The Nation Newspaper

Tag: administration

  • Ogun deploys CORS to enhance land administration

    As part of its efforts to ensure that land administration meets global standard and enhance the economic value of the state, the Ogun State Government has set up three Continuously Operating Reference Stations (CORS) in Abeokuta, Ijebu-Ode and Agbara areas of the state. The CORS is a multipurpose, automated, global positioning system (GPS) based equipment, which forms an essential tool for the Geographical Information System (GIS) used by governments, scientists, surveyors, construction companies and other professionals.

    The Director-General for Bureau of Lands and Survey, Mr. Adewale Oshinowo, who made this known earlier in the week, explained that the facilities are the reason for the enormous contribution to the development of various land reforms in the state.

    According to Oshinowo, CORS is capable of receiving information continuously without any interference, adding that the three stations out of seven proposed for effective coverage, had internet connection making them visible globally. CORS, he further explained, beam across over 70 kilometers radius, each with an overlap to produce corrections and give accurate location of boundaries.

    “The CORS in Ogun State is the backbone of GIS, which has made survey easy and is being used to capture, store, analyse, share, manage and display all types of spatial and attributes data in the bureau. It has helped to centrally manage land, supported the digitalisation of Certificate of Occupancy production as against the manual process, and helped in the quick determination of water level and its position in effective management of flood,” he explained.

    Extolling the capabilities of the CORS, Oshinowo emphasised that the system addresses issues such as the distribution, archiving, quality control of the data that it collects and records GPS observation data all the time. Through the use of CORS, the agricultural sector and land use, the DG explained, could be analysed for proper management.

  • Council chief pledges better administration

    Lagos State Joint Public Service Negotiating Council (JNC) chairman Comrade Obafemi Oyenubi has pledged to run a better regulated council and tie up loose ends.

    This, he said, will ensure a more committed executive and give proper direction.

    Oyenubi was re-elected as chairman, last Friday, to run the affairs of the JNC for another two years.

    Also re-elected along with him was M. A. Subair as the Vice-Chairman, while other officials in his executive were all returned to their former positions unopposed.

    Before the election, however, a candidate contesting the vice chairmanship position, Comrade A. Y. Sulaimon, wanted the election put on hold for reasons of clarification on the council’s constitution and electoral guidelines, saying he was not aware that there was an election committee in place.

    He was, however, overruled by the committee, which later accepted his withdrawal from the contest and abstinence from the election, after a heated debate and arguments that lasted for over one hour.

     

  • ‘My administration ‘ll make a difference’

    ‘My administration ‘ll make a difference’

    Lagos State Governor Akinwumi Ambode has reiterated his determination to make life more easier for Lagosians through the implementation of progressive policies and programmes.

    The governor welcomed constructive ideas from stakeholders, saying that nobody has a monopoly of knowledge.

    Following his inauguration as the fifth elected governor, Ambode has hit the ground running. He has not come to learn on the job, as it were, having served as the Accountant-General and Permanent Secretary, Ministry of Finance before he bowed out voluntarily from the civil service two years ago. When he was alerted to the tanker accident along Iba-Idimu road, his response was swift. He issued stern warning to drivers fond of wrecking havoc on the metropolis, saying that they must be curtailed to avoid further disaster to life and property.

    Ambode slated a meeting between the government and tanker drivers to explore ways of reducing avoidable accidents that have brought untold hardship on the people. No responsible will close its eyes to this type of horror, he said.

    The governor is perceived as a politician that will fulfill his promises to the people. Last week, he assured Lagosians of a new deal, saying that his administration will make life more happier and easier. “Our intention is to return governance to the people,” he said, adding that he will not take any step without consulting with the stakeholders.

    Yet, he is not afraid of stepping on toes in the interest of the state. His dissolution of some agencies boards of parastatals underscore his readiness to maintain a clean break from the past. He explained that the move will enable the government to reposition them and foster efficiency and accountability.

    Many Lagosians expect Ambode to set up a cabinet of talents. A source said its composition will reflect the five divisions of the Lagos, which is made up of Lagos Island, Epe, Ikeja, Ikorodu and Badagry. Also, the State Executive Council will have representatives from the pre-existing 20 local governments, the source added. According to the source, it will be a mix grill of politicians and technocrats.

    But, Ambode has hinted about structural changes in the civil service. For example, he has said that the Ministry of Rural Development will be abolished. Its functions will be taken up by the new Ministry of Local Government and Community Affairs.

    Under the new administration, the quest for a special status for Lagos will be intensified. In the Seventh Senate, Senator Oluremi Tinubu (Lagos Central) has brought the demand to the front burner. But, Lagos must tap the resources available to it for development as it waits for the granting of special status by the Federal Government or the constitution. This, the governor said, will be done.

    “‘Lagos must create a hub for the African continent. We will set up the Office of Overseas Affairs to improve on trade and commerce. This will increase the GPD and generate employment,” the governor added.

    An efficient civil service is critical to good governance. Ambode said that “the civil service will be re-arranged.” In his view, agencies of government, including LASTMA, must be re-organised so that it can be more civil in the discharge of its duties. The governor said: “We will apply technology to deliver service.” Reiterating that his administration will build on the legacies of his predecessors, he said: “It is a government of continuity with improvement. We will be creative and receptive to new ideas.”

    The nation is facing hard times. Lagos is not insulated from the effects of the revenue crunch. Ambode, a chartered accountant, allayed the fear of heavy taxation as a recipe. He said taxation will not be abused, adding that government will not impose any burden. However, the governor promised to reduce the cost of governance. According to experts, the first step is to block loopholes.

    Ambode said that he will preside over an all-inclusive government. “This government is nit about the APC alone. It is a government for all Lagosians,” he stressed.

    The governor promised to contribute to the success of the ‘Development Agenda for Western Nigeria (DAWN).’ Economic integration of the six Southwest states is important, he said, adding that it is in the interest of Lagos State, the region and the future of its children. He said if other Southwest states are developed, the migration to Lagos, which has led to decongestion and constituted more pressure on the state, will reduce. “More people come from other Southwest states to Lagos for medical attention. We will support regional integration. It is in the interest of all of us,” he added.

    Ambode also promised to promote tourism, saying that it is an income-yielding sector. “To boost tourism, we need to ensure security and infrastructural development. Our administration will focus on these imperatives,” he said.

    “It is a government of continuity with improvement. We will be creative and receptive to new ideas”

     

  • Innovative provisions of Administration of Criminal Justice Act 2015

    Innovative provisions of Administration of Criminal Justice Act 2015

    Two weeks before his exit, former President Goodluck Jonathan signed the Administration of Criminal Justice bill into law. In this piece, Prof. Yemi Akinseye-George (SAN) examines the law’s key provisions.

    • Continued from last week

    Receive evidence by video link.  (b) permit the witness to be screened or masked. (c) receive written deposition of expert evidence. (d) any other measure that the court considers appropriate in the circumstance.

    The Act also stipulates that anyone who contravenes the provisions of section 232 shall be sentenced to a minimum term of one year imprisonment.

     

    Electronic Record of proceedings

    Section 364 provides the legislative backing for court proceedings to be recorded electronically. It states that in certain exceptional circumstances, where the evidence of a technical, professional or expert witness would not ordinarily be contentious as to require cross-examination, the court may grant leave for the evidence to be taken in writing or by electronic recording device.

    Similarly, section 362 states that where it appears to the court that a person who is seriously ill or hurt may not recover, but is able and willing to give material evidence relating to an offence and it is not practicable to take the evidence the during trial, the Judge or Magistrate shall take in writing the statement on oath or affirmation of the person. The Judge or Magistrate shall preserve the statement and file it for record.

     

    Compensation to victims of crime

    Victims of crimes are often neglected and left without any form of compensation even when the offender has been found guilty and sentenced. The ACJA has addressed this ugly trend by broadening the powers of the court to award costs, compensation and damages in deserving cases, especially to victims of crime. The Act adopted and improved on the provisions of the Criminal Procedure Act and the Criminal Procedure Code.

    By the provisions of Section 319 of the ACJA, court may within the proceedings or when passing judgment, order the convict to pay compensation to any person injured by the offence, irrespective of any other fine or other punishment that may be imposed or that is imposed on the defendant, where substantial compensation is in the opinion of the court recoverable by civil suit. The court may order the defendant to pay a sum of money to defray expenses incurred in the prosecution. The court may also order the convict to pay compensation to an innocent purchaser of any property in respect of which the offence has been committed who has been compelled to give it up. The court may also order the convicted person to pay some money in defraying expenses incurred in medical treatment of any person injured by the convict in connection with the offence.

     

     Non-Custodial sentences

    The ACJAin Sections 453, 460 and 468 attempted to address the problem of excessive use of imprisonment as a disposal method by introducing some alternatives to imprisonment. These include the introduction of suspended sentence, community service, parole and probation. It also provides that the court, in exercising its power shall have regard to the need to: (a) reduce congestion in prisons; (b) rehabilitate prisoners by making them to undertake productive work; and  (c)    prevent convicts who commit simple offences from mixing with hardened criminals.

    By virtue of 467 courts may sentence and order a convict to serve the sentence at a Rehabilitation and Correctional Centre established by the Federal Government in lieu of imprisonment. The court in making an order of confinement at a Rehabilitation and Correctional Centre shall have regard to the age of the convict; the fact that the convict is a first offender; and any other relevant circumstances necessitating an order of confinement at a Rehabilitation and  Correctional Centre.

    The section further provides that the court may make an order directing that a child standing criminal trial be remanded at a Rehabilitation and Correctional Centre.

     

     Service of court processes by courier companies

    This is another innovative provision in the ACJA which states that service of court processes may be effected by registered reputable courier companies, recognised and authorised by the Chief Judge. This is to ensure that service of court processes is handled by professionals for efficient delivery of service.

     

    Establishment of monitoring committee

    Section 469 of the ACJAestablished a body to be known as the Administration of Criminal Justice Monitoring Committee. Its membership is made up of the major stakeholders of the criminal justice system. By the provision of Section 470, the Committee is to ensure that: (a) criminal matters are speedily dealt with; (b) congestion of criminal cases in courts is drastically reduced; (c) congestion in prisons is reduced to the barest minimum; (d)              persons awaiting trial are, as far as possible, not detained in prison custody; (e) the relationship between the organs charged with the responsibility for all aspects of the administration of justice is cordial and there exists maximum co-operation amongst the organs in the  administration of justice in Nigeria; (f) collate, analyse and publish information in relation to the administration of criminal justice sector in Nigeria; and (g) submit report quarterly to the Chief Justice of Nigeria to keep the Chief Justice abreast of developments towards improved criminal justice delivery and for necessary action; (h) carry out such other activities as are necessary for the effective and efficient administration of criminal justice.

     

    Conclusion

    One of the major improvements brought about generally by the reforms is that conscious effort was made to strengthen the rights of the defendant and reduce delays in the criminal process. Though most of these rights had existed before now, the ACJA 2015 has added emphasis to them and has also ironed out a lot or grey areas that had been long overdue for change. With the passage of this Act, the Criminal Procedure Act (CPA), Criminal Procedure Code (CPC) and the Administration of Justice Commission Act stand repealed.

     

     

  • ‘We did more in Aba than any other administration’

    ‘We did more in Aba than any other administration’

    Former Governor Theodore Orji of Abia State was among the two-term governors who handed power over to their successors. He ascended to power in a turbulent manner. During his tenure, his erstwhile principal hung on his tail. He spoke with Steve Osuji and Taiwo Ogundipe in Umuahia, the state capital, on partisan issues.

    What do you think you would miss the most after you would have left office?

    I don’t think I’ll be missing much because I’ll still be in touch with my people who have elected me to go to the Senate. I would have been pained if I was severed from my people So I would not be missing much; the only thing is I will be in the Senate. But constantly I will be coming home to be in touch with my people. These are my people who love me and I love them; who voted for me to be governor for eight years. They voted for me in the first instance in 2007, voted again massively for me in 2011 to continue, and voted for me again to go to the Senate. They have shown me love, they have spoken that they want me. So, I will not be missing them because I’ll be coming home to interact with them.

    Looking back after eight years, are there things you wish you had done better or which you couldn’t accomplish?

    Yes, of course. Aba has been the problem. Because of what people are saying, what I should have done was to concentrate solely on Aba, maybe that way people would agree you we were doing something. But I wasn’t elected by Aba people alone; the whole of Abia people voted for me to be governor, therefore I had to touch everywhere; this is what I was doing. Maybe if I had left Umuahia and the other areas and concentrated on Aba, poured all the State’s money in Aba, they would been hailing me today that I have done very well. But I am satisfied in my conscience that I touched every part of Abia in terms of spreading dividends of democracy. And for you to concentrate on Aba alone, it means that all the money that we got would go into that place, because the work there is enormous in terms of infrastructure. People expected me to think that if I had known I should have poured all the money into Aba, but it’s not possible. This is the state capital; it has to look like a state capital. People don’t talk about Umuahia, it’s only people who come here who say, ‘he has improved Umuahia’, which I have done and brought it to the status of a state capital. People overlook that. Because of the strategic nature of Aba, that’s why all attention is on it. If I am a governor that seeks attention, a TV governor, yes, of course, I would have probably been in Aba every day, leaving the rest of the state, but it would not be fair in my conscience that I concentrated the resources of Abia State in just one area.

    What would you advise your successor on the best way to tackle Aba’s problem?

    He’s an Aba man. So, already, he knows the problems and he’s going to tackle them. And that’s why we believe in this equity that I’m telling you; because as an Aba man, he’s going to work and build up that place. Not that I didn’t make a mark in Aba, if I tell you what we have done in Aba you will marvel. I actually made a mark there more any other administration.

    Mention a few, sir…

    If you go to Aba now, we are building a modern shopping mall at Osisioma. We’ve been able to keep Aba clean. Till now; before now it wasn’t like this. I remember vividly before 2007, Aba-Port Harcourt Road at Osisioma was a mountain of refuse that would not allow you to pass, and if you were passing you must hold a handkerchief and cover your nose. It was bad to the extent that el-Rufai made a mockery of the government on seat then (Gov. Orji Uzor Kalu’s era). But our own situation has not reached that stage. We’ve been able to at least see that the hygiene situation in Aba is controlled.

    What of erosion? We’ve controlled erosion. The only overhead bridge that you have in Aba now, just across the polytechnic – the polytechnic is on the Aba-Owerri road – every day vehicles knocked down students. Bus stop is there and we had to build the only overhead bridge there. What of the roads that we have repaired and new ones that we have built in Aba? Are people saying that we have been here for eight years and we have not repaired any road in Aba, we have not built any road in Aba? The infrastructural decay was so much that as you are working on one street they want you to come and work on another; if you repair this road now, they will be pointing at another one for you. Eight years is not enough for you to repair all the roads in Aba, and it’s capital-intensive. The money must be there too. Therefore, we repaired many roads in Aba. If the commissioner for works is here, I would give you the details of all the roads. We built new ones; at least the one that leads to Geometric, the power plant, a fresh road to allow the company bring in equipment and we named it Geometric Road.

    Security?

    What of security? There was a time, and I always tell Aba people if there’s no other thing you remember me for, you will remember me because I secured your city. During the kidnapping era, all of them ran away. Aba was a ghost town. It reminded me of the war period. I went to Aba myself with Gen. Sarkin Bello who was the commander at that time. We went to Okwa west where the kidnapping was going on and we saw in Aba nobody, all of them had run away. But, eventually, by the help of God, we were able to restore security in Aba and people have come back.  All the same, we have made our own impact in Aba more than any other administration, check it. And we expect also that the incoming government will make their own impact and improve on what we did.

    What is going to be your agenda in the Senate?

    I think the primary function of a law maker is to initiate good bills that will be for the good of society. We will initiate good bills for good governance. We will also try as senator to interface with our colleagues, interface with ministers, interface with ministries to attract some projects to our constituency and area. And you know we are in opposition now (laugh), we will also offer good opposition, not destructive opposition, not pull him down opposition; but constructive opposition in directing government of the day on good courses of action.

    Talking about the opposition, what’s your take as a leader of the Southeast. Did they vote right?

    Well, people voted according to their conscience. And if you look, with hindsight, that has been the pattern of voting in the Southeast. The PDP is strong in the Southeast and that’s what the people showed; you would not say that they voted wrongly, they voted according to their conscience. They were not forced to vote for any person. All the parties came and campaigned, and they went for PDP because they are for PDP. PDP is strong in the Southeast. PDP has Anambra, it has Abia, it has Ebonyi, it has Enugu State; sorry, Anambra is APGA, though it used to be PDP, and Imo is APC. So you see that PDP is dominant here.

    Don’t you think you will be short-changed, somehow, in national politics?

    No, we are in opposition. You can’t short-change us, we will shout. You have to give us our due; you have to give us what belongs to us. And for you to make an impact in the Southeast, if you want to make an inroad, you will have to perform. People will see what you are doing and when they appreciate it they will vote for you. It’s not by force, it’s by performance. It’s by what you do for the people – what you do for them will attract them; if you treat them shabbily, they will vote for you shabbily.

    Let’s go back to the election. Did you achieve your mission, according to the charter of equity?

    By Ikpeazu’s victory in the last election, the charter of equity was well served and that was what guided us in what we did. Let me also tell you that the best charter of equity is the Bible; not the one human beings have done. The best charter of equity is the Bible for Christians, and the Quran for Muslims. And in the Bible, God said I am a God of fairness, I am a God of justice and I am a God of equity. How do you translate that to reality? It’s by what you have done. Since the Bible has said God is a God of fairness, justice and equity. We are supposed to interpret these things and implement them as a witness of God; that’s what we did.

    Now referring to charter of equity, which is in line with what I’m telling you, so we are covered very well when we embarked on this mission, and our party, PDP, considered all this that I’m telling you. We said in Abia, we have three senatorial zones; fairness, justice and equity (three words). So, Abia North has done its bit, and that’s fairness; Abia Central is doing its own, and that justice; Abia South should have their own, and that should be equity. That’s what has catapulted us to this position that we are now and it has worked out because it is based on solid foundation.

    How did your predecessors fare in this charter of equity pact?

    Did they talk about it? I can’t remember any of my predecessors that has said this thing, rather some of them were saying that they would hold power for donkey years; that power can never move. Go and ask the Ukwa-Ngwa people, they will tell you. They were the people who were saying it that past governors were specific and said power would never come to them. And that’s why, today, they are very appreciative, that somebody has come and said, ’ah, you are my people, we are one.’ This thing should rotate like this, so that every person can have a taste of power and can show his performance in governance.

    Is this the first time power is going to that side?

    Since Adam and Eve, since they were created, Ukwa-Ngwa people have never been governor; either military or civilian. This is the first time, and that’s why they are happy.

    And there’s peace?

    Yes, there’s peace.

    The main contender, from which part is he?

    He’s from Arochukwu

     Should anybody fault that power should go to the other side

    That is the problem. That’s why we are not very comfortable with his stance because we believe as a true son of Abia, he should allow peace to reign. He is not from Ukwa-Ngwa he’s from Arochukwu local government, his house is there. He has a very big house in Arochukwu local government, that’s his place. But because of his ambition, he wants to be governor by all means. He now decided to deny that he is from Arochukwu. Even where he says he comes from doesn’t favour him because it’s in Abia Central. And when he came to me on this issue, I told him, that we, as a party, have decided that this thing should move this way. He said that he’s an Ukwa-Ngwa man; that’s what he told me. If you are then go and convince them, because there’s no way they can appreciate you more than their own son. So that’s the problem he’s having, because what we have done is built on solid foundation, religiously and otherwise.

    Let’s go national now. The economic problem in the country whereby some states are not able to pay  workers’ salaries, what do you think is happening?

    You know our main source of income is the oil, and when the price falls it affects every other thing. It’s a global problem, it’s affecting us now. What you have said is correct; many states are owing. Like my state, even though we are not owing civil servants, there are some parastatals that are supposed to be self-sustaining that we are owing, and teachers also. It’s not peculiar to Abia, it’s everywhere. We just ask those that are being owed to be patient and that with time they will be paid. This is not the first time this kind of thing is happening. It happened before. When the economy is bad it affects every other sector.

    What are the immediate and long term steps we should begin to look at towards solving this problem?

    The immediate problem is to tell the people to brace up for lean times. Then internally generated revenue; people have to pay their taxes, as there are many who don’t pay taxes. If you go to some to pay taxes they would bring out machete and pursue you. So, we have to drive for internally generated revenue with all amount of seriousness so that you don’t depend on the federal government for allocation. And people have to be resourceful also; people have to be self-sustaining. Everybody should not be looking for white collar jobs – you want to go and work in the ministry, you want to go and work in the bank, you want to go and work in oil sector. We want you to be self-sustaining, open up your own business and grow. Let there be less dependence on government, so that government can concentrate on other things; every month, the fund you use to pay salaries is more than what you use to work.

    In your major legacy projects, what percentage would you give yourself?

    I will give myself 85 %, because I can’t score myself 100%, which is an A in the legacy projects that I have done. First, I was able to bring together all Abians; before, this place was polarised. I was able to bring all of them together, it’s a major achievement. Now, I was able to bring security, which is essential. Whenever I am talking about the legacy projects, I describe them as tangibles and intangibles. The ones I’m telling you are the intangible ones; the cohesion I have brought in Abia, the politics I have brought in Abia, the focusing of Abia people’s mentality is something, the fear of God also that we have brought into Abia, which is one of the things people neglect. You dare not come to Abia and mention any shrines anymore they will stones you. So, these are some of the intangible legacy projects that we are leaving behind.

    The tangible ones are there for all to see in every sector. Starting with the foundational ones; the foundation we have laid? We have a new secretariat for civil servants, before now, civil servants were all scattered in town. If you go now you see a new secretariat, and they have moved in. The BCA (Broadcasting Corporation of Abia) if you go to their office now, you have a sense of belonging working there, the International Conference Centre, where we held the thanksgiving ceremony, is world class. The court premises, the new ones we have built and those that we have renovated, the schools that we have built and renovated many of them, the hospitals that we have built and I will commission three this week when equipment have been put there in local government areas that have not had a general hospital before. Is it the Specialist Hospital or Diagnostic Centre we have here in Umuahia? Is it the youth empowerment that we are doing, that has energised most of our youths? These are the legacy projects. Right now, we have a new Government House that is almost ready. We’ve never had a Government House since Abia was created, it has not been easy. And it’s about 80% complete. I had intended spending a night there at least before handing over, but because the way our finances have turned around negatively. This month is the worst in terms of allocation from the Federation Account.

     

  • Indigenes seek role in new administration

    Indigenes of the Federal Capital Territory (FCT) have appealed to the incoming administration of Gen. Muhammadu Buhari to involve them in his administration, in order for them to benefit from the positive change which they have prayed for, after been marginalized by past and present administrations.

    The leader of Dagbalo community, Rev. Danjuma Tanko, who made this appeal on behalf of the indigenes in a press briefing on the future of Abuja natives, said explained that the people of Abuja has suffered endless marginalization, which has made them to wonder if they are part of the country.

    According to Rev. Tanko, since the existence of Nigeria, the people of Abuja have never been given the chance to participate in the affairs of governance, saying that after the independence, during the North Western state, it was the beginning of marginalisation for the people of Abuja.

    “This situation was equally visited during the days of the military rules, when we expected participation during the second republic. The incoming administration should build a bigger hope for the people so that the people will feel and participate actively in this change that we have been praying for.

    “Because, no political appointment has been offered to indigenes. The people of Abuja have a lot of graduates today, but there are no jobs for them. Our means of survival has been ceased from us and converted into buildings and road constructions.

    “Even with the present degree of development in the city, it is highly worrisome if this is an invasion, as we wondered since the amalgamation of Nigeria to this day. We are law abiding people and we pay our taxes directly and indirectly,” he said.

    Tanko further said that the federal allocation which the FCT benefit from in theory and not in practical, other Nigerians who are already benefiting from their states come to the FCT to control the revenue allocation without considering the interests of the indigenes.

    “The end result on how they manage the FCT allocation is a total neglect of indigenous communities and advancement of act of impunity, whereby they cease our plots of land without alternative means or compensation. Developing and providing infrastructures on the ceased farmlands, while the indigenes lack good roads and electricity in their communities.

    “Our traditional status should also be upgraded and given the chance to contribute actively in the affairs of nation building. It must be noted that this people have sacrificed their kingdoms for the peaceful coexistence of Nigeria, so they must be carried along in the scheme of things,” he said.

     

  • Administration of withholding tax (11)

    Administration of withholding tax (11)

    The organizations making the payments are required to withhold tax from such payments and pay over the withheld amounts to their respective relevant Tax Authorities within 30days of receipt of payment or credit by the person or entity suffering the Tax.

    The relevant tax authorities to receive the WHT tax transactions made by companies is FIRS and for individuals and unincorporated bodies subject to Rules of Residence is SIRS or FIRS.

     

    PERSON LIABLE TO DEDUCT WITHHOLDING TAX

    The payer of withholding tax in respect of any of the activities covered under the withholding tax regime shall include company (Corporate or non-corporate), Government Ministries and Department, Parastatals, Statutory bodies, Institutions and other established organization approved for the operations of Pay As you Earn System.

    WHO IS TAXABLE

    • All Persons, Companies etc. who’s Incomes are liable to income tax, are subject to Withholding Tax.

    • However, exempt entities like Educational Institutions, Government Ministries, Parastatals and other Agencies of Government, are Agents for the collection of WHT. They are required to deduct WHT on any payment made to a taxable body and remit same to the relevant tax authority.

     

    WITHHOLDING TAX IMPLICATION ON FOREIGN TRANSACTIONS

    Non Resident Companies/Enterprises

    The Revenue practice is that non-resident companies are not empowered to deduct any type of WHT. These categories of enterprises are practically outside the regulatory monitoring and control of the FIRS. It will be impracticable for Revenue office to inspect the accounting books of these companies in order to confirm due deduction and remittance of WHT.

    Double Taxation Agreement (DTA)

    Transactions that are ordinarily not liable to tax in Nigeria are not liable to WHT in Nigeria. Thus contracts and supplies of goods and services performed entirely outside Nigeria by non-resident individuals are not liable to WHT. Nigeria has treaty agreements with about eight (8) countries and these countries are granted a reduced rate of WHT deduction, usually at 75% of the generally applicable WHT rate. 7.5%. These countries include UK, Northern Ireland, Canada, France, Belgium, the Netherlands, Pakistan, and Romania.

    PERMANENT ESTABLISHMENT (PE) PRINCIPLE EXISTS UNDER NIGERIA TAXATION

    The rules construe a PE where:

    • The company has a ‘‘fixed base’’ in Nigeria.

    • The company operates in Nigeria through a dependent agent authorized to conclude contracts or deliver goods on its behalf,

    • The company is executing a turnkey project in Nigeria, or

    • The operation between the company and its Nigeria affiliate does not appear to be at arm’s length.

    • ‘‘Fixed base’’ implies some degree of permanence and will include:

    • Facilities, such as a factory, office, branch, mine, oil or gas well

    • Activities, such as building, construction, assembly or installation

    • Provision of services in connection with the activities listed above.

    PRINCIPLES OF PERMANENT ESTABLISHMENT

    • The rules construe a Permanent Establishment where:

    • The company has a ‘‘fixed base’’ in Nigeria.

    • The company operate in Nigeria through a dependent agent authorized to conclude contracts or deliver goods on its behalf,

    • The company is executing a turnkey project in Nigeria, or

    • The operation between the company and its Nigeria affiliate does not appear to be at arm’s length.

    ‘‘Fixed base’’ implies some degree of permanence and will include: Facilities, such as a factory, office, branch, mine, oil or gas well Activities, such as building, construction, assembly or installation  Provision of services in connection with the activities listed above.

    OTHER TYPES OF INCOME NOT LIABLE TO WHT

    • Companies operating within the Free Trade Zones/Export Processing Zones

    • Insurance premium

    • Turnover/Income from Dealership or Distributive trade

    • Telephone Bills are not subject to WHT

     

    APPLICATION OF WITHHOLDING TAX

    Sections of CITA and PITA that provides for the deduction of withholding tax at the applicable rates below.

    Types of payment                                            Applicable rates 

                                                                                 Companies    Individual

    Dividends, Interest, Rent                                10%                         10%

    Directors Fees                                   10%                         10%

    Royalties                                                            15%                  15%

    Commission, Consultation,           10%                         5%

    Technical, Service Fees

    Management fees                                             10%                         5%

    Construction/Building Contracts 5%                           5%

    Contracts, other than outright sales

    and purchase of goods in the

    ordinary course of business           5%                           5%

    Returns & Remittance

    Tax Returns are filed monthly with evidence of remittance and a detailed schedule of taxable transactions.

    Submitted schedule should show the following details:

    Name of supplier    Address Nature of   Invoice     payment   Amount   Rate @ Y% Tax

                                                                 Service      Date           Date

    • Returns for corporate suppliers should be filed within 21 days from end of month of transactions.

    ·            Returns for non –corporate suppliers should be filed within 30 days from end of month of transaction.

    • In practice, tax returns are filed in the same month they occur.

    • Tax deducted should be remitted to the revenue in exchange for a receipt of payment.

    • Tax is payable in the currency of the qualifying transaction.

    Following payment and filing of returns, the revenue processes credit notes for the suppliers on whose income tax was deducted.

    • Credit notes can be used in applying for tax credit against current and future tax liabilities (i.e. where it is not final tax)

    • Remittances are due to either federal or state tax authorities.

    Remittances due to Federal Inland Revenue Service (FIRS):

    • Corporate entities,

    • Non-resident individuals,

    • Members of the armed forces and police,

    • Resident of Abuja,

    • Foreign officers.

    Remittances due to state internal revenue service (SIRS):

    • All other individuals / partnerships resident in the state.

    • PAYMENT ON CURRENCY

    Section 64B of CITA empowers the tax authority that withheld tax must be remitted to the tax authority in the currency in which the deduction was made. This means that transactions made in foreign currency are to be remitted in the same currency and that the tax so withheld is to be remitted in the same currency. Simultaneously penalty for default would also be calculated in the same currency.

    • HOW TO CLAIM WITHHOLDING TAX CREDIT (CREDIT NOTES)

    A taxpayer from whom tax has been withheld is expected to gain withholding tax credit notes from the relevant tax authority via the deducting organization. All withheld taxes are forwarded to the tax authority, which in turn records the credit against the tax payer’s account, with a schedule containing details of the contract or service, on which basis the tax authority issues a credit note. Assessed tax and related charges are usually entered as debits in the taxpayer’s tax account, while he is expected to pay only the difference between his assessed tax and withholding tax credit at the time of filing their own returns.

    • It is this credit note that a taxpayer uses as a set off against tax assessed within that year or if unutilized within that year can be applied based on the taxpayer request to transfer the credit balance in that year to offset or reduce debit balance of another year.

    • In cases where there is an excess charge of WHT on a taxpayer, the 2007 amendments to CITA (Section 63 (7)) have even further empowered FIRS to refund proven excess withholding tax to any taxpayer within 90 days of filing a claim.

    OFFENCES AND PENALTIES

    OFFENCES

    • Failure to withhold tax or

    • Failure to remit or  late remittance of the tax withheld

    • Non remittance of the tax withheld within the time limit stipulated by the Revenue.

    PENALTIES

    a. For  Companies

    A fine of 200 percent of the tax not withheld or withheld but not remitted, plus interest at the prevailing commercial rate.

    b. For Individuals & other Organizations

    A fine of the higher of N5,000 or 10% of the amount of tax due, plus the amount of tax deductible , or  withheld but not remitted, plus interest at the prevailing commercial rate.

    • Interest on Savings Account of less than N50, 000 paid by a Bank, is not subject to WHT.

    The WHT system has come to stay since it is a veritable source of revenue to Government. It enhances the collection efforts of Tax Authorities and it ensures that revenue is generated in advance. It is therefore imperative that the system should continue to be improved upon in the light of modern tax administration procedure. Usually an advance payment of tax provides information that an income source has been identified through a third party. Such information being provided by the payer should be readily available for use in accessing a potential taxpayer. Field officers should always be ready to follow up on such information.

     

  • Inter-religious panel in Oyo

    Oyo State Governor Abiola Ajimobi has inaugurated a 28-member inter-religious and ethnic committee. The governor, who performed the inauguration at the Executive Council Chambers of the Governor’s Office, Ibadan, appealed to members to ensure the maintenance of the existing peace in the state.

    The committee, which draws its membership from religious organisations, ethnic groups and security agents, is headed by Ajimobi.

    He said since the inception of his administration, government is working to ensure the safety and peaceful co-existence among residents.

  • VAT Administration

    VAT Administration

    Value Added Tax (VAT) is a form of consumption tax that has been embraced by many countries worldwide. Because it is a consumption tax, it is relatively easy to administer and difficult to evade. It is a tax only on value added to a product or service by its manufacturer or distribution. It is ultimately only the end consumer tax.

    The purpose of VAT is to generate revenue for the government.

     

    Key facts about VAT

    • The spending borne by the final consumer and it is invoice based

    • Chargeable at a flat rate of 5%.

    • Collected on behalf of the Government by registered persons

    • VAT is a tax on spending. The tax is borne by the final consumer of goods and services because it is included in the price paid.

    • The tax is at a flat rate of 5%.

    • The tax is collected on behalf of the Government by businesses and organisations which have registered with the Federal Inland Revenue Services (FIRS) for VAT purposes,

    • A business or organisation which has registered for VAT is classified as a “registered person”. Such persons will pay 5% VAT on goods and services purchases but can claim credit for this tax (called input tax) when sold.

    • Five per cent VAT (called output tax) is included in the price of all goods and services supplied by registered persons.

    • VAT returns (and payments) are normally made monthly to the FIRS Integrated Tax Office on or before 21st day of the month next following that in which the supply was made.

    No individual, business, organisation or government agency is exempted from the tax. Only some goods and services and specifically specified activities are exempted.

     

    Rational  and Nature of VAT:

    • It is a broader base tax.

    • It is also realised from imported goods.

    • VAT as a Consumption Tax is almost impossible to avoid by any consumer of a VATable products.

    • VAT is comparatively easy to administer and collect.

     

     Nature of VAT

    • VAT is a self-assessment tax, paid as the taxpayer renders returns. It has two parts:

    N’000

    i.     Output Tax                           xxx

    ii.    (Input Tax),                          (xxx)

    The net is VAT payable at due date for payment.                                                                                             xxx

     

    VATable Persons

    • A VATable person may be a trader, a professional, a group of professionals (Partnership), a corporate entity like a Public or Private Company, a duly registered Association, club or charity, so long as they are engaged in one form of Economic or Business activity.

    • Every VATable person has an obligation to register for VAT payment with the local tax office under whose jurisdiction it carries out its operations.

    • The registration covers all the business activities of the Vatable person or entity. A VATable person is expected to register with the FIRS for the purposes of the Tax, within six months of commencement of business operations.

    • Every contractor hoping to transact any business with any ministry, statutory body and other agencies of any of the three tiers of government, shall be expected to show evidence of VAT registration with the FIRS as a pre-condition for obtaining a contract.

     

    VAT Administration

    • VAT is administered and managed by the Federal Inland Revenue Service, while the Nigerian Customs Service (NCS) enforces the administration and collection of VAT on imports. The tax is collected on behalf of the government by businesses and organisations registered with the Federal Inland Revenue Service (FIRS) – Integrated Tax Offices for VAT purposes.

     

    VAT exempted goods

    • All medical and pharmaceutical products.

     

    • Basic food items

     

    • Baby Products

     

    • Educational materials: Book etc

     

    • Fertiliser, agricultural and veterinary medicine, agricultural machinery, including associated transportation equipment

     

    • All exports (Products), excluding non-oil exports, which enjoy zero-rated status.

     

    • Plant and machinery for use in the gas utilisation, Downstream operations in the petroleum Industry

     

    • Plants and machinery imported for use by cmpanies in the Export Processing Zone (EPZ) or Free Trade Zone, provided that 100% production of such companies are for export, otherwise tax shall accrue proportionately on the profits of the companies.

     

    • Commercial vehicles and associated spare parts.

     

    • Non-Oil exports

     

    • Goods purchased by diplomats

     

    • Goods purchased for use in Humanitarian Donor Funded Projects.

    “Humanitarian donor funded Projects” include projects undertaken by Non-Governmental Organisations (NGOs), religious and social clubs or societies recognised by law, whose activities are not for profit, and are in the public interest

     

    VAT Returns

    All registered VAT able entities have to make regular VAT returns and either pay to, or receive from the FIRS, the difference between the Input Tax and the Output tax. This effectively means that every registered business organisation is obliged to maintain records and accounts of all VAT able transactions. Records of supplies made and received include tax invoices, Cash Books, Sales and Purchase Day Books, Ledger Accounts, particularly VAT Accounts etc.

    Note

    To claim credit for Input tax, a registered person must produce a ‘Tax Invoice’. A Tax Invoice contains the following information:

    •Taxpayer’s name, address and VAT registration number and TIN number.

    •Customer’s name and address.

    •Nature and date of supply – description of goods or services supplied

    • Gross amount of transactions.

    •Rate of any cash discount offered.

    •Rate of VAT

    •Total Vat payable.

     

    Note

    A Tax Invoice shall be issued on supply, whether or not payment is made at the time of supply.

     

    Remittance  of VAT

    • All VAT able persons are to remit to their Local VAT Offices, the Net VAT payable (Excess of Output Tax over Input Tax) at the time of filing their VAT returns, which must be within 21 days of each transaction period.

     

    • Monthly remittances are to be made through the FIRS designated Banks to the Local VAT offices, which will thereafter issue receipts on confirmation of such payments.

     

    • With effect from May 25, 2007 however, all Vat able Persons Tax and other Tax collecting agents shall pay remittances direct into designated Federal Inland Revenue Service Accounts. All  Bank Account holders shall have a unique Tax Payer Identification Number (TIN) to be provided by the Federal Inland Revenue service.

     

    VAT sharing ratio

    In sharing the revenue derived from VAT to the three tiers of government, the Federal Government through its Revenue Allocation Commission applies the following sharing formula:

     

    • Federal Government                                   15%

     

    • State Governments & FCT Abuja           50%

     

    • Local Governments                                   35%

    100%

    Remittance of VAT and VAT Sharing ratio

    Offences and penalties

    • Failure to make attribution

    •Payment of N 5,000

    • Failure to notify change of address within a month of change

    •Payment of N 5,000

    • Failure to keep Records and Accounts

    •Payment of N2, 000 for every month the failure continues

    • Failure to collect tax

    •Payment of 150% of Tax not collected plus interest of 20% flat.

    • Failure to submit Returns

    •Payment of N5, 000 for every month the failure continues

    • Failure to issue Tax Invoice for goods sold/services rendered

    •Fine of 50% of cost of goods/services for which no Invoice was issued, on conviction

    • Evasion of VAT

    On conviction, a fine of N 30,000 or twice the amount of tax evaded- whichever is greater, or imprisonment for a term not exceeding three years.

  • Final push for efficient criminal justice administration

    Final push for efficient criminal justice administration

    Members of the Panel on Implementation of Justice Reform (PIJR) and other stakeholders met in Abuja to put final finishing touches to a Bill meant to reform the nation’s criminal justice system by also merging the Criminal Procedure Act and the Penal Code. Participants agreed that the future of effective criminal justice administration is secured in the country with the Bill’s passage by the Senate, as already done by the House of Representatives. Eric Ikhilae reports.

    If all goes as planned, the setback suffered by the prosecution in the trial of former Managing Director of the now defunct Intercontinental Bank Plc, Erastus Akingbola, among other hindrances to swift disposal of criminal cases in the country, would become history.

    The then trial judge in the Akingbola case, Justice Habeeb Abiru was close to concluding the case – he had adjourned for parties to adopt their final written addresses, preparatory to judgment – when he was suddenly elevated to the Court of Appeal.

    In view of the judge’s elevation and the provision of the Criminal Procedure Act, the trial had to start afresh. Today, owing to some fresh issues raised by the defence, parties are now stuck at the preliminary stage, about a year after the trial, which had lasted over two years before the former judge, started again before a new judge.

    The development in the Akingbola case is a common occurrence in most criminal cases in the country, particularly those involving well-off individuals, with the financial capacity to manipulate the pliable court system, by engaging the best qualified and most influential lawyer in town, and in most cases, the Senior Advocates.

    This however, will soon be a thing of the past should the Senate, before the end of the tenure of this session, passes into law a new Bill which seeks to ensure for the country, a criminal justice system that is fast and efficient while delivering justice and fairness to all parties irrespective of one’s status.

    The Bill titled: “Administration of Criminal Justice Bill 2013,” already passed by the House of Representatives, and now awaiting its final passage at the Senate, was put together by the Panel on Implementation of Justice Sector Reform (PIJR).

    The group constituted by the Attorney General of the Federation and Minister of Justice, Mohammed Adoke (SAN), is consisted of brilliant legal minds, including Justice Ishaq Bello of the High Court of the Federal Capital Territory (as Chairman), with Professor Yemi Akinseye-George (SAN) as the coordinator.

    Aside seeking to merge the two extant laws guiding criminal trial – the Criminal Procedure Act (applicable only in the Southern part of the country) and Penal Code (used in the Northern part), – the Bill provides a bouquet of measures intended at eliminating all existing barriers to effective and speedy criminal trial in the country.

    The PIJR said it is working at an Act to ensure that “the system of administration of criminal justice in Nigeria promotes efficient management of criminal justice institutions, speedy dispensation of justice, protection of the society from crime and protection of the rights and interests of the suspect, the defendant and the victim.”

    When passed, the law will only be applicable in the trial for offences established by an Act of the National Assembly and other offences punishable in the Federal Capital territory, except in states where it is adapted, as had been done by Lagos, Anambra and Ekiti States.