A Federal High Court in Abuja has deferred a petition seeking to prohibit the imposition of an annual fee on a certificate of evidence of car ownership in the country until March 4, 2024.
In June 2023, the Federal Government imposed an annual tax of N1,000 on all motorists for the verification of their proof of ownership.
The Lagos State Government began collecting the POC charge from motorists in July 2023.
However, the Nigerian Bar Association Section on Public Interest and Development Law filed a lawsuit against the Federal Government, the Lagos State Government, and the Joint Tax Board to dispute the imposed fee.
In the suit marked FHC/ABJ/CS/1285/2023, 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, claimed that the defendants instituted the policy without any statutory support directing vehicle owners to pay the mandatory fee.
The plaintiffs are seeking an order prohibiting the defendants, their agents, servants, and proxies from harassing, disturbing, and/or interfering with Nigerians’ rights to free movement in any part of the country due to non-payment and renewal of proof of ownership certificates for 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”
In a statement on Tuesday by the Publicity Secretary, NBA-SPIDEL, Sadiya Saleh, noted that proceedings commenced on the matter on Monday before Justice Inyang Ekwo of the Federal High Court sitting in Abuja.
At the preliminary hearing, the court confirmed that all the defendants in the matter were served the originating processes and proof of services filed.
While the NBA-SPIDEL was represented by Godspower Eroga, and Vincent Adodo the first and second defendants were not represented in court.