A High Court sitting at Lagos has held that the Lagos state government does not have the power to prescribe, impose and collect Motor Vehicle radio license fees from vehicle owners.

It, therefore, declares the collection of the radio license by the Motor Vehicle Administration Agency (MVAA) on behalf of the local governments as illegal, unconstitutional, null and void and of no effect.

The Judgement was delivered by Honourable Justice T.A.O Oyekan-Abdullai of the High Court of Lagos State, Lagos Judicial Division on the 19th of November 2019 in Suit No: ID/3819GCM/17 between Lawrence C. Nnoli Versus Lagos State Government and 3 others

Nnoli in his Originating Summons argued that the introduction and collection of the Motor vehicle radio license fee by the Lagos State Government is contrary to section 7 and the Fourth Schedule of the Constitution of the Federal Republic of Nigeria 1999 (as amended) which vest the introduction and collection of such taxes on the local governments.

In response, Lagos State government submitted that the Sole Administrators of the entire fifty-seven (57) Local Governments and Local Council Development Areas of Lagos State have already transferred to the state government their powers to impose and collect such taxes through a resolution dated 28th February 2017 and signed by the entire fifty-seven (57) sole administrators of the local governments and local council development areas and as such, it has the right and powers to prescribe, impose and collect such tax on behalf of the local governments and local council development areas.

Nnoli replied on points of law that the sole administrators as appointed by the governor of Lagos state could not legally administer the powers and authority belonging to the local governments. He further contended that all rights and authority vested on the local governments by the Constitution of the Federal Republic of Nigeria 1999 (as amended) are the exclusively preserved rights of the local governments as run by their democratically elected officials and that even Section 2 of the Taxes and Levies (Approved List for Collection)Act, Cap. T2, LFN, 2004 expressly prohibits any tier of government including the local government from delegating its powers and duties of collection of taxes to another entity whether it is to individuals or to another tier of government.

After considering the submissions by both parties, the court agreed with Mr Lawrence C. Nnoli and held that “collection of the radio license by the Motor Vehicle Administration Agency (MVAA) on behalf of the local governments is illegal, unconstitutional, null and void and of no effect”.