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VAT Dispute: Appeal Court Orders All Parties To Maintain Status Quo

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The Appeal Court sitting in Abuja has ordered all parties to maintain the status quo and refrain from taking action that would give effect to the judgement of a Federal High Court in Port Harcourt that allowed the Rivers State government to collect Value Added Tax (VAT), pending the hearing and determination of the instant suit.

A three-man panel of the appellate court led by Justice Haruna Tsammani gave the order on Friday while ruling on an appeal filed by the Federal Internal Revenue Service (FIRS).

The order of the appellate court is the latest development in the series of legal tussles over whose responsibility it is to collect VAT.

Although the FIRS has taken up the responsibility over the years, the Rivers State government tested the legality recently, and it was worth the move.

On August 19, Governor Nyesom Wike assented to the Valued Added Tax Law, 2021 along with four others following their passage by the Rivers State House of Assembly.

His action was sequel to the judgement delivered by Justice Stephen Pam of the Federal High Court in the state capital who held that states should collect VAT, and not the Federal Government.

Displeased with the decision of the court, the FIRS filed a motion on notice to apply for a stay of execution on the earlier judgement delivered by Justice Pam.

But the court said refused the application, saying the federal agency failed to file an application to set aside the tax law recently enacted by the Rivers State House of Assembly.

Justice Pam, therefore, stated that the state law on VAT was valid and subsisting.

The FIRS later approached the Court of Appeal in Abuja with a civil motion seeking a stay of the execution of the judgement earlier granted by the court in Rivers pending the determination of the case.

As the legal battle continues, the action of the Rivers State government received the support of some states, especially Lagos.

The appellate court, in its ruling, held that the motion of joinder by the Lagos State government be heard and gave the applicants two days to file their written addresses.

Similarly, the respondents have been given two days to file their response, while the applicants were given a day to reply on the point of law.

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Judiciary

Court Jails Two Chinese Nationals 46 Years Each for Cyberterrorism, Fraud

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Two Chinese nationals, Huang Haoyu and An Hongxu
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The Federal High Court sitting in Ikoyi, Lagos, on Wednesday sentenced two Chinese nationals, Huang Haoyu and An Hongxu, to 46 years’ imprisonment each for cyberterrorism and internet fraud.

The trial judge, Justice Daniel Osiagor, handed down the sentence after the defendants changed their initial not guilty pleas to guilty during the court proceedings.

Huang and Hongxu were arraigned alongside one Friday Audu on a seven-count charge bordering on cyberterrorism, internet fraud, and money laundering involving N3.4 billion and $2.56 million.

The convicts were among 792 suspected fraudsters arrested on December 19, 2024, during a coordinated operation by the Economic and Financial Crimes Commission (EFCC) tagged “Eagle Flush Operation.”

According to the prosecution, the syndicate orchestrated cryptocurrency, investment, and romance scams targeting unsuspecting victims. Investigations further revealed that Audu, allegedly acting on Huang’s instruction, incorporated Genting International Co. Ltd. to facilitate the fraudulent operations.

The court also heard that the defendants recruited Nigerian youths to impersonate foreign nationals online as part of the scheme to defraud victims.

Following their guilty pleas, the prosecution urged the court to impose the maximum penalty prescribed by law.

In his judgment, Justice Osiagor convicted and sentenced Huang and Hongxu to a cumulative term of 46 years’ imprisonment each, with an option of a N56 million fine. The court also ordered three days of community service and directed that the convicts be repatriated to China upon completion of their sentences.

Additionally, the court granted the prosecution’s application for the forfeiture of all items recovered during the EFCC investigation to the Federal Government.

The forfeited items include 1,596 mobile phones, 43 computer systems, hundreds of SIM cards, office equipment, generators, vehicles, and other electronic devices seized from four properties located in Victoria Island and Ikoyi, Lagos.

Meanwhile, the trial of the third defendant, Friday Audu, who maintained his not guilty plea, has been adjourned to April 29, 2026, for continuation of proceedings.

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Judiciary

Nnamdi Kanu Opts to Defend Himself as Legal Team Withdraws from Trial

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A dramatic twist unfolded on Thursday at the Federal High Court in Abuja as the detained leader of the Indigenous People of Biafra (IPOB), Nnamdi Kanu, announced that he would represent himself in court following the withdrawal of his entire legal team.

Lead counsel, Chief Kanu Agabi (SAN), informed the court that he and other Senior Advocates had stepped down from the case, stating that Kanu had decided to “take back his case.”

Confirming the development, Kanu told the presiding judge, “I will be representing myself for now. That might change later.” When asked if he wanted the court to assign a lawyer to him, he declined.

Speaking directly before the bench, Kanu argued that the court lacked jurisdiction to continue with the case against him. His submission formed part of an oral argument he personally presented—a rare occurrence in such a high-profile criminal trial.

The development marks a new phase in the long-running case, which has faced multiple adjournments and legal battles since Kanu’s arrest and extradition from Kenya to Nigeria in 2021.

Kanu faces charges bordering on treasonable felony and terrorism-related offences. Legal observers say his decision to conduct his own defence could significantly affect the direction and tempo of the trial in the coming weeks.

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Judiciary

Natasha Files Objections to FG’s Criminal Defamation Suit

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, Senator Natasha Akpoti-Uduaghan
Senator Natasha Akpoti-Uduaghan
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Senator Natasha Akpoti-Uduaghan has filed preliminary objections before the High Court of the Federal Capital Territory and the Federal High Court, contesting criminal defamation charges instituted against her by the Federal Government.

The senator described the case as an abuse of power and a calculated attempt at political persecution, alleging that the charges arose from petitions filed by Senate President Godswill Akpabio and former Kogi State Governor Yahaya Bello.

Her legal team, led by four Senior Advocates of Nigeria—Prof. Roland Otaru, SAN; Dr. E. West-Idahosa, SAN; J.J. Usman, SAN; and M.J. Numa, SAN—argued that the prosecutions are unconstitutional and aimed at silencing opposition voices rather than advancing public interest or national security.

The lawyers tendered exhibits indicating that the senator’s comments were part of legitimate public discourse and media commentary. They further contended that the Attorney-General of the Federation lacks the legal standing to prosecute defamation cases on behalf of private individuals.

According to the defence, defamation is a civil matter and criminalizing it amounts to intimidation, suppression of free speech, and misuse of the justice system.

Senator Akpoti-Uduaghan also accused authorities of selective justice, stating that while her own petitions over threats to her life were ignored, complaints from her political rivals were quickly acted upon. She maintained that this amounts to discriminatory prosecution in violation of Section 42 of the Constitution.

Her lawyers urged the courts to dismiss the cases at the preliminary stage, warning that allowing them to proceed would erode public confidence in the justice system and waste national resources.

 

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