Dear Sir,
RIVERS STATE SOCIAL SERVICES CONTRIBUTORY LEVY LAW 2010
We have received a copy of a document we believe is the Rivers State Social Services
Contributory Levy Law 2010 which was signed into law on September 2 2010 by the Government
of Rivers State. We are presently consulting with the National Secretariat of the Trade Union
Congress of Nigeria (TUC) on our next line of action following this latest development. We
however observed the following short-comings which we respectfully plead with you to urgently
address in the interest of the existing cordial relationship between the workers in Rivers State
and the Government of Rivers State:
2. LEGAL CHALLENGES
We had at various meetings and during the Public Hearing organised by the Rivers State House
of Assembly on the Social services Levy bill shared our thoughts that there may be some legal
challenges for Rivers State Social Services Contributory Levy Law 2010 in view of the provisions
of the Taxes and Levies (approved list for collection) Act Cap T2 laws of the Federation of Nigeria
2004 , item 8, Part 11 second schedule to the Constitution of the Federal Republic of Nigeria
1999 as well as the position of the Court of Appeal in ETI-OSA LG. VS MR. RUFUS JEGEDE & ANOR
CA-L 453-2002 and the recent ruling of the Federal High Court sitting in Lagos presided over by
Justice Akinjide Ajakaiye which declared as null and void the Hotel Occupancy and Restaurant
Consumption Tax Law of Lagos State . It is our hope that this was fully considered in the couching
of the Rivers State Social Services Contributory Levy Law 2010 by the Rivers State House of
Assembly.
3. CLARIFICATION ON SECTION 2(3) OF THE LAW
Section 2(3) of the Rivers State Social Services Contributory Levy Law 2010 states that” The amount
payable in a fiscal year shall be the same amount payable in the immediate preceding fiscal year unless
the Board reviews the rate.” We therefore request for clarification from our Honourable speaker, the
Rivers State House of Assembly and the Government of Rivers State whether the Rivers State Board of
Internal Revenue (which is the collection agency under the law) has by virtue of section 2(3) of the new
law been given the power to review the rates in the schedule of rates. This is very fundamental and an
important determinant of the decision of TUC on the new law ,especially since all over the world, it is
the standard practice that a body charged with the power to collect a tax/levy does not have the power
to change the rate of tax. Moreover such a power would mean that the Board has been given the power
to amend as it deems fit the most important aspect of the law without recourse to the Rivers State House
of Assembly and the People of Rivers State. The need for the clarification on this matter cannot be
overemphasised.
4. UNFAIR/ERRONEOUS EXCLUSION OF TUC FROM MEMBERSHIP OF THE BOARD OF TRUSTEES
We are pained that despite all our explanation that labour in Nigeria by virtue of the Trade Unions
Amendment Act 2005 is represented by the Trade Union Congress of Nigeria(TUC) and the Nigeria
Labour Congress(NLC) and not by either of them, we observed that TUC was completely omitted in the
membership of the Board of Trustees. In fact section 5(B) (vii) of the law says “a representative of the
Nigerian labour Congress in the state”. Again recall that during the public hearing we stated clearly
That ” in the event that this bill will be passed into law, that at least one representative of Trade Union
Congress of Nigeria (TUC) and one representative of the Nigeria Labour Congress(NLC) should be
members of the Social Services levy Fund Board of Trustee” and also advised Mr. Briggs who
represented the Attorney General and Commissioner of Justice to accordingly inform his boss .
We would therefore like to believe that this was an erroneous omission as labour cannot be said
to be truly represented on the Board of Trustees when the umbrella body of Senior Staff
Association is clearly excluded. Moreover the exclusion of TUC from the Board makes TUC the
only key contributor to the fund that is not represented on the Board. We therefore request the
Government of Rivers State to quickly effect the correction.
5. OUR PRAYER
The Rivers state Council of Trade Union Congress of Nigeria(TUC) would like to respectfully
appeal that you use your good office to effect the correction in the erroneous exclusion of the
Trade Union Congress of Nigeria in the membership of the Board of Trustees in Section 5 of the
Rivers State Social Services Contributory Levy Law 2010 as well as provide clarification on the
meaning and intention of the Rivers State House of Assembly in respect of Section 2(3) of the
Rivers State Social Services Contributory Levy Law 2010 taking due cognisance of our
explanations as aforementioned in this letter.
We trust that you will swiftly attend to our requests.
Solidarity Forever,
 

For: Rivers State Council of
Trade Union Congress of Nigeria (TUC)
Comrade Hyginus Chika Onuegbu FCA, ACTI
State Chairman