State Government shuts Federal College of Education over N580m tax default

Federal College of Education, Obudu

The Cross River Government on April 12 shut the Federal College of Education, Obudu, for allegedly defaulting in tax remittance.

The closure was carried out by agents of the State Internal Revenue Service, citing a state High Court ruling in a suit filed by the government against the college for defaulting in tax payments.

According to the service, the court had on December 7, 2012 given the management of the college a 120-day ultimatum to pay its tax indebtedness or face sanctions.

The ultimatum expired on April 7 and the state government gave the school additional five days grace before moving in on April 12 to seal up the institution.

The school, which resumed from Easter holiday on April 10, had its main gate sealed by operatives of the service on April 11.

Security operatives, including armed mobile policemen, soldiers and officials of the Nigerian Security and Civil Defence Corps cordoned off the school premises to forestall any academic or administrative activities.

The Director of Legal Services of the revenue agency, Greg Okem, said in Calabar that the school owed government N580 million in tax remittances.

He said the amount is in respect of deductions from academic and non-academic staff of the school in the past seven years.

“We have been on this for a long time now and the people do not seem to be interested in paying the money which they have long deducted from their staff,” he said.

“They have allowed the money to accumulate for a long time and that accounts for their finding it difficult to pay.

The Senate of the institution reportedly began the process of challenging the action of the government, by consulting lawyers to file an appeal on the matter before the school was shut.

The institution’s Information Officer, Justine Egba, who confirmed the incident, declined further comments.

Some students who reported for classes were turned away.

Some of them said that they would return home to await further instructions on the re-opening date.