From Dan Amasingha, Minna

The Niger State Government has advised financial institutions in the state that have to shut down their doors against customers in Minna since Friday over a tax dispute to stop the blackmail and simply pay up the over N400 million debt.

State Commissioner of Information and Strategy, Muhammad Idris Sani stated this in a statement issued yesterday as banks in the state have vowed to continue to shut their doors against customers until the state government withdraws the seal on their premises.

“This government will not tolerate any group of people or institutions to, no matter how important you are to set the people against the government by embarking on this cheap blackmail,” Sani stated.

The commissioner said, in its effort to continue in building infrastructure in the state and to meet other obligations to the state and reduce dependency on the Federal Government, it has been working assiduously to generate more revenue and is blocking all leakages to further increase the IGR of the state.

“It is in light of the above that the Niger State Internal Revenue Service elected to close down a number of commercial banks and some business centres for failing to pay close to N500 million in tax,” the commissioner added.

He explained that it was not only the banks that defaulted but, Offices like AEDC and some major restaurants in the state capital were also closed down until they show commitment before they were reopened.

Alhaji Mohammed Sani Idris further noted that for over a year, the Niger State Government has tried in vain to reason with these debtors and get them to meet their legal obligations but to no avail.

“After exhausting all avenues the state decided that it would no longer continue on that path. This is what informed the actions of the state government.

“These banks, however, instead of trying to work to pay their debts are looking to blackmail the government by setting up the people against the government. They have gone ahead to shut down services to customers, which is illegal so as to get people to fault the government for the ensuing difficulties.

He noted that the Bankers forum has sent a letter to BIRS threatening to close banks, even though some banks like FCMB, ZENITH, POLARIS, STANBIC IBTC, UBA, GTB, Access Bank have shown commitment to paying their debts, they’re however, also joining the rest who are failing to pay their debts, and are proceeding to close down services to customers.

“Banks like First Bank, Union Bank, Unity Bank and Heritage Bank are all insisting on not paying their debts. It should be noted that the bankers’ forum is not a trade union and cannot blackmail the citizenship to whom they have private obligations as business entities.

The State government accused the banks of double standard adding that the same banks will gladly pay taxes however high in Lagos and other states but resort to blackmail in Niger State.

The Commissioner pointed out the unfolding impasse are as a result of the resolve of the Niger State Internal Revenue Service to ensure proper collection of all taxes due to Niger State.

These revenues are due to the citizens of Niger State as a constitutional and legal right, the public must be alive to the plot afoot and understand that the revenue generated from taxing commercial banks and centers are necessary to the running and development of the state, especially in the current economic climate.

“The State Government would not allow itself to be blackmailed into allowing commercial banks and centers to operate without paying tax in the state,” he concluded.