Polaris Bank has petitioned the Niger State High Court in Minna to dismiss a criminal charge brought against its Managing Director by the Niger State Internal Revenue Service (NIRS).
The charge relates to the alleged failure of the bank to provide information about customers who applied for foreign exchange through its services.
In its application, Polaris Bank, through its solicitors, raised a preliminary objection to the High Court’s jurisdiction, describing the charge as an abuse of court process. The bank argued that the matter is already subject to litigation at the Federal High Court in Abuja, in a case involving 21 banks and 16 states (Suit No: FHC/ABJ/CS/120/2023 Access Bank Plc & 20 Ors vs Attorney General of Abia State & 15 Ors). Polaris Bank contends that allowing the Minna case to proceed would undermine any judgment in the Federal High Court matter.
The NIRS initially filed a First Information Report (Case No: NSHC/MN/18/24) at the Minna High Court, accusing Polaris Bank and its Managing Director, Omokayode Lawal, of failing to request Tax Clearance Certificates from applicants for foreign exchange transactions, contrary to Section 85 of the Personal Income Tax Act.
Justice Maimuna Abubakar of the Minna High Court recently vacated a bench warrant issued against the bank’s branch manager but upheld the warrant against the Managing Director for failing to release tax-related information.
Polaris Bank’s counsel, Usman Sule SAN, has urged the court to strike out the charge, citing several reasons, including:
- The subject matter is already under litigation at the Federal High Court, Abuja.
- The NIRS, as an agency of Niger State, is privy to the Federal High Court case through the Attorney General of Niger State, who represents the state and its agencies in that suit.
- The charge represents an abuse of judicial process, aiming to render the Abuja case ineffective.
- The Central Bank of Nigeria, not Niger State, is the appropriate authority to address the alleged infractions.
Justice Abubakar has adjourned the case, with a new date to be communicated to all parties.
