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Tag: Mrs. Kemi Adeosun

  • FG reconstitutes tax appeal tribunals

    The Federal Government has reconstituted the Tax Appeal Tribunals in the six geo-political zones as well as Lagos and Federal Capital Territory.

    A statement from the federal ministry of finance said the “the reconstitution of the Tribunals is in accordance with Section 2(1) of the Fifth Schedule of the Federal Inland Revenue Service (FIRS) Establishment Act.”

    Minister of Finance, Mrs. Kemi Adeosun, who announced this Thursday in Abuja, said “the Tribunals would adjudicate over disputes arising from the operation of Federal Tax Laws and Regulations in the country.”

    Read Also:Appeal Court upholds tax tribunal’s jurisdiction

    The Minister added that, “the reconstitution of the Tax Appeal Tribunals is an essential part of building tax payers trust and confidence in the fairness of the system and the Federal Ministry of Finance has undertaken a rigorous process to select competent persons on the basis of merit who will be expected to discharge their duties professionally.”

    She stated that the Ministry sought nominations from a number of professional bodies and stakeholders, including the Institute of Chartered Accountants of Nigeria (ICAN), Association of National Accountants of Nigeria (ANAN), Chartered Institute of Taxation of Nigeria (CITN), Nigeria Bar Association (NBA) and the Nigerian Association of Chambers of Commerce & Industry, Mines and Agriculture (NACCIMA).

    The Tax Appeal Commissioners, according to the Minister, are expected to hold office for a term of three (3) years from the date of appointment.

    Each Tribunal is made up of a Chairman and four Commissioners knowledgeable in the laws, regulations, norms and practices of taxation in Nigeria, management and trade.

     

    1. ABUJA TAX APPEAL TRIBUNAL
    S/N NAME DESIGNATION
    1 Iriogbe Ayo Alice Chairman
    2 Prof. Ishola Rufus Akintoye Member
    3 Ajayi Julius Bamidele Member
    4 Dr. Almustapha Aliyu Member
    5 Nasiru Kuliya Member

     

    1. LAGOS TAX APPEAL TRIBUNAL
    S/N NAME DESIGNATION
    1 Lassise-Phillips Olanrewaju Moshood Chairman
    2 Dike Mark Anthony Chidolue Member
    3 Sanusi Maijamaa Ajiya Member
    4 Mrs Titilola Akibayo Member
    5 Rasaq Adekunle Quadri Member

     

    1. NORTH-EAST ZONE TAX APPEAL TRIBUNAL – SITTING IN BAUCHI, BAUCHI STATE
    S/N NAME DESIGNATION
    1 Bagoni Alhaji Bukar Chairman
    2 Barr. Bashir Maidugu Member
    3 Adamu Ismaila Member
    4 Tijanayi Musa Isa Member
    5 Mrs. Nafisa Shehu Awak Member

     

    1. NORTH WEST ZONE TAX APPEAL TRIBUNAL – SITTING IN KADUNA, KADUNA STATE
    S/N NAME DESIGNATION
    1 Umar Mohammed Adamu Chairman
    2 Isa Kabir Dandago Member
    3 Bayero A.S. Muhammad Member
    4 Abubakar-Gwandu Sameerah Member
    5 Dr. Ahmad M. Kumshe Member

     

    1. NORTH CENTRAL ZONE TAX APPEAL TRIBUNAL – SITTING IN JOS, PLATEAU STATE
    S/N NAME DESIGNATION
    1 Barr. Richard Bala Chairman
    2 Barr. Emmanuel Seungwa Ukera Member
    3 Ogbaenyi Ivan Chikwendu Member
    4 Abdul Zaidu Idde Member
    5 Mrs. Atoki Dupe Member

     

    1. SOUTH WEST ZONE TAX APPEAL TRIBUNAL – SITTING IN IBADAN, OYO STATE
    S/N NAME DESIGNATION
    1 Ajibola Akinmade Chairman
    2 Atitola Felix Bimbo Member
    3 Falade Sufian Alani Member
    4 Mrs. Queensley S. Seghosime Member
    5 Princess Elemanya Ebilah Member

     

    1. SOUTH EAST ZONE TAX APPEAL TRIBUNAL – SITTING IN ENUGU, ENUGU STATE
    S/N NAME DESIGNATION
    1 Chukwuemeka Eze Chairman
    2 Ide John Udeagbala Member
    3 Anyaduba John Obiora Member
    4 Mazi Nnamdi Okwuadigbo Member
    5 Obri Francis Ogar Member

     

    1. SOUTH SOUTH ZONE TAX APPEAL TRIBUNAL – SITTING IN BENIN, EDO STATE
    S/N NAME DESIGNATION
    1 Odiase-Alegimenlen Obehi Chairman
    2 Ala Peters David Member
    3 Mrs. Hilda Ozoh Member
    4 Ajokwu Vitalis Friday Member
    5 Otusanya Olatunde Julius Member

     

     

  • Inherited debts: FG to settle contractors

    …to clear civil servants’ promotion arrears with N34.2bn

     

    The Minister of Finance, Mrs. Kemi Adeosun, Tuesday disclosed that the Federal Government would settle the inherited debts and contractual obligations to local contractors between 2006 and 2015.

    A statement issued and signed by Oluyinka Akintunde Special Adviser, Media and Communications to the Minister of Finance said Kemi Adeosun made this known while appearing before the Ad-Hoc Committee of the Senate on “Promissory Note Programme and Bond Issuances.”

    According Akintunde, “she explained that the debts owed to various classes of contractors, including the terminal benefits of ex-Nigerian Airways workers, would repaid through promissory notes and bonds issuance.”

    The Minister also stated that the unpaid Federal Government obligations constituted a drag on economic activity across many sectors, adding that the present Administration was determined to address the problem.

    She listed the unpaid obligations to include obligations to pensioners and salary and promotion arrears to civil servants.

    With regards to obligations to contractors and suppliers the minister lamented that they in turn, owe banks, thus increasing the quantum of non-performing loans. The federal government is also burdened by backlogs of unpaid electricity bills by the Ministries, Departments and Agencies (MDAs).

    Read Also: Govt to refinance debts with $3b, says Adeosun

    Others are: exporters owed funds under the Export Expansion Grant Scheme and unpaid refunds due to State Governments in respect of projects undertaken on behalf of the Federal Government.

    “The Federal Government is working towards settling these inherited debts. The Small and Medium scaled Enterprises are the lifeline of our nation. The Federal Government will be stimulating the economy by paying these legacy debts,” Adeosun told members of the Ad-Hoc Committee.

    The Federal Government, according to her, has approved the issuance of promissory notes and bonds to settle its contractual obligations subject to the approval of the National Assembly.

    On the ex-Nigerian Airways workers, the Minister explained that their terminal benefits have been reconciled and agreed upon at N45 billion following verification.

    She debunked claims by the ex-workers that there was a presidential approval for the payment of terminal benefits of N45 billion to the workers.

    “There has been a misconception in the media that the President had approved the payment of N45 billion terminal benefits to the workers. There is no presidential approval and no appropriation yet for the payment of N45 billion to the ex-workers,” she said.

    Akintunde noted that earlier, the representative of the Accountant General of the Federation, Mr. Mohammed Usman, told members of the Senate’s Ad-Hoc Committee that the Government has paid N34.2 billion to clear the promotion arrears to workers in the MDAs.

    Usman, who is the Director of Funds in the Office of the Accountant General of the Federation, added that the payment process was still ongoing.

    According to him, “these payments were made to the accounts of the beneficiaries in the MDAs after detailed verification of all documents attached as proof of promotion,” he said.

  • Killer excise duties

    With effect from June 4, consumers of locally produced wines and spirits in the country may have to pay more for the products, unless the Federal Government changes its mind on the upward review of the excise duties on them. The review is sequel to the recommendation of the Tariff Technical Committee of the Federal Ministry of Finance which President Muhammadu Buhari has signed. Although the increase is to be effected in phases over a three-year period (from 2018 to 2020), the current excise at 20% for spirits amounts to N31 per litre while the new excise released by the Minister of Finance, Mrs Kemi Adeosun, amounts to N200 per litre for spirits and N150 per litre for wines. This is over 500 per cent increase at a go; it is not good for any business.

    Quite expectedly, the producers of these products have cried foul, and urged the government to take a second look at the review. The producers reacted under the aegis of the Distillers and Blenders Association of Nigeria (DIBAN), a sub-sectoral group of Manufacturers Association of Nigeria (MAN). Of course they are not expected to keep quiet or fold their arms when a policy that threatens to destroy their over N420 billion installed capacity/investment has just been signed by the president. Even though their hair was shaved in their absence (as they claimed they were not consulted before the review was done), they are not completely averse to government’s intention to rake in more money from the subsector; all they want is for the percentage rise in duties to be reduced so that they can continue to be in business to contribute their quota to the nation’s economy as well as meet the social/entertainment requirements of their consumers.

    Ordinarily, one could say why shouldn’t government impose prohibitive duties on wines and spirits, if only to discourage people from taking them? But, irrespective of whatever anyone may say, the industry is contributing some money to the government’s coffers.  Not only that, many people take wines and spirits for relaxation. And really, they help in reducing stress and are indispensable at social functions. At any rate, there is nothing inherently bad in drinking either wines or spirits. It is only too much of it, just like anything else, which is bad. But more importantly, the issue is about a government policy that may inadvertently end up killing the subsector just like similar policies had done in the past.

    When excise duties are raised astronomically as in the present scenario, the logical consequence is for the producers to pass the increase to consumers. Definitely, when the cost becomes prohibitive, some of the consumers will have to forego the local distilled spirits and wines for the unregulated local alternatives. Because even nature itself abhors a vacuum, there will be an increase in the demand for paraga, ‘Sapele water’, and what have you, which are produced without consideration for hygiene or safety standards. Alternatively, the country will become a dumping ground for imported wines and spirits, some of which are even of inferior quality. Lest we forget, 78% of spirits consumption is driven by low price products typically consumed in the low-income market. Ultimately, some of the producers may close shop while others may have to drastically scale down their operations.

    Where does that leave a country just exiting recession and one which requires massive job creation? The wines and spirits industry alone has created about 250,000 direct and indirect jobs. Have we given a thought to the family cohesion, social stability and economic wellbeing of at least five million people that are likely to be jeopardised? We do not need to cut our nose to spite our face.

    What we should be looking for is a way of adding to the existing jobs and not formulating policies that will throw more otherwise engaged workers into the saturated unemployment market. Already, the devil has too many such hands to engage since they cannot be gainfully engaged. That explains the rising crime wave nationwide. We need not compound this.

    So many otherwise thriving firms have had to close shop or relocate to other countries either due to government’s policies or the general inclement business environment here. Companies like Dunlop Nigeria Plc, Michelin, among others, have had to take away their manufacturing arms out of the country due to these reasons, and that meant attendant job losses, and drop in revenue even for the government. Just as some of these companies invested heavily before being forced to leave, the local distillers too have in recent times made significant investments to grow capacity as well as achieve backward integration. For instance, Guinness Nigeria has since 2015 made capital investments worth over N3billion in low-cost production and packaging plants. Atlantic Distilleries too constructed Nigeria’s first ethanol plant with a production capacity of 10 million litres per annum, which consumes approximately 240 tons of cassava per day. Likewise Euro Global that invested in a N3 billion ethanol plant with a planned capacity of 120,000 litres of daily ethanol production. What happens to all of these in the event that the demand for their products fall?

    What the Nigerian government should be doing now is promoting policies and programmes that encourage local entrepreneurs and not one that compound their woes or discourage them. We need to remind ourselves that doing business in the country is unlike doing business in many other countries, including some of the African countries that we regard as backwater, but which have since settled a basic infrastructure such as power. Power supply is still epileptic in Nigeria; that the companies in the wines and spirits industry have survived in spite of the numerous challenges is a testimony to their resilience. There is no point overstretching that strength.

    We cannot be obedient to ECOWAS’ policy at the expense of our own struggling economy. This is much more so that the top 80%, excise duty rate parity for spirits and wines are x3.03 and x2.3 times the excise duty rate of beer, respectively, whereas the regional averages is x2.0 for wine and x1.7 for spirits across Africa. Why then would Nigeria’s case be different?

    It is unfortunate that one could not immediately tell the ministry/ministries that were represented on the Tariff Technical Committee of the Ministry of Finance because this is not a matter to be left in the hands of accountants alone. For accountants and finance people generally, what they are looking at is basically the bottom-line. This particular matter transcends the Federal Ministry of Finance. It should involve the ministries of labour and productivity, trade and investment, perhaps even agriculture, at least, so that the necessary cross-fertilisation of ideas that would have led to a more robust debate would have shaped the outcome. It is also not one to be left in the hands of religious bigots who are likely to see spirits and wines as forbidden fruits and would therefore dance themselves lame that fewer people will have access to the items now that the punitive excise duties have been imposed on them.

    If there had been a robust exchange of ideas, some issues might have been better thrashed out.  As things stand, it appears the overriding consideration that decided the new excise regime for locally produced spirits and wines is revenue drive. It needs not be so. Spirits and wines, unlike beer, are more elastic; therefore, any disproportionate price shocks will negatively impact consumption. Moreover, given our porous borders and the illicit market, price increase driven by higher excise duty may result in loss of government revenue (contrary to the fabulous projection that propelled the upward review); increase in illicit consumption and significant health risks, thus being counter-productive in the long run.

    The point being made is that the government has to do some balancing act in this matter to achieve its aims. As a matter of fact, it has to handle the issue with utmost caution to avoid unintended consequences.

    The way forward therefore is for the Federal Government to review downward the excise duties, irrespective of whether the president has signed the report that gave birth to them or not. That is the only logical thing to do, especially in the face of compelling arguments that have been advanced. There is no doubt that the government needs more revenue; but this should be done with a human face and not at the expense of legit businesses that are braving all odds to stay afloat in the country. There are many rich Nigerians out there who are not paying taxes; the government should further spread the nets to get them captured. VAIDS appears to be doing some of this magic; it should be more rigorously pursued.

    A review of the duties is even more compelling given that the wines and spirits’ producers were not taken into confidence in drafting the report. They deserve an opportunity to have their say even if the government ultimately has its way.

     

  • Why Adeosun, Kachikwu, others shunned Reps fuel subsidy panel

    Indications emerged at the weekend as to why Finance Minister, Mrs. Kemi Adeosun and her counterparts in the ministries of Petroleum Resources and Budget & National Planning jettisoned the probe panel set up by the House of Representatives to investigate the secret payment of fuel subsidy.

    The Nation investigation revealed that Adeosun along with Ibe Kachikwu and Udoma Udo Udoma was  to appear before the members of Committees on Finance and Petroleum Resources last Thursday. However, on the day of the sitting, the absence of key stakeholders critical to the investigation at the hearing drew the anger of the members of Joint Committees on Finance and Petroleum Resources (Downstream), who felt slighted by the executive arm of government.

    Checks by our correspondent revealed that the personages failed to appear before the probe panel because they were outside the country on official assignment.

    Confirming this development, Ibrahim Babangida, who is the Chairman Finance Committee and lead chairman of the joint panel however calmed frayed nerves when he revealed that letters were received from the Ministers stating the reasons for their absence.

    “The Minister said he is currently outside the country. He directed NNPC GMD and DPR to respond to the committee’s requests. We received a letter from NNPC. The GMD is requesting that we give him another date convenience to us for him to appear.

    “As for Finance Minister, she said she is unable to make it to the hearing as she is currently leading the Nigerian delegation at IMF from where she will represent the country in Paris.”

    But the joint committee could not hide its disappointment  over the non appearance of other key stakeholders including the Group Managing Director (GMD) of the Nigeria National Petroleum Corporation (NNPC), Maikanti Kachalla Baru; Director of the Department of Petroleum Resources (DPR), Mordecai Ladan; the Executive Secretary of the Petroleum Product Pricing Regulatory Agency (PPPRA), Abdulkadir Umar Saidu  who were mandated to attend the hearing on behalf of the minister also failed to attend the investigative hearing.

    While describing the development as a sad moment in a democratic process, the lawmakers pointed out that the consequence of such action is severe.

    The meeting was subsequently called off with assurance by Babangida that a new date will be fixed and communicated to the relevant stakeholders.

  • FG appoints Acting DG for SEC

    Minister of Finance, Mrs. Kemi Adeosun, on Friday reassigned portfolios in the Securities and Exchange Commission (SEC).

    A statement from the ministry of finance signed by Oluyinka Akintunde Special Adviser, Media and Communications to the Minister of finance said “Ms. Mary Uduk will assume the position of Acting Director-General of the Commission. Uduk’s appointment is governed by the provisions of the Investments and Securities Act (ISA), 2007 and the conditions of service applicable to the Director-General of the Commission.”

    Akintunde stated that “the Minister, in a letter dated 13th April, 2018, said Uduk’s appointment had become necessary to ensure effective regulation of the Capital Market. Her appointment will, subject to satisfactory performance, subsist until further notice.”

    The Minister also announced the redeployment of the former acting Director-General of the Commission, Dr. Abdul Zubair, to External Relations Department.

    She also made the following reassignment of the following persons: Reginald C. Karawusa – Acting Executive Commissioner, Legal and Enforcement; Isiyaku Tilde – Acting Executive Commissioner, Operations; and Henry Roland Adekunle – Acting Executive Commissioner, Corporate Services.

    Akintunde said “the new Acting Director-General joined the Commission in 1986 as an assistant financial analyst. Her career as a regulator has spanned many functions and departments in the Commission, from corporate finance, administration, to providing structural, policy and due diligence for capital market transactions. She has also been responsible for managing several landmark capital market projects, including the registration of Capital Market Operators, articulating rules for bonds and equities; Mergers, acquisitions and Takeovers, and managing the banking and insurance industry consolidations between 2005-2007.”

    Uduk served as the pioneer Head of the Operations Division in the Lagos Zonal Office, and has headed the following Departments in the Commission: Internal Control, Investment Management, Financial Standards and Corporate Governance and Securities, and Investment Services Department, among others.

  • Adeosun to treasury managers: ensure accountability

    Minister of Finance Mrs. Kemi Adeosun has urged treasury managers to ensure transparency and accountability in the management and control of the country’s public finance.

    She gave the admonition at the Second National Treasury Workshop in Tinapa, Cross River State.

    The workshop was attended by Directors of Finance and Accounts in Federal and state governments’ ministries, departments and agencies, Heads of Finance and Directors of Internal Audit and other stakeholders.

    Mrs. Adeosun, who was represented by the Director of Special Projects in the Federal Ministry of Finance, Dr. Mohammed K. Dikwa, emphasized the need for a change in the mindset of treasury managers to reform the basic polity.

    Special Adviser on Media & Communications to the minister Oluyinka Akintunde quoted her as saying: “The basic and fundamental approach to financial and economic reforms is to reform the basic polity. Reforms must be impacting and sustainable and should fit into the cultural ethos of Nigeria, among others.

    “There is the need to evolve a culture, which is value-based. It is expected that this workshop would draw from universal public values such as public trust, accountability, equity, transparency, ethical standard and selflessness.”

    The minister called for a review of the Finance Control and Management Act of 1958, noting that the law was outdated and weak in instituting greater accountability and transparency in the conduct of government financial businesses.

  • We are determined to build robust tax system – Adeosun

    We are determined to build robust tax system – Adeosun

    Minister of Finance, Mrs Kemi Adeosun, said Federal Government was committed to implementing any policy that would boost the country’s tax system and ensure ease of doing business.

    Adeosun said this on Friday in Abuja while receiving a Progress Report by the National Tax Policy Implementation Committee on tax law reforms.

    She said that the government was laying emphasis on tax because it was the only reliable source of revenue to achieve its developmental goals.

    “I want to underscore that this government led by Muhammadu Buhari, came in at a time when oil price was as low as 28 dollars per barrel.

    “This led us in search of a revenue base that is sustainable, predictable and can deliver development and succour to the masses.

    “One of the functions of the tax system, which many people overlook, is that it is the most reliable tool for government to use to redistribute wealth from rich to poor.

    “Many of the programmes we are undertaking will do exactly that, whether it is fixing our roads, or our social interventions like N5, 000 Conditional Cash Transfer to the poorest.

    “There is also the N30, 000 to some of our unemployed graduates or the school feeding programme.

    “These are all methods of redistribution of wealth from the rich to the poor and that is one of the functions of a good tax system,” she said.

    Adeosun reiterated government’s willingness to take the recommendations of the National Tax Policy Implementation Committee, which she explained, would not only boost revenue but also improve ease of tax payment.

    She said that the recommendations would be submitted to the Economic Management Team, National Economic Council, Federal Executive Council and the National Assembly for ratification.

    Earlier, Mr Taiwo Ayedele, Vice President of the National Tax Policy Implementation Committee, had said that the committee identified the tax laws that were obsolete and making the country’s tax system inefficient.

    He said that the committee recommended that Company Income Tax, Value Added Tax, Customs Excise and Tariff, Personal Income Tax, Pension Contribution, Industrial Development Income Tax Relief and Tertiary Education Trust Fund be reviewed.

    “The proposed changes to the tax laws are expected to increase government revenue, simplify paying taxes and doing business and promote Micro, Small and Medium Enterprises (MSME).

    “It will also remove obsolete, ambiguous and contradictory provisions in the law and protect most vulnerable persons in the society,” Ayodele said.

     

  • Bill & Melinda Gates foundation to help Nigeria repay $76m polio facility

    Bill & Melinda Gates foundation to help Nigeria repay $76m polio facility

    Nigeria has authorised Bill and Melinda Gates Foundation to start the repayment of 76 million dollars polio eradication facility to Japan.

    The Minister of Finance, Mrs Kemi Adeosun, made this known in Abuja on Tuesday when she received a delegation of Japanese House of Councillors Parliamentarians.

    She said that the delegates were in Nigeria to assess the level of usage of Overseas Development Assistance (ODAs) extended to Nigeria since 2014.

    She added that the authority to trigger repayment was given to Bill and Melinda Gates Foundation following the eradication of polio in the country.

    She noted that the eradication of polio was made possible as a result of the ODA facility provided by the Japanese Government valued at 76 million dollars in 2014.

    She recalled that the ODA was structured for repayment after four years and that by this development, Bill and Melinda Gates Foundation would start repaying the facility to Japan this year.

    Adeosun while marketing Nigeria to the Japanese delegation noted that Nigeria was fast growing and evolving from negative areas to positive areas through its determined fight against corruption.

    She added that “because Nigeria is a middle-income country, we will require the expertise of Japanese companies for infrastructure development.

    “Nigeria is a good place to invest because it is a rising investment destination.

    “I promise that the government will make life easy for Japanese investors wishing to do business in Nigeria.”

    In his address, the leader of the delegation, Mr Kiyoshi Ejima, described Nigeria as a powerhouse with rich natural resources with which Japan tried to strengthen the relationship with.

    Nigeria, he said, had set the target of becoming one of the top 20 economies by the year 2020 and he assured that “Japan will support Nigeria toward realising its 2020 target.”

  • Crisis: Senate threatens to dump 2018 budget

    Crisis: Senate threatens to dump 2018 budget

    Nigerians may not have heard the last about the passage of the 2018 budget presented to a joint session of the National Assembly by President Muhammadu Buhari on November 7.

    Senators in plenary Tuesday threatened to dump the fiscal estimate over alleged inconsistencies and abysmal performance of the 2017 budget.

    The lawmakers took turns to criticize the performance of the 2017 budget, taking cognizance of what they called extremely low releases by the Ministry of Finance to fund projected capital projects.

    They insisted that the promised passaged of the 2018 budget before the end of the year was no longer feasible.

    The senators said that the promise by President Buhari that 40 per cent of the 2017 budget would be achieved before the end of the year while remaining the balance of 60 per cent would be rolled over to 2018, has not be adhered to.

    The lawmakers were particularly irked by the observation that Ministries, Departments and Agencies (MDAs), only attained 15-20 per cent 2017 budget performance.

    This, they said, was despite repeated assurances by the executive arm that improvement in releases of funds will be made.

    Most MDAs, they said, were yet to receive funds to pay salaries and as well as fund other recurrent components of the 2017 budget.

    For them, the declaration by the Minister of Finance, Mrs Kemi Adeosun, that N750 billion had been released, remained questionable.

    Senate President, Abubakar Bukola Saraki’s intervention saved the day as no resolution was taken at the end lengthy debate on the performance of the 2017 budget.

    Many of those who contributed to the debate wanted the lifespan of the 2017 budget to be extended to  31st of March, 2018.

    It was the opinion of the speakers that until the 2017 budget attained a high level of performance, the implementation of the budget should not be truncated by the passage of the 2018 budget.

    The debate of the performance of the 2017 budget followed a closed door session where the lawmakers were also said to have bared their minds.

    Although Saraki broached the issue of what really transpired at the closed session, Deputy Senate Leader, Bala Ibn Na’Allah raised a point of order.

    Na’Allah cited Order 42 and 45 of the Senate Standing Rules to buttress his point.

    The Kebbi South lawmaker told his colleagues that the plan to pass the 2018 budget before the end of 2017 was no longer feasible due to prevailing circumstances.

    He warned that the prevailing template of the budget will continue to pose serious challenges to the Federal Government in the implementation of the budget.

    Na’Allah noted that the template was developed and adopted during the Military era specifically when Kalu Idika Kalu was Finance minister.

    He said that issue should be extensively discussed in order to proffer solutions.

    Na’Allah said: “I feel that there are certain aspects that the Senate has so many things to discuss. When we suspended the plenary for two weeks, the intention was to enable committees work. They are supposed to report progress in order to enable the Senate pass the budget before the end of the year or early next year.

    “When we suspended plenary, it was with the idea that the committees will swing into action so we can have a tentative date to pass the budget. From what I have seen, we might run into troubled waters. If we have not appreciated what the problems are, it is important for Nigerians to come here and understand what the problem is.

    “The template we are using will continue to create problems for us. It was created during the Military era. The template cannot work in our country today. From reports we have had, it is obvious that we have problems. We need to know what the problems are. If we have a 2017 budget that has not been executed today and we are considering the 2018 budget, it means there is a problem.

    “The President told us that the 2017 budget was going to achieve at least 60 per cent performance. Today, that has not happened. We need to lay this issue and discuss it. Let us put the facts before the Executive and show Nigerians the difficulties we are facing.”

    Senator Barnabas Gemade, in his contribution suggested that the consideration of the 2018 budget be suspended.

    He also suggested that the lifespan of the 2017 budget be extended to end of March of 2018.

    Gemade said, “This point of order raised is important because of what the public is waiting for. Our two weeks committee work should have led us to where we will lay the report and pass the budget. As was indicted, we need to appreciate the efforts of the executive who is trying to return the budget year from January to December.

    “What we have seen is far from the 40 per cent capital project implementation we were told. In many MDAs, budget performance is hovering between 12 to 15 per cent. In early November, the borrowing plans were brought and we approved it. They said they were going to release more funds. As of now, we cannot say if that is true.

    “In defending the budget, MDAs are supposed to bring their 2017 budget performance to committees. When you look at the budget proposals brought here, many things captured in the 2017 budget were not rolled over. Committees and MDAs need to do some work.

    “We have to set a date for the implementation of the 2017 budget based on the borrowing plans we approved. I therefore propose that we set March 31st for the 2017 budget to be implemented before we can start working on the 2018 budget. We need to guide against abandonment of ongoing projects.”

    Senator Solomon Adeola wondered why the Senate should consider and approve the 2018 budget, when the performance of the 2017 budget is unknown.

    The Lagos West senator prayed the Senate to invite the Minister of Finance, Mrs Adeosun to brief the chamber on the troubling low performance of the budget and why her Ministry is not releasing funds.

    Adeola said, “How can we approve the 2018 budget without knowing the performance of 2017 budget? This is abnormal. From the recent budget defences, it is obvious that MDAs are not ready. Year in, year out, the budget performance is low. Last week, a Minister was asked to excuse lawmakers because he did come prepared. He did not come with the necessary documents to defend the budget of his Ministry.

    “We need to show to Nigerians that the National Assembly is ready to approve the budget. Remember that the President during the presentation of the 2018 budget, said the performance of the 2017 budget will attain at least 40 per cent. But that has not been done. I am suggesting that we invite the Minister of Finance to brief us on the performance of the 2017 budget. We need to be told.

    “Remember how the Executive submitted the MTEF and withdrew it again. It submitted it and withdrew it again. It shows the lack of seriousness on the part of economic managers of the country.”

    Chairman, Senate Committee on Public Account, Senator Matthew Urhoghide, noted that the consideration of the 2018 budget be suspended, pending when the 2017 budget will attain appreciable level of performance.

    He said, “I want to say that the budget of 2018 is already bedeviled. For us to be able to determine the 2018, we need to see the performance of 2017. Many MDAs are complaining that what they are getting for recurrent expenditure is not even for them. More worrisome is the capital expenditure.

    “Last week, the Minister of Finance announced that N750 billion had been released. If this money has been released, MDAs are yet to get this money. With the envelope budgeting they are doing, we do not know what has been given to MDAs.

    “I want to say that every consideration about the 2018 budget should be put at bay. This executive is not serious. Let them tell us what they have done with the 2017 budget. The budget presentation is an annual ritual that is not benefiting anybody,” he said.

    Senator Mohammed Hassan, (Yobe South) proposed the setting up of a technical committee to come up with a standard format on how to handle the 2018 budget.

    He specifically listed the inclusion of N8.5 billion in the budget of Ministry of Power for counterpart funding of the Mambila Power projected when the National Assembly had already approved a loan of $5.5 billion for the presidency.

    He noted that the Senate was told that part of the $5.5 billion loan would be used for the counterpart funding of the Mambila power project.

    Hassan said: “Many of us have been made to do the work of the executive. We need to set up a small technical committee to come up with a standard format on how to handle the 2018 budget. It is very important to do that.”

    Senator Dino Melaye, on his part, described the 2018 budget as a ‘boju boju’ document.

    The Kogi West lawmaker said that it was obvious that the 2018 budget proposal was “garnished with deception.”

    He stated: “The President of the Federal Republic of Nigeria, Muhammadu Buhari, said during the budget presentation that the 2017 budget will be rolled over. I took the 2017 budget and went through it page by page. There is no relationship between the two documents. The budget we received was a ‘boju boju’ budget. Why do we package a 2018 budget that was garnished with deception”

    “There is about N850 trillion with the CBN. There is an outstanding of N1.5 trillion from collection of stamp duties with the CBN. This money has not been remitted. Yet we took over N2 trillion loan. We need to strengthen the office of the Accountant-General of the Federation.

    “The NNPC was supposed to remit hundreds of billions of naira last year. They did not do that. Yet, we say we are fighting corruption. We cannot continue in sin and ask grace to abound. The issue of discussing the 2018 budget should not even arise.

    “Enough is enough. We must ensure that the 2017 budget is properly implemented. We must ensure that the budget is an elitist. What they have brought to us is a just a proposal. We need to give Nigerians a budget that will benefit Nigerians.”

    Saraki who did not subject the points and proposal made to vote noted that if the executive refused to act, by rolling over the 2017 budget as promised, it will be a disaster.

    Saraki added that lawmakers are not magicians.

    He said, “Truly, it is very disheartening and disappointing because we know how much we have put into the budget process. How can anybody who is responsible travel at this period when the budget defence is ongoing?

    “The budget has not been implemented. We cannot be magicians. We just have to work and give a good budget to Nigerians. The executive really needs to sit up. If they have refused to roll over the 2017 projects into 2018, it is a disaster. We have to work with what we have.”

  • Finance Minister: only 40 million Nigerians pay tax

    Finance Minister: only 40 million Nigerians pay tax

    Out of 70 million taxable adults in Nigeria, only 40 million of them pay taxes, the Minister of Finance, Mrs. Kemi Adeosun has said.

    She spoke at the first annual lecture of the Lagos State Professorial Chair of Tax and Fiscal Matters held at the Ade-Ajayi Auditorium of the University of Lagos.

    Mrs Adeosun who chaired the lecture, said about 13 per cent of the active tax payers have their taxes deducted at source under the Pay as You Earn (PAYE) category.

    She said tax policies cannot be rigid and needed regular reviews so that many more of the 30 million defaulters pay their taxes.

    She said: “I have kept asking why the 30 million people have refused to pay taxes. Another major challenge is the fact that many Nigerians have other sources of income, yet they are only taxed only through the PAYE. Yet, they earn so much from part-time jobs, and extra businesses.”

    According to the minister, new tax policies in the country must capture online businesses, entrepreneurship and others such as the film industry, otherwise regarded as nollywood.

    Mrs. Adeosun, who reiterated the importance of taxation to national development, noted that every developed country has a well developed tax policy and that Nigeria cannot be an exception.

    In his lecture titled: “Policy, Legal and Administrative Imperatives in the Quest for Eradicating Multiplicity of Taxes (MOT) in Lagos State” Prof Abiola Sanni of the UNILAG Law Faculty, lamented the intractable nature of “the phenomenon called multiplicity of taxes in Nigeria despite the effort aimed at addressing it and need to consider fresh interventions from the dimension of tax policy.”

    Sanni  said Lagos State had nine tax laws from which the government gets income but a review revealed that only three of them – hotel occupancy and restaurant law, land fees  and land use charge, and wharf landing fees law are currently been administered in the state.

    He further said the Federal Government should admit that an important aspect of Value Added Tax (VAT) on intra-state supply of goods and services was within the taxing powers of states and should be allowed to use it.