Hon. Wunmi Bewaji V. Chief Olusegun Obasanjo & Ors (2007)

LawGlobal-Hub Lead Judgment Report

OYEBISI F. OMOLEYE, JCA

This is an appeal from the decision of Hon. Justice A.I. Chikere of the Federal High Court, Abuja Division delivered on 20th January, 2006. The Appellant was the plaintiff while the Respondents were the defendants in an Originating Summons in which certain questions were sought for determination. These are the questions verbatim:

“(a) Whether having regards to the provisions, of the constitution, the 1st defendant can impose a consumption tax on the federation without the Consent of the National Assembly first had and obtained.

(b) Whether having regards to the PPPRA Act 2002, the 2nd Defendant can impose a tax or levy on any item in the federation without the consent and approval of the National Assembly first had and obtained

(c) Whether the pronouncement of the 1st Defendant can be law or can have the force of law on an issue of levy or taxation on the plaintiff without a law properly enacted.

(d) Whether having regards to the provision of the 1999 constitution, S. 162 thereof the petroleum tax imposed by the Defendants can be legally imposed not being a receipt arising from the operation of a law made by the national assembly.

(e) Whether having regards to provisions of the 1999 constitution, the National Assembly can validly grant powers to impose fuel taxation (consumption tax) and or levy to the Defendants, not being an item of taxation covered under S. 163 of 1999 constitution or under S. 59 of the Second Schedule (legislative powers) to the 1999 constitution.”

Consequently, the Appellant sought the reliefs which I hereunder reproduce verbatim as follows:

” (1) A declaration that the 2nd Defendant is not a legally constituted authority in Nigeria to impose any form of tax, levies and or charges upon the plaintiff in any manner whatsoever.

(2) A declaration, that the plaintiffs have suffered pecuniary loss through the illegal act of the 2nd Defendant via the imposition of a fuel tax.

(3) A declaration that the fuel tax and or levy of 1.50k imposed by the 1st and 2nd Defendants is unconstitutional, null and void and of no effect whatsoever.

(4) An order of perpetual injunction restraining the Defendants by themselves or through their agent’s servants or privies, from continuing to implement the illegal fuel tax and or levy imposed by the Defendants.”

On being served with the originating process, the defendants filed a notice of preliminary objection on the ground that the plaintiff had no “locus stand” to institute the action. According to the defendants, the action was frivolous, vexatious and an abuse of judicial process.

A.I. Chikere J, sitting in the Federal High Court, Abuja heard arguments of Counsel for both sides on the preliminary objection and in a ruling delivered on 20/01/06 upheld the preliminary objection and ruled that the plaintiff racked the “locus standi” to institute the suit. The plaintiff’s suit was consequently struck out. The present appeal is against that ruling.