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Court Paves Way for Nigerian States to Collect Billions in Taxes

  • Rivers state overcame challenge from federal tax agency
  • Richest state Lagos wants to follow example set by Rivers
Trading At The Nigeria Stock Exchange

Photographer: George Osodi/Bloomberg 

A court ruling in one of Nigeria’s oil-producing states may cost the federal government control of a major source of tax revenue, to the detriment of the West African nation’s poorer regions.

A judge on Monday dismissed an application by the Federal Inland Revenue Service to delay the execution of an order issued last month that allows the government of the southern Rivers state to collect value-added tax within its territory. FIRS said it’s appealing the ruling.