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Henceforth, transactions will not happen in FCT without tax clearance -Wike



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***As three year jail term Awaits defaulters of Personal Income Tax

The Minister of the Federal Capital Territory FCT, Ezenwo Nyesom Wike, has given approval for the enforcement of the Personal Income Tax and the FCT Internal Revenue Service Acts 2015.

This is coming as the minister has raised the benchmark of revenue drive with the aim of boosting the territory’s revenue base.
Wike directed all Ministries, Departments and Agencies MDAs, Commercial banks, as well as  FCT Secretariats, Departments and Agencies SDAs to ensure strict compliance with the laws particularly Section 85 of the Personal Income Tax Act (PITA) and Section 31 of the FCT Internal Revenue Service Act 2015 through an October 4, 2023 memo earlier.

Mandate Secretary, FCT Economic Planning, Revenue Generation, and Public Private Partnerships Secretariat, Chinedum Elechi, had engaged the .edit on Monday in Abuja at a press briefing where he reminded residents and organizations that the minister had given approval for the implementation of Section 85 of Personal Income Tax Act (PITA) and Section 31 of the FCT Internal Revenue Service Act, 2015.

He warned that any person found to have provided false information or obtained a TCC through forgery or falsification, would be liable upon conviction to a fine of N50,000  or a three year jail term or both upon conviction.

According to him a government entity or organization that failed to verify a TCC before any transaction is liable to a fine of N5,000,000 or a three year, jail term or both, upon conviction.

“Section 31 of the FCT-IRS Act provides that all SDAs, corporate bodies, or any person empowered by law, shall demand a TCC from any person or enterprise for the last three years preceding the current year of assessment as a precondition for transacting any business in the FCT”.

He listed the transactions to include Certificate of Occupancy, award of contracts, approval of building plans, application for FCTA loan for housing, business or any other purpose, registration of motor vehicles, land applications and a host of others.

Continuing, he said; “Taxes are essential to the foundation of any government, and it is important that everyone pays their fair share. Payment of tax is a civic duty and responsibility. Implementation of these laws is intended to ensure that all eligible taxpayers in the FCT comply with their tax obligations”.

According to the memo by the minister, “The Federal Capital Territory Administration FCTA has observed with dismay, lack of implementation and adherence to the provisions of section 85 of Personal Income Tax Act (PITA), 2011 (as Amended) and Section 31 of the Federal Capital Territory Internal Revenue Service Act, 2015 that provide for the demand and verification of Tax Clearance Certificates TCC from residents of the FCT before rendering of services or performance of transactions.

“It is pertinent to note that both the Personal Income Tax Act (PITA) 2011 (as amended) and the Federal Capital Territory Internal Revenue Service Act, 2015 provide that Ministries, Departments and Agencies (MDAs), Commercial Banks, Secretariats, Departments & Agencies (SDAs) of the Federal Capital Territory Administration (FCTA) as well as Area Councils, corporate bodies, and statutory authorities among others must demand and verify TCC from residents before rendering of services or performing any transaction.

“For the avoidance of doubt, Section 31(5) of the Federal Capital Territory Internal Revenue Act 2015 provides that “A department, agency or official of the FCTA, any Area Council official, any corporate body, statutory authority or person empowered in that regard by this Act or any other law shall demand a tax clearance certificate for the three (3) years immediately preceding the current year of assessment as a pre-condition to transacting any business including but not limited to…” and shall verify the genuineness by referring same to the issuing tax authority.

“Consequently, all MDAS, SDAs, commercial banks, corporate and statutory organizations operating within the FCT are mandated to forthwith enforce the provisions of the extant laws by demanding from individuals, business names/enterprises and organizations current Tax Clearance Certificates for the last three (3) years before carrying out any business transaction and verifying with the FCT-Internal Revenue Service for those transactions listed in the schedule attached to this Circular as ANNEX 1.

“Any official of MDAs, SDAs, officials of the FCTA, Area Council officials, corporate body, statutory Authority or Commercial Banks who violates and fails to comply with the provision, is guilty of an offence and is liable on conviction to a fine of N5,000,000.00 or to imprisonment for 3 years or both fine and imprisonment as provided for by section 85 (9) of PITA, 2011 (as amended).

“Please, bring the content of this Circular to the attention of all concerned for immediate implementation”.

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FCT News

31 retired directors get FCTA commendations for outstanding Service 




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For making remarkable contributions to the administration, the Federal Capital Territory Administration, (FCTA), has honoured 31 retired Directors from 1st April to 30th June, 2023.
Special Aasviser on Media to FCT Minister of State Austine Elemue indicated that the retired Directors are from the Federal Capital Territory Administration and the Federal Capital Development Authority respectively.

At the ceremony held to honour the retired Directors, FCT Minister of State, Dr. Mariya Mahmoud, stated that their dedication and leadership have left an indelible mark on the Administration in particular and the territory in general.

The minister called on those who are still in service to carry forward the legacy of excellence they have left behind, just as she prayed that their well-earned retirement be filled with joy, relaxation, and new adventures.

Her words: “I have been informed that throughout their tenure, these Directors steered our ship through challenges, inspired teams, and played a pivotal role in our success. 

“Their wisdom and experience have been the guiding force behind many achievements recorded today. These Directors have been mentors, friends, and pillars of support to many of us who are still in service.

“I can boldly say that their impact extends beyond boardrooms, as these persons we celebrate today have helped in shaping the very fabric of the FCT Administration and beyond”.

While expressing gratitude for their unwavering commitments and commendable leadership, Mahmoud assured that the FCT Administration would continue to call on them for professional guidance.

“Though they may be retiring from official roles, their influence will endure,” she affirmed.

In his address, the FCTA Permanent Secretary, Mr. Olusade Adesola, commended them for bowing out of service unblemished, noting that their conduct would be emulated by those still in service.

Adesola said: “For us to end like them, it is incumbent on us to continue discharging our duties in line with the extant laws and in accordance with the dictates of the Civil Service Rules, the ethics of the Service, as well as global best practices”. 

He, therefore, charged those in service to make hardwork, integrity, honesty, loyalty, incorruptability and professionalism their guiding light and principles as they continue in the delivery of excellent service and infrastructure to the public.

On her part, the Ag. Director Reform Coordination and Service Improvement, Dr. Jumai Ahmadu, who spoke on behalf of the planning committee noted that the retired Directors have devoted themselves to upholding the values and mission of the Administration, demonstrating unwavering commitment and leadership throughout their distinguished careers. 

She further noted that their hard work and guidance have undeniably left an indelible mark and have helped shape the Administration into what it is today.

The highpoint of the event was the presentation of gift items to deserving directors for their outstanding performance by the FCT Minister of State.

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FCT News

FCT Minister of State Reaffirms FG’s Commitment To Ease of Doing Business




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The FCT Minister of State, Dr. Mariya Mahmoud, has reaffirmed federal government’s commitment to creating an enabling environment for “Ease of Doing Business”.
Special Adviser on Media to Austine Elemues in a statement said the spoke at a time the nation is threshold of unprecedented investment opportunities,

He quoted the minister to have spoken this at the 6th edition of Nigeria Diaspora Investment Summit with the theme: “New Vistas, New Aspirations, New Visions: The Diaspora and National Development”.

Mahmoud, who was represented by the Director, Economic Planning, Research & Statistics, Mrs. Joy Uzodinma, also stressed that the summit was a testament to the importance the government placed on harnessing the skills, resources, and expertise of the global Nigerian community.

While recognizing the vital role the diaspora community plays in this endeavor, Mahmoud assured the diaspora community that President Bola Ahmed Tinubu’s government is committed to ensuring a more transparent and investor-friendly climate.

“Nigeria, with its rich cultural diversity and vast economic potential, is ripe for strategic investments. I, therefore, encourage you, the diaspora, to be active participants in this transformative journey.

“Your skills and experiences gained abroad are invaluable assets that can contribute significantly to the growth and development of various sectors in Nigeria, from technology and healthcare to agriculture and renewable energy. 

“The time is now for us to join forces and build a stronger, more prosperous Nigeria together,” she stressed.

Mahmoud further stated that despite the challenges that may exist, the government is committed to addressing them collaboratively.

According to her; “Your insights and feedbacks are crucial in shaping policies that will facilitate a seamless integration of diaspora investments into our national development in line with the Renewed Hope Agenda of the present government”.

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FCT News

IGR: FCTA inaugurates Committee for Capital Gain Tax Implementation




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The Federal Capital Territory Administration (FCTA) has constituted and inaugurated Capital Gain Tax Implementation Committee for the FCT.

Head Corporate Communications, Mustapha Sumaila in a statement said it is in part of the effort effort to boost Internally Generated Revenue (IGR)

Quoting the Mandate Secretary, Economic Planning, Revenue Generation and Public Private Partnership, Barr. Chinedum Kelechi the statement announced that, the Hon. Minister of the FCT, Barr. Nyesom Wike has approved the implementation of the Capital Gains Tax (CGT) Act, Cap.CI LFN 2004 (as ).

According to him, the Act imposes a CGT tax rate of 10% on the total amount of chargeable gains accruable to any person upon disposal of his/her chargeable asset or assets in a year of assessment after deduction of the allowable expenses from the gains made on the assets disposal and to be remitted to the FCT Internal Revenue Service as required by the extant law.

Elechi explained that to fully harness the potential of CGT in FCT, the Minister approved for inter-agency collaboration and synergy between the FCT-IRS and other relevant agencies that would work for smooth implementation of this CGT Act.

Stating the terms of reference, the Mandate Secretary charged the committee to conduct comprehensive awareness and education campaigns to improve citizens understanding and also regular stakeholders engagement through business associations, chambers of commerce, Nigeria Bar Association and other relevant organisations.

He urged the committee to conduct monitoring of transactions across the stakeholder agencies and enforce the implementation of CGT in accordance with extant laws, also enjoin members to collaborate with judiciary to handle cases of severe non-compliance or fraud as well as establishing transparent dispute resolution mechanism among others.

He said the committee which would be headed by the Executive Chairman FCT-IRS as chairman, Solicitor General, Director, Land Department, Director, Development Control, Director, Abuja Geographic Information System and the Chairman of Nigerian Bar Association as members while the Director, Tax Operations in FCT-IRS would serve as secretary.

Earlier in his remarks, the Acting Executive Chairman, FCT-IRS, Mr. Haruna Abdullahi said CGT is part of tax types the Service is empowered by law to collect but however lamented that only less than 5% of what is due from capital gain tax is being generated.

Abdullahi expressed joy on the commitment of the FCT minister to bring together relevant stakeholders to work with the Service to enhance the revenue in the territory.

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