Inside Story Of Why OAU Was Shut Down By IRS

By Ayobami Agboola, Osogbo

The Osun State Internal Revenue Service has closed down the Obafemi Awolowo University OAU, Ile-Ife over an alleged nonpayment of taxes.

The institution was shut by official of the Revenue Task Force who arrived the campus at about 7:00 on Wednesday morning

Our correspondent comprehensively gathered  that officials of the revenue agency swooped on the university and sealed the Senate building, the administrative block and the bursary, before they proceeded to the main gate and pit it under lick and key. 

The closure of  OAU and other establishments in the state followed the expiration of the seven-day ultimatum issued by the  state government to private organizations public establishments alike. 

Some of the organisations   closed down included  a construction company, Sammiya Construction Company and a money lending company, LAPO Agric located along Gbongon/Ibadan road, Osogbo

The Special Adviser to the Governor on Tax Matters and Revenue Generation, Barrister Jimoh Gbenga Akano, confirmed the closure of the institution and the companies to our correspondent.

Akano revealed that OAU owed the state government about N1.8 billion and they had no choice than to seal after the management of OAU refuses to meet up with the deadline issued to them.

According to him, the money owed by the Institution is outstanding unremitted PAYE withholding taxes and developments levy which had become due and payable since year 2015 and 2016.

“It is callous and act of wickedness for any organization to refuse to pay taxes. We are all know that the state is suffering from financial malaria because of the meager in the Federal allocation orchestrated by the current economic recession.

“The Federal allocation is not sufficient not only to run government but also to meet the financial obligations of the State.

“We had earlier issued all the affected establishments seven-day ultimatum which was even given a wide media coverage and we expect every responsible organisations to come to us for dialogue.

“But as at this morning, OAU management refuse to approach us for any dialogue, they did not responded, while some of other affected companies have responded.

“Sammya owed the state government about 5millions naira, just as LAPO Agric owed 7million. We have appealed to all the establishments and individuals owing the state government to pay but many of them refused to do so, ” he said

Speaking on the efforts of the agency to far, the S A said that the state internal revenue has improved by 35 percent, urging all the establishments and individuals on the need to discharge their civic responsibility by promptly paying their taxes and other levies.

In his reaction,  the Public Relations Officer, Obafemi Awolowo University,  Mr Abiodun Olanrewaju, said the management would  soon resolve the issue with the state government.

Olanrewaju said that the debt was inherited from the past administration of the institution.

“I must add this that the present university administration since 2017 has been paying consistently but the backlog of debt inherited from the past administration is what is causing this little problem.

“Everything will be resolved by the grace of God. The school management is assuring the public that it will soon be resolved,” Olanrewaju said.