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Tag: Distribution

  • Presumptive tax: equalising the distribution of tax burden (11)

    Presumptive tax: equalising the distribution of tax burden (11)

    Presumptive taxation offers two additional benefits to both governments and taxpayers: it allows the government to tax its citizens in a more equitable fashion while rewarding efficient businesses with financial incentives. It is generally accepted that wages and salaries paid by corporations and governments are taxed more effectively than income earned by the self-employed due to the introduction of withholding taxes at source. Simplified presumptive taxation schemes increase the probability that the self-employed are also taxed effectively.

    At the same time, many presumptive taxation regimes entice SMEs into the tax net by discarding high tax rates and providing incentives rewarding efficiency. For example, methods such as taxing based on average ratios (profits to sales) and average income allow businesses to retain some profits without being taxed. Moreover, many developmental economists advocate a presumptive tax on the potential use of land (assuming it has been used as productively as possible) to encourage landowners to utilize land productively.

    Various methods of estimating income and assessing tax liability have been developed by countries that have employed the presumptive income taxation. Some of these methods include standard assessment, estimated assessment, value of land, net wealth and asset value, visible signs of wealth, and minimum taxes amongst others.

     

    Standard Assessment

    Standard assessments assign lump-sum taxes to taxpayers on the basis of occupation or business activity. Standard assessments have been shown to broaden the tax base with limited disincentives. Although this method is viewed as less equitable than estimated assessments, it is also less open to corruption.

    In the early 1960s, Ghana introduced a simple standard assessment system that fixed lump-sum payments for different economic activities. The payments were established by determining the average taxable income of a few taxpayers selected at random from each class of self-employed taxpayers.

    It is important to understand that standard assessments can be a poor revenue-mobilizing method of taxation unless the fixed payments are indexed to inflation (or increased regularly) and taxpayers are moved to categories as their taxable incomes increase over time. Furthermore, standard assessments do not take taxpayer-specific conditions, such as family size or losses in a particular year into account. As a result, it can be regressive by imposing equal tax on individuals in the same category even when they earn different incomes.

     

    Estimated Assessment

    In this assessment method, each taxpayer’s income is individually estimated based on indicators or proxies of wealth specific to a given profession or economic activity. Key indicators can range from location of property to numbers of skilled employees to seating capacity. France’s Forfait and Israel’s Tahshiv methods both utilized estimated assessments and are recognized as among the most highly developed presumptive tax regimes of their time.

    Israel’s Tahshiv method employed objective factors to estimate the income of taxpayers unable to keep records. The Tahshiv for each sector was prepared, often over several years, after extensive research and many visits to a sample of businesses. The average profitability of a particular sector and its relationship to specific factors and indexes were discussed with representatives of the sector before the official Tahshiv was issued. Examples of indicators employed included number of employees, location, seating capacity (for restaurants, cafes, barber shops, etc.), skill level of workers (for carpenter’s workshop or garages), nature of equipment used (for truck and taxi drivers), and water consumption (for ice-producing companies).

    The estimated assessment method of presumptive taxation employs a variety of techniques to derive taxpayer income, both simple and complex. Simple methods are based on single factors such as a taxpayer’s total assets, net wealth or value of business assets, gross receipts of business, and visible signs of wealth. Complex methods use factors and indices of profitability, which vary by economic activity.

     

    Net Wealth and Asset Value

    Factors such as net wealth and value of assets enable income estimation through the comparison of beginning of year with end of year net worth. As one can imagine, it is difficult to determine the amount at the beginning and end of the year with any precision, much less account for expenditures during year. Tax authorities in developing nations such as Argentina, Chile, and Colombia employ this method as a basis for presuming income during audits. However, they are faced with various technical problems when doing so. For example, since it is easy to identify owners of some assets versus others (agricultural land vs. foreign currency) equity issues arise. Moreover, valuation of assets is a problem and presumptions based on net wealth often encourage taxpayers to increase liabilities.

     

    Visible Signs of Wealth

    Taxes on visible signs of wealth serve as an equity issue. It serves to ensure that wealthy citizens pay an appropriate amount of tax, even if they report all actual income. The taxes apply only to individuals and usually include main and secondary residences, the number of domestic servants, cars, yachts, private planes and race horses. In European countries such as France, Italy, and Spain (until 1978) signs of wealth qualified and how much income to attach was detailed in income tax ordinances. In practice, this method has proven to be difficult to apply. If the applicable tax law is general, it is hard to know which signs of wealth to choose, and what amount to assign. If the opposite is true, the laws are often inflexible and unfair. As a result, taxes on signs of wealth are applied cautiously and when there are no other means to assess income. They are often helpful in determining income on illegal activity such as racketeering or drug trafficking.

     

    Minimum Taxes

    Alternative minimum taxes come in many forms. Some schemes specify a tax burden or minimum tax irrespective of the taxpayer’s level of income or economic activity. Others levy the tax as a relatively low percentage of turnover or assets. Francophone Africa pioneered the establishment of minimum corporate income taxes by introducing fixed lump-sum amounts that were uniform for all corporations regardless of size or volume. Due to its regressive nature, this minimum tax was replaced in many countries by a tax based on a percentage of gross receipts. In countries with both types of minimum taxes, corporations pay the larger of the two. In others, the minimum tax is also applied to individuals. The practice of minimum taxes has spread beyond Africa to become the prevalent form of presumptive taxation in Latin America.

    CHALLENGES OF PRESUMPTIVE TAXATION

    Presumptive Tax Regime is no doubt gaining popularity, especially in developing nations. However, there are challenges and obstacles that tend to compromise its effectiveness. Governments that recognize the limitations of presumptive taxation often times include provisions in their tax codes that allow taxpayers the opportunity for a redress. Listed below are some of the challenges that affect the smooth administration of presumptive taxation.

     

    Crude Implementation

    Despite its streamlined requirements, presumptive taxation is not always effective because governments do not have sound tax administration systems in place at the federal, state or local levels to implement schemes as envisioned by policymakers. Countries in early stages of economic development tend to employ crude methods of estimating income because they lack sufficiently qualified resources to analyze the profitability of various economic activities and to define the indexes for effectively calculating presumptive incomes. As a result, small businesses in particular are routinely taxed unfairly and inefficiently.

     

    Systemic Corruption

    Arguably, presumptive taxation can help reduce corruption in tax administration. However, the success of presumptive taxation in reducing corruption will depend both on the structure of the scheme and the overall administrative environment and capacity of the tax administration institution. A presumptive taxation scheme can increase the discretionary power of tax officials and in a worst case scenario increase corrupt practices. A carefully designed presumptive taxation scheme can help reduce corruption, but can never be a substitute for the much needed capacity building and administrative reforms within the tax administration.

     

    Undermines Tax Base

    The primary goal of most governments that introduce presumptive taxation is to broaden the country’s tax base by preparing citizens and businesses in the informal sector to enter the formal tax net. However, presumptive taxation has proven to undermine this goal as taxpayers remain in presumptive taxation regimes indefinitely or regress from formal taxation programs to presumptive taxation schemes. This phenomenon tends to occur when sophisticated taxpayers earn above average income and recognize that standard assessments levy a lower tax burden. The result is that they either under report income or simply pretend not to keep accurate records of income, as is prevalent in Israel, in order to remain in the presumptive regime and enjoy its benefits.

    Overall, presumptive taxation is a form of assessing tax liabilities using indirect methods such as income reconstruction or by applying base-line taxation across the entire tax base. Presumptive methods of taxation are thought to be effective in reducing tax avoidance as well as equalizing the distribution of the tax burden. It is safe to say then, that the essence of Presumptive Tax as adopted by the FIRS is to suppress the burden of VAT on the informal sector especially micro and small businesses.

  • ‘In publishing, cost of distribution is higher than unit cost’

    For about two decades, publisher Kraft Books, Mr. Steve Shaba has committed his resources into book publishing. He speaks on the state of publishing, books distribution and the challenges of e-books among other issues.

    Publisher Kraft Books Mr. Steve Shaba has lamented the absence of professional book distributors that should have complemented the services of publishers. He said unlike in the 80s when professional book distributors carried books from one place to another, today books are not widely distributed. He said as a result of this, Kraft Books has resorted to carrying its books to every literary forum to exhibit for the public.

    “Unfortunately in Nigeria, we don’t have professional book distributors whose main aim is to distribute books. Way back in early 1982 to 1988, I know there were one or two professional book distributors taking books from one place to another. They carry several books to their destinations and to the end users. But, such facilities are not just there any longer. What we try to do now is take our books to every literary forum that we are invited to.

    “For some of our creative books and text books, we send some copies to lecturers who will be able to read the books if they are interested. One will reduce the cost of selling price as we sell directly. That way, we are moving on. It’s quite encouraging. Also, for every new book, we send the booksellers’ complimentary copies. In an average, we do a minimum of sixty new books in a year excluding reprint. We don’t consider reprint a new title,” he said.

    Beyond distribution, Shaba observed that the Nigerian society does not support general interest reading and books written for leisure. This, he said, is one of the challenges facing book publishing, noting that a society where the cost of distribution is higher than the unit cost of the book is inclement for growth.

    He wondered what to expect in a society where the per capital income is low and where there is a shift in the reading culture away from general interest to books that are set for exams.

    He also decried the non-functioning of most libraries but called for the establishment of one library in every local council area. “We are talking of 774 local government councils and we have three books for each library, definitely we would not be where we are. At least these books will go round and the awareness will be there,” he said. On the challenges with bookshops, he said: “There are times you publish book and you see people pick them, particularly if they are using them to teach. The ones that go to bookshops, bookshop owners will tell you that these books are not recommended. If as a publisher you want the books to be sold, they will collect it from you and it is until when they are sold they will give you the money,” he noted, adding that there are lot of budding writers who write more than they read.

    He observed that most Nigerians read only recommended text and that in internet age people are shifting focus and moving away from interest books. According to him, politicians who should read about the late Nnamdi Azikiwe or Obafemi Awolowo to know about what they have done don’t even read biographies or books on the great nationalists.

    For the publisher, the greatest Nigerian novel ever written is Chinua Achebe’s Things fall apart because it is there for such long a time. “I won’t say it is the greatest, but it is well read,” he added.

    On his assessment of e-books climate in Nigeria, he said: “I prefer the text books. There are challenges of e-books, I will prefer the text books because I can refer to it, I don’t even have the e-reader. I prefer the text. I don’t publish e-books and it has its own challenges just like the other forms of publishing. At times if I want to access e-books, you will consider electricity, and data plan. The challenges are really enormous and when your system is corrupted, you will lose what you have.”

    Shaba disclosed that Kraft Books handles all forms of publishing including self publishing but ‘if the book is not good enough, we will not publish.’

    “We won’t put it under our label. You can take it to the printer. In our publishing house, the assessor will assess your work. We are not garbage in and out,” he said.

  • No distribution of PVCs in Aganmathen community in Lagos

    THIS is a message for Professor Attahiru Jega, the Chairman of the Independent National Electoral Commission (INEC). And we want him to take an urgent action on it.

    Many people of our community, Aganmathen, in the Ajara area of the Badagry Central Local Government Area of Lagos State, are yet to get their Permanent Voter Cards (PVCs).

    As we write this, over 5,000 people from four of the eight units in the community who were duly registered by the INEC during the second registration of eligible voters are yet to collect their cards.

    No INEC officials came to the units to distribute the cards, and when the INEC Office at Ibereko was visited in order to collect them, they were all disappointed. The officials could not give a satisfactory answer on the non-availability of the cards.

    The affected units are 14, 17, 18 and 19. Also another unit  in Ajara Topo is also affected.

    We did the registration as a condition for voting those that will represent us in the governance of our beloved country, state and local government. Why is the INEC trying to disenfranchise us from performing our legitimate duty?

    Last Wednesday, members of the community protested at the INEC Office, displaying placards urging the electoral body to give them their cards.

    During the protest, the Electoral Officer at Ibereko, Mr Odu Chinedu I.S, was said to have gone to Lagos for an official assignment. Mr Ilo Frednard, who attended to us, promised that the commission would look into the matter within one week. He said there was a hitch with the registration in Units 14 and 15, while the cards of other units were being expected from Abuja.

    Another officer of the INEC blamed the problem on wrong coding, adding that the INEC would not want a situation where coding problem would prevent the electorate from voting.

    We are appealing to Prof. Jega to look into this matter and give us our PVCs.

    If the cards are not provided, we shall continue to ask for them in a peaceful manner.

     

    Mr Solomon Hunwi, Chief Avosegamu Godonu and Mr Todowede Abel,

    Aganmathen, Lagos State.

  • INEC CHAIRMAN No PVCs distribution in Ijoko-Ota

    INEC CHAIRMAN No PVCs distribution in Ijoko-Ota

    I AM writing this to complain that the Independent National Electoral Commission (INEC) is not distributing the Permanent Voter Cards (PVCs) in Ijoko-Ota, Ogun State.

    People daily trooping to an office at Reverend Gabriel Onifade Street in the town to collect their PVCs are always disappointed. They go to the office with enthusiasm, thinking they will collect their PVCs, but return to their homes in sorrow for not getting them.

    The INEC must swing into action by starting to distribute the PVCs in Ijoko-Ota.

    We need the cards to vote. We should not be disenfranchised. The INEC must handle this case with care.

     

    Akin Idowu,

    Ijoko-Ota,

    Ogun State.

  • INEC begins PVC distribution in Borno

    INEC begins PVC distribution in Borno

    The Independent Electoral Commission (INEC) last Saturday started the distribution of the Permanent Voter Cards (PVCs) in Borno State.

    The State Resident Electoral Commissioner (REC), Prof. Tukur Sa’ad, told reporters in Maiduguri, the state capital, at the weekend that the distribution would hold from January 10 till January 19 with the Continuous Voter Cards.

    Sa’ad noted that the prevailing insecurity in the Northeast had compelled the commission to restrict the exercise to Maiduguri metropolis and Jere Local Government Area.

    The REC said the two exercises would hold at wards levels and at Internally Displaced Persons’ (IDPs’) camps in the areas.

    He said: “The issuance of the PVCs to registered voters and the CVR will take place in Maiduguri and Jere Local Government Area considered to be relatively safe for now. The exercise will last six days.

    “The PVCs will be issued based on the temporary voter card issued during the nationwide voter registration in 2010. PVC is like an ATM card that will not allow an individual to vote more than once in an election. The CVR is for individuals who have attained voter age or those whose names were missing in the voters register.”

  • Furore over INEC’s PVC distribution

    Furore over INEC’s PVC distribution

    The Permanent Voter’s Card (PVC) is critical to the success of the general elections. But, criticisms have continued to trail its shoddy distribution by the Independent National Electoral Commission (INEC). The general feeling among Nigerians is that the exercise has been bungled by the commission. Deputy Political Editor RAYMOND MORDI examines the implications of the flawed process for the polls.

    UNLIKE previous elections, Nigerians appear to be enthusiastic this time around about collecting their Permanent Voter Card (PVC), to enable them to discharge their civic responsibilities during the general elections. But, their enthusiasms seem to have been dampened by the hiccups associated with the collection of the cards from the points where they did their registrations within their localities and later at INEC’s local government offices. The exercise involved voters cross-checking their names in the displayed Voters’ Register and collecting permanent voters cards in exchange for the old ones.

     

    Confusion trails

    distribution

    There is confusion about the distribution of the cards and this is creating doubts about the preparedness of the commission to conduct free and fair elections.

    Some of the aggrieved eligible voters have expressed disgust over the shoddy manner the distribution is being carried out, saying they have done everything possible, but have not been able to get their cards. A legal practitioner and a resident of Surulere, Lagos, Mr. Tekema Wakama, said it is sad that he and many of his neigbhours would not be able to vote due to no fault of theirs. Wakama said although he had complied with directives, by registering again at Surulere Local Government, he has not been able to get his PVC.

    He added: “When they said the PVCs are out, Surulere’s own didn’t come out. It’s among the local government areas in Lagos State that was delayed. We have challenges here, but I pray that INEC should be able to do what is right, so that people would be able to vote for candidates of their choice.” Similarly, an automobile mechanic Malik Ogunde complained about not being able to obtain his PVC, saying INEC did not organize the distribution of the cards well.

    But, Chief Press Secretary to the INEC Chairman, Mr. Kayode Idowu, does not agree that INEC has not done a good job. He said heaps of uncollected cards have been deposited at the commission’s local government offices and that there is no reason why anybody should not be able to collect his or her PVC. He noted that the collection of PVCs continues till the end of January and that everyone should be able to collect their cards. Idowu who spoke with The Nation via telephone on Tuesday said the commission placed the December 31, 2014 deadline on continues registration because it is publishing the voters’ register, as required by law, on January 13.

    He said: “Yes, the three days initially allotted for collection of the cards was short, but since then, collection of PVCs has been ongoing since the collection exercise was flagged off in phases across the country. We have been calling on the public to make use of the opportunity by going to their local governments to collect their cards; the cards are there. In Ekiti and Osun, where governorship elections were held last year, the implication is that collection of voters’ card has been ongoing in those states since March 2014. There is no reason why anybody should not collect his or her card.”

     

    Enthusiasm waning

    Nevertheless, indications are that some eligible voters who felt disappointed because they could not collect their cards from the polling units when the distribution of the PVCs was flagged off have lost interest in the matter. For instance, Mr. Nwachukwu Okeleke, a security officer attached to one of the old generation banks, said there is no guarantee that other problems would not crop up when he decides to travel to Ifo town, his local government headquarters. Okeleke, who resides in Iju-Ajuwon, a border town in Ogun State, said all the persons who registered at his polling unit in Iju-Ajuwon could not collect their cards throughout the period the distribution lasted.

    He said: “I didn’t see INEC officials at the centre. I was not the only one. I live at Ajuwon and I went to the centre where I registered, but there was no INEC staff giving out cards to anybody. I trekked to other polling centres within the area, but nobody was giving PVC. I later learnt from neigbhours that the registration for the entire area was cancelled. It is terrible. It is true that INEC has asked us to visit our local government headquarters in Ifo, but there is no guarantee that other problems would not crop up when I get there.”

    Like Okeleke, many residents of Iju-Ajuwon who are required to do fresh registration do not see why they should leave their jobs and businesses and travel to Ifo to begin a fresh process of securing their voting cards. Many of those who went to Ifo after the end of the distribution exercise in their locality were not able to collect their cards. They were directed by INEC officials to come back at a later date. But, most of them never returned. Mrs. Joke Adebayo, a trader in Ajuwon, is one of such persons. “How do you expect me to leave my business and go back to Ifo, when it is not guaranteed that I would get my PVC at the end of the day,” she said.  Ifo is the headquarters of Ifo Local Government Area of Ogun State and it is one of the biggest local councils in the state.

    No less a personality than Governor Babatunde Fashola of Lagos State had equally refused to go through another registration process, when he was confronted with an embarrassing situation, November 28, 2014, on getting to Ward G3 Unit E002 in Surulere, Lagos, where he and his wife Abimbola registered. The governor and his wife, as well as other Nigerians who registered at the polling unit, were informed that there were no cards for them because there was loss of data captured during the registration prior to the 2011 polls. The loss of the data was attributed to the crash of the commission’s computing system.

    A week later, INEC’s top officials, including the former Resident Electoral Commissioner, Dr. Adekunle Ogunmola, visited the governor’s office to plead with him to rescind his decision because, as a leader, it may have serious implications on the polity.  Fashola had argued that not having a disaster recovery system in a national assignment as important as the one it is handling amounted to irresponsibility on the part of INEC. The governor agreed and indeed asked Lagosians in similar situation to see it as a national duty to  follow the process to the end.

     

    Polling unit transfer

    cumbersome

    Other Nigerians who may not be able to vote because they could not collect their PVCs are those who have relocated from where they registered in 2011 to new abodes. For instance, an estimated 1.5 million Nigerians displaced by the insurgency in the Northeast may not be able to vote in the forthcoming elections. It is not clear indeed whether elections will take place at all the states under emergency rule; in spite of assurances by the INEC that it is committed to organizing elections in all parts of the country. INEC spokesman Nick Dazzang was quoted as saying that the commission has started distributing permanent voting cards to displaced people, many of whom are living in camps. But, he added that discrepancies in the Electoral Act may not allow them to vote, unless this is “reconciled” before the general elections.

    The President of the Nigeria Voters’ Assembly, Mr. Mashood Erubami said INEC is not ready to entertain the idea of transferring from one place of registration to another and as such has been ignoring persons requesting for such transfer. He said this is because the measures put in place for such transfer is not as easy and simplistic as INEC officials are making people to believe.

     

    Low awareness campaign

    There seem to be a confusion as to where people can pick up their PVCs. As a result, the initial euphoria has given way to skepticism. There are reports of PVCs belonging to persons in one polling unit being located in other polling units. A Lagos resident Olusegun Adegoke who was also unable to collect his card during the exercise in the state scored INEC low in area of awareness campaign. “The information was not well circulated; the awareness was low. I did not hear about it at all. I was on my way to work when I saw a crowd. I decided to find out what was happening and discovered that a board had been put up with incomplete names,” he observed.

    Erubami agrees with Adegoke. He said INEC ought to have come up with stronger measures and adequate publicity in alliance with political parties and civil societies, to ensure that citizens were adequately mobilized for the distribution of the cards seamlessly. He added that the shoddy handling of the PVC production and distribution by INEC is a wrong signal about the commission’s readiness to conduct the forthcoming general elections fairly.

    Since INEC has reiterated that any voter without the PVC will not be allowed to vote in the forthcoming general elections, Erubami said the implication is that millions of eligible voters who are yet to obtain the card would be disenfranchised. “As things are now, a lot of Nigerians will be disenfranchised, as it was in Ekiti and Osun states,” he said. The civil society activist noted that INEC’s idea of assigning a single staff to most of the collecting points falls short of what is required to handle the deluge of citizens turning up for the exercise.

     

    Apathy justified

    The Southeast Secretary-General of the human rights watchdog, Campaign for Democracy (CD), Dr. Jerry Chukwuokolo, believes the apathy being displayed by some Nigerians who are reluctant to go and collect their PVCs at local government offices of INEC is not out of place. His words: “They said people should go to INEC offices in their respective local councils, but when you get there it is another matter; you may not find anybody around to attend to you.”

    The human rights activist said in an ideal situation one could attribute what happened during the initial stage of the distribution of PVCs to logistic problems on the part of INEC. ‘But, as it is, nobody sees it that way, because of previous experiences,” he added. Chukwuokolo attributes the fear being raised in many quarters concerning this development to the do-or-die attitude of Nigerian politicians. He said: “From what is playing out on the political scene, every group is trying to outmanoeuvre the other for unjustifiable reasons. In that sense, people feel that politicians are working on INEC, to achieve their own ends.”

    The Enugu-based Chukwuokolo is of the view that the Prof. Attahiru Jega-led INEC was given a free hand by the Goodluck Jonathan administration, compared to Prof Maurice Iwu under former President Olusegun Obasanjo. He also believes that INEC has improved considerably under Jega. He added however: “But Jega, to my own understanding, is not giving his workers the leverage to work, in the sense that he does not give them the remunerations or allowances they need to operate. Most times, he gives preferences to consultants, who are now more or less siphoning the money he should have used to take of his workers. Yet, after all said and done, the workers would still be the ones to execute the job. So, that leaves them at the mercy of politicians, who may induce the workers to do their own bidding.”

     

    Allegation of connivance

    After cataloging the problems that trailed the exercise across the states, the APC National Leader, Asiwaju Bola Tinubu expressed disappointment over the development, saying the situation might have been deliberately contrived by INEC to rig the elections in favour of the ruling Peoples’ Democratic Party (PDP). He equally queried the eligibility of INEC to conduct a free and fair election going by the shoddy manner it conducted the distribution of PVCs to eligible voters. Tinubu said INEC had four good years to prepare for the coming general elections and there are laws, particularly constitutional and electoral act requiring certain actions to be taken.

    Similar tales of woe were echoed by frustrated Nigerians who were initially eager to get their cards across the country. But, Idowu believes the commission has addressed the initial problems encountered by Nigerians in their bid to secure the card. He said INEC has taken care of those who did not find their names in the register initially, with the continuous voter registration (CVR). He added that the situation might have arisen because the fingerprints of such persons were probably not fully captured during the 2011 registration exercise.

    The CVR is primarily targeted at persons who turned 18 years since  2011. But, it also presents a fresh opportunity for those who were 18 years at the time yet did not present themselves for registration, as well as persons who were registered in 2011 and were issued the Temporary Voter Card (TVC), but who for whatever reason did not find their names on the register.

    The registration process includes collection of the applicant’s bio-data, facial portrait and fingerprints (all fingers). INEC had spent N34.4 billion on the procurement of Direct Data Capture (DDC) machines which were deployed for the nationwide voter registration exercise in January 2011. After the registrations, Nigerians who participated were issued Temporary Voter Cards, which was used for the 2011 general elections. The PVC is an improvement on the temporary cards that were used in 2011 because it contains the biometric data of voters. This is to enable the cards to be read electronically with card readers that will be deployed for the forthcoming general election.

  • Alimoso residents protest shoddy PVC distribution

    Alimoso residents protest shoddy PVC distribution

    The collection of Permanent Voters’ Cards (PVCs) and registration of voters is over in Lagos but most residents are still complaining of the shoddy performance of the Independent National Electoral Commission (INEC).

    Residents of Alimoso Local Government Area in Lagos have been complaining about what they described as an attempt by the Independent National Electoral Commission (INEC) to disenfranchise them during next year’s general elections. Although there has been complaints from many local government areas in the state over the performance of INEC, the loudest protest appear to be coming from Alimoso, which is the local government with the largest number of registered voters in the state, if not the country.

    It has been one complain or the other in many communities in the local government, especially during the registration of new voters. In communities like Ijegun and Abaaranje, the general conclusion is that there is a deliberate attempt by INEC to disenfranchise the majority of the people.

    There were long queues at the two communities daily, as people made efforts to ensure that their names get into the register. According to a community leader in the area, Alhaji Adeola Alase, “we have mobilised our people and they have complied, but it seems that INEC is not ready for this exercise or that it is a deliberate attempt to disenfranchise us. For the past three days, we have been using generating sets to supply power directly to the three computers on ground because their batteries are not working. Imagine INEC’s computers with no batteries, it is unbelievable.”

    An elderly woman, Mrs. Abigail Eleshin, who defied old age to attempt to register for the exercise, was left frustrated after waiting for four hours without even getting near the registration area. She had to go back home at the end of the day. “I can’t kill myself because I want to register, the organisers (INEC) seem not to be ready,” she lamented.

    The story is the same in other communities within the local government like Ilo, a border community with Ogun State; Ikola, Meiran, Ayobo, Ipaja, Ishefun, Camp David, Egbeda, Akowonjo, Shasha and Egbe.

    For instance, a resident of Ikola, Isaiah Oluwole, said there is need for the state government to take up the matter officially with INEC. His words: “I suspect a deliberate attempt to disenfrachise us, especially in Alimoso Local Government. INEC came to this local government with obsolete computers and equipment. I personally did my own investigation as I visited some of the registration centres as a community leader.

    “Most of the computers are not working. In some cases, residents have to obtain generating sets to power computers directly because some these computers don’t have batteries.

    “In all registration centres I visited, there was no security. For me, INEC has a hidden agenda.”

  • Yobe faults distribution of Fed Govt’s grains

    The Yobe State Government has accused a minister of using the grains donated by the Federal Government to advance his political interest.

    The grains were reportedly donated to the state to alleviate the suffering caused by the state of emergency.

    But the ruling Peoples Democratic Party (PDP) said the grains were not shared on political basis but to every resident, irrespective of party affiliation.

    Addressing reporters in Damaturu, the state capital, the Special Adviser to the Governor on Political and Legislative Affairs, Mai Mala Buni, alleged that the minister hijacked the materials for his political interest.

    Buni said: “In an ideal situation, the materials meant for Yobe were supposed to be handed over to the state government for onward distribution to the victims. But they were diverted by the minister to serve his political interest. That is wrong.”

    PDP State Chairman Lawan Gana Karasuwa regretted that “the Yobe State Government is bringing politics into a matter that affects ordinary people”.

    He added: “The grains we are talking about here were brought by the Federal Government and handed over to the Waziri Ibrahim Foundation for onward distribution to everybody in the state.

    “It is regrettable that the state government is bringing politics into the matter. The grains were shared, irrespective of party affiliation. It is the most successful programme I have witnessed so far since the donations of materials to victims of this insurgency started.”

  • Fed Govt withholds distribution firms’ allocations

    Fed Govt withholds distribution firms’ allocations

    THE Federal Government is withholding statutory allocations meant for electricity distribution companies (Discos), which have been identified as one of the major causes of drop in power supply, it was learnt.

    A top official of one of the electricity distribution companies told The Nation that currently the distribution companies find it difficult to access funds to clear faults and discharge other relevant duties including replacement of dysfunctional equipment and materials, which seriously hinders their efficiency.

    The official who spoke in confidence to our correspondent, while explaining reasons for the recurrent lingering power outages, said the drop in electricity supply in Lagos and other parts of the country has been as a result of dearth of funds adding that he doesn’t know why the government has refused to release funds to them (Discos).

    She said: “It is difficult period for us now. As I speak to you, we don’t have money to clear faults to enable our customers have light let alone buy equipment and other materials to replace dysfunctional facilities.

    “Government has refused to release our allocation to us, which is negatively affecting our operations. We are inundated with complaints by customers on daily basis because of outages and irregular supply of power but our engineers are doing their best to ensure that customers get the most from what is available.”

    The Discos, she said, depend on rationing and load-shedding to make sure that every customer gets a little of the supply based on what is available. The official said the withholding of Discos’ funds by the government, especially at this crucial point of the power sector reform is condemnable as it would look as if the managements of the Discos deliberately don’t want to give customers light because of the privatisation. She noted that the PHCN staff also are Nigerians and are affected by poor power supply.

    The Special Assistant to the Minister of Power on Media and Communication, Kande Daniel, said the government is not withholding the allocations of the discos and gencos. The fact, she explained, is that the chief executive officers of these discos and gencos had a frank meeting with the Minister of Power, Prof. Chinedu Nebo and heads of parastatals and the leadership of the ministry of power, where they (CEOs) revealed that their imprest funding had remained static since the unbundling of Power Holding Company (PHCN).

    The unbundling transferred many responsibilities to them (discos and gencos) while the funding remained unchanged, which has continued to impact negatively on their operations.

    In the past few weeks power supply has been so irregular that people are resorting to 100 per cent dependence on generators while the government is gradually rounding off privatisation of power assets. Fifteen assets comprising 10 distribution companies and five generation companies have been sold and their owners have paid 25 per cent value of the assets while the process of selling one disco and one genco is ongoing.

    On completion of payment of the outstanding 75 per cent value of the assets and full settlement of liabilities, such as payment of PHCN workers’ severance pay by the government, the assets will be handed over to the winners of the distribution and generation companies.

     

  • NIA begins distribution of motor insurance e-readers

    The Nigerian Insurers Association (NIA) has kicked off the deployment of electronic device aimed at eliminating fake motor vehicle insurance and other unethical practices in the issuance of motor vehicle licence in the country.

    Last week, the association handed over about 25 units of the motor insurance electronic readers to the Ogun State government.

    NIA’s Head, Corporate Affairs and Human Resources, Davis Iyasere, in a telephone interview, said the units were given to the state Vehicle Inspection Officers (VIO) in Abeokuta, adding that discussions are on with the Lagos State Government.

    He said: “We have given 25 units of the phones to the Ogun State Government, through the VIO, the distribution is according to demand. If they need more, we would give them. The 25 is just for them to start with Abeokuta metropolis.”

    He noted that the association decided to start with Abeokuta, because historically, insurance in the country is traceable to the city, adding that the state also is one of the first to indicate interest in the project.

    “We are discussing with the Lagos State government. We have had meeting with the Commissioner for Transportation and we are also working out ways to reach other states,” he said.

    He said insurance companies have continued to upload their data to the database, adding that much success has been recorded.

    The industry’s database project, which was conceived in 2010, to help develop robust information on insured vehicles, was launch on June 26, 2012. The NIA, at the launch, promised to deploy over 500,000 electronic card readers to security agencies to verify genuine vehicle insurance licenses.

    The project, according to NIA, would eradicate fake insurances and minimise instances of fraudulent claims, provide real time information that would address issues raised by all stakeholders: market players, law enforcement agents and regulators.

    NIA said the project woulx also serve as a source of historical data for analysis and benchmarking, thereby providing qualitative analysis of industry performance.

    It is believed that the initiative will enhance transparency and accountability to its stakeholders thereby restoring confidence in the insuring public, create the basis for scientific management of operations in the industry and it would enable the tracking of transactions in the industry.

    Present at the handing over were Chief Vehicle Inspection Officer, Ogun State, Bayo Otuyemi; Permanent Secretary, Ministry of Works and Infrastructure, in the state, Mr Kayode Ademolake; Council member, Nigerian Insurers Association, Mr Sakiru Oyefeso and Director-General, Mr Sunday Thomas.