…as Oyo State is asking to be joined on the issue
Olusola Bello
Court of Appeal in Abuja has granted a request by the Lagos State Government, seeking to join Rivers State in the appeal filed by the Federal Inland Revenue Service (FIRS).
The FIRS had filed an appeal at the appellate court to challenge the collection of Value Added Tax by states.
At the resumed hearing of the matter on Thursday, the court granted the request by Lagos and ordered all processes filed to be served on the Attorney-General of the state, Moyosore Onigbanjo.
The case was later adjourned to October 7 and would be heard at the Appellate Court in Port Harcourt.
On September 16, the court reserved its ruling on the application after Onigbanjo, a Senior Advocate of Nigeria (SAN), took his application for joinder in the suit.
He had informed the panel of judges led by Justice Haruna Tsammani that Lagos was entitled to collect VAT, saying the VAT Act was approved by an order of a court, although it had been annulled.
According to the attorney-general, states that are recognised by the Constitution to collect VAT and the Federal Inland Revenue Service (FIRS) is aware of that fact.
He added that the principles for joinder of a party, seeking to be joined, must be a necessary party that has shown that its interest, legally and financially, would be affected.
While Onigbanjo explained that the case of joinder sought was to prevent multiplicity of action, counsel to the Rivers State government and SAN, Ifedayo Adedipe, supported the application by the Lagos State government.
But counsel to the FIRS and SAN, Mahmoud Magaji, opposed the application for joinder while relying on Section 243 of the Constitution.
He stated that the Constitution does not support applications for joinder and Lagos State was not a party to the suit at the trial court.
Meanwhile, the Oyo State government, has also asked the Court of Appeal sitting in Port Harcourt, Rivers State, for joinder in the suit instituted by the Rivers State government against the Attorney-General of the Federation in respect to the bid by the state to take over the collection of the Value Added Tax, VAT, from the Federal Government.
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.
In the suit, the government of Oyo State is seeking two orders: an order of the 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 Oyo State government 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 judgement 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 judgement 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 Value Added Tax within Oyo State will be impacted one way or another by any judgment delivered by this Honourable Court in this Appeal.”
The grounds claimed by the Oyo State government include 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 in support of the motion, which was filed by the Director of Civil Litigation in the chambers of the Attorney-General and Commissioner for Justice, Ministry of Justice, Oyo State, Olatunji Sunday Thomas, the government of Oyo State said that it is in the interest of justice that the Honourable Court grants the application, adding that the joinder would not prejudice the Appellants/Respondents.
