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Tag: contributions

  • Emefiele hails Unilever’s contributions

    Emefiele hails Unilever’s contributions

    The Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, has described Unilever Nigeria as a company that has shown and demonstrated confidence in the Nigerian economy.  This,it hasdone,  through continuous investment drive in the country.

    Emefiele spoke at the official opening Unilever Nigeria Blue Band factory in Agbara Industrial Estate, Ogun State.

    The factory, which was built with innovative manufacturing technology, complements government’s efforts at boosting local investment and making significant contributions to the nation’s economic growth and development.

    “The siting of this factory could not have come at a better time than this. With this development, you have shown resilience amidst the challenges that you face in running a business of this size. I commend you for this initiative and as a government, we will continue to make deliberate efforts to support and encourage companies to invest in Nigeria through our policies. This is the only way we can grow this economy and create employ opportunities for Nigerians,” the CBN boss said.

    The Executive Vice President, Unilever Ghana Nigeria, Yaw Nsarkoh, said the factory is the latest addition to the various long-term investments the company has made in Nigeria, which would not have been possible without the support of all its stakeholders.

    “Prior to the siting of this factory, we have also had cause to exploit economies of scale and ensure consistent access to reliable sources of raw material input. I am delighted that the result of our painstaking efforts and the support we enjoy from our stakeholders has led to the commissioning of an ultra-modern Blue Band factory today.” He said.

    Yaw said the new Blue Band factory is equipped with the Fast Blending technology to sustainably serve its consumers. This technology uses 50 per cent less energy compared to other manufacturing processes that utilize heat exchangers. This recapitulates our commitment to decouple the growth of our business from environmental impact.

     

  • Don’t interfere in pension contributions, PENGASSAN warns

    Don’t interfere in pension contributions, PENGASSAN warns

    The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has cautioned the Joint Tax Board ((JTB) and some state boards of internal revenue against interfering in the voluntary Contributory Pension Scheme as entrenched in the Pension Reform Act of 2014  and the 2015 amendment.

    PENGASSAN said such steps by the JTB and some state boards of internal revenue could jeopardise the relative industrial peace in the country.

    Reacting to the advertisements  by the tax bodies in some national dailies, threatening to impose taxes on withdrawals by workers from their voluntary contributions, the senior staff association in the oil and gas industry stated that this was contrary to the Pension Reform Law.

    In a statement signed by the National Public Relations Officer of PENGASSAN, Comrade Fortune Obi, the union said it was the responsibility of the National Assembly to amend any section of the Act as deemed fit, and that of the Judiciary to provide interpretations where necessary.

    “Hence it will be provocative for the JTB or state tax boards to unilaterally usurp the powers of the legislature and the judiciary by its planned and illegal move to tax such withdrawals. The tax authorities should be reminded that tax avoidance is the arrangement of one’s financial affairs to minimise tax liability within the scope allowed by law and is distinct from tax evasion which implies the illegal non-payment or underpayment of tax due,” he stated.

    Obi cited Section 4(3) of the PRA 2014, which provides: “Any employee to whom this Act applies may, in addition to the total contributions being made by him and his employer, make voluntary contributions to his retirement savings account”.

    “Section 10(4) of the Act further provides that “… Any Income earned on any voluntary contribution made under Section 4(3) of this Act shall be subject to tax at the point of withdrawal where the withdrawal is made before the end of five years from the date the voluntary contribution was made”.

    He noted that with these clear provisions, it is obvious that the tax authorities are over-stepping their bounds by attempting to place restrictions on withdrawals against the express provisions of the law.

    The PENGASSAN spokesperson said the association had concerns with some aspects of the law, but it has not taken the law into its hands by resorting to self-help as the tax authorities are attempting to do.

    “As a law-abiding association, we are waiting for a time when the National Assembly will initiate an amendment process so that we can make our inputs into the process and we hope that all stakeholders will toe the part of peace and honour.  On the other hand, if they cannot wait for such a time, then the appropriate thing is to approach the law courts to determine the legality or otherwise of the current provisions.

    He restated the PENGASSAN’s commitment to defend workers should the tax authorities go ahead with their threats to deprive workers from accessing fully their voluntary contributions as and at when needed.

    He added:  “However, we remain committed to dialogue to resolving whatever differences may exist between our association and other stakeholders.”

  • NCDMB warns operators to remit contributions to Fund

    NCDMB warns operators to remit contributions to Fund

    •$100m NCIF ready for use soon

    The Nigerian Content Development and Monitoring Board (NCDMB) has warned  contractors in the upstream segment of the petroleum industry to remit their contributions to the Nigerian Content Intervention Fund (NCIF).

    Its Executive Secretary, Simbi Wabote, at a stakeholders meeting on NCIF remittances in Lagos, reminded stakeholders that the Nigerian Content Act provides that one per cent of every contract in the upstream sector of the oil and gas industry should be deducted at source and paid into the Fund.

    Many upstream companies, perhaps out of ignorance of the process of remittance, have not been remitting their contributions, hence, the stakeholders meeting. The forum was to recreate awareness on the need and how to remit contributions to the Fund.

    Wabote noted that the Act also gives the Board the mandate to manage the Fund and deploy it for projects, programmes and activities directed at increasing content in the oil and gas industry.

    He said: “NCDMB focused the early years of the Act in collections, putting in place an operating model for the utilisation of the Fund, establishing the Nigerian Content Development Fund (NCDF) Advisory Committee for efficient governance of the Fund; and creating confidence and trust of Industry stakeholders.

    “The Board opened up the Fund for utilisation from 2013, based on the approved operating model that segmented 70 per cent of the Fund to financing commercial interventions and 30 per cent for developmental initiatives and activities carried out by the Board on behalf of the industry.

    “Therefore, this forum is convened to engage stakeholders on the channels for remittance of Funds into NCDF account with the Central Bank of Nigeria (CBN). As most of you are aware, the NCDF was established by Section 104 of the Nigerian Oil & Gas Industry Content Development (NOGICD) Act of 2010. The Act provides that one per cent of every contract in the upstream sector of the Nigeria oil & gas industry shall be deducted at source and paid into the Fund.

    “Under commercial interventions, the Fund was leveraged to provide 30 per cent partial guarantee to commercial banks for loans granted to oil and gas service companies towards financing project execution, asset acquisition or facility upgrade. It also provided 50 per cent interest rebate on performing loans. Beneficiaries of the Fund include Ladol, Starz and Vandrezzer.”

    According to the NCDMB chief, developmental intervention covered Capacity Development Initiatives (CDIs) including training programmes, NCCF administration, establishment of NOGICJQS, establishment of oil and gas parks, direct equity participation by the Board in high impact projects as well as compliance monitoring activities carried out by the Board on behalf of the industry.

    He stated that the introduction of the Treasury Single Account (TSA) policy by the Federal Government and the need to deepen accessibility of the Fund for critical activities informed the need to re-engineer the Operating Model of NCDF.

    The Board has fully complied with TSA policy by opening Naira and foreign currency accounts in CBN, into which all NCDF remittances are to be made, stressing that NCDMB does not operate account in any commercial bank, contributors are therefore expected to pay all remittances into the NCDF accounts in CBN, he added.

    To enhance accessibility to the Fund, the Board in July 2016 signed a Memorandum of Understanding (MOU) with Bank of Industry (BoI) to establish the Nigerian Content Intervention Fund (NCIF). NCIF provides long term facilities to contributors to NCDF on the basis of all, in eight per cent interest rate.

    “As soon as we finalise the process for release of the initial $100 Million (N31 Billion) to BoI for the pilot phase, contributors to the Fund with manufacturing proposals in the oil and gas industry can approach BoI for the NCIF facility, which has a single obligor limit of$10 million and tenor of up to 5-10 years,” he said.

  • Pension contributions’ review reasonable, says Suleiman

    The upward review in the rate of pension contribution from 7.5 per cent to 8 per cent for employees and 7.5 per cent to 10 per cent for employers as amended in the Pension Reform Act 2014 is a slight increase that may not arouse any reaction from employers, Managing Director, FUG Pensions, Usman Suleiman has said.

    He spoke withn reporters in Lagos. He said the increase would provide additional benefits to workers’ Retirement Savings Accounts, thereby enhancing their monthly pension benefits at retirement.

    He said employers who have been contributing without being prompted or coerced will find it easy to adjust to the new rate adding that there are employers who were contributing 20 per cent when the minimum contribution was 15 per cent.

    He said: “All those who are in compliance at present, one will expect them to continue to be in compliance in spite of the increase which is minimal. Those who are not in compliance apparently are not complying because of the differences in the percentage but for other reasons.

    “These types of employers are those who do not usually obey the laws. They are the ones that fail to remit PAYE, the taxes deducted from their employees. They fail to remit company tax that they deduct from their suppliers and contractors.

    “It will, therefore, not be surprising if they also fail to remit pension. Such employers will have this increase as an excuse but it really should not be an excuse,” he said.