The Nation Newspaper

Tag: States

  • NULGE: only nine states voted for Council autonomy

    NULGE: only nine states voted for Council autonomy

    The Nigeria Union of Local Government Employees (NULGE) said only nine states voted in support of Local Government autonomy in the ongoing effort to amend the constitution.

    National President of the Union Ibrahim Khaleel said two states rejected the bill outright

    Khaleel called for the abolition of State Independent Electoral Commission, adding that the existence of the commission had made democracy at the local government level a mockery.

    Khaleel  said Kwara, Benue, Niger, Plateau, Bauchi, Cross River, Bayelsa, Ogun and Ondo are the states, which endorsed the local government autonomy bill, while Edo and Imo  rejected it outright.

    He said governors influenced their state assemblies to defeat its consideration.

    He urged the states  to approve the bill in the interest of Nigerians.

    He said   the union was not asking legislators to automatically endorse the bill, but to conduct public hearing as agreed by the Speakers Forum and the Governors Forum.

    “I want to call on our governors to, as a matter of respect for Nigerian citizens who have spoken and aspiring to have a local government system they can call their own, that will be free for them to participate democratically by electing their Chairmen and Councillors as and when due without undue influence from the government of the state.

    “The governors should begin to have some level of decorum in their approach to governance. Look at the shame brought to bear on our democracy by the election in Kano where under aged were the ones that mostly voted.

    “These are some of the issues that we have been trying to make Nigerians understand. That is not only in the area of democracy.

    “The idea behind establishing local government is by way of bringing governance closer to the people and providing a platform for everybody to participate at his own community level.”

  • 297,000 vulnerable households get stipends in 20 states, says Fed Govt

    The Federal Government has captured 455,000 vulnerable households in the National Social Register, presidential aide on National Social Investment Programmes (NSIP) Mrs. Maryam Uwais has said.

    Mrs. Uwais, who spoke to reporters while presenting the scorecard of the NSIP at the State House, Abuja, said no fewer than 297,973 households had been mined and being paid stipends in 20 states.

    According to her, there are no fewer than 80 million poor Nigerians and the office want to get the poorest persons data using appropriate means.

    She said: “So far, we have 455,857 poor and vulnerable households uploaded onto the National Social Register, from which 297,973 households have been mined and are being paid stipends in 20 states.

    “These states are Jigawa, Bauchi State, Kogi, Osun, Cross Rivers, Anambra, Katsina, Kano, Taraba, Gombe, Adamawa, Niger, Nassarawa State, Benue, Oyo, Ekiti, Kwara, Borno (IDP), Kaduna and Plateau.”

    She observed that credible targeting was a major concern in National Cash Transfer Programme, prompting the National Social Investment Office (NSIO) to develop a Social Register in all the states that met the criteria provided in the agreement signed with it.

    Mrs. Uwais added that 259,541 beneficiaries in 4,784 cooperatives were paid in the Government Enterprise and Empowerment in 36 states and FCT while the next batch of 148,611 loans had been approved for disbursement.

    In the National Home Grown School Feeding (NHGSFP), Mrs. Uwais stated that 7,054,687 pupils were currently being fed daily in 20 states with two states (Katsina State and Gombe State) to begin soon.

    “We have also hired and empowered 72,510 cooks in the 53,541 schools being serviced.

    “These states are: Anambra, Enugu State, Oyo State, Osun, Ogun, Ebonyi, Zamfara, Delta, Abia, Benue, Plateau, Bauchi State, Taraba, Kaduna State, Akwa Ibom, Cross River, Imo, Jigawa, Niger and Kano State.’’

    She noted that in almost two years into the implementation of the programmes, the NSIO was continuously learning lessons and building bridges designed to achieve its overarching goals.

    The presidential aide acknowledged that no fewer than 200,000 graduates were enrolled in the N-Power job scheme with 20,000 beneficiaries in the non-graduate category set to begin training in 34 states.

    She noted that the organisation already had 2.5 million young people in its database for employment.

    The presidential aide said the Humanitarian Hub in Adamawa State, supported by the International Committee of the Red Cross, Presidential Committee on the Northeast Initiative and National Emergency Management Agency, had already selected successful applications and had prepared for the first batch of pitches.

    She added that the Lagos Climate Change Hub, supported by the World Bank and the Lagos Business School, would throw open its challenges in March as the other six situated in the six geo-political zones were at various stages of development.

    She identified the goals as empowering the unemployed, giving opportunities to children who could not or did not have access to a meal a day and also providing sustenance for the poor and the vulnerable.

    She included granting access to small and medium-sized enterprises that were hitherto unable to gain access to finance.

    “We have trained 2,495 community facilitators, whose responsibility it is to engage the caregivers in the households being paid, facilitate the forming of cooperatives, basic financial training, skills and support.

    “We also have collated data on the coordinates and demographics on each community we engage, relating to education, health, access, payment and connectivity.

    “What we have achieved thus far is a result of the dedication of an extraordinary, indefatigable and focused team of staff and the strong support of our top leadership, in the persons of the president and vice-president of Nigeria.

    “We have created a level-playing field for all our beneficiaries and, with a selection process that is objective, transparent and efficient,’’ the presidential aide said.

    Mrs. Uwais also called on Nigerians to join the programme and reap its benefits, especially on employment.

    According to her, NSIP programme comprises N-power, National Home Grown School Feeding, Government Enterprise Empowerment Programme and the National (conditional) Cash Transfer Programme, designed to support citizens facing economic challenges.

    Uwais noted that the targets for the schemes were to provide 500,000 jobs to the unemployed graduates and/or non-graduates through N-power with eight technology hubs in the pipeline.

    “N-power has 200,000 graduate beneficiaries that are currently enrolled and working in various institutions around the country.

    “The selection of the next batch of 300,000 beneficiaries has been completed and those selected will be engaged in the next few months.

    “20,000 more beneficiaries in the non-graduate category are set to commence training in 34 states around the country, while we continue to audit the skill centres we can utilise in the remaining states,’’ she said.

  • Miners to states: stop interferring in mining

    Miners to states: stop interferring in mining

    The Miners Association of Nigeria (MAN) has urged Ebonyi and Lagos states to stop interfering in mining.

    Its President, Alhaji Sani Shehu, who made the call in Abuja, said the two states were interfering with the business of his members.

    According to him, their interference is a breach of the Constitution. He regretted that Lagos had directed his members operating surface mining in Ikorodu Local Government Area to stop because of an environmental issue.

    He advised the state to collaborate with the Mines Environmental Compliance Department of the Ministry of Mines and Steel Development to solve the problem raised rather than barring the companies from mining.

    On Ebonyi State’s interference, he said it linked the closure of Greenfield Metals Ltd at Ishiagu, Ivo Local Government Area, to the failure of the company to pay tax.

    Shehu urged Ebonyi to reverse its order as the law did not allow states to collect mineral tax.

    “It is pertinent to state that Section 39 of the 1999 Constitution of the Federal Republic of Nigeria as amended, puts mining on the Exclusive List.

    “It is only the Federal Government that has the right to issue mining licence, collect royalties and supervise mining operations. It can also take necessary action when provision of the mineral act is violated. This position is known to all states in Nigeria.

    “Lagos and Ebonyi states should reverse their orders immediately to avoid constitutional breach, which they have sworn to protect. They should also avoid future unlawful interference in mining,” he said.

    Shehu urged the states to support the Mines and Steel Development Ministry to build a robust mining climate that would create massive jobs for unemployed youths, stating that the states could increase their revenue through the 13 per cent derivation as provided in the Constitution.

  • States got N1.19tr from Fed Govt, says Osinbajo

    States got N1.19tr from Fed Govt, says Osinbajo

    Between 2015 and September 2017, states got N1.19 trillion support from the Federal Government, Vice President Yemi Osinbajo said yesterday.

    The assistance came in form of the Excess Crude Account, the Paris Club refund and budget support loans, among others.

    Prof. Osinbajo said the funds were made available to the states for their programmes and do capital projects.

    The vice president spoke in Lokoja, the Kogi State capital, at the inaugural Kogi State Economic/Investment summit.

    He said part of the funds were the legal entitlements of the states, which they had access to; some were repayable loans.

    The VP noted that the Buhari administration had committed the highest amount ever to capital expenditure, given what it had spent in the last two years.

    He said this was evident in the on-going railway lines, road construction and hydro power projects.

    Osinbajo said the summit was coming at the right time, with  the country trying to reduce dependence on oil and increase non-oil income,  promoting agriculture and solid mineral resources.

    He described Kogi State as strategically located with vast mineral resources that could make it a hub of commercial activities, adding that the summit was capable of reinvigorating and inspiring the people.

    Governor Yahaya Bello said the summit was packaged to change the identity of the 27-year old state, from that of a civil service state to an industrialised one.

    He said his administration in the last two years, prepared the ground for economic and industrial breakthroughs by solving the problems that hindered economic growth in the state.

    The governor said the problem of insecurity had been tackled, and the state is now safe for investors and investments.

    He said: “kogi State is now open for business; we want to be signing MoUs. I invite the private sector to collaborate with us in our bid to develop the state. Kogi State is for serious business”.

    Minister of Mines and Steel Dr Kayode Fayemi, said the bulk of Kogi’s revenue should be internally generated, based on the abundant mineral resources in the state.

  • How states drive IGRs with consumption taxes

    Many states are improving their Internally Generated Revenue (IGR) through collection of consumption taxes paid by consumers of goods and services. The taxes, which come as sales taxes, tariffs, excise, among others, are deployed in funding development projects. Governments are expected to explore innovative ways to make collection easier and remittance faster, writes COLLINS NWEZE.

    ANY country that wants to achieve  development must take a second look at how much revenue it generates from taxes, especially consumption taxes. Such taxes are charged on the purchase of goods or services, with rates varying from one country to the other.

    Statistics showed that in Canada, consumption tax rates range from zero to 10 per cent along with the federally applied goods and services tax of five per cent just like Nigeria’s Value Added Tax (VAT).

    Japan charges a consumption tax of eight per cent, Singapore seven per cent while in Australia it is a national goods and services tax rate of 10 per cent.

    In Nigeria, a Lagos-based tax expert and entrepreneur, Ndubuisi Adaba, said Kano State passed a law last year that imposed a consumption charge of five per cent on goods and services purchased in any hotel, restaurant, fast food outlet, bakery, takeaway, suya spot, shopping mall, store, event centre and other similar businesses within the state. Ogun State also promulgated a consumption tax law in 2017.

    According to him, Lagos State equally has a consumption tax. “The Lagos State Hotel Occupancy and Restaurant Consumption Tax Law, which was signed into law on June 22, 2009, imposes a tax on goods and services consumed in hotels, restaurants and event centres within the territory of Lagos State. It is charged as five per cent of the value of the goods or services consumed,” he said.

    According to this law, the term hotel is defined as including motels, guest houses and apartments for short time letting, while a restaurant is defined to include any food sale outlet, bar tavern, inn or café, whether or not located within a hotel. Event centres include halls, auditoriums, fields, and places designated for public use for a fee. They will charge it along with but separately from the VAT.

    The tax expert disclosed that as regular consumption of goods and services (from shopping malls, supermarkets, stores markets boutiques, sundry traders and service providers) are not included, the Lagos State Consumption Tax is thus asymmetrical on its effects on citizens. This means that the not-so-wealthy that use hotels, restaurants and events centres sparingly pay a lot less than the rich who frequent these facilities. Furthermore, the tax is also on what is consumed.

    Although the Lagos State consumption tax is in force, enforcement has so far not been very efficient. The tax is actually charged to the consumers of goods and services, meaning that the operators of hotels, restaurants and events centres act merely as collecting agents for the government and do not bear the cost of this tax.

    Inefficient enforcement has resulted in situations where several operators have not been brought into this tax net or are not collecting the tax. And where some operators are collecting the tax, they fail to remit same to the government. Therefore, only a small proportion of operators are actually making remittances to the state’s coffers, thereby denying Lagos state the wherewithal to actualise its growth plans.

    Lagos, with over 20 million inhabitants is, particularly, short-changed in this regard. At this time of dire need of funds to bridge the huge infrastructure deficit in Lagos, the state can least afford such leakages. This is coupled with a rising population and reduced funding from the federation account.

    To check this, and ensure an efficient consumption tax regime, Lagos must pursue its administration differently from the way it has been done thus far. A new approach would be to engage in massive and repeated sensitisation of operators as well as all citizens on the imperative of taxation in general and consumption tax specifically. The relevant agencies of the government must also ensure identification, enumeration and registration of all operators in a continuous process.

    The government must also explore innovative ways that will make the due tax easier for operators to collect, separate and remit to the government. This will entail the installation of new technology at the operators’ pay points as being proposed. The installed software will in turn enable government monitor and track remittances more efficiently.

    It is incumbent on the government to ensure timely remittances by operators. Conversely, it is easier on operators when they make timely remittances of collected taxes. A situation where unremitted taxes cumulate to hundreds of millions and government agents resort to the sealing of operators’ premises is counter-productive or inefficient at best.

    Since the government will be employing moral suasion along with strict enforcement, it is critical for it to demonstrate enhanced efficiency and transparency in spending. For instance, by outlining projects under consideration or execution and dedicating proceeds from taxation to execute such projects will help in stemming the belief that government is not accountable to anyone. In a nutshell, the government must show increased transparency in matters relating to spending.

    “It is in recognition of its huge potential to enhance the state’s revenue base that I welcome the recent passage of the Hotel Occupancy and Restaurant Consumption (Fiscalisation) bill by the Lagos State House of Assembly. The inclusion of such provisions as registration of electronic fiscal devices, installation of software and hardware, as well as the power to enter and inspect points of sale in the hotels and restaurant, among other requirements, would definitely reduce evasion of taxes by these business concerns,” Adaba said.

    ‘’It is instructive to note that the infrastructural development and improvement initiatives of Lagos also aim at exploiting and advancing her tourism potential. Governor Akinwunmi Ambode proclaimed at the One Lagos Fiesta last December, that his administration is committed to making Lagos “a must-visit and Africa’s best tourism destination”.

    Tourism opens up a place further to foreign investments while local businesses and service providers are able to attract offshore funds through the influx of tourists.

  • FAAC: Fed Govt, states, councils share N655b in December

    FAAC: Fed Govt, states, councils share N655b in December

    The three tiers of government have started 2018 on a good note as members of the Federation Account Allocation Committee (FAAC) yesterday shared N655.177 billion for the December 2017.

    Addressing reporters at the end of the monthly FAAC meeting on December 2017 disbursements, the minister of finance and chairman of FAAC, Mrs Kemi Adeosun, stated that N540.446 billion was shared as statutory disbursements.

    However, after deducting costs of collection for the Customs and Federal Inland Revenue Services (FIRS) the federal government pocketed N252.543 billion, states, N128.093, local governments got N98.755 billion while N47.738 billion shelled out as 13 per cent derivation to oil producing states.

    After making statutory deductions to FIRS, the three tiers also shared N80.604 billion from proceeds of Value Added Tax (VAT) with the federal government receiving N13.091 billion, state governments, N40.302 billion and local governments N28.211 billion.

    According to the minister,  gross revenue of N540.446 billion received for the month was lower than the N549.533 billion received in the previous month by N9.087 billion.

    Adeosun noted that the decrease in crude oil export sales by 0.59 million barrels resulted in decreased revenues from export sales of $11.65 million.

    The finance minister also disclosed that the accruals into the Excess Crude Account still stands at $2.317 billion.

    Also speaking after the meeting, the chairman of finance commissions forum Alhaji Mahmoud Yunusa said many states governments have keyed into the efficiency unit which has been working favourable for the states.

    Yunusa from Adamawa state many state governments have embarked on cost cutting measures after adopting the efficiency unit protocol which is part of the fiscal responsibility plan that they have all agreed to adopt.

  • Industralisation: Experts chart way forward for states

    Industralisation: Experts chart way forward for states

    Experts at a dialogue on international investment, organised by the Lagos Chamber of Commerce and Industry (LCCI), with the theme: “Promoting Industrialisation for Economic Recovery and Sustainable Growth”, have advised states to exploit their comparative advantage to industrialise their states.

    They noted that every state is blessed with one mineral resource or the other or even agricultural produce that can be exploited with value addition to turn the particular state into a cash cow for its indigenes.

    At the session, Minister of Industry, Trade & Investment Dr. Okechukwu Enelama said no nation can be industrialised by exporting raw materials. He said the Federal Government has embarked on intensive diversification with specific focus on value addition. He said to achieve the desired result, government has banned many products imported into the country in order to boost local production.

    He observed that most industrialised nations emerged today by taking actions. He said in line with this, government has gone ahead to provide an enabling environment.  This, he said, has been demonstrated by the latest World Bank rating of the country on the ease of doing business in which it moved 24 places.

    The Vice President, Prof Yemi Osinbajo, in his submission, said the positive economic outlook of the nation was a demonstration of the robust policies of the current administration.

    He said investors were showing strong interest in the economy as demonstrated by the growth in the interest in the stock market.

    Prof Osinbajo added that the government has invested over $22 billion in 41 projects across 22 the states, which is an indication that the economy is growing; and that, indeed, the ease of doing business has improved.

    Osinbajo, who was represented by the Senior Special Assistant to the President on Industry, Trade and Investment, Mrs. Jumoke Oduwole, listed other achievements of the government as the improvement in electronic stamping of registration document by the Corporate affairs Commission (CAC), registration of companies within 48 hours, improved access to credit, property registration and the security of movable assets.

    United Capital Plc Group Chief Executive Officer, Mrs. Oluwatoyin Sanni, called on the states to understand that they are independent entities and the need for them to determine, in a structured and deliberate manner and recognise their comparative advantage.

    She regretted that financial institutions are not enthusiastic about lending to the manufacturing sector and asked that they widen their net and learn from the developed economies where small and medium enterprises grow the economy.

    Mrs. Sanni recalled her visit to Abidjan, the Code de Voire capital and noted that $300 million capital was invested into the city alone to build infrastructure to encourage trade.

    She wondered when Nigeria can get to the point of receiving huge capital inflow to encourage small businesses and build competitive infrastructure.

    The United Capital boss said: “Financial institutions must be willing to accept registered titles as collateral while government policies must be well articulated and understood.”

    Earlier, Chairman, LCCI Trade Promotion Board, Mr. Sola Oyetayo, said the Chamber came up with the session to underscore the imperative of industrialisation for sustainable economic recovery.

    According to him, it is not just a coincidence that most advanced economies are industrialised, but there is a relationship between industrialisation and the economic development of nations.

    He stressed that industrailisation supports economic sustainability, progress and inclusiveness and is also critical for economic diversification.

    LCCI President Mrs Nike Akande said the nation’s recovery from recession in the second quarter of 2017 has elicited calls for policies that would support economic growth and development if sustained.

    She also commended the drive for the attraction of more private sector investments, enhancement of non-oil exports and the improvement of the nation’s position on the Ease of Doing Business ranking.

    She said:“The latest report indicates a remarkable improvement in ranking from 169 to 145. This reflects the impact of the efforts of government to improve the business environment. I would like to reiterate the need for the government at all levels to sustain current efforts and reforms towards the creation of a more conducive business and investment environment.”

    The LCCI boss reiterated the need for private sector capital to bridge the huge financing gap, which currently exists in many aspects of the national economy.

    According to her, to address this deficit Nigeria needs to attract investments from within the domestic economy besides providing an enabling environment to attract the needed investments from within Nigeria and abroad.

  • Support bailout to states, civil servants tell National Assembly

    Support bailout to states, civil servants tell National Assembly

    The Association of Senior Civil Servants of Nigeria (ASCSN) has enjoined the National Assembly to support the Federal Government’s effort to settle arrears of salaries and pensions owed workers and pensioners through the release of bailout funds to states.

    In a release in Lagos, ASCSN President Comrade Bobboi Bala Kaigama, and the Secretary-General, Comrade Alade Bashir Lawal, said information reaching the union secretariat  indicated that the lawmakers were hatching plots to scuttle the Federal Government’s efforts to settle the arrears of salaries and retirement benefits owed millions of workers and pensioners.

    “We wish to emphasise that money being given to state governments by the Federal Government, under the bailout arrangement, is to be repaid.

    “Thus, while we appreciate the oversight functions of the National Assembly in budget spending and other financial transactions of the Federal Government, we believe that in terms of bailout to state governments, members of the National Assembly should use the instrument of their high offices to ensure that state governors deploy these funds to settle arrears of salaries of workers and retirement benefits of pensioners, who in the first instance, are members of their constituencies,” the Union added.

    According to the ASCSN, if the National Assembly continued to harp on hindering the government from giving bailout funds to states to settle arrears of salaries and pensions, the impression would be created that they were opposed to the welfare of members of their constituencies, whose interest they were elected to pursue.

    It, therefore, urged the National Assembly to drop the idea of querying the legality of the bailout funds, and join hands with the government, the Trade Union movement, and other well-meaning Nigerians to ensure that arrears of salaries and pensions were paid to affected workers and pensioners in order to put the embarrassing and ugly situation behind us.

  • Industralisation: Experts chart way forward for states

    Industralisation: Experts chart way forward for states

    Experts at a dialogue session on international investment organised by the Lagos Chamber of Commerce and Industry (LCCI) with the theme: “Promoting Industrialisation for Economic Recovery and Sustainable Growth”, have advised states to exploit their comparative advantage to industrialise their states.

    They noted that every state is blessed with one mineral resource or the other or even agricultural produce that can be exploited with value addition to turn the particular state into a cash cow for its indigenes.

    At the session, Minister of Industry, Trade & Investment Dr. Okechukwu Enelama said no nation can be industrialised by exporting raw materials. He said the Federal Government has embarked on intensive diversification with specific focus on value addition. He said to achieve the desired result, government has banned many products imported into the country in order to boost local production.

    He observed that most industrialised nations emerged today by taking actions. He said in line with this, government has gone ahead to provide an enabling environment.  This, he said, has been demonstrated by the latest World Bank rating of the country on the ease of doing business in which it moved 24 places.

    The Vice President, Prof Yemi Osinbajo, in his submission, said the positive economic outlook of the nation was a demonstration of the robust policies of the current administration.

    He said investors were showing strong interest in the economy as demonstrated by the growth in the interest in the stock market.

    Prof Osinbajo added that the government has invested over $22 billion in 41 projects across 22 the states, which is an indication that the economy is growing; and that, indeed, the ease of doing business has improved.

    Osinbajo, who was represented by the Senior Special Assistant to the President on Industry, Trade and Investment, Mrs. Jumoke Oduwole, listed other achievements of the government as the improvement in electronic stamping of registration document by the Corporate affairs Commission (CAC), registration of companies within 48 hours, improved access to credit, property registration and the security of movable assets.

    United Capital Plc Group Chief Executive Officer, Mrs. Oluwatoyin Sanni, called on the states to understand that they are independent entities and the need for them to determine, in a structured and deliberate manner and recognise their comparative advantage.

    She regretted that financial institutions are not enthusiastic about lending to the manufacturing sector and asked that they widen their net and learn from the developed economies where small and medium enterprises grow the economy.

    Mrs. Sanni recalled her visit to Abidjan, the Code de Voire capital and noted that $300 million capital was invested into the city alone to build infrastructure to encourage trade.

    She wondered when Nigeria can get to the point of receiving huge capital inflow to encourage small businesses and build competitive infrastructure.

    The United Capital boss said: “Financial institutions must be willing to accept registered titles as collateral while government policies must be well articulated and understood.”

    Earlier, Chairman, LCCI Trade Promotion Board, Mr. Sola Oyetayo, said the Chamber came up with the session to underscore the imperative of industrialisation for sustainable economic recovery.

    According to him, it is not just a coincidence that most advanced economies are industrialised, but there is a relationship between industrialisation and the economic development of nations.

    He stressed that industrailisation supports economic sustainability, progress and inclusiveness and is also critical for economic diversification.

    LCCI President Mrs Nike Akande said the nation’s recovery from recession in the second quarter of 2017 has elicited calls for policies that would support economic growth and development if sustained.

    She also commended the drive for the attraction of more private sector investments, enhancement of non-oil exports and the improvement of the nation’s position on the Ease of Doing Business ranking.

    She said:“The latest report indicates a remarkable improvement in ranking from 169 to 145. This reflects the impact of the efforts of government to improve the business environment. I would like to reiterate the need for the government at all levels to sustain current efforts and reforms towards the creation of a more conducive business and investment environment.”

    The LCCI boss reiterated the need for private sector capital to bridge the huge financing gap, which currently exists in many aspects of the national economy.

    According to her, to address this deficit Nigeria needs to attract investments from within the domestic economy besides providing an enabling environment to attract the needed investments from within Nigeria and abroad.