NLC threatens protest in Akwa Ibom, gives reasons

The Akwa Ibom State chapter of the Nigeria Labour Congress (NLC) has threatened industrial action against the state government over a newly imposed N100,000 annual permit fee for dispatch riders. The union alleges that the levy is extortionist and that the state Ministry of Transport is engaging in intimidation and unlawful motorcycle seizures. This development raises critical legal questions concerning the constitutional limits of state governments to impose levies, the scope of powers of state transport ministries, and the fundamental right of workers to protest and engage in industrial action under Nigerian labour law. The NLC's stance challenges the legality and fairness of the permit, potentially setting the stage for a significant legal and industrial dispute.

The legal landscape in Akwa Ibom State is currently charged, as the Nigeria Labour Congress (NLC), Akwa Ibom State chapter, has issued a stern warning of impending industrial action. This threat stems from a contentious N100,000 annual permit fee imposed on dispatch riders by the state's Ministry of Transport, which the NLC has vehemently denounced as an “extortionist levy.” The union further alleges widespread intimidation and unlawful seizure of motorcycles by individuals purporting to be members of the ministry's task force.

This escalating dispute transcends a mere disagreement over fees; it brings to the fore fundamental legal principles governing state powers, taxation, and the rights of organised labour in Nigeria. The NLC's planned protest highlights the tension between state governments' drive for internally generated revenue and the constitutional protections afforded to citizens and workers. Legal professionals must therefore critically examine the statutory authority underpinning such levies and enforcement actions, as well as the parameters within which industrial action can be lawfully pursued.

This article will delve into the legal framework surrounding state levies on commercial operators, the powers and limitations of state transport ministries, and the constitutional and statutory rights of the NLC to embark on protests and industrial action. It aims to provide a comprehensive analysis for practitioners navigating similar challenges, offering insights into potential legal avenues and implications arising from such disputes.

The Akwa Ibom State Ministry of Transport and Petroleum is an executive agency tasked with formulating policies, planning, and executing programmes for the development and regulation of transportation infrastructure, including roads, and coordinating revenue generation from transport levies. Recently, the Akwa Ibom State House of Assembly directed the Ministry of Transport to intensify enforcement of regulations on unregistered dispatch riders, citing security concerns and revenue leakages, and to review operational guidelines for dispatch services. The Commissioner for Transport has defended the permit regime as a necessary regulatory measure, particularly given the state's existing restrictions on commercial motorcycle operations in areas like Uyo metropolis, with special permits reserved for essential service providers such as courier services.

In Nigeria, the power to impose taxes and levies is constitutionally delineated among the federal, state, and local governments. The Taxes and Levies (Approved List for Collection) Act, Cap T2, Laws of the Federation of Nigeria, 2004, provides a schedule outlining which tier of government is responsible for collecting specific taxes and levies. While states have powers to legislate on certain matters, the imposition of levies must align with constitutional provisions and existing federal laws. The Supreme Court has, in various instances, affirmed the federal government's exclusive control over certain sectors, such as inland waterways, and declared state levies inconsistent with the Constitution and the Taxes and Levies Act as unlawful.

Concurrently, the right to protest and engage in industrial action is a cornerstone of labour rights in Nigeria. Section 40 of the Constitution of the Federal Republic of Nigeria 1999 (as amended) guarantees every person the right to assemble freely and associate with others, including forming or belonging to trade unions for the protection of their interests. This fundamental right has been judicially affirmed, notably in *Inspector General of Police V All Nigeria Peoples Party (2008) 12 WRN 65*, where the Supreme Court held that a police permit is not required for peaceful assemblies or protests. However, the exercise of the right to strike, as a form of industrial action, is regulated by the Trade Unions Act, Cap T14, LFN 2004 (as amended by the Trade Unions (Amendment) Act 2005) and the Trade Disputes Act, Cap T8, LFN 2004, which prescribe mandatory preconditions such as written notice and a secret ballot before a strike can be deemed lawful.

The NLC's contention that the N100,000 annual permit fee is an “extortionist levy” warrants a close examination under Nigerian tax and administrative law. The Taxes and Levies (Approved List for Collection) Act, 2004, specifies the taxes and levies collectible by each tier of government. While the Act lists items like “Motor park levies” and “Bicycle, truck, canoe, wheelbarrow and cart fees” for local governments, it does not explicitly provide for a state-level “dispatch rider permit” of this magnitude. The Supreme Court, in *A-G of Abia State & ors v Imo Transport Company Limited: SC/284/2017*, has previously invalidated state levies found to be inconsistent with the 1999 Constitution and the Taxes and Levies Act. Similarly, the Federal High Court has declared Section 1(2) of the Taxes and Levies (Approved List for Collection) Act, which allowed the Minister of Finance to amend the schedule, as unconstitutional, reinforcing the principle that legislative powers for taxation reside with the National Assembly and state Houses of Assembly, not the executive.

While the Akwa Ibom State Ministry of Transport is empowered to regulate transportation and generate revenue, the quantum of the N100,000 fee and the alleged arbitrary increase from N15,000 in 2023 to N100,000 in 2026, as stated by the NLC, raise questions about its reasonableness and legality. The Akwa Ibom State House of Assembly's directive to enforce regulations on unregistered dispatch riders and review operational guidelines provides a legislative basis for regulation, but this must still conform to the broader constitutional framework on taxation and fundamental rights. The Commissioner's defence that the permit is for regulation and to prevent fraud does not automatically validate the specific fee if it is found to be ultra vires the state's powers or disproportionate.

The NLC's threat of protest is firmly rooted in Section 40 of the 1999 Constitution, which guarantees the right to peaceful assembly and association. This right has been consistently upheld by Nigerian courts, including the Supreme Court in *Inspector General of Police V All Nigeria Peoples Party (2008) 12 WRN 65*, which eliminated the requirement for police permits for protests. However, if the NLC's action evolves into a strike or industrial action involving a cessation of work, it would then be subject to the more stringent procedural requirements of the Trade Unions Act and the Trade Disputes Act. These Acts mandate conditions such as a written notice to the employer and a secret ballot of union members to approve the strike, failing which the industrial action may be declared unlawful by the National Industrial Court.

The allegations of intimidation and unlawful motorcycle seizures by the Ministry's task force also raise concerns about due process and property rights. The Akwa Ibom State Road Traffic Law and other relevant regulations would govern the conditions under which vehicles can be impounded and fines imposed. Any seizure without lawful authority or outside established legal procedures would constitute a violation of the dispatch riders' rights and could expose the state government and its agents to legal liabilities. The Commissioner's claim that previous permit collections were not remitted to the government, implying fraud, while serious, does not justify unlawful enforcement actions against current operators.

The dispute between the Akwa Ibom NLC and the State Ministry of Transport underscores a recurring tension in Nigerian governance: the balance between state revenue generation and adherence to constitutional and statutory provisions, particularly concerning the rights of citizens and workers. For legal practitioners, this scenario presents multiple facets requiring careful consideration. Clients operating commercial dispatch services in Akwa Ibom should be advised to scrutinise the legality of the N100,000 permit fee in light of the Taxes and Levies (Approved List for Collection) Act, 2004, and relevant judicial pronouncements on state levies. Potential legal challenges against the levy, or against unlawful seizures, could be mounted on grounds of ultra vires powers or violation of fundamental rights.

Conversely, the NLC, while exercising its constitutionally guaranteed right to protest under Section 40 of the 1999 Constitution, must ensure that any planned industrial action strictly adheres to the procedural requirements stipulated in the Trade Unions Act and the Trade Disputes Act to avoid its declaration as an unlawful strike by the National Industrial Court. The outcome of this dispute will likely have significant implications for commercial operators and state revenue policies across Nigeria. Practitioners should closely monitor any judicial pronouncements on the Akwa Ibom permit, legislative actions by the State House of Assembly to clarify or amend transport regulations, and the NLC's strategic response, as these will shape the future of regulatory compliance and industrial relations in the state.