By Desire Uzochukwu
The Abia State Government has dismissed reports that akara sellers and other petty traders are being charged N50,000 as tax, describing the claim as “pure fallacy.”
The government said akara sellers do not pay the alleged tax, but are subject to daily tolls, insisting that no new tax rates had been introduced by the present administration.
Commissioner for Information, Prince Okey Kanu, made the clarification on Monday while briefing journalists on the outcome of the State Executive Council meeting presided over by Governor Alex Otti.
The controversy over taxation, particularly allegations of excessive levies on petty traders, had generated concerns among residents and traders in the state.
Kanu, however, said the Abia State Board of Internal Revenue, BIR, lacked the power to impose or increase tax rates without enabling legislation.
“For starters, these rates are not new. Most of the rates are 2020 tax rates that were introduced by the previous government.
“Let me reiterate that the Board of Internal Revenue cannot raise tax rates without the backing of enabling laws. And no such increases have been introduced by the Abia State Government,” he said.
Specifically addressing the N50,000 allegation involving akara sellers, Kanu said: “This is pure fallacy. Nothing can be further from the truth. Akara sellers don’t pay tax or levies. They pay daily tolls. And none can pay N50,000.”
Chairman of the Abia State Board of Internal Revenue, Mr Uche Elekwachi, backed the commissioner, saying there was no provision in the state’s tax framework requiring akara sellers to pay N50,000.
He explained that the Abia Internally Generated Revenue Service Law governing the revenue system was enacted in 2020, before the Otti administration assumed office.
“This whole thing has always been in existence. The Abia Internally Generated Revenue Service Law was enacted in 2020 long before this government came onboard, so we need to make that clarification,” Elekwachi said.
Kanu also said demand notices issued by the BIR were provided for under the law, urging taxpayers to comply with legitimate tax obligations while assuring that complaints would be addressed by the appropriate authorities.
Gratuity: 2011–2025 retirees next
The government also announced that it was preparing to commence the next batch of outstanding gratuity payments to retired workers, following the completion of payments covering retirees from 2001 to 2010.
Kanu said the next batch, covering 2011 to 2025, would commence after ongoing verification and other internal processes had been concluded.
He explained that the payments were being made in batches because of the financial burden involved, rather than through a single payment.
“The payments will be in batches. The funds involved are huge for one balloon payment,” he said.
Kanu also dismissed reports that gratuity payments would stop in 2031, explaining that the State Gratuity Committee’s recommendation for gratuity provisions in the 2026–2031 Medium-Term Expenditure Framework was aimed at preventing the accumulation of fresh arrears.
“That does not translate to payments being terminated in 2031. As the internal processes and verification of beneficiaries of these payments continue, due payments would still be made in batches,” he said.
He expressed optimism that the state could clear its outstanding gratuity liabilities earlier than projected.
“The conclusion of payment of outstanding gratuities may happen earlier than we ever imagined. Let us therefore wait and see how the next batch of payments will unfold,” Kanu said.
Aba gets creative city status
Meanwhile, the state government has designated Aba as a Creative and Innovative City, citing the commercial, industrial and creative significance the city has built over the years.
Kanu said the declaration was part of the administration’s broader plan to leverage Abia’s cultural assets to drive tourism and economic opportunities.
The government also approved the designation of the National War Museum, Umuahia; Ojukwu Bunker, Umuahia; and Government College, Umuahia, as State Monuments.
Ibom Waterfall in Arochukwu and Ulochukwu Cave in Alayi, Bende Local Government Area, were also designated State Natural Monuments.
“These sites have been elevated to heritage sites that enhance the state’s tourism potential. With this approval, they are primed to attract recognition as UNESCO Heritage Sites,” Kanu said.
He disclosed that retrofitting of the Ojukwu Bunker and National War Museum had reached about 80 per cent completion and was expected to be concluded before the end of 2026.
The government has also approved the development of the Ibom Waterfall Tourism Corridor in Arochukwu, with grading of access roads already underway.
Kanu said the project was expected to be completed before the end of the year.
He added that the government had begun erecting monuments at strategic locations to preserve Abia’s heritage and honour notable figures, including the heroines of the 1929 Aba Women’s Riot.
The Commissioner for Arts, Culture and Creative Economy, Mr Matthew Ekwuribe, and Special Adviser to the Governor on Internally Generated Revenue, Dr Emmanuel Okpechi, attended the briefing.
