One best way to address the lingering crisis of climate change within the African continent is to devise Artificial Intelligence solutions that are wholly homegrown.
Firing the first salvo in Africa during a webinar to commemorate Africa Day 2024, Prof. Rose Margaret Ekeng-Itua, the founder of African Technology and Innovation Institute (ATII) called for Afrocentric Artificial Intelligence (AI) development for climate action.
Africa Day is the annual event celebrated in Africa and across the world every May 25 to commemorate the foundation of the African Union (AU) established as Organisation of African Union (OAU) on May 25, 1963. This year’s event is themed: “Education Fit for the 21st Century.”
At the webinar hosted by ATTI’s Prof. Rose-Margaret, panelists across the continent of Africa discussed and proffered solutions to Africa’s preparedness for its future at the event themed “Responsible Artificial Intelligence (AI) For Climate Action in Africa.”
On the panel were Prof. Jerry John Kponyo, Dean of the Quality Assurance and Planning Office of the Kwame Nkrumah University of Science and Technology (KNUST), Ghana; Mrs Nela Duke Ekpeyong, a conservationist, and Co-Founder/CEO of LEGA.C Capital; and Mr. John Kamara, the CEO of Adanian Labs and Chair of the AI Center of Excellence Africa.
According to Prof Rose-Margaret, the world’s first black woman to earn a Ph.D. in Cybernetics, Africa must equip its human talents with the necessary skills to utilize AI in addressing African challenges, especially for climate action. Citing the recent devastating flooding in Kenya, she said “the far-reaching effects on climate action are real and they are here in Africa. It is high time we acted on it and Africa should be at the center forward in this leadership of climate action.”
For Prof. Kponyo, Africa must decide an area of focus and own the space. “We must invest in research and development to lead the conversation on climate action, ensuring that policies we put together address where we want to be as against a global policy or protectionist agenda.”
“It is important for us to first build capacity among the users of new technologies to increase adoption. And this capacity building scope should not be limited to only the formal sector, it must be holistic and inclusive.”
One of the challenges of the real estate sector in Nigeria is that of availability of data, records and professional reports. Current moves by President Real Estate Developers’ Association of Nigeria (REDAN), Akintoye Adeoye, has raised hope of its achievement shortly.
Established as the foremost agency and overall body representing the organized real estate sector, both public and private, REDAN has been actively engaged in constructive advocacy efforts aimed at advancing mass housing initiatives for Nigerians.
Speaking in an event in Lagos the REDAN chief said they will engage the government to address critical issues surrounding shelter in the country by advocating for policies that promote accessibility to housing for all citizens.
Adeoye said: “REDAN will provide members with exclusive access to market intelligence reports, data analytics, and research insights. We will establish an accelerator and incubator programme to support real estate technology startups (prop-tech) and entrepreneurs in the built environment, offering mentoring, funding opportunities, and resources such as office space and legal support. Our plan is to establish governance in the real estate sector.”
According to him, the association will take a leadership role in creating regulatory frameworks and governance for the real estate industry.
He further advocated for the recapitalisation of the Federal Mortgage Bank of Nigeria (FMBN), to facilitate affordable housing.
Also, he stated that he will institutionalise the association by collaborating with relevant institutions of government to sponsor a bill to back its existence and implement self-regulation to promote discipline and professionalism, thereby continuing its role in advancing mass housing for Nigerians.
The association he said has been recognised by the Federal Government since 2002, with its relevance stated in Section 2.6.2.6 of the 2012 National Housing Policy, where it is recognised and extensively referenced.
Beyond advocacy, REDAN is also deeply committed to safeguarding the interests of its members by providing comprehensive support, including legal assistance, capacity building, networking opportunities, and other measures to uphold industry integrity and protect consumer interests, he stated.
Building on this vision and mandate, the REDAN chief said he will pursue collaboration with government agencies and parastatals, including the Housing ministry, Federal Mortgage Bank of Nigeria (FMBN), Family homes and Federal Housing Authority (FHA).
In addition he disclosed that part of his plan is to collaborate with key ministries and parastatals to sponsor a bill to back its existence and implement self-regulation to promote discipline and professionalism, to continue in its role to advance mass housing for Nigerians.
In a significant stride towards international financial reporting standards, Stanbic IBTC Insurance, a subsidiary of Stanbic IBTC Holdings, has emerged as the first insurance company in Nigeria to have successfully obtained vetting and approval from the National Insurance Commission (NAICOM) for its 2023 full year financial report.
As the first insurance provider to receive such vetting by the industry regulator, this achievement comes on the heels of the insurance company’s adoption of the International Financial Reporting Standard (IFRS) 17 standardisation process, showcasing its commitment to transparency and adherence to global accounting practices.
The International Financial Reporting Standard (IFRS17) which was issued by the International Accounting Standards Board in May 2017; implemented in Nigeria in January 2023 and adopted by the National Insurance Commission, mandates all insurance firms to upgrade their financial reporting model by migrating from the IFRS4 model to the IFRS17 model. The IFRS 4 model allows companies to continue using existing local accounting practices, leading to inconsistencies and challenges in comparing financial statements across different jurisdictions. Thus, the model lacked uniformity in accounting practices as well as hindered comparability and transparency.
Spurred by the need for a more robust and comprehensive standard that could better address the complexities of insurance contracts, the IFRS 17 represents a paradigm shift in accounting for insurance contracts. The model provides a consistent and transparent approach to insurance contract accounting. The model also gives a basis for users of financial statements to assess the effect that insurance contracts have on the entity’s financial position, financial performance and cash flows; as well as provides easier access to external capital and an increase in foreign direct investment.
SoftAlliance, a technology solutions provider has marked two decades of groundbreaking achievements and transformative contributions to the tech industry.
Established in 2004 with a vision to be a world-class information and communication technology organisation, SoftAlliance has emerged as a pioneering force, setting new standards for innovation, leadership, and excellence.
The company’s journey has been marked by numerous milestone achievements, including excelling in providing managed services, cloud solutions (including SaaS and PaaS), and bespoke technology solutions to a diverse clientele across Africa, including Ghana.
Reflecting on this milestone, Bisi Aina, Managing Director of SoftAlliance, emphasised, “SoftAlliance proudly stands as a testament to resilience, innovation, and customer-centricity. With two decades of experience and a proven track record of success, we are committed to driving digital transformation and delivering unparalleled value to our clients.
“As we embark on the next chapter of our success story, we express gratitude to all who have been part of our journey. Our 20th anniversary is a testament to our ongoing commitment to innovation, excellence, and client satisfaction.”
An auto firm, Carloha, has held a test drive for the Chery brand.
The event was a remarkable success, drawing esteemed customers, stakeholders, and media partners.
The event provided an exclusive opportunity to experience the latest Chery vehicles firsthand, with a thrilling test drive through Lagos’ iconic Third Mainland Bridge, extending to Adekunle, and returning to the Carloha Showroom.
Participants were thrilled by the seamless performance and advanced features of Chery’s latest models, making the test drive a highlight of the day. The drive showcased the vehicles’ superior handling, comfort, and innovative technology, leaving a lasting impression on all attendees.
The highlight of the event was the engaging interactive session with the media team, expertly anchored by Mr. Gerald Chukwuemeka, Sales Manager for Chery Nigeria. Mr. Chukwuemeka provided insightful responses to the media’s questions, covering various aspects of the Chery vehicles available at the Carloha dealership. His in-depth knowledge and enthusiasm about the brand further underscored Chery’s commitment to quality and customer satisfaction.
The event not only demonstrated the exceptional qualities of Chery vehicles but also reinforced the strong relationship between Carloha and its valued customers and partners. The successful test drives and informative discussions highlighted Carloha’s dedication to providing top-notch automotive experiences in Nigeria.
To further consolidate Carloha’s promise of adequate aftersales service to all customers, the Director of Sales and Marketing, Mr Joseph Omokhapue, reiterated the six years free service and six years warranty or 200,000 kilometers, on any Chery purchased from Carloha.
“We extend our heartfelt thanks to all who attended and contributed to making the Chery Drive event a memorable occasion. We look forward to welcoming you to future events and continuing to deliver exceptional service and innovative vehicles to the Nigerian market,” he said.
The new policy regime announced by the Central Bank of Nigeria requiring bureau de change operators to apply for new operating licenses with all the associated, albeit unexpected cost implications is threatening the continuous existence of the latter who appear poised for war, reports Ibrahim Apekhade Yusuf
Currency exchange platforms including the licensed and unlicensed agents have literally been fighting the battle of their lives since the forex crisis took a turn for the worse with many of them now living in fear and dread considering the rapidity of assault of events in the forex market.
The reason for this is not far to seek: they have become easy targets of the authorities, who are convinced that the BDC operators are to blame for the dwindling fortunes of the local currency, naira.
The fire this time!
The apex had on Wednesday in a circular signed by the Director of the Financial Policy and Regulation Department, Haruna Mustafa, noted that the BDCs were expected to adhere to corporate governance requirements and anti-money laundering, counter-terrorism financing, and counter-proliferation financing provisions.
The CBN set up two new categories; Tier 1 and Tier 2 BDC licences respectively.
The latest circular was issued barely a day after the Monetary Policy Committee of the apex bank raised the benchmark lending rate to 26.25 per cent to tackle the country’s soaring inflation.
The new guidelines, which are an update on the draft that was exposed earlier in the year, go into effect on June 3.
The CBN removed the mandatory caution deposit, which the industry players had earlier kicked against.
ABC of new CBN licensing guidelines
According to the new guidelines, “A Tier 1 BDC: a. May operate in any State of the Federation and the Federal Capital Territory, b. May establish branches and appoint franchisees in any state and FCT, subject to the written approval of the CBN. c. Shall maintain a minimum distance of one kilometre between its branches, its branch and a franchisee, and between its franchisees. d. Shall exercise oversight on its franchisees. All franchisees shall adopt their franchisor’s name, logo, branding, technology platform and regulatory rendition requirements. 2 Classified as Confidential: e. Shall comply with the franchising standards prescribed in these guidelines.”
A tier 2 BDC Licence allows the operator to operate from only one state of the federation or the FCT, and it is allowed to establish five branches in a state of operation, subject to the written approval of the CBN.
It is also required to maintain a minimum distance of one kilometre between its branches and is not allowed to appoint franchisees.
The BDCs (existing or new) would also be required to meet the capital requirements for their license category within six months.
Besides, according to the new rules, BDCs in the Tier 1 category would be required to have a minimum capital requirement of N2bn, pay N1m as a non-refundable application fee and N5m as a non-refundable licence fee.
The apex bank disclosed that Tier 2 BDCs would be required to have a minimum capital base of N500m, N0.25m as a non-refundable application fee and N2m as a non-refundable licence fee.
The new rules allow BDCs to participate in the Nigerian foreign exchange market as a dealer, following application and approval to the director of the Trade & Exchange Department for an authorised dealership licence.
The CBN said while BDCs could source dollars from individuals, adding, “Sellers of the equivalent of $10,000 and above to a BDC are required to declare the source of the foreign exchange and comply with all AML/CFT/CPF regulations and foreign exchange laws and regulations and customers may sell foreign currencies in their individual domiciliary accounts with Nigerian banks to BDCs. All such sales shall be credited to the BDC’s Nigerian domiciliary account.
“Every BDC shall conspicuously display its buying and selling rates. Such rates shall apply throughout all its branches, and where applicable, its franchisees. Disclaimers or statements by a BDC to the effect that an exchange rate indication is not to be relied on are prohibited. i. A BDC shall not give customers price indications which are misleading or make price comparisons which are not genuine or fair. Every BDC shall maintain adequate records of all its transactions for transparency and compliance with CBN Guidelines, AML/CFT/CPF provisions, circulars or directives,” part of the guidelines stated.
In terms of prudential requirements, the CBN said, “BDCs are required to observe the following prudential requirements: Net Open Position (NOP) limit in foreign currency of the equivalent of 30 per cent of its shareholders’ funds unimpaired by losses or as may be determined by the CBN from time to time. Limit total borrowing to 50 per cent of shareholders’ funds unimpaired by losses and maintain insurance cover over cash (both naira and foreign currency) in office and in transit, fire, and staff fidelity.”
BDC operators can’t deal!
Expectedly, the BDC operators have rejected the new licensing guidelines, saying it is against best global practices.
Speaking in an exclusive interview with our correspondent penultimate Friday, Mallam Aminu Gwadabe mirrored the anxiety of most of the operators.
Gwadabe who attempted a comparative analysis of operations in other climes vis-à-vis what obtains in Nigeria said the requirements are a bit off-putting.
“The requirement is huge and definitely not in line with global practices. The capitalisation in the UK is 50,000 pounds; in Kenya, it is $50,000 and so on. I don’t think it reflects global practice. A BDC is not a deposit taker; it is only buying and selling,” he said.
Besides, the ABCON boss said the deadline given to BDCs is rather short, a development many observers believed was clearly a case of witch-hunt.
“The deadline is quite short. It is not feasible and then we should also guide against what we are trying to avoid. The CBN in its mind is checkmating money laundering and we may meet money laundering in the future,” he argued.
Expatiating, Gwadabe said his team won’t go to sleep until the issues are addressed.
“You see, the problem is that we’re still trying to understand and understudy that (CBN) document. There are lots of things we’re yet to get attune to. Honestly, we need a lot of clarification so that we can put the records straight,” he said.
“As I’m talking to you, we’re trying to even get to the CBN and see how we can streamline some of those issues.”
On whether he is sure something might give positively at the end of the day, he responded in the affirmative.
“We’re in the industry sector as you are aware of. So, we have put out our request and our understanding and hopefully it might be considered or not. But we’re hopeful because it is an industry request,” he assured.
In a related development, the BDC operators, at the end of a virtual meeting last Tuesday tagged, ‘New CBN Regulatory & Supervisory Reforms for BDCs: Challenges and Way Forward’ , decried the move by the CBN.
They noted that the apex bank was threatening their business and came up with recommendations that they claimed would be presented to the CBN.
Reading the recommendations of the association, the President of ABCON, Aminu Gwadebe, demanded, “Immediate reversal of the financial requirements to our submitted proposal on the draft guidelines for Tier 1 N500m, N100m for Tier 2 and N35m for Tier 3 with each having different levels of engagement with the regulators.
“They should allow the existing owners of both the eligible BDCs and revoked BDCs to recapitalise instead of reapplying.”
The money changers demanded that the existing N35m capital requirements should be recognised and be part of recapitalisation.
“The CBN should embark on nationwide enlightenment to address the fears of the willing investors. The timing for compliance should be extended to two years for fairness. Existing BDCs to be allowed to use their generic names as against registration of new names at the CAC.
“The terms of engagement for mergers and acquisitions should be properly explained to allow for inclusion. The ratio of 75 per cent cards and 25 per cent cash should be reversed inversely to encourage smooth takeoff,” the association noted.
Some of the operators expressed outright rejection of the new guidelines amid concerns that the CBN was not seeing them as an important part of the financial sector.
Another operator, Kayode Taiwo, remarked, “As for the recapitalisation, they just want money for the government. When they raised the BDC capital to N70m, did they return 50 per cent of it to the BDCs? There is no guarantee that another CBN governor will not reverse the new guidelines.”
BDC operators as endangered species
It may be recalled that earlier in the year, the CBN revoked the licences of 4,173 bureau de change operators for failing to observe regulatory provisions.
This is just as indications are that the money changers have been having a brush with the law enforcement agencies since the forex crisis heightened with fears rife in some quarters that they have been willing accomplices working with other saboteurs to further exacerbate the crisis.
This followed the recent clampdown on some of the currency operators by the anti-graft agency, the Economic and Financial Crimes Commission (EFCC), which arrested over 200 suspects in connection with foreign exchange scams and manipulation of the financial markets.
Informed sources revealed that no fewer than 200 suspected Bureau De Change operators were in EFCC custody nationwide.
“Over 200 suspects have been arrested by the EFCC for forex scam and currency speculation. Not all the arrested suspects are in Abuja or at our headquarters because they were arrested in various states across the country,” one of the sources revealed.
Pressed further, the source said, “I can confirm that we have arrested over 200 people for foreign exchange scam and manipulation of the financial markets; they are all being interrogated by our investigators to determine the degrees of their involvements. Most of them were arrested in Abuja, Lagos, Rivers, and Kano States.
“The clampdown on the forex scammers yielded positive results. Many of them have been arrested, and they will face the consequences of their actions.”
Confirming this development, some operators within Lagos metropolis and its environs lamented what they described as an obvious attempt to drive them out of business.
Adamu Abdallah, one of the licensed operators in Ilupeju axis of Lagos, said most operators have been practically rendered prostrate on account of the new CBN guidelines.
The operating climate has been anything but pleasant these days, he said, noting that at any rate most operators may be forced to go out of business in no time.
Abdallah’s concerns echo the same sentiments expressed by a majority of the BDC operators.
A forex dealer who simply identified himself as Musbau was however quick to add that before the latest rule, operators have been experiencing some awkward moments lately.
According to Musbau, “Last week alone, a total of 400 operators were arrested by the EFCC in some parts of Lagos. After the operations, they confiscated their valuables which include hard currencies of various denominations. But the situation has calmed down a bit. As a result of that most operators are now very discrete. They don’t sell on the streets. Rather they sell to only sell trusted persons as a result of that fear.”
The Nation reliably gathered that the anti-graft body had carried out a very clandestine operation on BDC operators, thereby arresting traders in Lagos, Kano and Port Harcourt.
The government blamed the actions of speculators in the forex market and digital marketing sphere for the significant depreciation of the naira.
On Friday, May 17, operatives of the Uyo Zonal command of the EFCC arrested five suspected forex speculators at the Ama-Hausa mosque, along Hospital Road, Aba in Abia State.
The arrested suspects are: Hassan Umaru; Haruna Umar, Badamasi Abdullahi, Auwal Muhammed and Kasimu Muhammed.
The spokesperson for the EFCC, Dele Oyewale, in a statement, revealed that the suspects had different currencies in varied sums at the point of arrest.
Oyewale said, “The recovered currencies are: 23,000 Won (Korean currency), 52 (Yuan Chinese currency), $6, 500 Nippon Ginko, 40 notes of Dalawampung Piso (Philippines currency), 20 Gambian Dalasis, 20 Swaziland currency and N382,000.
“Other recovered items from them are seven mobile phones, one power bank, one air pod, and one ATM card.
“They were arrested by operatives of the command, following weeks of surveillance and credible intelligence. The suspects will be charged to court as soon as investigations are concluded.”
In another development, Oyewale revealed that the Enugu Zonal Command of the EFCC arraigned Daniel Chukwuka Koussou, a forex broker, before Justice C. O. Ajah of the State High Court sitting in Independence Layout, Enugu State.
He was arraigned on a one-count charge bordering on criminal conversion and stealing of N112.8m.
The lone count charge reads: “That you, Daniel Chuwuka Koussou sometime in July 2022, in Enugu, Enugu State, within the jurisdiction of this Honourable Court, did commit a felony to wit: stealing by fraudulently converting to your use the sum of N112, 800, 800.00 (one hundred and twelve million, eight hundred thousand, eight hundred naira), property of Chinedu Igbokwe and thereby committed an offence.”
The offence is contrary to Section 342 of the Criminal Code Law, Cap 30 of the Laws of Enugu State and punishable under Section 353 (1) of the same Law.
The defendant pleaded not guilty when the charge was read to him and was thereafter remanded at the Enugu State Correctional facility pending the fulfilment of the bail conditions.
Oyewale disclosed, “Koussou was arrested following claims of a petitioner, who alleged that he sent $276,000 to the defendant, a supposed agent for Providus Bank, to convert into naira and return the same.
“According to the petitioner, on July 6, 2022, Providus Bank paid Koussou the full money in naira but the defendant sent part-payment of N21,759,771 to him (the petitioner) and diverted the rest for his personal use. All efforts made to get him to pay up proved abortive.”
Last two weeks, an unspecified number of BDC operators were arrested in Abuja for allegedly aiding currency speculators.
Currency operators, who spoke to our correspondent, confirmed that the sting operation occurred at various times during the day in Lagos, Kano and Port Harcourt.
Meanwhile, the naira recorded marginal appreciation at the official market and parallel market after the close of trading activities on Friday.
The naira exchanged at 1,334. 55 on Friday compared to 1,500/$ it traded on Thursday at the official market.
The daily foreign exchange market turnover decreased by 54 per cent or $144.7m to $123.45m from $268.17m recorded on Wednesday.
Dr. Zacch Adedeji, Chairman of the Federal Inland Revenue Service (FIRS), in this interview with Funsho Kareem, shares insights on the reforms agenda of President Bola Ahmed Tinubu administration amongst other issues. Excerpts:
You are saddled with mobilising domestic revenue to oil the engine of the economy. How did you imagine it was going to be when you got that job?
One thing you probably know President Bola Tinubu for is head-hunting the right talents to deliver the goods. Even before he became the presidential candidate of the All Progressives Congress (APC), he had a plan about how to run the country. The President is reputed for his ability to get water out of the rock. One of our key strengths is the ability to mobilise resources to solve our problems. If you look at our antecedent in Lagos State, you will see that we have always had a plan. This also applies to me and other members of the team. I knew I would be working on domestic revenue mobilisation and my initial appointment as Special Adviser to the President on Revenue was a precursor to my being appointed FIRS chairman. As Special Adviser, I was always working on the strategy to deploy to succeed in domestic revenue mobilisation to fund the Renewed Hope Agenda of the Administration.
What specific mandate was given to you, and how are you working to achieve that?
The mandate given to me and to my boss, the Minister of Finance, Mr Wale Edun, is one: we need to mobilise domestic revenue to meet our goals. So, we set a target. Remember that in 2023, the government set a revenue target of N10 trillion for FIRS and internally we reviewed it upwards to N11trillion. By the grace of the Almighty God, we surpassed that set target and collected N12.374trillion. And for 2024, we have a target of N19.4 trillion. By God’s grace we will equally meet and surpass that target.
Expanding the tax net has always been a challenge and I think the President has made reference to that: widening the tax net, getting many taxpayers on board and not to increase taxes. Somehow, you have been able to report a 58 per cent increase in the first quarter of 2024 when compared with the same period in 2023. How did you achieve that?
I don’t want to use the word ‘I’. So, the question should be, how did ‘we’ achieve that? President Tinubu deserves all the credit we can give him on this on account of some of the courageous decisions he took at the beginning of this Administration, namely the removal of fuel subsidy, allowing the Central Bank of Nigeria to unify the exchange rate, which essentially is removing the distortion we had in the economy. Don’t also forget that he signed four Executive Orders into law, a development that paved the way for the removal of obstacles to businesses as he had promised in his inaugural address to Nigerians. He also set up a Presidential Committee on Fiscal Policy and Tax Reforms led by Taiwo Oyedele with the mandate to review so many things about the fiscal ecosystem, including complaints of multiple taxes and give hope to Nigerians that this is a business-friendly Administration.
As a revenue collection agency, our mandate is clear: assess, collect and account for revenue accruing to the Nigerian Federation and administer relevant laws to achieve this. Let me use this opportunity to correct an erroneous statement. FIRS is not a revenue-generating agency as some people call us. We only collect the revenue. The President made our job at FIRS easy by helping us set certain economic parameters right through fuel subsidy removal, unification of rates, the Executive Order, setting up the tax committee and much more. The President has always emphasized that our job is to tax the fruits, and not the seeds. We want to focus on prosperity and not poverty, tax returns on investment and not the capital. Our focus is not actually on revenue the way people misconstrue it. We just want to grow the economy. When the economy grows, we are better off because when you have 10, we will have three. If you have 20, we will have 6 and if you have 30, we will have nine. So, the focus for us is growing the economy. That is what the President and all the team members are doing and that is what resulted in the figure that you saw about what we collected in Q1 of this year, N3.94trillion. We are going to continue with that trajectory to make sure that businesses flourish, and from there, we can actually have more revenue.
One of the measures that you put in place when you assumed office was the concession you granted businesses, that is granting a waiver on interest and penalties, a kind of amnesty for businesses to extinguish their tax liabilities. Can you tell us what impact this had on compliance?
It had a wonderful impact on voluntary compliance which is actually our goal. We believe taxpayers are not criminals who should be pursued with horsewhip. We are also clear in our minds that we are not law enforcement agents. President Tinubu has always reminded us that our plan is to make sure that we remove hurdles and create a conducive environment for businesses to flourish. And if you look at what happened over a year ago, talking about the cashless policy, a lot of businesses were struggling which was the reason they could not pay their taxes as and when due. So, the President, in his magnanimity, approved that we waive interest and penalty on tax liabilities for those owing to be able to pay. The President realised that it is when the businesses do well that FIRS, as a consequential agency, will also do well. What we did at the end of last year with the waiver policy was to help businesses do well. The business entities owing us actually took the opportunity to pay up all their outstanding liabilities, and that was one of the reasons we surpassed our target for 2023. We are doing many things now to ensure that taxpayers are not defaulting.
What was the rate of compliance on that initiative?
Honestly, we had more than 75 per cent compliance rate at that time because the taxpayers actually saw seriousness and honesty in what the government was doing and they responded positively.
You keep saying that you want businesses to prosper. But multiple taxation is one of the things that businesses still complain about. We know that the President has set up the Taiwo Oyedele led-Committee to work on harmonisation of these taxes. Are you working with them, what are the things that you have been able to do in this regard?
Actually, we are part of them. On the issue of multiplicity of taxes, we cannot over-emphasize the President’s directive that at the end of the Committee’s assignment, we will have a single digit type of taxes in the country, meaning that we will have a maximum of nine tax types that we are paying. Based on the research that we have done, only eight tax types account for more than 90 per cent of the tax revenue we collect. That means the remaining 54 tax types are impediments to business growth and the President has directed that these tax types should be removed. I know, in the next few weeks, when the report of the committee becomes public, people will see the wonderful work that has been done by the committee.
Are there any successes you want to highlight in particular?
Generally, our success is founded on the fundamentals of economic development being set right, which is what the President has done and this is the bedrock of everything that we are doing. The Administration is investing heavily in infrastructure and food security which are the foundations for industrialisation. The President is committed to the welfare of the people and then we have a wonderful team, the ones you know and those working behind the scenes to make sure that Nigerians are happy and prosperous.
Are there any areas that you think that tax incentives might be helpful to economic growth?
Tax incentive on its own is not bad. Everywhere in the world, you have targeted incentives that governments do. For instance, if you look at the way we localised cement production in Nigeria, they were given a tax holiday for 10 years. Government allowed cement companies to bring in equipment. But today, if you look at the tax revenue collected from cement manufacturers, it is more than all the taxes collected from all the banks in Nigeria. These cement manufacturers were given incentives at a point. But what we are saying now is that all incentives must be measured and reviewed to know if it is the right thing to do or not. So, there is nothing bad in incentive and it is a part of the fiscal policy to actually stimulate the economy.
Apart from the cement industry that has benefited from that, is there other industry which has benefited?
A few months ago, the President signed three Executive Orders on gas production in Nigeria. I foresee that in the next three to five years, we will see the benefit of that kind of incentive that the President has given for gas production, given the green posture of the world.
Let’s talk about your key priorities in the FIRS. What are the areas you are focusing on?
At FIRS, we completed a restructuring exercise earlier in the year. Before my assumption of office, the agency was structured along functional/group tax type lines. With our coming on board, we have changed the orientation and birthed a new structure which puts our only customers, that is, the taxpayers at the centre of our operations. We are customer-centric now. We have re-arranged the structure according to taxpayers’ turnover thresholds. We classify you as large taxpayers if your turnover is more than N5 billion; medium, if you are between N1bn and N5bn, and small if your turnover is less than N1 bn. And then, we have services that support them. For our strategic pillars, we have people, process and technology. The focus now is to develop the workforce at FIRS. We want to make sure that at the end of the day, 80 percent of our core duty is done by our people in FIRS because of the confidential nature of our service. We also need to have domestic skills development that is required to match the President’s aspiration and vision. We want to make sure that we standardise our process in order to increase our service delivery to taxpayers. Lastly, we are deploying and investing in technology because we cannot meet our aspiration using a manual system. So, we are focusing and investing huge resources on technology so that we can serve our customers well.
How has lack of data impacted revenue collection? What investment have you made in that area? Have you been able to make progress?
We are making progress there. One wonderful initiative the President has just approved is the National Single Window Project. This is a unified platform where you just have a single point of truth as far as data is concerned for the nation. The significance of this project is that we will now have a single window export, a single window import and scanning system. If you go anywhere in the world, when people compare GDP to taxes, you wonder where the data comes from. The truth is that they have only one point where all data relating to revenue and expenditure can be transparently and honestly accessed. That is what President Tinubu has done with this commendable initiative. So, there is a huge investment that we are making now on data mining that the President is leading. We are lucky to have the National Single Window project domiciled at FIRS.
Another laudable initiative on data mining is the partnership we have with the National Identity Management Commission (NIMC). What we are doing is to follow the law. If you read the Act that established NIMC, it says when you are above 16 years, you must have a National Identification Number (NIN). We want to make sure that the primary source of identity for everybody living in this country is NIN and everything is linked to that. It is like a code, a social security code. With this, identity theft will be a thing of the past. For us to be able to mobilise revenue, we must be able to match movable assets with immovable assets. When we are able to match them, it will be impossible to evade tax.
Do you foresee any challenge in implementing these initiatives?
There are always challenges. But I am always happy when I look at the capacity of my team at FIRS: the Coordinating Directors, my Special Advisers, and the entire workforce. We are aware there will be challenges. In fact, that was what informed the choice of the people we brought to work with us. They are people that we are aware will help us overcome the challenges. Not only that, we are motivated by the leadership of President Tinubu. The challenges will be there, but we are hopeful that we have what it takes to overcome the challenges and turn them into miracles for the country.
How are you making it easier for the average Nigerian to comply with their tax obligation?
That is actually our duty. That is why I said that we have services within FIRS that support taxpayers. I have said that we now have a customer-centric attitude. Before now, we used to separate VAT and Stamp Duty offices separately. But now, we have provided a one-stop shop for taxpayers as part of a measure to simplify tax payment by removing all the hurdles in the way of our customers. So, if you are a large taxpayer, you can just go to one office to clear your VAT, Withholding, Company Income Tax and any other form of tax you are paying. And even audits are done within the same shop. The era of multiple audits is gone. People have begun to feel the impact of the restructuring we have done. We have made it easier to use technology. People can do everything from the comfort of their homes and offices. And if you are compliant, you won’t even receive any update from us, because like I said, our aim is to make sure you do well because it is in your prosperity that we also prosper.
Let’s talk about tax education. Because there is always resistance from the taxpayers when it comes to paying taxes over the years. People ask, the taxes they have paid, what has the government done with it. Are there plans for tax education?
It is part of our duty to make sure that we educate people. But I must make it clear that paying taxes is a civic responsibility. Our role as a tax authority is to assess, collect and account for what is collected. If you look at what the President is doing, just take for instance the Students Loan scheme. The money that will be used to fund the scheme is mainly from the taxes we collect. Look at the Renewed Hope Infrastructure Fund that Mr President has put together for signature projects like the Lagos to Calabar coastal road, Sokoto to Badagry will soon follow as well as a train line from Port Harcourt to Maiduguri and Lagos to Kano. These are projects which cover the whole country.
Funding for these projects is coming from domestic revenue mobilisation because there is no way you will have these infrastructural projects without mobilising revenue to fund them. Not only that, look at the security situation in the country. It is improving because we are mobilising resources to provide what is required by our military men and all other security providers. Let me use this opportunity to appeal to Nigerians that they should be good citizens by paying their taxes. I said before that we are not law enforcement agents. They should see FIRS as a partner that is interested in their progress and prosperity.
How do you get feedback from businesses?
We get feedback a lot. We have a people’s service group in the agency. We also have a customer service unit and there is servicom as well. They call us from time to time and also read out notices in the newspapers and other media platforms. Don’t forget, we don’t only collect taxes. We also provide them with advisory services. We just take taxpayers like a tree you planted in your vineyard. You will have to do weeding, watering because it is the fruit of the tree that you will enjoy. Sometimes, without them calling us, we call them. If you look at what we have done, most especially since Mr President assumed office, we suspended road taxes, because in our wisdom, we feel that it is not going to be good to people. You just made mention of waiver of penalty and interest. Those are the things that we do and we have good feedback from Nigerians.
What can Nigerians look forward to within the next three years of President Tinubu’s administration?
What I sincerely encourage Nigerians to do is to keep hope alive. The vision of Mr President has come to stay; I mean the Renewed Hope Agenda. We have the capacity. When you have a wonderful edifice you want to build and you are doing the foundation, you will see rubbles. This can be likened to what we are experiencing in the economy now. From now on, Nigerians will begin to see the superstructure, the wonderful edifice being built by President Tinubu and this edifice will accommodate all. By God’s grace, we will achieve our goal, vision and aim for the country.
The Managing Director, Webb Fontaine Nigeria Limited, Ope Babalola, is upbeat. For him, the prospect of the recently inaugurated National Single Window Committee by President Bola Tinubu remains a game changer with huge opportunities to greatly improve revenue for the government. Babalola, in this chat with the media in Lagos, explained that the Port Community System (PCS) being promoted by Nigerian Ports Authority can run under the Single Window system with each complementing the other. Webb Fontaine, under this initiative, he explained, has contributed in achieving an increase in revenue collection by the Nigeria Customs Service. Muyiwa Lucas was there. Excerpts:
President Bola Tinubu recently launched the National Single Window Initiative to enhance revenue generation and streamline import/export trade processes for ease of doing business. What impact do you think this will have on the country’s economy?
This is a really commendable and worthy initiative that President Bola Tinubu has launched. I will speak specifically to the trade environment, because my understanding is that this Single Window scheme goes beyond that. A Single Window for Trade allows all actors and participants involved in trade to come to a central place to access information and to engage in the processes required with the Central Bank of Nigeria (CBN), Revenue Authority, SON, NAFDAC, Customs, NDLEA, and all other relevant agencies. We already have a lot of this but this initiative will enhance it further and make the trade flow much smoother, faster and hopefully less expensive for importers, manufacturers and by extension, the general public.
Can you give an insight into the difference(s) between single window and port community system (PSC)?
It is actually not complicated. Single Window is the entry point. Under it, you will find the links to the portals for the associated agencies such as Customs, Ports, Aviation etc. Each of these will run their own internal systems but there will be common information that can be shared. Instead of duplicating information and data or going from agency to agency, common data can be shared and accessed. Also processes involving input from two or more agencies can benefit from a common platform where data flows from one actor to another following a clear, predictable path. For example, both Customs and Ports use the same shipping data. The information is the same. Why can’t it be inputted once, stored and shared on the Single Window platform for use by all interested parties that qualify for access? That is so much easier and more secure eliminating the errors and the waste of time introduced by the repeated capture of the same data by users. So, the Single Window is the platform where eligible users have access to the common data required. It is the platform to produce or consume data according to preprogrammed workflows.
Can Port Community System run under Single Window without any hitch or operational overlap?
Of course it can. SW is simply an entry point. Once in, the participants can engage the agencies in the Single Window. It is like going into a shopping mall. There are several stores that sell different things or provide various services from ice-cream to opticians. Just get to the mall and find the store you need. The two are not rivals – they are symbiotic! Moreover, other agencies that are part of the Single Window can benefit from the high quality of data produced by the Port Community System platform
Would you say your operation in Nigeria has impacted the economy?
We are very proud of our record in Nigeria, and the impact we have made since 2006. Along with the management of Nigeria Customs Service, we have helped to take Customs operations from manual to fully computerised and paperless operations. For instance, between 2017 to 2023, Customs revenue generation has increased from N1.028 trillion to N3.192 trillion- this is a massive growth and contribution to the economy. Every day you read about Customs commands generating record revenues, that is an evidence of our contribution, since it is still our technology in use. Under normal circumstances we should expect to see nothing less than N6 trillion in revenues this year.
Economically, where do you think Nigeria will be in the next five years if the NSW takes off with efficient implementation?
While the NSW is not the solution to all our problems, it can certainly make business to government interactions much easier to navigate. And easier navigation makes life easier for people. What it will do if properly implemented is that it should speed up the customs process, decongest our ports, reduce the cost of goods in the markets by reducing the cost of importation and reduce corruption by removing a lot of human intervention. This is the classic definition of Ease of Doing Business. It will also increase Nigeria’s attractiveness to new, major investors by showing the government commitment to utilise state of the art technology to improve the business climate.
Tell us about some of the countries WF operate and how they have benefitted from your work?
WF operates in 25 countries worldwide. We provide a wide range of services, and different combinations or aspects of those services in each location, depending on what we are contracted to do. In the countries of Benin Republic and Cote d’Ivoire, we are the Customs and ports operators, and we can see how well those countries are doing. We are also in Guinea, DR Congo to the North, Kenya and Ethiopia to the East and Libya to the north. Outside of Africa we operate in Ajman, Bahrain, Nepal and Panama among others. We are a truly global brand. Our Research and Development Centers are the largest in the industry, and are in several locations in Armenia, Philippines, Switzerland. In many of those countries, we have introduced innovations that have led to improved trade processes and sector developments.
What is the place of backward integration in your organisation for Nigerians? Are you transferring knowledge and any hope of career progression for Nigerians working with your organisation?
We are proud to note that 95 per cent of our staff in the country are Nigerians, including myself of course and some of my management team. Although we are a global operator, locally we are very Nigerian and proud to be so. In addition, where there are global opportunities, our Nigerian staff are welcome to apply. We do not treat issues of local content with kid gloves.
The Commission made this discovery during a tour of duty by its team who traversed some of the nation’s major markets in some parts of the country.
Addressing journalists after one of the duty tours, Mrs. Suzzy Onwuka, a manager at FCCPC Lagos branch, drew a nexus between the availability of food products and the ability of the farmers to produce in quantum enough to service the consumers.
Onwuka assured that the Commission’s priority remains to unlock the markets and address key consumer protection and competition issues affecting the prices of commodities in the food sector.
While responding to questions on results of the market surveillance so far, she said that FCCPC’s surveillance efforts suggest participants in the food chain and distribution sector including wholesalers and retailers are allegedly engaged in conspiracy, price gauging, hoarding and other unfair tactics to restrict or distort competition in the market, restrict the supply of food, manipulate and inflate the price of food in an indiscriminate manner. These obnoxious, unscrupulous, exploitative practices are illegal under the FCCPA.
Following this exercise, the Commission would develop a concise report of its inquiry and make recommendation to the government in accordance with Section 17(b) of the FCCPA and initiate broad based policies and review economic activities in Nigeria to identify and address anti-competitive, anti-consumer protection and restrictive practices to make markets more competitive while also ensuring fair pricing for consumers.
In a related development, the chairman of Mile 12 International Perishable market in Ketu area Lagos, Alhaji Shehu Usman Jibril revealed that “Only 30 per cent of the total farmers that supply us food products are currently doing so now. There is even no more supply, people that are supposed to be in the farms are not there but in the Internally Displaced Persons [IDPs] camps.”
An estimated 40 per cent of IDPs live in 309 camps and camp-like settings and 60 per cent live in 2,072 host communities.
According to investigations, a staggering 1,087,875 individuals in rural communities have been displaced.
In Kaduna alone, according to the state government last month, bandits displaced 289375 residents of 551 Kaduna communities.
“Most of the reason food stuff are expensive is because the people in IDPs for instance in Zamfara, Bornu states, IDPs camps all over the country are all farmers. They have the job they are doing, they know nothing but farming but bandits have chased them away”, regretted Jubril.
Lamenting he said “they have been killed, maimed, chased away from their communities. Those are the farmers bringing food products to us to eat and any country that is not farming, the country will be in trouble, no matter how much reserve you have, the country must be in problem.”
Pleading with the Federal Government, he said there is need for the government to find a way of bringing those in the IDPs camps out and settle them in their farms or else things will continue to be very expensive.
“We are appealing to the Federal Government not to blame any Marketer or anyone selling perishable items. You cannot hide the products anywhere because they will spoil. People who are supposed to be in the farms are in the IDPs camps and as long as they remain there, Nigerians will continue to experience hunger”.
Apart from banditry, high cost of transportation and extortion of farmers by the supposed security officials on the high ways were also fingered as causes of the high prices of food products.
Speaking to journalists and members of the FCCPC, Mr. Olatunji Majester, the Secretary of the Ile Epo market association, Oke Odo in Oke Odo Local Government Council Area Lagos, said the cause of the hike in food products is due to the challenges the farmers are facing.
Speaking at the Ilepo market in Lagos, he said that farmers pay huge amounts of transport fare to bring their products from the farms to the market. “Majority of these farmers come from different parts of the country. Since the so called fuel subsidy removal, the cost of diesel fuel has gone up so much and this has impacted on the cost of transportation and this and many more things has impacted on the cost of food products.
The fact finding mission by the Federal Competition, Consumer Protection Commission [FCCPC] has lamented the rising decline of farm produce available to consumers nationwide. The Commission made this discovery during a tour of duty by its team who traversed some of the nation’s major markets in some parts of the country. Addressing journalists after one of the duty tours, Mrs. Suzzy Onwuka, a manager at FCCPC Lagos branch, drew a nexus between the availability of food products and the ability of the farmers to produce in quantum enough to service the consumers. Onwuka assured that the Commission’s priority remains to unlock the markets and address key consumer protection and competition issues affecting the prices of commodities in the food sector. While responding to questions on results of the market surveillance so far, she said that FCCPC’s surveillance efforts suggest participants in the food chain and distribution sector including wholesalers and retailers are allegedly engaged in conspiracy, price gauging, hoarding and other unfair tactics to restrict or distort competition in the market, restrict the supply of food, manipulate and inflate the price of food in an indiscriminate manner. These obnoxious, unscrupulous, exploitative practices are illegal under the FCCPA. Following this exercise, the Commission would develop a concise report of its inquiry and make recommendation to the government in accordance with Section 17(b) of the FCCPA and initiate broad based policies and review economic activities in Nigeria to identify and address anti-competitive, anti-consumer protection and restrictive practices to make markets more competitive while also ensuring fair pricing for consumers. In a related development, the chairman of Mile 12 International Perishable market in Ketu area Lagos, Alhaji Shehu Usman Jibril revealed that “Only 30 per cent of the total farmers that supply us food products are currently doing so now. There is even no more supply, people that are supposed to be in the farms are not there but in the Internally Displaced Persons [IDPs] camps.” An estimated 40 per cent of IDPs live in 309 camps and camp-like settings and 60 per cent live in 2,072 host communities. According to investigations, a staggering 1,087,875 individuals in rural communities have been displaced. In Kaduna alone, according to the state government last month, bandits displaced 289375 residents of 551 Kaduna communities. “Most of the reason food stuff are expensive is because the people in IDPs for instance in Zamfara, Bornu states, IDPs camps all over the country are all farmers. They have the job they are doing, they know nothing but farming but bandits have chased them away”, regretted Jubril. Lamenting he said “they have been killed, maimed, chased away from their communities. Those are the farmers bringing food products to us to eat and any country that is not farming, the country will be in trouble, no matter how much reserve you have, the country must be in problem.” Pleading with the Federal Government, he said there is need for the government to find a way of bringing those in the IDPs camps out and settle them in their farms or else things will continue to be very expensive. “We are appealing to the Federal Government not to blame any Marketer or anyone selling perishable items. You cannot hide the products anywhere because they will spoil. People who are supposed to be in the farms are in the IDPs camps and as long as they remain there, Nigerians will continue to experience hunger”. Apart from banditry, high cost of transportation and extortion of farmers by the supposed security officials on the high ways were also fingered as causes of the high prices of food products. Speaking to journalists and members of the FCCPC, Mr. Olatunji Majester, the Secretary of the Ile Epo market association, Oke Odo in Oke Odo Local Government Council Area Lagos, said the cause of the hike in food products is due to the challenges the farmers are facing. Speaking at the Ilepo market in Lagos, he said that farmers pay huge amounts of transport fare to bring their products from the farms to the market. “Majority of these farmers come from different parts of the country. Since the so called fuel subsidy removal, the cost of diesel fuel has gone up so much and this has impacted on the cost of transportation and this and many more things has impacted on the cost of food products.
“A basket of fresh tomatoes that was previously selling for between N27,000-N35,000 is now selling for between N60,000-N80,000. Most of us cannot afford to buy ordinary ‘Rodo’, that is pepper. “We are pleading with the Federal, State, Local Governments to come to the aid of the farmers. We are calling on organisations and influential people in Nigeria to come to the aid of the masses.” Speaking further he stressed that Government should provide security for the farmers as they cannot do it by themselves adding that security is the duty of the Government. Also the chairman of the market association, Alhaji Taofeek Olurunkemi Babaoja IIe Epo market said what was happening was very unfortunate. “Today the farmers will bring goods and tag it N100,000, next tomorrow they will bring the same products and claim the price is N200,000. If you ask them why, they will say that security officials on the High ways collected much money from them.” The FCCPC has been engaging in a nationwide fact-finding interactions with Traders’ Associations and Marketers to ascertain factors responsible for the continuous hike in food prices. This fact-finding inquiry is an investigative mission to gather information directly from the sources and stakeholders in major markets, particularly executives, market unions, sellers and consumers.
The Honorable Commissioner for Innovation, Science and Technology (MIST), Olatubosun Alake has revealed that the proposed Lagos Innovation Policy will spur economic renaissance and corporate-startup synergies, among other benefits.
The Honourable Commissioner said this while fielding questions from journalists at the end of the stakeholder engagement with different stakeholders including government agencies, the organized private sector among others, at the Eko Innovation Centre, Ikoyi, Lagos.
Among the stakeholders present at the occasion are Adaora Ikenze – Director, Public Policy, Meta; Prof. Peter Bankole – COO, Pan Atlantic University and LASRIC Member; Nkemdilim Uwaje Begho – Founder, Futuresoft; LASRIC and Alex-Adedipe Adeleke – DOA Law, among others.
Shedding more light on the key elements of the proposed Lagos Innovation Bill, which aims to serve as a catalyst for innovation across all sectors, from startups to established corporations, he remarked, “The Lagos Innovation Bill is a two-pronged approach. Firstly, it localizes the federal government’s Startup Act, tailoring it to the unique needs and dynamics of Lagos State. Secondly, and perhaps more significantly, it goes beyond just nurturing startups by actively encouraging innovation within large companies and small businesses alike.”
The Commissioner emphasised that the bill’s inclusive nature is a strategic move to create a vibrant and interconnected innovation ecosystem, where startups and established players can collaborate, learn from each other, and drive collective growth.
“Imagine a situation where a startup’s innovative solution is adopted and supported by a major corporation like MTN or Airtel,” Alake posited.
“Or a situation where our universities are driving a thriving entrepreneurial culture, spinning off ten new companies each year, supported by the resources and mentorship of industry giants. This is the future we are working tirelessly to manifest through the Lagos Innovation Bill.”
To incentivize large corporations to actively participate in this ecosystem, the bill proposes a range of measures, including tax incentives, fee waivers, advocacy support, patent assistance, and incentives for driving research and development initiatives within universities.
Alake highlighted the role of universities in this innovation renaissance, recognising them as fertile grounds for cutting-edge research and entrepreneurial talent. “Our universities are crucial to this process,” he asserted. “In creating stronger collaborations between academia and industry, we can accelerate the translation of research into tangible products, services, and economic opportunities.”
When questioned about the potential impact of the Innovation Bill on the state’s budget allocation for science and technology, currently hovering around 9%, Commissioner Alake expressed confidence that the bill would catalyse a significant increase.
Earlier in his welcome address, Victor Afolabi, Chief Executive Officer of the Eko Innovation Centre emphasised the significance of the stakeholder engagement as a co-creation event, where collective deliberation would shape the regulatory incentives and create an inclusive innovation ecosystem. He commended the commissioner’s vision and commitment to advancing innovation in Lagos State, describing the state as the innovation engine room of the country and a globally recognized hub for innovation.
