Ben Ezechime, Enugu
The Coal City Hotel Owners Welfare Association (CCHOWA) has condemned the sealing of hotels in Enugu by the Enugu State Government through the State Internal Revenue Service (ESIRS), describing the action as a flagrant disregard for a subsisting court order.
Addressing journalists in Enugu, counsel to the association, Barrister Chijioke Ezeh, said the state government’s action amounted to contempt of court.
He explained that the association had approached the Federal High Court to challenge what it considered double taxation arising from the state’s demand for “purchase tax” and land use charges.
“The Enugu State Government, through its Finance Law, empowered ESIRS to collect purchase tax on consumables, but the Value Added Tax (VAT) Act vests that power in the Federal Government through the FIRS. We consider this double taxation and have therefore sought judicial interpretation,” Ezeh stated.
According to him, the association filed Suit No: FHC/CS/308/2025 at the Federal High Court, with the Enugu State Government, the Attorney General, and ESIRS listed as respondents.
“To our surprise, while the matter is still pending, government agents began sealing hotels across the state based on a purported court order, which neither I nor my clients have been served,” he said.
Ezeh urged the state government to desist from further sealing of the hotels, emphasizing that the matter was already before a competent court. He noted that his clients were law-abiding citizens who have continued to fulfill their tax obligations.
Also speaking, CCHOWA Chairman, Dr. Johnson Ugwuoke, lamented that hotel owners were being unfairly targeted despite being major employers of labour in the state.
“Our industry is the second-largest employer of labour after the government. We are law-abiding investors who have contributed significantly to the state’s economy. However, the enforcement of these new taxes and the sealing of our hotels are unjustified and embarrassing,” Ugwuoke said.
He added that sealing hotels with guests and tourists inside, including foreigners, paints Enugu in a bad light.
“All we ask for is legal clarification by a competent court. We will abide by whatever decision the court makes,” he assured.
Other members of the association echoed the same concerns and appealed to the government to respect the rule of law and allow the judicial process to take its course.
