Author: The Nation

  • Wanted: Professionals for new fertiliser plants

    Wanted: Professionals for new fertiliser plants

    For analysts, Nigeria’s fertiliser industry holds huge potential. A boom in fertiliser production is expected to create thousands of jobs. DANIEL ESSIET examines the plethora of professionals in the value chain that will be in high demand.

    Globally, fertiliser is, by far, the largest sector of the input market. The International Fertiliser Association (IFA) estimates that between 2015 and 2019, the industry has invested between $86 and $91 billion in new mines and fertiliser producing facilities.

    The industry, IFA says, has made a major contribution to employment, and is responsible for almost a million jobs in production around the world.

    While fertiliser producers have achieved many milestones in the last decade, more investors are establishing new ammonia and urea plants.

    Significantly, the Nigerian  fertiliser industry has seen encouraging growth in the number of  plants and blending units. This is a result of policy makers and businesses beginning to see the broad socio-economic opportunities that fertiliser can bring.

    Speaking with The Nation, the Executive Secretary, Fertiliser Producers Society of Nigeria (FEPSAN), Mr. Gideon Negedu, said there were 42 functioning fertiliser blending plants across the country. The plants are Notore Chemical Industries, Rivers State, Indorama Eleme Petro Chemicals Company in Port Harcourt and West Africa Fertiliser Company Okpella, Edo State.

    Others are Superphosphate Fertiliser and Chemicals Limited, Kaduna; Crystalier Nigeria Limited, Niger; Flour Mills of Nigeria, Apapa, Lagos; Golden Fertiliser Company Flour Mills, Kaduna.

    Also, there are Fertiliser and Chemicals Limited, Kaduna; Fertiliser Blending Plant Niger; Funtua Fertiliser and Chemicals Company, Katsina; MFB Fertiliser and Chemicals Company Limited, Kaduna; Kano Agricultural Supply Company Limited; Savannah Fertiliser Services Limited, Niger, Kaduna OCP Africa blender, Ogun OCP Africa blender and Abuja OCP Africa blender.

    Of these, Notre Chemicals Industries Limited and Indorama Eleme fertiliser & Chemicals Limited (River State are the only plants producing urea in Nigeria and sub-Sahara Africa (SSA). Dangote Group and Brass Fertiliser are working on boosting urea production.

    Other plants are producing nitrogen-based fertiliser.

    Experts say an abundant supply of natural gas and minerals has enabled fertiliser producers to play a major role in the supply of nitrogen-based and phosphate-based fertiliser such as urea, ammonia and di-ammonium phosphate (DAP).

    While some industries may be cutting cost and slimming-and-trimming to stay competitive after the COVID-19, fertiliser is providing some of the most lucrative opportunities in the market.

    Negedu sees the industry jobs growing rapidly in aspect, from manufacturing to installation to maintenance.

    For him, workers with the right skills in the right location have a chance to not only find work but grow along with an emerging industry.

    He is not alone.  Vice President, West African Fertiliser Association (WAFA), Dr. Innocent Okuku, agrees with him.

    The growth of fertiliser industry, according to him, ticks the right boxes for the government, meeting its goals of diversifying the economy and supporting job creation.

    As the industry grows, Okuku contends that it will snowball to lowering the cost of fertiliser and creating more jobs.

     

    Companies looking for new workers

    The Indorama Eleme Fertiliser project is  one of the largest single-train urea plant in the country. It  has created over 50,000 jobs across the agriculture value-chain, while its affordable fertiliser is boosting farm yields and putting smiles on farmers’ faces.

    Co-funded by the African Development Bank, the Indorama Eleme Fertiliser project is a success story of public-private partnership (PPP). The project has created tens of thousands of jobs and, above all, has brought hope to youths.

    One of the key benefits of  large  fertiliser production establishment, Okuku stressed, is  the creation of thousands of jobs directly and indirectly during the construction and operation of the complexes. This  in turn supports the development of the private sector, particularly, small and medium enterprises, through outsourcing services.

    The $2.5 billion Dangote Fertiliser Plant is set to start operation this year. The  plant is expected to manufacture three million metric tonnes of urea per annum, with core focus on the reduction of fertiliser imports, and $400 million yearly foreign exchange from export to African countries.

    The management of Dangote Refinery and Petrochemicals has disclosed that the 650,000 barrels per day project will create jobs for at least 250,000 Nigerians when completed and fully operational next year.

    Group Executive Director, Strategy and Capital Projects, Dangote Industries Limited, Mr. Devakumar Edwin, said the refinery has the potential to turn around Nigeria’s economy with the creation of thousands of direct and indirect jobs.

    He said the huge youth unemployment rate and the need to make the country self-reliant in fuel consumption were the major reasons that motivated the President of Dangote Group, Aliko Dangote, to venture into manufacturing.

    He said he was very optimistic that the refinery would be a “game-changer” for Nigeria and the rest of Africa.

    According to him, Dangote Industries has succeeded in substantially reducing the high rate of unemployment in the country, with the conglomerate already recruiting youths in for various agricultural schemes and other subsidiaries.

    He said Dangote Industries is the highest employer of labour outside the Federal Government.

    Okuku noted that the proposed Akwa Ibom Ammonia plant will require hundreds of construction workers and permanent ones after the plant has been built.

    The ammonia plant, to be established by OCP Fertilizer,  in partnership with  Akwa Ibom  State Government, is capable of providing thousands of jobs and fits with Federal Government’s strategy for economic recovery, which looks more prospective in locations where the raw material is less costly to produce. The project will involve several upgrade contracts, including providing the management support, coordination and supply of hot-work resources to undertake off-site prefabrication and on-site welding maintenance work.

    It is one of the multi-million dollar downstream projects that will help expand the value chain of the fertiliser industry.

    Analysts see it providing micro, small and medium enterprises (MSMEs) opportunities in supporting construction, maintenance, transport, logistics, catering and accommodation for the project.

    The project is expected to provide opportunities for local contractors and service providers.

     

    Where the jobs are

    New plants provide ample opportunities to recruit new workers.

    This is going to result in thousands of jobs on completion.

    Fertiliser production involves manufacturing and service activities, including mining, processing, liquids treatment and production services.

    Okuku told The Nation that the activities taking place within the industry would create a lot of jobs.

    Already, the states and private sector organisations involved have concurred on creating a world-class, well-developed  fertiliser production  infrastructure, including industrial training institutes, residential compounds and commercial activities.

    This will result in thousands of direct and indirect jobs, and establishment of an industrial base that facilitates innovation, development, and competition.

    According to Okuku: “There will be different types of service providers around the ammonia plant; transporters, suppliers, caterers and so forth. My expectation is that Morocco will be accessing ammonia from Nigeria for their nitrogen, phosphate and phosphorus (NPK) fertiliser production. The existence of ammonia in Nigeria provides raw material to explore phosphate. We have phosphate deposits in Nigeria that have not been used to produce fertiliser today. We have abundant ammonia which is a key requirement in converting the phosphate into fertiliser. If we explore those phosphate deposits, much industry will spring up. There will be a lot of employment creation as well as qualities of highly balanced fertiliser products locally. It will reduce importation of the phosphate component of our fertiliser and fertiliser products prices will go down.”

    When in full stream, OCP blending plants, Dangote Fertiliser and Akwa Ibom Ammonia complexes  will try to identify, attract, hire, and on-board mid-career professionals.

    At the top level, there will be openings for professionals in business development, strategy planning, Leadership development, plant operation & maintenance.

    Most players in the industry read chemical engineering, mechanical engineering, project management, accounting/auditing and economics.  There will be openings, ranging from lesser requirements of qualification to those needing higher degrees. Fertiliser firms also look for people with a background in chemistry, agronomy, geology and mining, mechanical and industrial engineering, environmental engineering and analytics.

    Like other industries, fertiliser manufacturing has typically followed a traditional talent-acquisition model, where firms recruit at a few select schools and target students with degrees in chemical engineering.

    One thing common among fertiliser firms is that they maintain a strong talent culture built and maintained through implementation of sound human resources(HR) practices.

    At the moment, there are few Nigerians with degrees in fertiliser management .These include Mr. Nnaemeka Odionye and Toyin Aremu, graduates of Mohammed VI Polytechnic University (UM6P), Morocco.

    Others are graduates of Indian and foreign institutions, which offer specialised courses in fertiliser production.

    In an earlier interview with The Nation, the Coordinator/Director, School of Agriculture (ESAFE), UM6P, Prof Abdelaziz Yasri, explained that the UM6P’s Master programme in Fertiliser Science and Technology prepares graduates for broad knowledge of fertiliser and soil fertility to become experts. The graduates of the programme have several career options in working in process engineering related to fertiliser manufacturing.

    To make it globally accepted, the Master’s Programme in Fertiliser Science and Technology was developed in collaboration with the International Fertiliser Development Centre (IFDC), alongside contributions from the International Plant Nutrition Institute, the University of Georgia and Morocco’s OCP. OCP will be partnering the Federal Government to enhance the skills of young graduates in vital areas, including the chemical industries, operating skills in advanced industrial environments, and optimal handling of industrial tools and processes. The trainees will go through an on-the-job training (OJT) programme that will continue for periods ranging from six months to one year.

    He said there was the need for African countries to figure out how to grow more food faster, with fewer resources, by developing new technologies to scale up the planet’s food production mechanisms on a sustainable basis.

     

  • NESG-NGF steering committee to deepen democracy, says Fayemi

    NESG-NGF steering committee to deepen democracy, says Fayemi

    By Chinyere Okoroafor

    Chairman of the Nigerian Governors Forum (NGF) and Ekiti State Governor, Dr. Kayode Fayemi has said the Nigerian Economic Summit Group(NESG) and the Nigerian Governors Forum (NGF)   Economic Roundtable steering committee would strengthen democracy and institutions in the country.

    He made this known during the virtual inauguration of the committee on April 21.

    Fayemi noted that the committee is to strengthen institutional relationships between all tiers of government.

    Chairman of the NESG, Mr. Asue Ighodalo said the NESG-NGF Economic Roundtable (NNER)  is based on a Memorandum of Understanding (MoU) signed between both institutions in October last year.

    He stressed the need for sub-national governments to create an industrialized and diversified economy.

    READ ALSO: NESG appoints new directors

    Ighodalo said inflation, depreciating currency and a host of economic challenges make it imperative for sub-national governments to drive long-term economic growth.

    The NESG chairman emphasised the need for states to increase investment in infrastructure to drive growth into various sectors of the economy.

    He urged states to adopt and implement the recommendations of the 26th Economic Summit to build strong frameworks that will enhance rural development.

    Those who attended the inauguration include Nassarawa State Governor, Engr. A.A Sule, Oyo State Governor, Engr. Seyi Makinde, Gombe State Governor, Muhammed Inuwa Yahaya, among others.

     

     

  • Akinola succeeds Busari as CIArb Nigeria Branch chair

    Akinola succeeds Busari as CIArb Nigeria Branch chair

    Chief Gbola Akinola  has succeeded Mr. Olatunde Busari, SAN as chairman of the Chartered Institute of Arbitrators (CIArb).

    Akinola is a practising lawyer and seasoned arbitrator. He is a partner in the law firm of The Law Union with cognate experience in Corporate and Commercial Law practice and a highly skilled advocate with extensive commercial legal advisory experience.

    He was a past president of the Maritime Arbitrators Association of Nigeria (MAAN).

    His election took place at the inaugural meeting of the 2021-2022 Executive Committee of the Institute on Thursday.

    Also,  the following were elected by the Executive Committee: Mrs. Olusola Adegbonmire, C.Arb, 1st Vice Chairman; Prof. Paul Idornigie, SAN, C.Arb, 2nd Vice Chairman; Mrs. Obosa Akpata, C.Arb  3rd Vice Chairman and Mrs. Josephine Akinwunmi, FCIArb as secretary.

    Other are Mr. Akin Omisade, FCIArb, Treasurer; Dr. Adeyemi Agbelusi, FCIArb P.R.O, Mr. Ibifubara Berenibara, FCIArb Assistant Secretary; Mr. Seyilayo Ojo, C.Arb Chairman, Training Committee; Mrs. Obosa Akpata C.Arb Chairman, Membership Committee; Mr. Olumide Sofowora, SAN, C.Arb Regional Representative, and Mr. Tonye Krukrubor, Chapter Liaison.

  • I’m committed to Ipokia’s development, says monarch

    I’m committed to Ipokia’s development, says monarch

    By Robert Egbe

    The Onipokia of Ipokia in Ipokia Local Government Area (LGA) in Ogun State, Oba Yisa Olaniyan has pledged his commitment to the development of his kingdom.

    The monarch assured Ipokia people of his “total commitment and support” for the proposed State Polytechnic/University of Science and Technology in Ipokia.

    He also said he fully backed the upgrading and conversion of the newly-established Ogun State Polytechnic, Ipokia to a substantive State University of Science and Technology.

    Olaniyan said the assurances were necessitated by the wrong impression created by his recent visit to the Senate Committee on Tertiary Institutions and TETFUND organised Public Hearing on the proposed bill on the upgrades and conversion of the Federal Polytechnic Ilaro to a substantive Federal University of Science and Technology.

    He explained that he attended the event in the company of several other traditional rulers in Yewaland, following “the special invitation” from the Olu of Ilaro, Oba Dr Kehinde Gbadewole Olugbenle.

    He said: “I had therefore seen the journey to Abuja as a diplomatic trip, armed with a prepared speech to be delivered at the event, articulating our request and to drum necessary support from our representatives in both the Senate and House of Representatives on our request for the establishment of State University of Science and Technology in Ipokia.

    “The trip also afforded me the opportunity to seek the support of Senator Solomon Olamilekan in our agitation. It is gratifying to say that this request was unequivocally granted by the distinguished Senator Yayi who promised to do all in his power to ensure the realization of our objective.”

    He lamented that only Ogun West to which Ipokia belongs, amongst the three Senatorial Districts in the state, does not have a substantive Federal or State University.

    “It is my considered opinion, therefore, that Ogun West and indeed Yewaland deserves as many public tertiary institutions as possible considering the number of years of undeserved neglect and marginalisation our zone has suffered in the state.”

     

     

  • NGO holds Iftar for 1000

    NGO holds Iftar for 1000

    A non-governmental organisation, Sesi Whingan Foundation, has distributed food items to over 1,000 Muslims in Badagry, Lagos State, for breaking of fast and early morning food during Ramadan.

    Its  Founder, Mr Sesinu Whingan, said the foundation believed in helping the society during and after festive periods.

    Whingan said the foundation donated bags of rice to many Muslims in the three local government areas of Badagry.

    “Apart from individuals who benefitted directly from the scheme, all central mosques in all towns and villages in the three council areas in Badagry were given a certain number of the packaged food items to distribute to  their members.

    “Also, some notable political leaders who are Muslims benefitted from the scheme,” he said.

    He said that during distribution, the beneficiaries could not hide their joy and  were full of praises and prayers for the foundation and the founder.

  • Fasting will transform people willing to be transformed

    Fasting will transform people willing to be transformed

    The Chief Imam of Cross River Central Mosque, Alhaji Kabir Olowolayemo, said the Ramadan is a period of self-restraint, control and discipline, as well as spiritual transformation for all Muslims.

    In an interview with the News Agency of Nigeria (NAN) in Calabar, Olowolayemo said that in spite of the enormous bounties of the Ramadan period, only those willing and ready to be transformed benefit from the bounties.

    According to him, it was only when people refuse to heed the commands of God that tragedies occurred.

    The Imam said all concerned must move away from iniquities and use the period to seek for Allah’s forgiveness.

    “It is a show of shame that in the Ramadan, we still hear cases of kidnapping and different forms of insecurity. It is sad that today, the issue of insecurity has become something everyone should be worried about; Ramadan should be used to emphasise the importance of maintaining peace in the society,” he added.

    Olowolaiyemo said every Nigerian, including religious leaders, should work to solve the problem of insecurity affecting the nation.

    “We must stop living like hypocrites who do things that will later affect them in the long run and follow the dictates of Allah through the Holy Qur’an while ensuring a peaceful coexistence in the nation,” he added.

    The Imam explained that Ramadan was not just about fasting and staying away from certain things, but also about feeling for others, including those hungry and homeless.

    He appealed to every Nigerian to allow peace to reign and be representatives of God anywhere they find themselves.

  • Draw sets stage for an exciting FIFA Arab Cup

    Draw sets stage for an exciting FIFA Arab Cup

    The draw for the FIFA Arab Cup Qatar 2021 has been conducted at Katara Opera House in Doha.

    The nine highest-ranked teams, including host country Qatar, will join the seven winners from the qualifying stage in the final tournament. The 16 teams have been drawn into four groups of four.

    The four group winners and four group runners-up will proceed to the knockout stage: quarter-finals, semi-finals, third-place play-off and final. The matches will take place at six Qatar 2022 stadiums, with the venues set to be confirmed in due course.

    The tournament will take place later this year – during a similar time slot to the FIFA World Cup Qatar 2022. It is seen as a vital opportunity to test operations and facilities exactly a year before Qatar hosts the first World Cup in the Middle East and Arab world.

    H.E. Sheikh Hamad bin Khalifa bin Ahmed Al Thani, President, Qatar Football Association, said: “Qatar is very excited to host the FIFA Arab Cup later this year. National teams from across the region will have the opportunity to participate in a high-profile tournament which is sure to capture the attention of fans everywhere. This is also an important step for the national team’s development and the entire country as we fine-tune preparations for the FIFA World Cup in 2022.”

    H.E. Hassan Al Thawadi, Secretary General, Supreme Committee for Delivery & Legacy, said: “This tournament will see elite teams from across the Arab world compete in a FIFA-sanctioned tournament for the first time.

    “A tournament of this magnitude – played exactly a year before the World Cup – is sure to excite our football crazy region as we continue preparations for 2022. We look forward to hosting the FIFA Arab Cup and using the tournament to confirm our plans for the World Cup, which is just around the corner.”

    Nasser Al Khater, CEO, FIFA World Cup Qatar 2022 LLC, said: “Following the successful hosting of the FIFA Club World Cup in 2019 and 2021, the FIFA Arab Cup provides Qatar with yet another opportunity to test our plans and preparations ahead of the FIFA World Cup. Fans, players and officials will have the opportunity to use World Cup infrastructure, including stadiums, training sites and other facilities. We greatly look forward to hosting national teams from across the Arab world as we build up to the biggest sporting event in our region’s history in 2022.”

    THE FULL DRAW

    Group A: Qatar, Iraq, Oman or Somalia & Bahrain or Kuwait

    Group B: Tunisia, United Arab Emirates, Syria & Mauritania or Yemen

    Group C: Morocco, Saudi Arabia, Jordan or South Sudan & Palestine or Comoros

    Group D: Algeria, Egypt, Lebanon or Djibouti & Libya or Sudan

  • NSCIA to Muslims: observe COVID-19 protocol during I’tikaf

    NSCIA to Muslims: observe COVID-19 protocol during I’tikaf

    By Lateefat Raji and Toyosi Olufemi

    The Nigerian Supreme Council for Islamic Affairs (NSCIA) has enjoined Muslims to adhere strictly to the COVID-19 protocol during the I’tikaf.

    I’tikat is a period starting from 20th Ramadan where Muslims seclude in the mosque in search for Lailatul Qadr (Night of Majesty).

    NSCIA, in a statement by the Director of Administration, Zubairu Haruna Usman-Ugwu, the Council under the leadership of its President-General and Sultan of Sokoto, said: “In states where I’tikaf is permitted, Muslims are allowed to perform it while observing necessary safety measures and where it is not, Muslims are encouraged to refrain from it.

    “Whichever case obtains in one’s state, the directives of state governments and health authorities on COVID-19 should be complied with”.

  • Boosting tax compliance through Offshore Assets Regularisation Scheme

    Boosting tax compliance through Offshore Assets Regularisation Scheme

    A legal expert, Tochukwu Onyiuke, examines the Voluntary Offshore Assets Regularisation Scheme and how to bring it in line with extant tax laws.

    On October 8, 2018, President Muhammadu Buhari, via his verified Twitter handle, announced the introduction of the Voluntary Offshore Assets Regularisation Scheme (VOARS) through the Presidential Executive Order 8.

    The Federal Government’s continuous drive to boost non-oil revenue largely motivated the launch of this tax amnesty scheme.

    Taxpayers who have defaulted in the payment of their taxes for a period of years are encouraged to embrace this scheme and voluntarily declare all offshore assets and foreign-sourced income relating to the preceding 30 years of assessments and pay a onetime levy of 35 per cent on all offshore assets in lieu of payment of outstanding taxes, amongst other benefits.

    A benefit is that there is a permanent waiver of criminal prosecution for those who have been in default. Also, there is immunity from tax audit of the declared and regularised assets.

    This scheme had a life span of 12 months and is targeted at all persons, entities and their intermediaries, who are holding offshore assets and are in default of their tax liabilities in any way whatsoever.

    In June 2019, an Executive Order amending the Executive Order 008 of 2018 on the Voluntary Offshore Assets Regularisation Scheme (VOARS) was issued.

    The Amendment Order is officially known as the Voluntary Offshore Assets Regularisation Scheme Amendments 2019 (the Amendment Order).

    This sought to further elongate the lifespan of the 2018 VOARS and added some further provisions including prescribing punishments for domestic or foreign banks, asset managers or intermediaries that cooperate with defaulters and enable them to conceal offshore assets and income.

    These financial institutions that aid and abet tax defaulters shall be liable to pay to Federal Government a penalty on the total of such offshore assets, in addition to other penalties provided for under Nigerian laws or laws of foreign countries from which Nigeria can benefit. The amendment is however silent on the longevity of the scheme.

    Further to the above, the Order does not specify the taxes covered under Scheme, and it generally refers to tax defaults under relevant statutes in its recital.

    Therefore, it is assumed that VOARS covers all tax defaults under Nigerian tax laws including Personal Income Tax (PIT), Companies Income Tax (CIT), Capital Gains Tax (CGT) etc.

    Having enunciated the intention and purpose of the Voluntary Offshore Assets Regularisation Scheme, this article is set on looking at the various angles of the scheme and how it would fare side by side with different positions of our extant tax laws; including the legality and general perception.

    Many stakeholders have described the methodology of this Order as unsystematic and a haphazard measure to achieving the intending aim. The VOARS Order has generated varied opinions as different camps are unclear about the modality of its operation and whether it is of any advantage to the average taxpayer in and outside the country.

    The Order in defining offshore assets (tax base), includes liquid assets (bank balances), stocks and bonds held in portfolios, insurance policies, shares in listed or unlisted offshore companies, property assets and all manners of assets held directly or indirectly through corporate entities, trust structure and non-Nigerian resident companies and intermediaries.

    Having it at the forefront of our minds that various laws of our land have explicitly specified and clearly defined who and when to pay taxes, the VOARS has set up something unprecedented.

    Looking at the stands of our extant laws, the Personal Income Tax Act for instance in Section 1 provides for the imposition of taxes in Nigeria. Section 2 of the Act states the categories of persons on whom income tax is to be imposed upon to include individuals, communities, families and trustees.

    A careful look at the provisions of Section 11 of the Act which bothers on Tax credit allowable against tax payable on income derived from outside Nigeria will reveal that where a resident derives income from a foreign source outside Nigeria and the income is brought into Nigeria through Government approved channels, he shall be allowed a tax credit against tax payable by him.

    The focus of the draftsman in the afore-cited section as regards foreign-sourced income is strictly upon foreign income earners that are bringing their foreign earnings into Nigeria through the right channels. There is no provision for taxing foreign-sourced or offshore assets that are abroad and have no intention to be brought back into the country.

    What this means is that the modalities of VOARS is susceptible as it has no legal backing from the extant laws. The provision of Section 13 of the Personal Income Tax Act 2011 gives further clarity to this assertion.

    Foreign-sourced incomes are not liable to Personal Income Tax in Nigeria unless and until they are brought into or received in Nigeria.

    In essence, it is not illegal for Nigerian-resident individuals to earn legitimate foreign incomes or elect to retain such incomes abroad.

    A similar scheme termed the Voluntary Assets and Income Declaration Scheme (VAIDS) was previously embarked upon and concluded in 2017.

    The VAIDS was applauded by various stakeholders, including taxpayers and tax authorities because it focused mainly on the declaration of assets in the country, the recently introduced Voluntary Offshore Assets Regularisation Scheme (VOARS) has not received similar accolades and have been met with unfavourable reviews from experts and stakeholders alike.

    The Order provides that the people targeted in the Scheme includes “all persons, entities and their intermediaries, who are holding offshore assets and are in default of their tax liabilities in any way whatsoever”, including persons who:

    • are not already under investigation by law enforcement agencies for theft of public funds or obtaining offshore assets through corrupt practices;
    • own offshore assets but are yet to declare them with the relevant authorities;
    • earn income on offshore assets but are yet to declare such income to relevant tax authorities;
    • are registered taxpayers but have not been filing returns or have additional disclosures to make;
    • have been underpaying or under remitting tax;
    • are under a process of tax audit, investigation or dispute and are prepared to settle out of court;
    • have applied for and received a Special Clearance from the Federal Government to participate in the Scheme;
    • have been determined to be innocent after investigations or legal proceedings.

    Flowing from the above-stated position of the Order, it further states that the declaration of the offshore assets to be in respect of all assets and income amassed within the past 30 years.

    Several eyebrows are raised regarding the availability and accessibility of general information and data required by the VOARS for full efficiency.

    By way of an instance, challenges may arise in accessing account balances for the past 30 years given that the guidelines for Deposit Money Banks in Nigeria require banks to retain their transaction records for a maximum period of 5 years save for special instances.

    Similarly, some other foreign climes like Switzerland have a limitation period of 10 years to retain bank records for individuals.

    Thus, a taxpayer may be faced with a shortage of information on their offshore assets should he eventually volunteer to participate in the tax amnesty scheme.

    In addition to the aforementioned facts, the PIT Act and the CIT Act state that a taxable person is to be taxed based on his/her income received inside or outside Nigeria, it is enlightening to note that both Acts expressly exempt income derived from dividend, interest, rent and royalties, brought into Nigeria through government-approved channels, from payment of tax

    Though VOARS identified income earned from the stock market abroad as one that is subject to tax, the provisions of the PIT Act exempt such incomes earned from the stock market.

    To further add to the point, an executive order cannot cure a perceived lacuna of an extant law in view of the PIT Act. If there is a need to capture the targeted persons of interest as stated by the VOARS, an amendment to the P.I.T.A should be considered should an amendment be thought necessary.

    Specifically, the PIT Act goes further to exempt fees and commission, received by a taxable person abroad, from tax, provided such fees and commission are brought into Nigeria through government-approved channels. Section 13 of the P.I.T.A was emphatic on this position.

    It is the position of the writer that money earned on the stock market offshore and not declared under VOARS cannot form the basis of criminal prosecution because it is not a crime in any of the extant laws.

    The Voluntary Offshore Assets Regularisation Scheme works closely with the Nigeria Financial Intelligence Unit (NFIU) which has worldwide access to relevant financial information, to ensure seamless exchange of information.

    The Nigerian Financial Intelligence Unit is the Central National Agency, being an autonomous unit that is responsible for the receipt of disclosures from different reporting organisations on any financial discrepancies.

    The analysis of this disclosure and the production of intelligence are disseminated to competent authorities for further investigation.

    The NFIU however lacks the degree of popularity it ought to have on the national front to work with VOARS, it cannot also boast of the availability of data on persons with offshore assets and income.

    Also, by way of addition, there are several levels of protection offered by the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act as regards non-disclosure of sources of imported foreign currency.

    Section 3 (1) of the Act states: Except as required under any enactment or law, a person executing a transaction in the Market shall not be required and, if required, shall not be obliged, to disclose the source of any foreign currency to be sold in the market. 

    (2) No foreign currency imported pursuant to this Act shall be liable to seizure or forfeiture or to suffer any form of expropriation by the Federal or a State Government except as provided under this Act.

    While VOARS has mandated individuals to disclose monies earned abroad for the purposes of paying tax, the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act places no obligation to disclose. All these without a doubt reinforce the inconsistency of VOARS in view of the provisions of the extant tax laws.

    The writer understands that the Federal Government’s rudimentary aim in commencing the VOARS is to promote voluntary tax compliance, expand Nigeria’s tax base, boost government revenue, cut tax evasion, corruption, halt illegal financial network, and imbibe the norms of national responsibility, accountability, and honesty in citizens.

    It has to be in line with the extant tax laws to clothe it with the needed validity capable of being enforced in the event of default.

    • Onyiuke is a Partner in Accendolaw Law Firm, Lagos.
  • Oguntade: why we focus on mediation, pro-bono work

    Oguntade: why we focus on mediation, pro-bono work

    By Joseph Jibueze

    Pro-bono work is often linked with the legal profession, and for retired Justice of the Supreme Court George Oguntade, there is no better way to give back to  the  society.

    When he retired on May 10, 2010, he set up the Wiseview Legal Consultancy to put his wealth of legal knowledge to use.

    He was supported by two lawyers, a secretary and a few administrative staff, but the firm, which marked its 11th anniversary, now has 20 lawyers who offer a range of legal services.

    The Senior Consultant and Head of Practice, Abosede Oguntade-Oworu, who represented Oguntade, said while lawyers in the firm work to meet clients’ needs, they also contribute to social causes.

    “Our pro-bono involvements include the resolution of several cases involving communities such as Odoragushin in Epe Area of Lagos.

    “The settlement will see to the placement and comfort of over 250 persons hitherto displaced by actions of organs seen to be greater than them.

    “We have resolved a lot of disputes, particularly as they relate to land and property cases in all the states of the Southwest amongst families, state governments and corporate organisations,” she said.

    Eleven years on, the firm’s corporate social responsibility engagements have cemented its bond with its immediate communities, corporate and individual clients as well as the have-nots in Nigeria and abroad, especially in the United States and the United Kingdom.

    Oguntade-Oworu said the firm encourages clients to explore settlement, with litigation often a last resort.

    “We do a lot of mediation, arbitration and other alternative dispute resolution practices.

    “When clients approach us with certain disputes, we first invite parties to see how best we can mediate,” she said.

    Justice Oguntade, a certified arbitrator and fellow of the Chartered Institute of Arbitration UK, has proved to be an asset to the firm.

    He has sat on numerous arbitral panels and as a sole arbitrator and has chaired standing tribunals of the institutes of stockbrokers, insurance and bankers.

    The firm felt Justice Oguntade’s absence when he served as High Commissioner to the United Kingdom from 2017 to 2020 and is happy to welcome back the 81-year-old jurist, who still has a lot to offer.