The recent demand by Abuja Municipal Area Council’s (AMAC) for a business owner in the area council to pay a N500,000 levy for owning a television set has sparked outrage across AMAC.
Nyesom Wike Minister, Federal Capital Territory of Nigeria
The demand notice, which surfaced online, has triggered widespread criticism and legal challenges over excessive taxation in Nigeria.
The controversy began when AMAC issued a demand notice to Tela Network Ltd, an Abuja-based infotech firm, requiring it to pay N1 million in arrears for 2023 and 2024, a N500,000 fine, and a N500,000 levy for 2025—totaling N2 million.
The notice directed payment to a designated bank within 14 days.
In response, Tela Network Ltd, through its legal representatives, contested the levy, arguing that the company does not engage in radio or television broadcasting and should not be subject to such charges.
The firm requested AMAC to clarify the legal basis for the demand.
AMAC defended its position, citing a 2012 by-law that classifies businesses into tax categories. The council maintained that “Computer Service Generally” falls under Category B, requiring an annual TV/Radio license fee of N1 million.
The levy has drawn sharp criticism from Abuja residents and legal experts. Many describe it as an unfair financial burden, especially in light of Nigeria’s economic struggles.
Residents argue that taxation should be tied to service delivery, questioning why they should pay exorbitant fees for television ownership when public services remain inadequate.
Social media users have also condemned the levy, with many calling it excessive and exploitative.
A legal expert, Iroh, representing Tela Network Ltd, described the law as draconian and suggested it should be challenged in court.
He acknowledged that while AMAC has the authority to make by-laws, the levy’s implementation appears arbitrary and oppressive.
Liborous Oshoma, human rights lawyer criticized the tax, stating that such levies disproportionately affect low-income individuals while the wealthy often evade enforcement. He urged residents to challenge the demand legally.
Efforts to reach Emeka James, spokesperson, AMAC, were unsuccessful, further fueling speculation and frustration among the affected parties.