State Agency on Signage and Advertisement has no Powers

Introduction

The High Court of Ondo State delivered a landmark judgment in Suit No AK/309/2022, holding that the Ondo State Signage and Advertisement Agency (OSSAA) overstepped its statutory authority by imposing and collecting advertisement levies from entities outside its jurisdictional purview. This decisive ruling constitutes a significant milestone in administrative law and statutory interpretation, specifically concerning the powers and limitations of governmental agencies.

The instant case arose from a dispute between a Fast Moving Consumer Goods business (FMCG) operating outside Ondo State, and the Ondo State Signage and Advertisement Agency (OSSAA). The agency imposed advertisement levies on the company, which OSSAA subsequently petitioned against for non-payment. In response, the FMCG Company challenged the legality of the levies, prompting a judicial review of OSSAA’s actions. The central issue before the court was whether OSSAA’s imposition of advertisement levies from the Company constituted an ultra vires act, i.e., an exercise of power beyond what was granted by its enabling statute.