•No one is above the law
The very story comes with howling headlines. It is a classic case of the news manager assigning greater import to an ordinarily innocuous news story on account of the personalities involved and not because of the true weight of the story.
“Oyo State government shuts Obasanjo Farms”, goes the headline in many national newspapers. Chief Olusegun Obasanjo is former president of Nigeria as well a leader of a political group different from the ruling party that subsists in the state. A cursory look at the headline would therefore leave the impression that the state government is probably moving against a heavy weight political opponent.
But that may turn out to be somewhat deceptive upon a closer look at the report. First, the issue is a case of statutory tax default by Messrs Obasanjo Farms. Second, a total of 16 firms have been affected by the clampdown embarked upon by the state government.
For instance, some of the other notable companies in Ibadan shut down along with Obasanjo Farms are: MRS Oil, Heinemann Educational Books, University Press Ltd, Chicken Republic, Lister Flour Mills, Evans Brothers, among others.
The companies are alleged to have refused to pay environmental development levy imposed by the Oyo State Internal Revenue Board in conjunction with the Oyo State Inter-Ministerial Enforcement Unit. They are said to have defaulted in payment for 2017 and 2018.
According to the internal revenue board chairman, Mr. Bicci Alli, shutting down the firms became necessary after the defaulting firms ignored several notifications.
Justifying government’s action, Alli said: “The exercise we carried out is not something new and not outside the law. We went to restrain some corporate organisations that failed to pay what is due to Oyo State government after giving due notices, demand notices and even public notices to that effect and they failed to pay.
“But it is so sad that not until we have to take this step against the firms that they are now actually coming out to pay…”
It is common knowledge that the prevailing economic environment is unfavourable to business, to put it mildly; while infrastructural support is weak where it is not entirely nil. The material and psychological costs of running business in Nigeria are so high to the point of self-immolation. These are factors that would make many firms want to resist any additional burden of costs, especially from the government.
It is hoped that ‘environmental development levy’ does not suggest multiple taxation in a period businesses can hardly stay afloat. Many companies across the country are either retrenching or unable to pay salaries currently; therefore, heaping more burdens of taxes on them would be counterproductive and would not be in the long-term interest of the state.
Having said that,while we appeal to the state government to refrain from excessive levies and taxes if any, the law is the law and rules are rules. Part of a good corporate governance ethics of a company is to be able to deal promptly with regulatory authorities and issues of government policies.
We aver that these reputable firms ought to have dealt promptly with the series of notices from a properly instituted government agency. Proper demand notices are either paid promptly, negotiated or contested through appropriate channels. The law is no respecter of persons or status. To ignore a demand notice is to challenge the validity of such a demand, or to dare the demanding authority.
It is remarkable that some of these companies had to start paying after they had been shut down and their production disrupted.
Some proactive measures on the part of the firms would have avoided this kind of glitch in their processes.