Vandalisation of Public Infrastructure and the Law

Vandalism of public infrastructure is no longer petty theft. It kills, blackouts whole corridors, and bleeds the country’s treasury. From rail tracks and transmission towers to telecom sites, bridge fittings and manhole covers, the targets are now the Nigeria’s critical assets. The catalogue of what is being ripped out and stolen, remains a debilitating national concern. Who can halt this ugly trend? How can the culprits be brought to book? What laws are applicable? **Mack Ogbamosa, Ayoade Oluwasanmi and Dr Mudiaga-Odje, **examine this societal malaise, and consider how the law and other measures can be made to work [9/14, 07:53] Mrs Braithwaite: I’m correcting Advocate for reflow instead of individual corrections to save time

Using the Instrument of Law to Curb Rising Incidents of Vandalisation in Nigeria

Mack Ogbamosa

Introduction

Aside the issue of insecurity, one major challenge facing the country today is the vandalisation of public infrastructure. From the North to the South, and from the East to the West, no part of the country is spared. Vandals are everywhere, destroying what the nation has spent trillions of Naira to build for the benefit of all of us. If they are not dismantling railway tracks, fittings and other components, they are breaking into concrete bridge piles removing embedded steel reinforcement rods, and other iron components. At other times, they are stealing electric cables, and burning them to extract copper.

Apart from throwing the nation into prolonged power disruptions, causing safety hazards, it has been estimated that the Nation loses N75 billion to these incidents of vandalism yearly.

Laws to Check Vandalisation

Nigeria has laws to check this menace. Apart from Federal laws like the Miscellaneous Offences Act( MOA)(Cap M17, Laws of the Federation, 2004); the Electricity Act, 2023, and the Petroleum Production And Distribution ( Anti-Sabotage) Act, Cap P12, Laws of the Federation 2004, there are regional laws – the Criminal Code Act,(CCA), which applicable in the Southern States and the Penal Code Act(PCA)for the Northern States. States also have their own laws.

**The Miscellaneous Offences Act **is a Federal legislation applicable in all parts of the country. **Section 1(3)(a) **of the Act prescribes up to **14 years imprisonment without the option of a fine **for wilfully removing, defacing, or damaging public buildings, vehicles, or Federal/State assets.

**Section 1(3)(b) **raises the penalty up to 21 years imprisonment without a fine if the targeted public property includes a railway line, electric power line, telephone wire, or highway demarcation, while Section 1(9) which is usually applied in cases of severe electrical and utility grid sabotages, carries a maximum penalty of life imprisonment.

The Petroleum Production and Distribution (Anti-Sabotage) Act (Cap 12, LFN, 2004) is specifically designed for the oil and gas sector, which forms the bedrock of Nigeria’s economy. It states that anyone who wilfully interrupts or aids the interruption of petroleum product distribution or production, is guilty of sabotage. Conviction under this Act, carries a maximum penalty of up to 21 years imprisonment.

**The Electricity Act 2023 **which was enacted to protect the Nigerian Electricity Supply Industry (NESI) criminalises the intentional destruction, tampering, or rendering non-functional of power generation plants, transmission lines, towers, transformers, and distribution networks.

Under its provisions, high-level energy saboteurs and critical grid vandals, can face up to life imprisonment.

The Criminal Code Act

Under** Section 451** of this Act, malicious injuries or wilful destruction of general property, is a misdemeanour carrying a sentence of two years imprisonment. However, if the destruction targets an inhabited structure or causes serious bodily endangerment, the penalty increases to a felony carrying life imprisonment.

**The Penal Code Act **employs Section 351 and 352 to penalise property damage and aggravated vandalism, allowing State courts to sentence local vandals to terms ranging from one to six years in prison, along with mandatory asset restitution.

State-Level Criminal Laws on Vandalism

Apart from these laws, various State Governments have their own Taskforces and laws to deal with vandalism. For instance, Section 339 of the Lagos State Criminal Law, penalises the destruction or defacing of public facilities.

The most recent case which is being prosecuted by the Lagos State Government, is scavengers stripping iron rods from the Festac-Alakija Bridge. Both the vandals and the scrap metal dealers, are being prosecuted.

Comparison of the Different Laws

While cases under the MOA are tried at the Federal High Court, those prosecuted under the CCA and PCA are done at the State High Courts or Magistrate Courts.

While prosecution at the Federal level is by Federal agencies like the Nigeria Security and Civil Defence Corps (NSCDC) or the Economic and Financial Crimes Commission (EFCC), prosecution under the CCA and PCA is by State Police Commands or State Ministries of Justice.

Recent Cases Tried Under these Laws

Some of the cases of vandalism adjudicated upon in recent times include:

The Third Mainland Bridge Railings Case ( 2026)

Chief Judge of the Federal High Court sentenced Abubakar Jaji to five years in prison without the option of fine, for maliciously damaging and removing iron railings from the newly rehabilitated bridge. He was prosecuted by the Economic and Financial Crimes Commission( EFCC).

The Warri- Itakpe Rail Corridor Case( November, 2025)

The Federal High Court in Ikeja, Lagos convicted and sentenced two vandals – Mudasuru Mutari and Blorie Kokori, to two years imprisonment for dismantling critical rail network components, near Abraka, Delta State. They were prosecuted under the MOA.

Ebu Bridge Drainage Case (2025)

In Delta State, Emmanuel Sunday was sentenced to two years imprisonment by the Asaba High Court, for breaking into the drainage system of the newly constructed Ebu Bridge. The Judge split his sentence into one year of hard prison time, and one year of mandatory community service of sweeping court premises.

The Kano Railway Case (June, 2025)

The Chief Magistrate Court in Gyadi-Gyadi, Kano convicted four suspects – Mukhtar Muhammed, Abdullahi Musa, Saidu Yusheru and Salisu Shuabu, after they pleaded guilty to conspiracy and theft of of railway component at Gabasawa Local Government.

The Jibowu Bridge Vandalism case (November, 2024)

A Lagos Magistrate Court at Oshodi, convicted and sentenced a vandal to four months in prison, for attempting to remove structural scraps and nuts from the Jibowu Bridge. He was caught by the Lagos State Kick Against Indiscipline Brigade.

***Oredo Magistrates’ Court Conviction (2026) ***

On **August 18, 2026, **Abubakar Dauda was sentenced to two years in prison in Edo State, for the physical destruction and vandalisation of a critical 200KVA power transformer.

Lagos State Electrification Agency (LSEA) Case (2025)

On July 21, 2025, the Lagos State Magistrate Court sentenced cable thief Inya Bethel to **10 months in prison **without a fine option, after he was caught stealing core electrical cable lines in Ikoyi.

Murtala Muhammed International Airport (MMIA) Case (2026)

On April 23, 2026, an Oshodi Special Offences Magistrate’s Court convicted 13 individuals for vandalising Terminal 1 construction sites and stealing building materials. They received 19 months of mandatory imprisonment.

How Adequate Are the Laws?

Given the rising cases of these incidents and the seriousness of these offences, both in economic terms and the loss of human lives that can result from them, can the existing laws adequately address the issue? Like some Nigerians have said, this writer believes the laws are not stringent enough to deter others not to take to vandalism as a “business”.

What Can be Done

Some Federal lawmakers are pushing for an escalation in legal penalties, to curb this destruction of our national assets. They are proposing the death penalty for individuals convicted of vandalising national assets.

The Bill specifically targets the sabotage of high-stakes installations such as power networks, airport facilities, and railway tracks. Lawmakers argue that infrastructure destruction has advanced from petty crime, to a direct threat to national security.

Some State Houses of Assembly are also driving stricter local prosecution laws. For instance, the Lagos State House of Assembly has called for a major overhaul in how infrastructure crimes are prosecuted.

They are demanding that prosecutions should legally extend to businesses and individuals who purchase, sell, or process stolen infrastructure components. There have also been calls to empower Community Policing like the Lagos State Neighbourhood Safety Corps, to grant them stronger surveillance and intervention mandates.

Conclusion

While agreeing to the suggestion that there is need for more stringent laws prescribing harsher punishment, like death penalty to curb the menace of vandalisation of public infrastructure in the country, this writer believes that there is also a greater need, however, to apply the maximum penalties in convicting those who have been found guilty on the cases already in court.

From our observation so far, most convictions have been done under regional or State laws with lesser penalties, and even those convicted under Federal laws, were not given the maximum sentences prescribed by the Act.

Beyond this, Government should address the issue of poverty and also ensure that more Nigerians are gainfully employed.

Unless and until these measures are taken, it will be difficult, if not impossible, to curb the rising cases of vandalisation of public infrastructure in the country.

Mack Ogbamosa, Legal Practitioner, Communications Consultant, Lagos

Curtailing the Human Cost of Vandalism

Ayoade Oluwasanmi

Every year, the Nigerian government and private companies spend trillions of Naira to put in place much needed infrastructure for the people. The infrastructure provided is at best inadequate, yet, every year, the Nigerian State loses billions of Naira to vandals who destroy the much-needed infrastructure. The materials stolen from vandalised infrastructure is either sold in its original form on the black market, or melted in the case of iron, and then sold. Therefore, vandals do not see infrastructure as being for everyone’s benefit, but as items they can make money from personally. Of course, there is cost to vandalism, and I wanted to find out if there were any statistics regarding this cost to the country. During my research, I came across the following:-

According to an article in The International Journal of Research and Innovation in Social Science (IJRISS) titled “The Impact of Property Crime on Public Infrastructure Development in the Nigerian Cities” written by Aro Shittu Oluwakayode, Azmi Fatin Afiqah and Samsudin Salfarina dated 31st August, 2024, estimates from the Nigerian Society of Engineers place direct annual losses from infrastructure vandalism at roughly N76 billion ($200 million), accounting for repairs, lost revenue, and service interruptions. (https://rsisinternational.org/journals/ijriss/articles/the-impact-of-property-crime-on-public-infrastructure-development-in-the-nigerian-cities/) Also, according to a news report from Nigeria Info 92.3 Port Harcourt posted on Facebook, the Transmission Company of Nigeria (”TCN”) said that the Federal Government spent N29.3 billion to repair 266 vandalised electricity transmission towers nationwide between January 2022 and October 2024 (averaging about N110 million per tower). In the Northern region alone, over N9 billion was deployed in 2024 just to restore damaged power assets. Nationally, power sector inefficiencies exacerbated by vandalism, contribute to broader economic losses estimated up to $26 billion annually. (https://web.facebook.com/NigeriaInfoPH/posts/tcn-begins-rehabilitation-of-four-vandalised-towers-in-riversnigeriainfofm/1076578531798715/?_rdc=1&_rdr#) In addition to this, a news report in The Punch Newspaper dated March 10, 2025, infrastructure theft and destruction in Abuja cost the Federal Capital Territory an estimated N4.7 billion annually in replacement costs alone, according to structural engineering assessments. **(https://punchng.com/fct-spends-n4-7bn-yearly-on-vandalised-infrastructure/). **Again, according to a report posted on The Punch Newspapers Facebook page dated 6th August, 2026, petroleum pipeline networks managed by the Nigerian National Petroleum Company (NNPC) regularly suffer hundreds of breaks annually, resulting in multi-billion-Naira product losses and forcing massive expenditures—such as portions of the N7.13 trillion spent on national energy security and surveillance contracts—towards curbing continuous theft. Lastly in a post dated 18th August, 2026 from The Punch Newspapers Facebook, telecom infrastructure vandalism accounts for over N13 billion in direct asset and operational losses, severely disrupting broadband and mobile connectivity.

These facts and figures only represent the monetary cost. They do not show or highlight the human cost, in the form of loss of human lives and other ills that vandalised street lights, bridge rails, manholes and roads cause. Street lights are vandalised for the copper in their wires, the metal of bridge rails are vandalised and sold to those who turn them into cheap cutlery, manhole covers are vandalised and sold to those who melt them down and then sell to those looking for cheap metal, and roads are allegedly vandalised by members of the National Union of Road Transport Workers (“NUTRW”) who want bus drivers to slow down and stop at the designated bus stops so they can extort money from them. Each of these actions and more not mentioned, not only cost money to rehabilitate or replace or repair, they are also liable in causing accidents, or greatly reducing a person’s chances of surviving accidents. Take for instance, the fact that many have noted the craters currently inhabiting the surface of the Ozumba Mbadiwe Road in Victoria Island, which neither the Federal Government or the Lagos State Government are willing to do anything about. Some of these craters are interestingly at designated bus stops which might lead one to suspect that they were deliberately created. Unfortunately, neither the Federal Government nor the Lagos State Government, is interested in minor rehabilitations of roads. They would much rather the roads fall into major disrepair, so they can budget large amounts to fix it. The result of this is that at night, these craters in the road along with no functioning street lights can lead to fatal accidents on roads. In the event that the resulting accident is not fatal, drivers will most likely have to stop due to damage to theirs which would lead them being attacked by at best area boys, at worst kidnappers and organ harvesting syndicates.

At the just concluded 66th Annual General Conference of the Nigerian Bar Association (“NBA”) held between the 21st and 28th of August, 2026 the Chief of Staff to the President, Honourable Femi Gbajabiamila, CFR, while representing President Bola Ahmed Tinubu, GCFR, gave a well-received speech during one of the sessions, about why the current administration is taking the necessary steps to amend the Constitution and create State Police. This of course, is in addition to an increase in the number of service members in the armed services. According to him, one of the reasons there was a need to create State Police, is because the Federal Government could no longer keep everyone safe with the current number of Policemen. According to him, there were currently 650 Policemen per citizen, in direct contrast to the internationally acceptable ratio of 450 per citizen. The need for the creation of State Police has come about, due to the increase in killings and kidnappings all over the country. There are quite a large number of ungoverned spaces like forests all over the country, where people with bad motives use as hideouts for their nefarious purposes. Therefore, the increase in the number of Policemen as well as service men are both being done, in a bid to curtail insecurity. However, truth be told, neither Policemen nor servicemen can cover every inch of the country. What then can we do?

I personally believe the Government at both the Federal and State levels, have all the laws needed to punish vandals if they are caught. The first step though, is that the Government should be seen to enforce the laws in the books against everyone, and hold offenders accountable whether rich or poor or lowly or well connected. People take laws into their hands or break the laws, if they believe the Government is not interested in or doesn’t have the will to deal with crimes, or rich and connected people get away with their crimes. This can lead to a descent into anarchy or vigilantism, where people take laws into their own hands.

One is of the view that the problem of vandalism, is linked to that of security. If the Government cannot take steps to protect critical national infrastructure from vandals, then that shows that the Government is lax on the bigger issue of security. If you cannot stop vandals who carry out their acts in the open, albeit under the cover of darkness, then imagine what other heinous crimes people are getting away with. However, when vandals commit their crimes, they first need to be tracked, caught. And, prosecuted. If Government has the political will to eradicate or severely reduce the instances of vandalism, apart from increasing the number of Police and service men, the Government at all levels, needs to deploy technological innovations. One of those technological innovations is Closed Circuit Television (“CCTV”) cameras, as well as facial recognition technology that is AI driven. Even with the proposed increase in Policemen and service members, they cannot cover every inch of the country, where there is critical government infrastructure. Therefore, where there are no Policemen or service members, technology should be deployed to assist the Government at all levels.

While it would be good to deploy technology to bring Nigeria fully into the technological age, there needs to be a database that the technology can draw information from. A friend recently pointed out that over 14 years after the Bank Verification Number (“BVN”) was introduced, just over 100m people and far less than 200m people, have been registered. This in a country of allegedly over 300m where it is compulsory for everyone, no matter the age, to have a BVN. Nigeria last conducted a census in 2006. There is therefore, an urgent need for a census that as much as possible links everyone in Nigeria to a physical address. This will greatly help to know where someone can easily be found. Also, even as the State Police is being created, the Police should also create a database of known criminals, regardless of whether they have served their time or not, which can be accessed by law enforcement. It is a well-known fact that, a lot of crimes are committed by repeat offenders. According to an article in the International Journal of Intellectual Discourse Volume 7, Issue 2 dated June, 2024 written by Prosper Uyoyou Irogbo, the recidivism rate in Nigeria is between 52% to 65%, and in the case of some crimes going as high as 81% in the case of some offences within 36 months of the offender being released. The database of offenders and criminals will help law enforcement create a list of possible suspects, and aid in solving the crime and at a faster rate. It also goes without saying that, there is a need to computerise as many Police stations as possible, and link them to the internet which will aid in the sharing of information.

**Conclusion **

The increase in the number of Policemen, enforcing the laws regardless of who it affects, an investment technology, conducting a creditable census as well as the creation of a data base of offenders and their crimes, can go a long way in reducing, if not altogether eradicating the menace of vandalism and its attendant monetary and human costs. However, this can only happen if the Government takes this seriously, and develops that nebulous and ill-defined thing called “political will”. Only time will tell.

Ayoade Oluwasanmi, Lawyer; Author; Partner, Litigation Department, Gbenga Biobaku & Co., Lagos

Enforcing the Law to Prevent Incessant Vandalisation of Public Infrastructure in Nigeria

Dr Akpo Mudiaga Odje

Introduction

This discourse accentuates the need for governments at all levels and our citizens, to urgently join forces towards enforcing all laws protecting public and critical infrastructure from decay and vandalisation in Nigeria. And, it calls for stricter laws and their enforcement too, as panaceas to the recent deluge and recurring decimals of decay and vandalisation of public infrastructure in Nigeria.

Public Infrastructure: Protected by Law

The Criminal Code Act, which is a Federal legislation and the various State legislations on crimes, all provide penal sanctions for vandalisation of public Infrastructure.

In the Criminal Code Act, Sections 440, 12A, 77, 440 and 443, all prescribe punishment for acts of wilful destruction of properties. And, this is central to upholding national development and public cohesion, as well as creating social integration between the governed and the government. The principle and ideology is that public infrastructure is owned collectively by all, since they emanate from our common wealth.

Why is the Law Concerned With Protection of Public Infrastructure?

It is an axiomatic fact that every nation must build common structures for their citizens, and also provide public amenities/infrastructure to enable them to freely transport from end to another, as well as, also provide facilities for general power and energy, healthcare and more importantly too, for national defence.

Indeed, these are imperative and fundamental structures necessary for a nation to function effectively, hence, they are classified as public infrastructure. Accordingly, governments of the world and of the comity of nations, also provide vide penal provisions for their existence and safety. The law therefore, sanctions any person who wilfully vandalises or destroys any public infrastructure or causes same to decay.

Such an act of vandalism against public infrastructure is thus, viewed in paradoxical perspective, as an attack against the entire nation.

Enforcement of Penal Sanctions Against Vandalisation of Public Infrastructure

The exquisite doyen of ***“Administrative Law”, De Smith, once quipped ***that

“Pragmatism is usually the enemy of principle”.

The above apposite postulation extracted as from his book has played out in Nigeria, which is solely attempting to use the instrumentally of the law to curb vandalism of public infrastructure.

And, there are reasons for the decay and vandalism of public Infrastructure in Nigeria.

Some include:

(A) Our Culture of Neglect

We as Nigerians, nay Africans, are usually not concerned about the state of such public infrastructure, as we believe that, that is exclusively the government’s responsibility, rather than that of the citizenry.

(B) Our Lack of Maintenance Culture

Governments at all levels, unwittingly or wittingly, are in the union of this culture of general lack of maintenance of public infrastructures in Nigeria. Every government is focusing on how to build new public infrastructure, rather than maintaining existing ones. And, this leads to decay and abandonment of the said infrastructure, before the arrival of vandalism, that further propels a total collapse of such decaying public infrastructure

(C) Citizens Inertia in Public Advocacy and Citizens Rights

We, as citizens of Nigeria, are admonished by Section 24 of the Constitution of the Federal Republic of Nigeria, 1999 (as amended), to always participate in governance as a civil responsibility towards promoting good government and governance.

In Africa and Nigeria, citizens are inherently docile, unconcerned or ignorant of their civic rights, and responsibilities in protecting and preventing decay and vandalism of public infrastructure. They fail to realise that it is these civic rights and duties, that make us participate by proxy in the administration of government, and which ultimately gazumps such a nation closer to an egalitarian society where things work perfectly and “all is well” in biblical terms.

We, as citizens, must now act and report on decaying or vandalised public infrastructure to the appropriate authorities on time, and also closely monitor rectification

As previously noted, there is traditional citizens apathy on this issue, obviously because of the economic downturn and corruption in high and low places in the country

(D) Socio Economic Downturn and Corruption Also Fuel Vandalisation of Public Infrastructure

No doubt the economic state of the nation has hit the citizenry so hard and bad, that they are really not concerned nor bothered by a decaying or vandalised public infrastructure. Indeed, and ironically too, most of the vandals claim hunger as the primary reason for engaging in such acts of vandalism.

Consequently, the governments at all levels urgently need to govern equitably and transparently in order to curtail this incubus, and drastically reduce the hunger in the country.

(E) Corruption as a Formidable Barrier Against the Enforcement of Laws on Vandalisation of Public Infrastructure

There is a groundswell of opinion that corruption in our nation, has also had its negative effects on enforcing laws against vandalism of public infrastructure. It was observed sometime and rather sadly too, that some of the vandals are usually government officials, who disguise as vandals and also connive with the real vandals too.

This unholy practice is more prominent in the power and energy sectors, where men of the power sector steal government cables with ease, since they exclusively have the knowledge on how to either vandalise or steal such high tension dangerous electric cables and gadgets. We also have cases where the government field workers or supervisors of public infrastructure are either compromised by the contractor whose duty it is to maintain same, or such an official on his own is corrupt, and thus, proceeds to send on a regular basis, wrong and misleading reports of the state of such public infrastructure to government.

These indiscretions continue to open public infrastructure, to decay and vandalism.

(F) Lack of Manpower and Technology on the Part of Government

Another germane factor militating against the said enforcements, is the patent shortage of manpower and technology on the part of government. Obviously, the government presently lacks the manpower required to send field workers around the country or even a State, to give reports on decaying or vandalised public infrastructure. And, also, our Police lack the capacity to monitor public infrastructure in the country, as they are already even overused and deployed elsewhere for what government believes is a better cause, rather than monitoring public infrastructure. So, what happens is that vandalism cannot be prevented, as our Police can only act after the vandalisation has occurred.

We therefore need to employ more field workers and equip the Police, as well as in terms of technology, such as providing them with drones, installation of cctvs planted in strategic areas, and a control room to also watch over public infrastructure.

The Way Forward

Re-orientation and Re-direction of our Culture of Lack of Maintenance of Public Infrastructure

We, as a people, must now understand lucidly that, public infrastructure belong to all of us. And, as such, we must all protect them like our private property in all ramifications, whilst the government does the maintenance.

Our Governments at All Levels Must Periodically Examine and Take a Census of the State of the Public Infrastructure

The above will enable the government to ascertain the current state of these public infrastructure, which will indeed provoke immediate repairs and maintenance as the case maybe.

Employ More Hands and Deploy Technology to Protect Public Infrastructures

We reiterate the urgent need to recruit more Policemen and allied security apparatuses of government for this purpose, and also deploying drones, cctv, helicopters, control rooms and trackers, to monitor and protect these common properties from vandalisation.

Non-Prosecution and Conviction of Vandals of Public Infrastructure Sends a Wrong Signal to Society

This is another huge challenge, as failure by government to prosecute vandals has further emboldened them to relentlessly vandalise our common wealth.

As of now, the government has regrettably and consistently failed to prosecute such vandals, making people believe the narrative that these vandals actually helped politicians during and even after elections, to win their respective elective positions. And, after the elections, the politicians as expected, dumped these vandals, who in turn, are venting their frustration in the vandalisation of public infrastructures to survive.

To prove to us that this is not true, our governments at all levels should now take a decisive and bold step, by arresting and prosecuting these vandals to conviction. This will act as a formidable deterrent, against their unpatriotic acts.

Equipping and Funding the Judiciary to Dispense Justice in this Respect

The most important organ of government that can effectively put a stop to these persistent vandalisation of public infrastructure, is the Judiciary. However, the same remains grossly underfunded, and majority of the courts are unbefitting of their Magistrates and Judges.

And, for as long as the Executive continues to neglect the Judiciary, the same will continue to be grossly ill equipped to expeditiously, dispense justice and also equally unable to secure convictions against these vandals.

In this connection, we have since asked and continue to ask, and are still asking that our government should properly fund the Judiciary, and build befitting court rooms, as well as build robust libraries for them for same to function optimally and effectively for our collective good.

Fighting Corruption and Abuse of Power

This is by far, the most formidable impediment towards our collective quest and zest to protect public infrastructure from vandalisation in Nigeria. Corruption kills a whole nation, how much less just a sector of the same. Abuse of power is the first cousin of corruption, and both of them inflict terrible pains on nations upon nations and particularly, in Nigeria. And, this made our Supreme Court lament loudly in the case of AG Ondo v AGF (2002) 9 NWLR (Pt 772) 222 at 247 paras F-G per Mohammed JSC to wit:

That the Greatest Challenge Nigeria Faces Today is:

“Corruption and Abuse of Office”

And, the law Lords further lamented that :

” The Nigerian Green Passport is Synonymous With Corruption”

(per Uwaifo JSC at page 385 paras F-H)

The above decision of the Apex Court has augmented and brought to the fore again, the debilitating effects ***“Corruption and Abuse of Power ” ***can cause to a nation as big as Nigeria.

Federal Government Undertakes to Fight Vandalism of Public Infrastructure

It is relieving to read from a caption from a National Daily of 6/9/2026, at page 6 to wit:

“Vandalism: FG to secure transport infrastructure, strengthen intermodal System”

The report ran thus:

“The Federal Government has directed plans to tackle vandalisation of transport infrastructure across the country.

The Permanent Secretary of the Ministry of Transportation, Funso Adebiyi, said Nigerians would enjoy a seamless safe and efficient intermodal transportation system, if activities of vandals is curbed.

……. He said the Council will recommend stiffer penalties for vandalisation of transportation infrastructure, stressing that the criminal act had led to loss of lives, destruction of public assets and life altering injuries to many Nigerians”.

Conclusion

No doubt therefore, arousing Citizens Consciousness is now key to unlocking their endemic state of collective apathy that prevents them from demanding for their rights, as well as the abnegation of their civic responsibilities and duties as supposed ***“Watch Dogs” ***of our incipient democracy.

Instructively therefore, as citizens of Nigeria, we should now ensure that we ***“check” and “balance”, ***our governments at all levels, and where there is vandalism, dereliction, failure and decay of any kind on our public infrastructure and even our public lives too, we should immediately bring the same to government’s attention, especially Trending it through Social Media.

And, indeed, a well regulated and coordinated Citizens Advocacy, will inspire us, to jointly Proclaim:

The Revolutionary Banner of the “Actio Popularis”; which is:

“The Citizens Action”.

Prince (Dr) Akpo Mudiaga Odje, LLD, LLM (Merit)(London), BL; Member, British Council; Dr Mudiaga Odje SAN & Co, Warri, Delta State.

FCT Tribunal Orders Cement Institute to Pay N2bn Tax

Alex Enumah in Abuja

Introduction

The **Tax Appeal Tribunal, Abuja, **has drawn a sharp line under Section 23(1)(c) of the Companies Income Tax Act: a company limited by guarantee does not keep its statutory exemption, merely because it is incorporated for education or the public interest, or because the money is later spent on that mandate. What matters is the source of the income. In ***Cement Technology Institute of Nigeria (CTIN) Ltd/GTE v Nigeria Revenue Service, ***a five-member panel chaired by **Hon. Chief Moremi Soyinka-Onijala **dismissed CTIN’s challenge to additional assessments for 2018–2020 and held that interest on commercial-bank fixed deposits, unlike interest on Federal Government Treasury Bills and Bonds under the 2011 Exemption Order, is chargeable to companies income tax, education tax and withholding tax. The Tribunal found the placements to be organised, repeated and commercial, not mere safekeeping of surplus funds, and ordered payment of ₦2,025,643,370.13, subject to a limited re- computation to strip out the exempt government securities and to allow Bank of Industry management fees. This decision is relevant to every charity, professional institute and company limited by guarantee that parks idle cash in fixed deposits, and assumes the label “non-profit” is itself a tax shield

Facts

CTIN had in October 2023 dragged NRS, before the Tribunal over its Notice of Additional Assessment and Demand Notes for Companies Income Tax, Education Tax and Withholding Tax for the 2018-2020 years of assessment, 2017-2019 years of Account and Notice of Refusal to Amend, dated September 28, 2023. CTIN predicated the suit on the grounds that the said assessments were unlawful, null and void and inconsistent with the provisions of the Companies Income Tax Act (CITA), 2004, and the Tertiary Education Trust Fund Act, 2011, because they were based on interest income earned on its Treasury Bills, Bonds and Fixed Deposit placements.

**Tribunal’s Judgement and Rationale **

The Tax Appeal Tribunal sitting in Abuja, has held that incomes earned by a non-profit organisation from investments such as fixed deposits and other non-exempt placements, are chargeable to the Companies Income Tax (CIT) and others.

A five-member panel of the Tribunal chaired by Hon. Chief Moremi Soyinka-Onijala, predicated its decision on the ground that, “tax liability depends on the nature of the activity from which the income was derived”.

The Panel subsequently dismissed the appeal by the Cement Technology Institute of Nigeria (CTIN) Ltd/GTE, and ordered the Appellant to pay the Nigeria Revenue Service (NRS) a total of N2,025,643,370.13, being tax on Companies Income Tax (CIT), Education Tax (EDT) and Withholding Tax (WHT) from 2018-2020.

However, in their judgement delivered last Thursday, the Tax Appeal Tribunal Panel, disagreed with the submissions of the Appellant and resolved all four issues raised in the appeal.

Before delving into their findings Hon. Soyinka-Onijala observed that at the core of the case is the proper construction of Section 23(1)(c) of the CITA, “and in particular, whether a company limited by guarantee established exclusively for educational and public-interest purposes forfeits its statutory exemption, because in the prudent management of its funds, it invested temporary surplus resources in Treasury Bills and other low-risk financial instruments (fixed deposit), pending their application towards its institutional mandate”.

Resolving the issues, the Panel, on issue one, pointed out that contrary to Appellant’s claim that donated or surplus funds were invested as measures of prudent preservation, evidence before the Panel revealed that Appellant invested substantial sums over the relevant years, negotiated income with the banks and paid management fees to the Bank of Industry, in respect of the handling of the placements.

“These matters, taken together, show organisation, deliberateness and a profit-yielding purpose in relation to the funds placed”, the Chairman of the Panel stated.

Stressing that the conduct of a taxpayer is far more important than the business it professes to carry on, the Tribunal held that the conduct of the Cement Institute was more consistent with an organised investment activity, than with mere safe keeping of funds.

“The fact that income may be applied to ecclesiastical, charitable or educational purposes does not, without more, alters the character of the income which is derived from a trade or business.

“The Tribunal therefore, proceeds on the basis that the relevant enquiry is the source of the income, and not merely the destination to which the income is later applied”, Soyinka-Onijala held.

According to the Panel, it is satisfied that the Appellant’s investment activity had sufficient organisation, repetition and commercial character, to amount to a business for the purpose of Section 9(1)(a) of the CITA.

“The conclusion does not rest on nomenclature, nor on the Appellant’s incorporation as a company limited by guarantee. It rests on the nature of the activity from which the income was derived: the placement of substantial funds, the negotiation of returns, the payment of management fees and the earning of income from those placements”, the Panel held.

On the second issue, the Tribunal, while holding that the Appellant enjoys exemption from interest arising from Federal Government Bills and Bonds in line with Order, 2011 of the Companies Income Tax, however held that fixed deposits with commercial banks do not fall within the class of instruments covered by the Order 2011.

It therefore, held that the interest accruing from the fixed deposits are liable to tax.

On the third issue, the Panel having concluded that a substantial part of the income in question is derived from a trade or business carried on by the Appellant, and is not exempted under Section 23(1)(c) of the CITA, held that the Appellant has assessable profit within the contemplation of the CITA, and that the Education Tax was properly chargeable under Section 1(2) of the TETFund Act.

The Panel similarly ruled against the Appellant on the fourth issue, which bordered on Withholding Tax.

“On the whole, and for the reasons given above, this appeal fails and is hereby dismissed, save to the limited extent set out below.”

Accordingly, the Tribunal ordered as follows:

(i) The Respondent’s assessment of Companies Income Tax in the sum of N1,835,484,959.69 for the 2018-2020 years of assessment is hereby affirmed, save that the Respondent shall, within thirty (30) days, recompute the assessment to give effect to the exemption of interest income specifically traceable to Federal Government Treasury Bills and Bonds under the Companies Income Tax (Exemption of Bonds and Short-Term Government Securities) Order, 2011.

(ii) The Respondent’s assessment of Education Tax in the sum of N190,158,410.44 for the 2018-2020 years of assessment is hereby affirmed, subject to the same re-computation directed in (i) above.

(iii) The Respondent’s assessment of Withholding Tax in the sum of N85,267,896.67 is hereby affirmed, subject to arithmetical correction or adjustment where the evidence demonstrates that any component of the sum assessed does not represent a qualifying payment.

(iv) The Notice of Refusal to Amend dated September 28, 2023, is hereby upheld, as recomputed in accordance with this judgement.

(v) No order as to costs.

(vi) Having held that the interest income earned by the Appellant is liable to Companies Income Tax (CIT) and Education Tax (EDT), and having duly considered the statutory duties and obligations of all parties involved in the transaction giving rise to this appeal, the Tribunal hereby re-computes the Company Income Tax and Tertiary Education Tax payable by the Appellant.

In carrying out the re-computation, the Tribunal allowed as a deductible expense the management fees paid by the Appellant to the Bank of Industry, and accordingly, deducted the said fees from the interest income in order to arrive at the revised assessable profit and total profit.

The Tribunal further noted that, pursuant to the provisions of CITA, the Bank of Industry is required to deduct Withholding Tax at the applicable rate of 10% from the interest income at source be remitted to the Respondent. Due credit has therefore been given for the withholding tax so deducted in determining the Appellant’s final CIT liability.

“Consequently, the Tribunal finds that the Companies Income Tax payable by the Appellant is N1,835,484,959.69 while the Tertiary Education Tax payable is N190,158,410.44 as set out the computation below.”