N26bn Tax: Workers stranded as FIRS seals NDDC headquarters

Employees of the Niger Delta Development Commission (NDDC) were stranded on Friday following the sealing of the commission’s headquarters in Port Harcourt, Rivers state by the Federal Inland Revenue Service (FIRS).

It was gathered the action was taken because of failures of the NDDC to remit about N26bn arrears of taxes it owed to the FIRS.

A source from the commission, who spoke in confidence, said the commission owed the Rivers State Revenue Service billions of naira adding that the Rivers government might come for their money after the actions of the FIRS.

It was observed on Friday the main gate to the headquarters and adjoining walls had over nine stickers with an inscription, “Sealed by the Federal Inland Revenue Service.”

A resident of the area, who identified himself as Peter, said the headquarters was sealed on Thursday.

He said workers after waiting in vain to gain entrance into the facility went back home.

He said: “We saw this seal on Thursday morning when the NDDC workers were coming to work, the situation caused confusion, many workers left while some waited around.

“Some workers still came to work today but the gate was still sealed, to be honest with you I don’t know why a Federal Government agency would seal off another Federal agency.”

NDDC’s Director, Corporate Affairs, Dr. Ibitoye Abosede, said the development was due to gap in communication between the NDDC and the new management of FIRS.

He said: “It is an ongoing thing. In 2018, this same happened. It is unremitted withholding tax for some years up to 2013. It is not a recent thing.

"We have done reconciliation and they came with that amount. In 2018, when they sealed the place, we raised an agreement with them to seek ways to deduct at source from what the government is owing us so that we knock it off.

“I remembered that in 2018, we paid N1.5bn but since that 2018 we haven’t had a board and it hampered the efforts of deducting it at source. We don’t have regular subvention from the federal government.

“Efforts are ongoing to make sure the issues are resolved. We have a new chairman in FIRS and we are reaching out to him to let him understand our previous agreement”.