By Tosin Olatokunbo
The Court of Appeal in Abuja has granted the request of the Lagos State Government to be joined in the suit challenging the collection of Value Added Tax, VAT by the Federal Inland Revenue Service, FIRS.
The development comes on the heels of a request by the Oyo state Government sitting in Port Harcourt, to be joined in the suit instituted by the Rivers State Government against the Attorney-General of the Federation.
The News Agency of Nigeria, NANA reports that the suit, instituted by the Attorney-General of Oyo State, Prof. Oyelowo Oyewo, is seeking an order of the Appellate Court to enable Oyo State to join the suit as an interested party.
This disclosure is contained in a statement issued by the Chief Taiwo Adisa, Chief Press Secretary, CPS to Governor Makinde, in Ibadan, the state’s capital on Tuesday.
The statement reads, “In the suit, the Government of Oyo State is seeking two orders, viz: an order of the Honourable Court joining the Attorney-General of Oyo State as a respondent on the appeal with suit number FHC/PH/CS/149/2020 and appeal number CA/PH/282/2021 and any other order the Court may deem fit.
“According to the Attorney-General of Oyo State, the government of Oyo State was unaware of the suit between the Attorney-General of Rivers State and the Federal Inland Revenue Service at the Federal High Court until the judgment was delivered.
“Other grounds upon which the application was based include that the decision of the appellate court will affect the collection of VAT by the government of Oyo State, being one of the states which the judgment of the lower court recognised as entitled to collect VAT within its territorial jurisdiction.
“Oyo State Government also indicates that the applicant, Attorney-General of the State, represents the interest of the Oyo State Government, whose interest in the collection of VAT within Oyo State will be impacted one way or another by any judgment delivered by this Honourable Court in this appeal.’’
According to the statement, further stated that: “The applicant is a necessary party to this suit being a party who will be bound by the judgment of this Honourable Court in this Appeal.
“The interests of the applicant and that of the respondent in this case are similar being states within the Federal Republic of Nigeria.’’
In a 12 paragraph affidavit which was filed in support of the motion, the Oyo State Government said that it is in the interest of justice that the appellate court grants the application, adding that the joinder will not prejudice the appellants and respondents.
Oyo state said one of the 36 states in the country, it will be affected by the decision of the Appellate Court, adding that joining the state to the suit already instituted by Rivers State will help to avoid multiplicity of suits by the states against the Federal Government
Recall that the Lagos State Government had in the suit sought to join the Rivers State Government in the appeal filed by the FIRS against the judgement of the Federal High Court in Abuja, which empowered Rivers state to collect VAT and not the federal tax authority.
On September 10, a 3-man panel of Justices of the Court of Appeal in Abuja granted permission to Lagos to seek to join in the suit over VAT collection between the FIRS and the River State government in the interest of justice.
When the court resumed sitting on September 16, the Attorney General of Lagos State and Senior Advocate of Nigeria (SAN), Moyesore Onigbanjo, told the panel of judges led by Justice Haruna Tsammani that Lagos was entitled to collect VAT, stressing that the VAT Act was approved by an order of the court, although it has been annulled.
Onigbanjo added that going by the submissions of the FIRS, Lagos State has already enacted the VAT law and it would lead to another action if they were not allowed to be joined in the suit. He, therefore, urged the court to uphold the application for joinder, arguing that the case of joinder sought to prevent multiplicity of action.
On his part, counsel to the Rivers State government and SAN, Ifedayo Adedipe, supported the application for joinder by the Lagos State government.
But counsel to the FIRS and Senior Advocate of Nigeria, Mahmoud Magaji, opposed the application for joinder while relying on Section 243 of the Constitution.
