FCTA, AMAC Sign MoU To End Double Taxation In Abuja

The Federal Capital Territory Administration (FCTA) through the Department of Outdoor Advertisement and Signage (DOAS) and the Abuja Municipal Area Council (AMAC) have formally signed a binding Memorandum of Understanding (MoU) to delineate clear collection responsibilities for taxes and levies.

The agreement, which was signed in Abuja, also covers permits on ‘first-party’ outdoor advertisements and signage within the nation’s capital.

The MoU, a copy obtained by THE WHISTLER on Sunday in Abuja, stems from a long-standing overlap in mandates, that while AMAC is constitutionally empowered to collect such revenues, the Federal Capital Territory Administration (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 (The First Party) is granted exclusive collection rights from Brothels within AMAC. Filling Stations, Gardens, Event Centres, Shopping Malls and Plazas, Workshops, Lock-up Shops, Eateries and Restaurants, Fashion Houses, Clubs and Pubs, and other business premises not explicitly assigned to DOAS.

While DOAS (The Second Party) 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”, the official said.