarification is required, it must be provided; where correction is required, it must be effected; where investigation is required, it must proceed,” the statement said, adding that governance and reform should not be stalled by unresolved conjecture.
The Office concluded by describing taxation as a democratic covenant that binds citizens and the state, insisting that compliance depends on transparency and trust. It called on political actors to protect institutions as much as positions, urging citizens and businesses to rely on verified sources and resist the spread of unauthenticated information.
The statement was signed by Tanimu Yakubu, Director-General of the Budget Office of the Federation, who reaffirmed the agency’s commitment to fiscal transparency, institutional integrity, and reforms that advance national prosperity while safeguarding citizens’ rights.
Business News
Tinubu Congratulates Dangote on World Bank Appointment
By Jennifer Enuma, Abuja
President Bola Tinubu has congratulated Alhaji Aliko Dangote, the President of Dangote Group, on his appointment to the World Bank’s Private Sector Investment Lab, a body tasked with promoting investment and job creation in emerging economies.
In a statement by Special Adviser on Media and Publicity, Bayo Onanauga, the President described the appointment as apt, given Dangote’s rich private sector experience, strategic investments, and many employment opportunities created through his Dangote Group.
The Dangote Group became one of Africa’s leading conglomerates through innovation and continuous investment.
Dangote Group’s business interests span cement, fertiliser, salt, sugar, oil, and gas. However, the $20 billion Dangote Petroleum Refinery and Petrochemicals remains Africa’s most daring project and most significant single private investment.
“President Tinubu urges Dangote to bring to bear on the World Bank appointment his transformative ideas and initiatives to impact the emerging markets across the world fully” the statement said.

The World Bank announced Dangote’s appointment on Wednesday, as part of a broader expansion of its Private Sector Investment Lab. The lab now enters a new phase aimed at scaling up solutions to attract private capital and create jobs in the developing world.
The CEO of Bayer AG, Bill Anderson, the Chair of Bharti Enterprises, Sunil Bharti Mittal, and the President and CEO of Hyatt Hotels Corporation, Mark Hoplamazian, are on the Private Sector Investment Lab with Dangote.
The World Bank said the expanded membership brings together business leaders with proven track records in generating employment in developing economies, supporting the Bank’s focus on job creation as a central pillar of global development.


