Federal Capital Administration, Council Sign Agreement To End Revenue Feud

Federal Capital Territory Administration (FCTA) through the Department of Outdoor Advertisement and Signage (DOAS) and the Abuja Municipal Area Council (AMAC) have signed a Memorandum of Understanding (MoU) to end years of jurisdictional conflict.

The agreement, signed at the weekend, delineated clear collection responsibilities for taxes, levies, and permits on ‘first-party’ outdoor advertisements and signage within the nation’s capital.
The MoU which was forwarded to journalists stems from a long-standing overlap in mandates, that while AMAC is constitutionally empowered to collect such revenues, the FCTA had earlier created DOAS to regulate the sector and collect levies, with revenue shared among all area councils.

The preamble to the document states its core objective, “to put a stop to the lingering conflict between parties and to define the area of coverage in respect of the collection of the said revenue.”
The MoU commits both parties to collect revenues within AMAC’s boundaries but assigns specific business sectors to each.

AMAC is granted exclusive collection rights from brothels within the council. filling stations, gardens, event centres, shopping malls and plazas, workshops, lock-up shops, eateries and restaurants, ashion houses, clubs and pubs, and other business premises not explicitly assigned to DOAS.

While DOAS is mandated to collect from banks and other financial institutions, schools, furniture houses, automobile shops, hospitals and other medical houses and construction companies.

According to the MoU, to ensure compliance, a six-member Technical Committee, with three representatives from each side, will be established.

An AMAC representative will serve as chairman, while DOAS will provide the secretary.
This committee is tasked with reviewing the MoU, monitoring the revenue collection process, and ensuring strict adherence.

The parties have also committed to regular dialogue and agreed to seek any ADR mechanism that is viable and best suited to resolve any future conflicts before pursuing other avenues.

While the official signatures on the document were witnessed by civil servants, the agreement represents a high-level administrative resolution.

A senior official within the FCTA, who spoke on condition of anonymity, hailed the MoU between the two parties.

“This is a victory for order and inter-agency cooperation. For too long, business owners have been caught in the middle, facing double taxation and confusion. This clarity will improve the ease of doing business and boost overall revenue collection efficiency.

“We are relieved to see a clear framework. Businesses in the FCT have suffered from the tussle between these two government bodies. We urge strict adherence to this agreement to foster a predictable business environment,” he said.

The MoU is binding for an initial term of one year, after which it can be renewed or rescinded by mutual consent. Any variations must be agreed upon in writing.

The document concluded with a unique judicial endorsement, bearing the stamp of the High Court of the FCT and the notation ‘For Oath,’ underscoring its formal legal standing.

The agreement is expected to end the recurrent clashes between AMAC and DOAS field officers, streamline compliance for businesses, and potentially increase overall revenue generation for the city’s administration.