Advocacy For Decent Society (ADS), through its lawyer, Ogunmola Olaseyi Esq. of PP. Olayombo, Olasupo & Co law firm has petitioned the chairman of the Economic and Financial Crimes Commission (EFCC) to investigate cases of alleged fraud, cheating, extortion and illegal imposition of tax against Four Core Limited and the Federal Capital Territory (FCT) motorists and vehicle owners under the pretence of unlawful VREG policy of Federal Ministry of Finance in the Federal Capital Territory.
In a letter dated September 12, 2024, the group asked the EFCC chairman, Ola Olukayode, to investigate “why motorists in FCT Abuja are being charged N2,500 and is not receipted as no certificate is issued called V-Reg certificate. Where is the law that made VREG part of the documentation requirement as vehicle particular? What is the sharing formula for this fee? How much goes to the Federal Ministry of Finance, Vehicle Inspection Authority and the Private Companies? And what is the benefit of the scheme superior to ECMR of police that was suspended?”
The group said “It is based on this that we convey to you the prayers of our client as follows: That a quick investigation be launched into the activities of Four Core Ltd on the imposition of V-Reg charges in FCT for the purpose of justice; That the V-Reg policy of the Federal Ministry of Finance on FCT be suspended pending such investigation; That the role of director of Vehicle Inspection Authority (who is presumed to be professional) in this entire saga be investigated and if found culpable, be prosecuted and that such policy be permanently terminated if found to be fraudulent and/or unlawful, and perpetrators, organisations and persons that unlawfully benefited from this be brought to justice.”
Giving further details on the petition, the group said: “The attention of our client has been brought to some unlawful activities and practices of Four Core Ltd, a company contracted by the Federal Ministry of Finance in 2018 to capture all vehicles imported to Nigeria and issue a V-Reg Certificate at the cost of N15,000 per vehicle cleared from all Nigeria ports.
“Despite the uproar and protest by clearing agents and stakeholders, The Nigeria Custom Service still found a way to integrate the fee into the vehicle clearing charges.
It is, however surprising that this company, in the guise of V-Reg, has found its way into the Federal Capital Territory vehicle registration portal by imposing and collecting some amount of funds on every vehicle owner in the Federal Capital Territory as part of vehicle registration documents.
“This policy, termed as V-Reg vehicle registration, has been in operation in FCT since July 2024. It is a policy wherein a vehicle owner, at the point of registration (among other vehicle particulars), pays the extra sum of N2,500 as a vehicle registration certificate. Our client, in her private investigation, realised that the payment of the V-Reg certificate was not only illegal but fraudulent.
“Firstly, it is illegal in its entirety and there is no any legal justification to impose
such a payment to the vehicle owner. There is no law in Nigeria governing vehicle registration that makes provision for a V-Reg certificate or payment of the same as one of the motor vehicle registration documents. Upon a thorough perusal of the National Road Traffic Regulations 2012 and the Federal Capital Territory Road Transport Regulation 2005. The four important documents a car owner should possess include vehicle license registration, proof of ownership, driver’s license; and certificate of road worthiness.
“It should also be noted that the power to make law in respect to motor vehicle administration is a residual power as it is not an item within the exclusive or concurrent legislative list set out in the second schedule, Part 2, of the Constitution of the Federal Republic of Nigeria, 1999 (as amended). Thus, the question a reasonable person will ask is how can the Federal Ministry of Finance be said to be involved in a residual matter by using their agent to impose vehicle tax on Federal Capital Territory vehicle owners without the approval of the FCT Internal Revenue Service.
“Secondly, in spite of the unfounded and ungrounded legal justification to impose such payment on vehicle owners, it is saddening to know that upon payment of the said N2,500, no such V-Reg certificate is being issued to vehicle owners. To buttress this point, our client’s secretary general Mr. Philip Undie, reported that he was at the vehicle registration office at Mabushi, Abuja on September 12, 2024 to renew his expired Honda CRV documents and was made to pay the sum of N26,000. The payment included a V-Reg certificate but upon issuance of documents, the V-Reg certificate was not among the documents issued to him.
“Our statistics revealed that an average of 60,000 vehicles are being processed in Abuja monthly; if that figure is multiplied by N2,500, that gives us a total of N150,000,000.
This is an average estimate of money fraudulently siphoned from unaware and innocent FCT vehicle owners monthly.
“Honorable chairman sir, the unscrupulous activities of the Four Core Ltd (an agent of Federal Ministry of Finance) to unlawfully impose extra payment on innocent vehicle owners is not only unconstitutional, vexatious and alarming (as the basis for such action cannot be founded on any law known to the Federal Republic of Nigeria), the illegal payment of N2,500.00 without the issuance of the certificate is fraudulent, cheating and constitute grievous gross misconduct.
“Recall that a policy similar to this was launched recently by the Nigeria Police Force tagged Electronic Central Motor Registry (ECMR), but was suspended because it was not in conformity with the provisions in the Nigeria Police Act. Again, sir, this fraudulent V-Reg policy of the Federal Ministry of Finance and her ally is against the renewed hope policy of the president of the Federal Republic of Nigeria which aims at ensuring all citizens enjoy the smooth benefit of good governance and good economy.”
