The Ogun State government has come under intense scrutiny following accusations of engaging in targeted actions against the former Governor and current Senator representing Ogun East District, Otunba Gbenga Daniel.
This development comes just a few months after the controversial demolition of the DATKEM Plaza, owned by Yeye Olufunke Daniel, and raises concerns about potential political vendettas.
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Recall that on September 10, 2023, when the Dapo Abiodun-led government demolished a N1 billion worth five-storey building. According to Engr Olusegun Lawal, the project manager, the demolition of the building, which construction had begun in 2009 with full approval from the relevant authorities, commenced at 3 am on that fateful Sunday.
The Ogun State Inland Revenue Service is now accused of approaching the bankers of the Gateway Front Foundation (GFF), a non-profit organization associated with Otunba Daniel, to request statements of accounts dating back to 2020.
Political observers view this move as a continuation of what they perceive as an assault on the Senator.
Speculations about strained relations between Governor Dapo Abiodun and Otunba Gbenga Daniel have circulated, with some attributing it to the latter’s decision to vie for the Senate in the last election—a position seen as a potential retirement package that Governor Abiodun may have eyed after his second term in office.
A source close to the political dynamics in the state remarked, “For that position to have been successfully occupied by OGD, who happens to be a political heavyweight in Ogun State, will definitely not sit well with the governor because what would he be doing after his second term in office. Don’t forget that both men are from the same senatorial district.”
The attempt by the Ogun State tax office to scrutinize the financial records of GFF is deemed absurd by many due to the non-taxable status of NGOs in Nigeria. Furthermore, GFF is not registered in Ogun State, thereby placing its operations outside the state’s oversight.
According to existing tax laws, NGOs are generally tax-exempt as long as they do not derive profits from any trade or business. Section 23(1) of the Companies Income Tax Act (CITA) supports this exemption for statutory, charitable, ecclesiastical, educational, or similar associations.
Information available to Freelanews reveals that GFF, registered on June 11, 2002, operates from 376, Ikorodu Road, Maryland, Lagos.
Its primary objectives include providing free medical care, scholarships, and interest-free loans to small-scale farmers as demonstrated when over 400 traders and artisans from the nine local government areas of Ogun East Senatorial District were selected as beneficiaries of the first phase of the revolving N50,000 per head loan scheme.
The foundation recently distributed thousands of fertilizers to local farmers in Ogun East, aiming to support agricultural growth in the region.
Contrary to the alleged financial scrutiny, GFF operates with a team of volunteers and no salaried staff, meeting the criteria for being untaxable in Ogun State under Section 2 of the Personal Income Tax Act, 2011.
Political analysts condemn the government’s actions, describing them as indicative of idleness and bitterness. They argue that such actions divert attention from the government’s primary responsibility—to improve the living conditions of citizens, especially as economic challenges persist.
The situation is viewed as a descent into “the ignoble sewage of pettiness,” as stated by one political analyst.
Ojelabi, the publisher of Freelanews, is an award winning and professionally trained mass communicator, who writes ruthlessly about pop culture, religion, politics and entertainment.
