Abia State’s Vindictive Tax System: A Reply to Governor Alex Otti by Obinna Oriaku(documents) | #NwokeukwuMascot

 Opinion 

Paying taxes is a civic duty I have always taken seriously, not just because of my public profile, but also because I firmly believe one must practice what they preach.

For clarity, all my tax clearance certificates during my time in office were processed through First Bank as i was still a staff of the bank, though seconded to Abia State Government from May 2015, until June 2019. Abia State Government never paid a kobo as salary throughout my four years as Commissioner of Finance. Consequently, my personal income tax could not have been processed through the state government’s Tax system.

It is worth noting that the current Chairman of the Abia State Board of Internal Revenue( Udo Ogbonna )once served under my supervision during the Ikpeazu administration. Many still recall the circumstances surrounding his resignation towards end of 2019, a matter I would prefer not to revisit unless absolutely necessary.

Since leaving government in 2019, I have consistently processed my personal income tax through the Abia State Board of Internal Revenue, while my company’s tax obligations have been handled through the Federal Inland Revenue Service (FIRS) by our tax manager.

Unfortunately, just as has been proven, many of the supporters of Gov Otti are technically empty as they have concluded out of their ignorance that N117k personal income tax based on direct assessment is the only tax High networth individuals(HNI) like Oriaku pays to the Government . They forget that Companies pay the following taxes through FIRS which runs into millions depending on assessment of FIRS.

Taxes paid by companies in Nigeria: 

1) COMPANY INCOME TAX

2) TERTIARY EDUCATION TAX

3) VALUE ADDED TAX

4) WITHHOLDING TAX

5) STAMP DUTIES

6) CAPITAL GAINS TAX

7) PPT (Petroleum coys)

9)  NASENI, PTF, NITDA (repelled by the NSR)

Before the 2023 governorship Primary election, I had no issues processing my tax clearance certificate in Abia, even though I was openly critical of the then Ikpeazu administration. Despite our political differences, they never weaponized the tax system against me as opposition. 

Sadly, that is no longer the case under the current administration even as I have been dragged to two lagos State High courts for daring to criticise the Government. ( The more things change, the more they get worst)

The Governor’s media aide known for misleading Abians about the difference between total monthly revenue of N38 billion and total monthly FAAC allocations of N26 billion has again taken to defending the government’s vindictive and politically motivated actions, exposing their poor understanding of fiscal processes in tax administration. 

Attached are my previous tax clearance records. I was never invited to the Board of Internal Revenue (BIR) office in Umuahia before they carried out a so-called direct assessment. What is more curious is that the same office that had processed my tax applications in previous years were involved again until the situation took an unexpected turn.

The BIR ( Board of Internal Revenue)initially forwarded new assessment (template)documents dated October 7, 2025 , notifying me of an increase in my annual tax liability based on direct assessment. I was not alarmed, as many states have adjusted their tax assessments . Following their computation, I was asked to pay ₦87,000 on 16th of October 2025 via the official payment gateway. Upon completion, I received a confirmation alert (attached). Typically, once the Chairman certifies and approves such payments, the tax clearance certificate is automatically sent to the applicant via email. All these were automation processes which i championed as then  Commissioner of Finance, hence am not a stranger in these.

The following day being 17th October 2025, I contacted the officer to inquire about the delay, only to be told that the Chairman declined the approval and demanded an additional ₦30,000 based on a “further assessment.” I paid it promptly, bringing the total to ₦117,000. Again, I received payment confirmation.

Shockingly, I was informed next day  that management had refused to approve my clearance and instead directed a retroactive review of my past tax years not minding that same office had issued tax clearance certificate as at 2022 which coverd till 2023 as attached. They arbitrarily raised my direct tax assessments of  2022  from N56,000 to ₦146,000; 2023 to N146, 2024 N183,000 upward bringing my total assessment to ₦483,000. (see  attached in our correspondence)

Contrary to the false narrative driven by lack of technical knowledge pushed by the Governor’s media aide whose ignorance of tax administration is very glaring, this ₦483,000 was not for a single year. It was the result of a vindictive retroactive review of past years (2021–2024), all of which had already been certified and cleared by the same Abia State Board of Internal Revenue. Attached are official correspondences and email evidence confirming this politically motivated re-assessment.

While tax laws grant some discretion to assessment officers, such discretion must be exercised judiciously and not targeted at the persercived enemies of the Government. Unfortunately, the Abia State Board of Internal Revenue acted unprofessionally and clearly under political instruction as noitced with the arbitrarily adjustment on noticing the name  of their nightmare "Obinna Oriaku". The refusal to process my clearance was a deliberate act from the top of the agency and everyone familiar with the chain of command knows why.

My decision to process my tax certificate in Enugu State beyond the JTB law which talks about judurision is clear, especially as am resident in Enugu State .It was not due to any special privilege or connection as alleged by the media aide. A colleague who underwent  similar Senate confirmation and had processed  his own tax clearance certificate, advised me about Enugu’s efficient and transparent system. Following due process, I initiated my application formally and a new Tax Identification number  generated. I paid the standard ₦100,000 baseline assessment feee, and within two hours, received my certificate. For context, Abia’s baseline assessment is ₦70,000 yet I paid the same ₦100,000 same as my colleague for same senate confirmation that processed from Enugu Revenue services. 

This entire episode has once again exposed the pettiness and vindictiveness of the current administration towards perceived political opponents. It also underscores why Abia’s internally generated revenue (IGR) remains stagnant at around ₦2.3 billion monthly (excluding education and health revenues) that gives false figure of N4 billion, compared to Enugu’s ₦27 billion, Imo’s ₦7 billion, and Anambra’s ₦8 billion.

Abia cannot progress in an environment dominated by political bitterness, administrative pettiness, and personal vendetta. Those of us who continue to speak truth to power while fulfilling our civic obligations deserve commendation, not persecution as that demonstrate our love and commitment to our state 

Abia state Government would have sliced my skin if I have not been consistent with my tax payments . The state belongs to all of us , it's growth and development is our concern.  No matter the harassment and intimidation, We will continue to hold the Government accountable.

©️Ekwedike