Business owners decry double taxation in Abuja

Operators across the hospitality, food, and service sectors have complained of persistent demand notices, threats of sealing, and court summonses by Abuja Municipal Area Council (AMAC) for services they have already paid the Federal Capital Territory Authority. According to the business owners, this contravenes two landmark court decisions that invalidated AMAC’s actions. In a press […]

Operators across the hospitality, food, and service sectors have complained of persistent demand notices, threats of sealing, and court summonses by Abuja Municipal Area Council (AMAC) for services they have already paid the Federal Capital Territory Authority.

According to the business owners, this contravenes two landmark court decisions that invalidated AMAC’s actions.

In a press briefing, they said the action of AMAC is against Bureau of Public Enterprises (BPE) vs. Abuja Municipal Area Council (Suit No. FCT/HC/CV/546/2022), delivered on March 13, 2023, by Hon. Justice Muawiyah Baba Idris which declared AMAC’s 2020 Environmental Sanitation and Premises Inspection Bye-Law illegal and void for lacking the mandatory ministerial approval required under Section 43 of the Public Health Act.

They said the court held that AMAC had no authority to legislate or enforce public health regulations, describing the move as a usurpation of powers reserved for the Federal Ministers of Health and Environment.

“That position was further reinforced on February 14, 2025, in Devyani International Nigeria Ltd. (KFC) v. AMAC (Suit No. CV/1642/2024), where Hon. Justice Y. Halilu ruled that food safety regulation, medical fitness certification, and environmental health services fall squarely within the FCTA’s jurisdiction. Relying on the National Health Act 2014, the FCT Establishment Order No. 1 of 2004, and the earlier decision in Dunes Investment & Global Services v. AMAC (July 12, 2023), the court described AMAC’s actions as unlawful trespass. It ordered a refund of ₦1,222,000 wrongfully collected and issued a perpetual injunction restraining AMAC from further enforcement.”

However, they say the rulings have had little practical effect, saying after settling FCTA-approved fees, AMAC officials arrive with fresh demands for identical services.

Rebecca Aminu, a business owner affected by the enforcement, expressed frustration while speaking to journalists.

“We’ve complied fully with FCTA requirements, yet AMAC keeps issuing notices for the same certifications and threatening to seal our premises. This harassment is crippling small businesses in Abuja,” she said.

Another operator, Folorunsho Emmanuel, echoed similar concerns. “Once you pay FCTA, AMAC comes next asking for the same money for the same service. When you resist, you’re dragged to court. This double taxation is unsustainable,” he stated.

Speaking with newsmen, Alex Ogenna Ibe, the FCTA Legal representative reiterated the subsisting court orders and warned against continued defiance.

He cautioned that flouting valid judgments amounts to contempt of court and disclosed that affected FCTA is already considering further legal redress to compel compliance and protect business operations. He added that remittances should only go to FCTA and otherwise would not be recognized

Director of Public Health at the FCT Health and Human Services Secretariat, Dr. Dan Gadzama, issued a stern warning, stating that any business owner who continues to make payments to AMAC on matters already settled by the courts does so at their own risk.