UPDATE: COURT ADJOURNS SUIT AGAINST VEHICLE OWNERSHIP CERTIFICATE LEVY TILL MARCH 4
An action to prevent the country from imposing an annual fee for a certificate of evidence of car ownership has been postponed until March 4, 2024, by a Federal High Court located in Abuja.
In June 2023, the federal government imposed an annual tax of N1,000 on all drivers to verify their Proof of Ownership certificates.
In July 2023, the Lagos State Government started collecting the POC charge from drivers.
To contest the levies that had been imposed, the Nigerian Bar Association Section on Public Interest and Development Law took the Federal Government, the Lagos State Government, and the Joint Tax Board to court.
The plaintiffs, the chairman of NBA Spidel, John Aikpokpo-Martins, the Secretary, Funmi Adeogun, and a member of the Governing Council of NBA-SPIDEL, Francis Ogunbowale in the suit marked FHC/ABJ/CS/1285/2023 contended that the defendants commenced the policy without any statutory support directing vehicle owners to pay the mandatory fee.
The plaintiffs are asking the court for an order restraining the defendants, their agents, servants, and proxies from harassing, disturbing, and/or interfering with the rights to freedom of movement of Nigerians using their vehicles in any part of the country, on the ground of non-payment and renewal of proof of ownership certificates in respect of their vehicles.
The plaintiffs also asked the court to determine, “Whether the imposition of annual renewal of Proof of Ownership certificates on vehicle owners by the Defendants does not amount to multiple taxations and therefore illegal, because the I and 3rd Defendants (and the various State Governments, through their various tax agencies, have already issued certificates or evidence of proof of ownership to vehicle owners at the time of registration”
The court verified during the preliminary hearing that the originating processes and proof of services had been served to each defendant in the case.
The first and second defendants were not represented in court, while Godspower Eroga and Vincent Adodo defended the NBA-SPIDEL.