A case aiming to halt the enforcement of an annual levy for a certificate demonstrating vehicle ownership in Nigeria has been postponed by a Federal High Court in Abuja until March 4, 2024.
In June 2023, the Federal Government introduced a N1,000 fee for annual Proof of Ownership certificate verification for all motorists. Subsequently, in July 2023, the Lagos State Government initiated the collection of this fee from vehicle owners.
However, the Nigerian Bar Association Section on Public Interest and Development Law took legal action against the Federal Government, the Lagos State Government, and the Joint Tax Board, challenging the imposed levy. The plaintiffs, including John Aikpokpo-Martins, the chairman of NBA Spidel, argued that the defendants initiated the policy without statutory support, mandating vehicle owners to pay the prescribed fee.
The plaintiffs are seeking a court order to prevent the defendants from harassing or interfering with the freedom of movement of Nigerians using their vehicles across the country based on non-payment or renewal of proof of ownership certificates.
Furthermore, the plaintiffs want the court to determine whether the annual renewal of Proof of Ownership certificates constitutes illegal multiple taxation, considering that the defendants and various state governments have already issued certificates or evidence of ownership during vehicle registration.
In a statement released on Tuesday by the Publicity Secretary of NBA-SPIDEL, Sadiya Saleh, it was revealed that proceedings began on Monday before Justice Inyang Ekwo of the Federal High Court in Abuja. During the preliminary hearing, the court confirmed that all defendants had received the necessary legal documents, while the NBA-SPIDEL was represented by Godspower Eroga and Vincent Adodo, with the first and second defendants absent from court.
