A civil society organization, the Centre for Reform and Public Advocacy, has threatened legal action against the Minister of the Federal Capital Territory (FCT), Mr. Nyesom Wike, over the alleged unauthorized collection of outdoor advertisement and signage fees in the six area councils of the FCT.
In a letter dated January 22 and copied to the Director of the Department of Outdoor Advertisement and Signage, the group demanded an immediate halt to the collection of these fees, warning that it would initiate legal proceedings within seven days if the practice continues.
According to the group’s lawyer, Mr. Kalu Kalu Agu, the collection of such fees by the FCT administration lacks legal backing and is therefore illegal.
“With the greatest respect, Your Excellency, the collection of Outdoor Advertisement and Signage fees is explicitly governed by constitutional and statutory provisions, including the Taxes and Levies Act, 2004, and the Laws of the Federal Capital Territory, 2006,” Agu stated.
“None of these laws grants your office the authority to collect such fees in the six area councils of the FCT. Yet, despite these legal provisions, the Director and other officials of your administration have been collecting these revenues without any lawful mandate.”
Agu further argued that the 1999 Constitution, the Taxes and Levies Act, and the Local Government Act assign the collection of these fees exclusively to the area councils.
The human rights activist urged Wike to stop what he termed an “illegal revenue collection scheme,” describing it as economic sabotage and a criminal act.
“TAKE NOTICE that if you fail to comply with this demand within seven (7) days of receiving this letter, we will pursue legal action to restrain you and the Director of Outdoor Advertisement and Signage from extorting the business community and diverting public funds for personal use.
“We trust that you will act wisely and put an end to this illegality,” Agu added.
Disputes Over Revenue Collection
This is not the first time the Centre for Reform and Public Advocacy has challenged revenue collection policies in the FCT. On January 7, the group condemned a plan by the Federal Capital Territory Internal Revenue Service (FCT-IRS) to collect all revenues on behalf of the six area councils starting in 2025.
The group argued that this move was unconstitutional and unlawful. Agu clarified that the FCT-IRS Act, 2015, limits the agency’s revenue collection authority to the Federal Capital Territory Administration (FCTA) and does not extend to the area councils.
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“For clarity, the six area councils are not departments of the FCTA but constitutionally recognized third-tier governments with distinct powers and functions,” he explained.
“While the Supreme Court has upheld the autonomy of local governments, it is shocking that Mr. Michael Ango, the Acting Chairman of FCT-IRS, seeks to undermine this ruling by usurping the councils’ functions in clear disregard of the Constitution and the law.”
At a 2024 end-of-year media briefing in Abuja, Ango had announced that the FCT-IRS would take over all revenue collection for the area councils in 2025, citing efforts to improve taxpayer compliance, transparency, and accountability.
He also revealed that similar arrangements were being made with other departments and agencies in the FCT Administration in line with Wike’s directive.
