The Nation Newspaper

Tag: Minister of Finance

  • Senate summons Adeosun over N2b planted in Housing Sector budget

    Senate summons Adeosun over N2b planted in Housing Sector budget

    The Senate Tuesday invited the Minister of Finance, Mrs. Kemi Adeosun to throw light on the vote of N2 billion discovered in the 2017 budget of the Housing Sector,

    Minister of Power, Works and Housing, Babatunde Fashola disowned the money saying he knew nothing about how the vote crept into the Housing Sector budget.

    Fashola told the Senate committee on Housing that the Ministry of Finance may have inserted the money in the 2017 budgetary profile of the Ministry of Housing as its own initiative tagged under “Regional Housing Scheme.”

    Chairman of the committee, Senator Barnabas Gemade had wanted to know how the regional housing scheme came about.

    Fashola said; “I know as much of it as you do because it is not our initiative”.

    Apparently not satisfied, Gemade ordered the committee clerk to write the Minister of Finance,  Adeosun to appear before the committee  to explain how the N2 billion was inserted into the budget.

  • FEC approves revised National Tax Policy to check low taxation

    FEC approves revised National Tax Policy to check low taxation

    The Federal Executive Council on Wednesday in Abuja approved a revised National Tax Policy to address low taxation in the country.

    The Minister of Finance, Mrs Kemi Adeosun made this known at a joint press briefing with the Minister of Information and Culture and Minister of State for Aviation Hadi Sirika after the Federal Executive Council meeting.

    The meeting was chaired by Acting President Yemi Osinbajo.

    Nigeria’s tax contribution to the Gross Domestic Product (GDP) is said to be the lowest in the world with about six per cent.

    Its Value added Tax is also said to be the lowest in the world at five per cent.

    The minister, however, said under the new tax policy, consumers of luxury goods would pay a higher Value Added Tax (VAT).

    According to her, the new VAT per centage for the luxury items is still subject to approval of the National Assembly.

    She expressed the hope that the new revised tax policy, which was recommended by the ministry’s National Policy Tax Review Committee in August 2016, would entrench an efficient tax system.

    This according to her, will also address the low level of tax contribution to the Gross Domestic Product (GDP).

    “What the committee has shown is that we should look at actually increasing VAT on some luxury items.

    “ VAT of five percent, we have lowest VAT and whilst we don’t think VAT should be increased on basic items, if you are going to drink champagne you drink Champagne in the UK and VAT is 20 per cent why should it be five per cent in Nigeria.

    “So, they have made recommendations that we should pull out some luxury items and increase VAT on those items immediately.

    “And I think that is a very valid and sensible suggestion which we are going to talk to the National Assembly to see how we can implement it.

    “But as far as basic goods are concerned, I believe it is only fair that when you consume luxury goods you should pay a little bit more.

    “The National Assembly will decide the percentage,’’ she said.

    She said the approved tax policy would be jointly implemented by the federal, state and local governments, adding that other agencies of government like the Federal Inland Revenue Service (FIRS), the media, Civil Society Organisations and others would be involved in the implementation.

    According to the minister, the main thrust of the tax policy is to establish fundamental principles to guide and orderly develop the Nigerian tax system toward meeting its objectives.

    It also recognises the primacy of the taxpayers and clearly states their rights and duties.

    It equally reinforces the role of the ministry of finance in the formulation, coordination and implementation of tax policy on an ongoing basis.

    The policy is expected to guide the operation and review of the tax system and provide the basis for future tax legislation and administration.

     

  • Osinbajo inaugurates task force to reduce food prices

    Osinbajo inaugurates task force to reduce food prices

    Moved by the need to enhance affordability of food prices across country, the Buhari administration has constituted a Presidential Task Force to urgently consider measures that would ensure a steady flow of produce to the market and reverse recent price increases.

    Giving the directive Wednesday at the Federal Executive Council meeting, Acting President Yemi Osinbajo, SAN, expressed concern at some of the inflationary rates of food prices, noting that the Task Force will explore options to promote availability and affordability of food items to Nigerians.

    According to him, the Task Force, which has seven days from Wednesday to report back to the Council, will consider how to remove some of the cost-raising factors that come into play between the farms and the markets and therefore “bring relief to our people.”

    While there have been reports of bumper harvests in parts of the country, the prices of food stuff still end up rather high, while some of the produce even end up wasted due to a number of reasons preventing effective transportation delivery to the markets.

    One of the focus areas of the Task Force, the Ag. President noted, would be to review the transportation and preservation processes, and see how government can intervene in those aspects to bring down food prices.

    The Task Force, which would be meeting with the Ag. President in the discharge of its urgent assignment, will therefore draw out a practical plan and present same to the Council next week.

    Members of the Task Force include the following:

    Minister of Agriculture & Rural Development, Chief Audu Ogbeh

    Minister of Finance, Mrs Kemi Adeosun

    Minister of Industry, Trade & Development, Dr. Okey Enelamah

    Minister of Transportation, Honorable Rotimi Amaechi

    Minister for Water Resources, Engr. Suleiman Adamu

    Minister of Labour & Employment, Dr. Chris Ngige

    The Offices of the Chief of Staff to the President and the Senior Special Assistant to the President on Sustainable Development Goals, SDGs, would also be on the Task Force.

     

  • IPMAN urges members to disregard fuel price hike rumour

    IPMAN urges members to disregard fuel price hike rumour

    The Independent Petroleum Marketers Association of Nigeria (IPMAN) in Kano State has told its members to disregard the rumour of a possible price hike of Petroleum Products.

    The state IPMAN Chairman, Alhaji Bashir Dan-Malam, who stated this in an interview with newsmen in Kano on Friday, said the call was necessary to avert hoarding and its attendant hardship on Nigerians.

    Dan-Malam advised members in the state to continue with their normal business as the association would sanction anyone caught hoarding or selling the product above the approved price of N145.

    “As leaders of the association, we feel it is necessary to tell our members the truth as the government has no plan to increase fuel price for now.

    “The rumour is a lie and anything you hear that is not from us, ignore it,” the IPMAN chairman said.

    He commended the recent meeting of the association with the Chief of Staff to the President, Malam Abba Kyari, Minister of Finance, Mrs Kemi Adeosun and Minister of state, Petroleum Resources, Dr Ibe Kachukwu.

    The chairman said the meeting was an indication that the Federal Government was ready to listen to their grievances and resolve them.

    Dan-Malam said that during the meeting it was resolved that the union should go and reconcile with the Petroleum Equalisation Fund (PEF) on the outstanding payment of transportation charges.

    “During the meeting, it was agreed that a committee to be chaired by the Minister of Finance, Mrs Kemi Adeosun consisting of all stakeholders be set up with a mandate to reconcile all outstanding balances.

    The aim is to come up with a plan to clear all the issues that have plagued the sector.

    “The administration has clearly demonstrated its willingness to create an enabling environment for a viable and sustainable downstream sector in Nigeria and IPMAN is 100 per cent committed to achieving this goal,” he said.

  • FEC okays transaction parties for $1 billion Eurobond

    FEC okays transaction parties for $1 billion Eurobond

    The Federal Executive Council (FEC) on Wednesday approved the appointment of transaction parties for one billion dollars Eurobond issue.

    The Minister of Finance, Kemi Adeosun briefed State House correspondents at the end of the FEC meeting chaired by President Muhammadu Buhari.

    She was in the company of Minister of Information, Lai Mohammed and Minister of Environment, Amina Mohammed.

    The transaction parties, she said, included Citigroup, Standard Charted bank, Standbic IBTC, Whiten case, Banwo and Igodalo and Africa Practices communications advisers.

    She said: “The one billion Eurobond program is part of the funding for 2016 budget and we hope to be able to commence the process in January. We obtained certificate of no objection from Bpp for the appointment of those parties having undertaken fully competitive open tender process.

    “We are confident that we will be able to complete the transaction expediently with significant interest. The oil price stability obviously is helping us, currently there is quite a bit of demand for emerging markets papers,” She said.

    According to her, Nigeria’s paper is currently trading around 7 to 8 percent mark.

    The minister added: “Angola came out in November with bench UAD I.56 and Gabon in June  did 8.25 plus Ghana in September did 9.25. We are expecting to get quite a competitive pricing on the issuance program which I said is to be used for the purpose of funding capital projects in the 2016 budget within the month of January.

    “The other thing to note is that these parties that have been appointed would run any Eurobond issuance program that we do for the next three years so that we don’t have to keep on re tendering unless there is a major problem with any of them they will be our parties for the next three years,” She stated.

    The Minister of Environment said that the Council considered finalizing the amendment of the gazette for the establishment of the hydrocarbon pollution restoration process/purchase.

    The gazette, she said, is the vehicle that is supposed to have all the government structures to will allow clean up in the Niger Delta starting with Ogoni land and the implementation  of the UNEP report.

    “Why is this so important, well what we have said in the past the past gazette did not put in place some of the government structures we need such as the government board, like the board of trustees or a structure that would be held accountable for the enormous amount of money that is already available to be spend and additional monies that we can leverage from the money that we have that is being offered by different partners.

    “This now will enable us to put more structure to the board of trustees who require a legal entity to put the resources in and then we hope that in the new year we will begin to roll out, to begin with the building of the centre of excellence, the integrated soil treatment centre will also go up and then we begin training, but in this case we start training many of the women on the livelihood side in the many of the contaminated areas.

    “Of recent, you would have heard that in Ogoni land itself we have pipelines …. I’ve visited there…those that are most affected there are the women farmers. So we have to find better ways of speaking with communities but also ensuring that livelihoods of women are not affected.

    “We are also speaking to many of the young people there, we have a good feedback from those who are interested in being a part of the rollout of the clean-up Ogoni land in the new year,” She said.

  • Senate wades into crisis between ASUU, FG

    Senate wades into crisis between ASUU, FG

    Sen. Jibril Barau (APC-Kano), says the Senate has intervened in the crisis between the Federal Government and Academic Staff Union of Universities (ASUU).

    Barau made this known when he was briefing Senate correspondents after a closed door meeting with leadership of ASUU, Minister of State for Education and other stakeholders in Abuja on Wednesday.

    “After the deliberation, we set up a sub-committee that will meet with the Minister of Finance and the Minister of Budget and Planning to resolve the issues,” Barau said.

    The Senator, who is the chairman of the sub-committee, assured Nigerians that the parties involved had found a way forward as there was determination to get the issues resolved.

    Also, Sen. Mao Ohuabunwa (PDP-Abia), acting Chairman, Senate Committee on Labour said they had resolved to “nip the issue in the bud”.

    “With the attention of the minister of finance and that of budget and planning, by Monday next week, we should resolve amicably and the warning strike will come to an end,” Ohuabunwa said.

    Minister of State for Education, Prof. Tony Anwuka said that the initiative was commendable and was geared toward finding a lasting solution to the crisis.

    “We should be able to find pleasant resolutions,” Anwuka said.

    On his part, ASUU President, Biodun Ogunyemi thanked the Senate for intervening in the matter.

    The News Agency of Nigeria (NAN) recalls that ASUU, earlier on Wednesday, embarked on a one-week warning strike. 

  • Economic stimulus: FG plans lower taxes for SMMES

    Economic stimulus: FG plans lower taxes for SMMES

    The Federal Government is set to reduce the income tax rates payable by Small, Micro and Medium Enterprises (SMMEs) in the country to encourage more start-ups in Small, Micro and Medium Enterprises.

    The planned tax reduction will boost the profitability of the existing ones, generate new jobs and make higher contribution to the Gross Domestic Product (GDP).

    A statement from the federal ministry of finance Signed by Salisu Na’Inna Dambatta Director (Information), “the new incentives for SMMEs are part of the recommendations presented to the Minister of Finance, Mrs. Kemi Adeosun, by the 12-member Committee she established, chaired by Professor Abiola Sanni, to review the current National Tax Policy (NTP) in Abuja, Thursday.”

    The Committee he said “noted that lowering the taxes payable by Small, Micro and Medium Enterprises would encourage compliance, promote the growth of SMMEs and expand the manufacturing base of the nation through their activities.”

    Another recommendation suggested for implementation relates to the abolition of minimum tax, which results in loss making companies been required to pay tax.

    The Minister assured that a team would be set up by the Ministry to implement the recommendations of the Committee through administrative measures without delay, while those that require legislations would be forwarded to the Federal Executive Council for consideration.

    According to the finance minister, “we need to deal with legislations that need to be changed. Nigeria cannot afford to be running with antiquated tax laws,” she emphasised.

    The new Tax Policy has also recommended the enactment of a number of legislation amendments including the  law to tax treatment, the taxation of Real Estate Investment Trusts (REITs).

    “In other climes a REIT is seen as transparent or flow through entity that is not different and separate from its unit holders/investors. The income of the REIT is treated as the income of the unit holders or investors and therefore taxed at that level,” the report clarified rather than the current provisions, which amount to double taxation.

    Earlier in his remarks, the Chairman of the Committee, Professor Abiola Sanni said that the report contained some innovations in terms of suggestions, including 20 implementation strategies, explaining that some of the strategies required legislations while others could hit the ground running.

    “We believe that at the end of the day if the recommendations contained in this report are implemented, Nigeria will witness a transformation of the economy as a whole,” he pointed out.

  • Nigeria is already getting out of recession – Minister

    Nigeria is already getting out of recession – Minister

    Mrs. Kemi Adeosun, the Minister of Finance, on Wednesday said that the nation was already getting out of recession, saying the Federal Government had taken steps that were in the best interest of the citizens.

    Adeosun disclosed this in her closing remarks at a two-day conference of National Council of Finance and Economic Development (NACOFED) in Abeokuta.

    “We are already getting out of recession because of the actions the Federal Government is taking, if you are in a problem, the day you start to step towards progression, you are already getting out of it.

    “The government is investing more in capital than we have ever invested, we are sorting out infrastructures, we are stopping wastage and so the sign of recovery is already there.

    “Agriculture and solid mineral are already starting to grow and so they are responding to our policy initiative and we are expected to continue in that direction.

    “Nigeria is getting out of the trouble that we have found ourselves, we are turning things around and I believe everybody is united and everybody that were here represented the 36 states, “she said.

    Adeosun also urged all the State Commissioners for Finance, Accountant-General and all finance professionals to always take stock and also compute their own balance sheet, saying it would assist them before decisions were taken.

    She explained that the move would allow the states to know their liabilities, strengths and ways to go about their finances in the future; adding that it would in no small measure helped the Federal Government.

    “We need to take stock, one of the most important things I want to encourage all to do is to compute your own balance sheet, what are your assets, what are your liabilities, know your position.

    “What are those pension liability, contractors liabilities that are hidden, bring them out, compute them, know them, it is very important.

    “One of those things we have realised in the Federal level is that if that had been done we would have probably made better decisions in the past.

    “If you don’t have the data you can carry on spending as if all is well only for a problem to come out as it has done in our own case to affect us.

    “I just want to charge everybody to quietly compute your balance sheet and know it so that you can make decisions that really have the full picture, “she said.

     

     

  • Tax review committee recommends Customs, FIRS merger

    Tax review committee recommends Customs, FIRS merger

    The National Tax Policy Review Committee has advised the Federal Government to merge the Federal Inland Revenue Service and Nigeria Customs Service to improve revenue generation and accountability.

    The draft of the policy was presented at the committee’s second Stakeholders Engagement Tuesday in Abuja by Mr Taiwo Oyedele, who is the West Africa Tax Leader at PricewaterhouseCoopers.

    Oyedele said the committee agreed that the current system promoted multitaxation, tax evasion and wastage.

    According to him, “part of our recommendation will be that FIRS and Customs should be merged; but not just them, but all revenue generating agencies at the federal level should be merged into one.”

    He described what exists now as “not effective, because it duplicates the collection mechanism. All the structures you have in FIRS is replicated in Customs, so cost of collection goes up. It also makes it easier for tax evaders to manipulate the system. You can provide information for customs and FIRS is not aware of it.”

    However, having one revenue agency he said “will flag all the information about a tax payer when he or she is paying tax. It will also ensure that leakages in the system are reduced. This is why we are recommending merging, as part of the policy.”

    The committee also recommended that a Tax Amnesty Programme be introduced. He said that some companies or individuals might be afraid to join the tax net for fear of being asked to pay past tax liabilities. However, a tax amnesty he said “would assure the public that past offences would be forgiven, thus enable government to expand the tax net.”

    Other key recommendations of the draft policy include establishment of Taxation Committee at national, and state assemblies, administrative framework for amnesty and whistle blowing.

    These the committee said were necessary to move Nigeria from its current position of 181 out of 189 countries to top 50 on the Ease of Paying Taxes World Report.

    The Chairman of the National Tax Policy Review Committee, Prof. Abiola Sanni, said the need to improve revenue generation in the economy influenced the decisions of the committee.

    The National Tax Policy was first published in 2012 by the then Minister of Finance, Dr Ngozi Okonjo-Iweala, to entrench a robust and efficient tax system in Nigeria. The recent committee was, however, set up by the Minister of Finance, Mrs Kemi Adeosun on August 10 this year to review the existing policy.

  • Recession: Governors defend Udoma, Adeosun

    Recession: Governors defend Udoma, Adeosun

    Governors on Thursday passed a vote of confidence on the Minister of Finance Mrs. Kemi Adeosun and her counterpart, Minister of Budget and National Planning, Senator Udoma Udo Udoma concerning the accusation from the National Assembly over the current economic crisis that the country is in.

    The Governors argued that the Ministers were not responsible for plunging the country into economic recession.

    The implications of this is that the National Assembly’s call for the removal of the two ministers, whom they accused of not knowing what to do in order to bail the nation out of the economic straits, remains invalid.

    In a clearly stated confidence on the two ministers, the governors absolved the duo of any blame in the declining economic situation during the meeting of the National Economic Council, NEC, presided over by Vice President, Prof Yemi Osinbajo, at the State House.

    According to the governors, if at all anything should be said to both Ministers, the duo deserved commendations for their sensitive insight in reviving the ailing economy occasioned by falling oil price, Nigeria’s major income earner, over the years.