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Tag: taxes

  • Experts kick against higher taxes in beverage manufacturing

    Experts kick against higher taxes in beverage manufacturing

    Concerned stakeholders in the country’s beverage sector have expressed fears over the push for an increase in Sugar-sweetened beverage (SSB) taxes. The group lamented that with many of the companies in the sector already recording huge losses, slower growth coupled with the systemic challenges manufacturers face in the current economic environment, like the rising inflation rates, foreign exchange volatility and declining demands, placing a higher tax rate on the sector translates to adding more burdens on the operators. Besides, they fear that in addition to this, there is an imminent threat that increased pressures could lead to outright closures and a significant loss of jobs.

    For instance, an economic analysis and policy advocacy organisation, ThinkBusiness Africa, faulted the assertions made by the Corporate Accountability and Public Participation Africa (CAPPA) in its report regarding the proposed increase in Sugar Sweetened Beverages (SSBs) tax in Nigeria. Recall that CAPPA had in its report sought an increase in SSB tax from N10 per litre to N130 per litre which represents a 927 per cent increase in the current revenue from SSBs taxes in Nigeria.

    But ThinkBusiness Africa Insight Series April 2024: CAPPA, Sugar Sweetened Beverages (SSBs) Tax, and Fiscal Policy in Nigeria”, said the objectives of a potential increase in SSBs tax in Nigeria will not be achieved based on CAPPA report.

    The report, according to the group thus suggests that an increase in SSBs taxes from the current estimates of N68 billion to N729 billion annually is required to deliver a five per cent reduction in Body Mass Index (BMI) in Nigerians over a five-year period.

    Chief Executive Officer (CEO), ThinkBusiness Africa, Dr. Ogho Okiti, said his company’s  latest Report is careful to stress that what the CAPPA report has established is a correlation and not causation.

     “Using increases in SSBs taxes, assuming to deal with causation, when that has not been established, will not achieve the desired result but would have heaped heavy and unbearable tax burden on the Food & Beverage sector in the Nigerian economy.

     “It is staggering considering that the federal government planned health budget in 2024 is just above N1.2 trillion. If CAPPA does have its way, the government will receive about 60 per cent of its health budget from the increases in SSBs taxes. In the context, increases in SSBs taxes are not just funding the control of the growth in obesity and diabetes, but funding over half of federal government expenditure on health,” he said.

    Okiti described the underlying data for the computation and estimation by CAPPA as weak, arguing that it may lead to a “trigger happy fiscal policy” approach, if adopted by the government.

    He warned that acting on the CAPPA report will not deliver the objective of curtailing the rise but will also destroy the investments, revenues, and jobs in the non-alcoholic sector in the country.

    He also said Nigeria’s sugar consumption is below the World Health Organisation (WHO) recommendations. While WHO recommends a per capita consumption of 9.1kg, Nigeria’s consumption is currently at 8.3kg. At that rate, according to him, Nigeria is one of the lowest consumers of sugar in Africa, a mere 1.4 per cent of total monthly expenditure on non-alcoholic drinks.

    Read Also:Africa taxes tobacco to boost revenue, fight health woes

    In similar vein, the Organised private sector (OPS) including small businesses in the sector have also challenged the position, stating that any increase in taxes at this time when the sector is trying to stabilise will lead to rather dire implications for the manufacturing sector.

     They argue that incessant increases in tax targeted at an already struggling industry would adversely affect their productivity, ability to remain profitable and ultimately lead to massive downsizing and in some cases, closures.

     “As expected, such an outcome would only translate to the loss of millions of Nigerian jobs that are generated by the sector each year. To put this in context, it is worthy to note that the sector already contributes about 40 percent to 45 percent of its gross earnings as tax to the government, and as of 2022, generated 1.5 million jobs,” the OPS said in a statement.

  • Fed Govt  to streamline taxes to single-digit

    Fed Govt  to streamline taxes to single-digit

    If the maiden report of the  Presidential Committee on Tax Reforms and Fiscal Policy gets the nod of the Federal Executive Council (FEC), collectable taxes by relevant government agencies will be less than 10.

    The president in August inaugurated the committee to formulate new tax policy for the country, harmonise the existing ones and coordinate revenue administration.

    The report known as   ‘Quick Win Report’  was submitted yesterday to President Bola Ahmed Tinubu by the committee’s Chairman,  Mr. Taiwo Oyedele.

    Tinubu, who praised the team, granted its request to address a FEC meeting on the expected gains of the planned new tax policy.

    He directed his Special Adviser on Policy Coordination  Hadiza Bala Usman, to coordinate relevant government officials for the meeting.

    A statement by the President’s Special Adviser on Media and Publicity, Ajuri Ngelale, did not indicate the date for the session.

    Ngelale said: “The President commended their work and assured them of his support for the review and implementation of key recommendations.

    ‘’I have listened attentively to your report. Charting the critical path forward for Nigeria’s economic recovery is crucial to all of us. I want to say thank you to your delegation.’’

    Briefing reporters after the meeting, Oyedele said a major component of the report was the need to prune the total number of Nigeria’s over 260 official and unofficial taxes and reduce the pains that businesses and individual payers are subjected to.   

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    He explained that out of the 260 taxes paid by businesses and individuals, only 60 were official. Oyedele, who was in company with the Acting Chairman of the Federal Inland Revenue Service(FIRS) Zacch Adedeji,  added that the committee was working to ensure that the  60 were reduced to a single digit.

    Justifying the need to prune  the number, he said: We have seen countries like South Africa generating more than our entire national tax revenue from just one tax.”

      Oyedele restated that the committee had commenced the process of rewriting the nation’s tax laws in order to birth a standard and more effective tax administration.

    He added that the task of restructuring the tax system would not be achievable through the courts but by assembling stakeholders for deliberations and approaching the National Assembly. The chairman used the controversy that surrounded the Value Added Tax (VAT) to buttress his position.    

     Stating that the committee had already engaged the Senate with the aim of addressing all necessary tax reforms,  Oyedele pointed out that approximately 96 percent of the total revenue collected by the federal, state, and local governments was derived from less than 10 taxes.  

     He said: “  All we did today(yesterday) was to formally present the report to Mr President, but I will say that once we get the nod of Mr President, it will be like just switching on the tap and then the implementation starts immediately. 

     ”There’s so much work for us to do, this is just Milestone #1, it is what we call the quick wins. The second phase, which is where we are now, is the critical reforms. Those critical reforms involve even rewriting our major tax laws, addressing something that everybody in this room will be very much familiar with; a multiplicity of taxis. 

     ”We have over 60 taxes and levies, officially collectable by the Federal Government, state governments and local governments. Unofficially, those taxes are over 200, making life difficult for our people. So, the objective we have, and that’s what we’re working towards, is to bring all of that to a single digit. 

    “So, the taxes at all levels of government combined, we think should be less than 10 because actually about 96 percent, actually more than that, of our revenue across federal, states, local governments, currently is generated from less than 10 taxes.  

    “There is no evidence to show, in fact, the contrary is true that the more the number of taxes you have, actually the less revenue you collect because it just creates the opportunity for leakages and some non-state actors collecting money and keeping it to themselves. 

    “We were speaking to traders, MATAN (Market Traders Association of Nigeria) and they said to us, that people selling pure water in the market collect seven tickets every single day. Why should someone who is hawking pure water to keep body and soul together pay seven taxes on a daily basis? It doesn’t make sense to us. 

     ”We are at that phase of rewriting our laws. We spent time with the Senate and we would also do the same thing with the House of Representatives, the whole idea is we think that some of the reforms we need to introduce have to go to the Constitution itself, there lack is of clarity about taxing rights between levels of government. 

    “We’re all familiar with the dispute around VAT (Value Added Tax). We think that the solution will not come from the courts, it will come from Nigerians coming together to say ‘Actually, this is the best way to deal with these matters.’

    “We have commenced our public consultation and stakeholder engagement, it’s open until the 15th of November. I’m glad to inform you that after just a few days of opening up that platform for engagement, we have received inputs from every single state in Nigeria and we’re just starting.”

    Ngelale also said in his statement that FIRS boss Adedeji pledged to ensure the implementation of the recommendations of the committee once approved by FEC.

      Adedeji, according to the presidential spokesman,  added that beyond supporting the fiscal and tax reforms, the FIRS will explore opportunities to diversify the nation’s revenue sources, as the historical overreliance on oil has made the economy vulnerable. 

  • Telcos choked by 49 taxes, levies, others

    Telcos choked by 49 taxes, levies, others

    Telecom operators in Nigeria pay at least 49 different taxes and levies to the three tiers of government and other non-state actors.

     It was gathered at the weekend that they are coerced to pay or their base transceiver stations (BTS) would be shut at the risk of compromising quality of service (QoS).

    Added to these is the Right of Way (RoW) fees and further increases under the Finance Act 2023 (such as upward review of Tertiary Education Trust Fund Tax from 2.5per cent to three, imposition of Value Added Tax (VAT) on cell towers or BTS, imposition of import levy on goods, removal of capital allowance on telecommunications goods and services under Section 32 of the amended Companies Income Tax Act), among others.

    This is further compounded by the increase in Legislative Bills seeking to impose new taxes and levies on private organisations (including telecom operators) at the National and state Houses of Assemblies.

    According to a document prepared by the Association of Licensed Telecom Operators of Nigeria (ALTON), the impact of the increase in automotive gas oil (AGO) also has dire consequences for telecoms operations, particularly in the colocation segment.

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    “The 300 per cent increase in diesel cost which was implemented at the beginning of the year, humongous indebtedness in the industry, lack of access to and increased rate of foreign exchange to service their operations, dire levels of insecurity across the country with increased theft and damage to our members sites, have all prevented our members from running their business efficiently and profitably.  This new challenge of the introduction of the 7.5 per cent VAT, now suspended, will not only further impact our members operating capital, but it will also erode their profit margins, discourage investments, stifle growth, result in loss of employment and ultimately dovetail in a progressively reduced gross domestic product (GDP),” the document stated.

    The document restated the commitment of the telcos to the improvement of QoS and, indeed, quality of experience for all subscribers which they argued is evidenced by the continued investments in network coverage and capacity to improve overall quality of service for the benefit of our esteemed customers.

    “However, ALTON’s members have continued to encounter strong macro-economic headwinds which have occasioned tough operating conditions, leading to a decline in CAPEX (Domestic) and Foreign Direct (Capital Inflow) Investments into the industry by 30.37per cent and 46.9 per cent respectively between 2021 and 2022.

    “It is ALTON’s considered view that a number of teething investment-impacting causal factors need to be definitively addressed to help deepen investment with the overall objective of driving increased CAPEX deployment for overall QoS improvement in line with the targets of the Strategic Plan to achieve 50per cent improvement in QoS by the end of 2024,” the document noted.

  • ‘Don’t overburden businesses with taxes’

    ‘Don’t overburden businesses with taxes’

    Former Director-General of the Bureau of Public Service Reforms, Joe Abah, has called on the government not to overburden entrepreneurs with taxes.

    According to him, while people who make money must pay taxes, such taxes must be streamlined in a way that entrepreneurs are not unduly bothered and made to pay for the inefficiencies of the state itself.

    While referencing Nigeria’s film industry, he said the government should support Nollywood and ramp up production instead of imports to live its dream.

    Read Also: Why music producers should increase rates, include taxes, by Eva Alordiah

    According to him, Nigeria must raise its productive capacity to compete with other nations across the world.

    “To raise productivity capacity, Africa must make it easier to access capital to produce more of what people often want to consume,” Abah said.

    Abah spoke yesterday when he was featured in The Covenant Nation’s Platform.

  • States lose over N6trn annually to non-remittance of withholding taxes

    Unremitted withholding taxes due to the 36 states of the federation account for over N6trillion loss of revenue annually, Dr. Osifo Samson Igbinoba, renowned accountant and financial management expert, has said.

    This princely sum in revenue shortfall is considered unprecedented at a time when most states owe arrears of staff salaries and are unable to provide basic amenities for her growing populace.

    The irony, however, is that while majority of the affected states are on aggressive drive to shore up their internally generated revenue, most of the states are hardly aware of how much they can get in terms of receipts from withholding taxes.

    According to Igbinoba, most states, with a few exceptions, are rather oblivious to the fact that the WHT collections and receipts are warehoused in banks, most of who are rather silent about it because it is a means of boosting their revenue base and capital.

    Withholding Tax (WHT) is an advance payment of income tax. In principle, it is a payment for the ultimate income tax liability of the taxpayer or company. The tax is deducted at source when a payment is to be made to the beneficiary.

    Besides, it is only a mechanism for the collection of other taxes. Consequently, its application is provided for in the enabling law of other tax types i.e. Section 81 of Company Income Tax Act, Section 54 of Petroleum Profit Tax Act, Section 73 of Personal Income Tax Act and Section 13 of Value Added Tax (VAT) Act.

    Withholding taxes are collected on rental income, income from investments such as treasury bills, shares, royalty, to mention just a few.

    The rate applicable to WHT varies. Dividends, interest, rent, commission, directors’ and management fees attract 10% respectively while royalties is 15% with consultation, technical, service fees, construction and building, contracts,  other than outright sales and purchase of goods in the ordinary course of business is at 5% rate.

    “The banks are deducting the withholding tax and stamp duties but fail to remit it,” Dr. Igbonofa, who sits atop as the Principal Partner of Osifo Samson & Co., a financial, management and tax consulting firm, said matter-of-factly.

    Pressed further, the Olabisi Onabanjo University trained accountant who has two separate PhDs in Credit Management and Financial Economics, said: “I can tell you categorically that a state can generate about N100million from withholding taxes on a monthly basis. The thing you need to understand is that most times interests from withholding taxes are calculated monthly. An average Nigerian has a fixed deposit with the bank and also does one or two businesses with the banks. Normally, the account holder would have instructed his bank to start dropping his interest at the end of every month and of course, the banks in their usual way would have deducted the withholding tax from source.

    “As I said, the N100billion is to be collected for each states of the federation. I’m not talking about how much accrues to the federal government now. Each state is supposed to be collecting at least N100billion,” he maintained.

    Raising some posers, he said: “The question is who collects these withholding taxes? Who is getting the withholding tax from the banks?”

    The state governments, he maintained, “Needs to look inwards. They cannot do it all alone and that is why we have consultants everywhere to really sit down with them and really close mark all these banks.”

    The Edo State-born financial analyst who recalled that his firm helped to track unremitted withholding taxes illegally warehoused by some banks on behalf of a particular state government, said the unremitted WHT was over N2.5 billion.

    “Now let’s assume each rent you pay to your landlord in Lagos, they pay 10 per cent of that to government, how can you imagine the number of revenue that you will bring into the coffers of government? Can you imagine that all houses in Lagos, especially highbrow areas like Ikoyi, Victoria Island, Lekki, etc, that are being commercialised and the landlord is paying 10 per cent to the state government? That’s a lot of money we are talking about here. If you also add the receipts from unincorporated individuals you can imagine the haul of cash. It is the same in other states as well.

    “What we are saying in essence is this, the state government needs to close mark and get their personnel trained on how to track withholding tax collection. On the long run, state government can generate an average of N100billion only on withholding tax.”

    When our correspondent reached out to officials of the Lagos Internal Revenue Service (LIRS) to get a first-hand view of the agency’s WHT portfolio, a fellow who simply gave his name as Sile from the LIRS Customer Service Centre, who was noncommittal as far as the receipts from WHT is concerned, was quick to add that submission of the withholding schedules to the LIRS PIT unit to show details of deduction just as collection of withholding tax credit notes or receipt from the bank where payment is made in favour of each beneficiary on the withholding tax schedule who suffered deduction.

    Pressed further, Sile said further inquiries should be directed at the Head of the Withholding Tax Unit of the LIRS. As at press time, response to the inquiries was still being awaited.

     

  • ‘Taxes, levies enhance revenue generation’

    Chukwuemeka Eze is the Chairman of the Southeast Zone of the Tax Appeal Tribunal. A legal adviser to the Lagos Chapter of Association of Certified Fraud Examiners (ACFE), Eze, in this interview with Legal Editor JOHN AUSTIN AUACHUKWU, speaks on the challenges of tax administration, the place of tax in nation building and the way forward for Nigeria’s tax regime.

    On inauguration as the Chairman of the Tax Appeal Tribunal Southeast Zone.

    I feel like a fish in water.  I feel nostalgic and privileged. Since I became a member of the Chartered Institute of Taxation of Nigeria  (CITN) in 2008, I have been hooked to taxation as a faithful wife is hooked to her lovely husband.

    My foundation having been laid on solid ground through CITN, taxation became a fundamental aspect of my law practice until 2017 when I migrated to lecturing at the Faculty of Law, Nasarawa  State University, Keffi. Even there, I am not insulated from taxation as one of my assigned courses is revenue and the law.

     Tax regime and laws.

     Eze said the tax regime is evolving; it is not gloomy as it was in the past. We have tax experts in all areas of tax practice and administration. A new National Tax Policy was birthed in February 2017 and that the tax laws are being implemented.

    The Tax Appeal Tribunal was reconstituted by the Minister of Finance on November 5, 2018. The database of taxpayers has increased from 14 million to 19 million after the implementation of tax amnesty known as Voluntary Assets Income Declaration Scheme  (VAIDS). In the internal arena, Nigeria has acceded to the Automatic Exchange of Information Agreement. These and many more activities have changed the narrative in the taxation system.

      On the nation’s Gross Domestic Product (GDP) ratio

    We still need to do a lot to improve our tax to GDP ratio. We need attitudinal change. We need to imbibe the tax culture through a top-bottom approach. We have to synchronise and integrate all the four purposes of taxation and apply it in a holistic manner that will be beneficial to the society.

      Challenges of Tax Tribunal

    The major challenge for is how to sensitise stakeholders and disputants to patronise the Tribunal after almost two-and-half years of inactivity. You will recall that the TAT stopped sitting in June 2016 when the tenure of the last Panel of Commissioners expired. Although we were inaugurated on November 5, 2018, many of our individual and corporate compatriots are yet to be aware of the resumption of the sittings of the Tribunal.

    Way out of Tax tribunal challenges.

    The administrative arm of the TAT has initiated a publicity campaign to inform the members of the public of the new development adding, as we proceed on the job, we expect to see more challenges.

    Dependence on tax as major revenue source as against oil

    It is possible for tax to become a major source of revenue as against oil. Yes, tax alone has generated more revenue in some countries but it will be impracticable, in the short run, for such transmutation to occur instantly  in our clime. We have to work it out until we get to the equilibrium. Oil is a natural resource susceptible to the Dutch Disease.

    As a dwindling natural asset, it is not sustainable in the long run hence the necessity to device alternative and sustainable means of revenue generation. This is where taxation comes to the rescue. The level of production in the economy is, however, a veritable factor in the utilisation of taxation as a replacement strategy. Where the means of generating income is weak, tax compliance is usually a hard nut to crack.  Our country is a work in progress, and I think we are making progress.

    Challenges of implementing tax laws in the country

    Nigeria is a federation and that this status has implications with respect to taxation. We have a mixed bag on this matter. The Personal Income Tax Act, which applies throughout the country, is uniform but being implemented by separate states’ Boards of Internal Revenue. The existence of the JointTax Board, whose membership includes the 36 tax authorities of the States, is intended to introduce uniformity. The uniformity is nevertheless cosmetic.

    Fiscal federalism its effect out tax collection.

    Our quest for fiscal federalism makes uniformity unattractive. For instance, Lagos State may want to collect a particular tax type for which Zamfara State may not be interested in. To solve this problem, a legislation known as Taxes  and  Levies  (Approved list for collection) Act  (Amendment) Order, 2015 has provided states with 25 taxes and levies from where they can select the types and  number of taxes and levies they can charge within their states.

     

  • Taxes, other charges killing us, say telcos

    Telecoms operators have lamented the crippling effect of multiple taxation, arbitrary charges and other challenges besetting the industry.

    The operators, acting under the aegis of Association of Telecoms Operators of Nigeria (ATCO), also lamented that the sector was left out in this year’s Appropriation Bill, which was assented to by President Muhammadu Buhari.

    Its President, Olusola Teniola, said lamented that the budget demonstrates the incapability of the government to further fund and spend on the much-needed infrastructure projects, such as power and information communication technology (ICT) and other essential items without reducing the recurrent expenditure to a level that reflects greater efficiencies in the way governance is run in the country. It also reflects a reality that the government’s diversification programme is slowing down or in doubt.

    “So this budget will only indirectly impact the telecoms sector, when the government removes the 38 different taxes and levies being applied to the sector to fund government spending. The government also needs to address the leakages in the 2018 budget, as the current taxes contributed by the telecoms sector alone per year is more than N450 billion and this is not reflected properly in their revenue line, highlighting  a problem with accountability within government and shortchanging the effort that the industry plays in the nation’s economic development.

    “The fact that many projects were removed and replaced with National Assembly projects demonstrates a problem in what is going to be implemented in 2018 and early 2019 to support this diversification,” Teniola said in electronic interview.

    He said Buhari  should address his concerns with the legislature and other stakeholders in the polity to ensure that any gaps that exist are closed in a manner that benefits the citizens. The fact that differences exist is not a problem, he said, adding the area the that needed to be addressed is transparency and relevance of projects that both sides of the government seek as priority within the remaining term of the administration.

    He said collaboration is not only key between the executive arm of government, but also with legislature, the private sector  and civic society in ensuring that this budget delivers the dividends to each citizen and more importantly that the private sector has the much needed funds that government seeks to deliver on its promises.

    However, he said this could only be harnessed when the government provides an enabling environment and a level of accountability as to how taxes are collected and spent to provide the basics to its citizens.

    The recurring expenditure is one line item that speaks to that, it needs to be reduced and not increased going forward.

  • Delta to tackle multiple taxes

    Delta State government has said plans have reached an advanced stage to roll out a new tax regime, to address multiple taxes.

    Economic Planning Commissioner Mr. Kingsley Emu said the tax module would be launched in June.

    He said it would address multiplicity of taxes.

    Emu spoke at the unveiling of Delta State Capital Business Directory in Asaba.

    The directory was compiled by the Chairman, Delta State Investment Development Agency (DIDA), Mr. Afam Obiago.

    Emu said given the components of the proposed tax harmonisation module, every tax payer would get the relevant taxes due to him or her in a debit sheet.

    He said when operational, tax payers would enjoy the convenience of getting their comprehensive taxes due to them in one debit sheet, adding that it will help them plan their cash-flow.

    The commissioner said: “As a state, we are addressing multiplicity of tax. We call it tax harmonisation. We have started the demo, as we need a lot of information and technology to put it together. I assure you that it will be launched in June.

    “The numerous taxes do not mean multiplicity of tax, but tax harmonisation. It means the taxes you are due to pay will come to you in a debit sheet that will state the taxes that are supposed to be your responsibility.”

    He hailed the author of the directory, stressing that it will assist the state in building its database to strengthen its internally-generated revenue.

  • Events centres owners decry multiple taxes

    Events centres owners decry multiple taxes

    Owners of events centres, under the auspices of the Association of Venue Owners Lagos Nigeria (AVOLN), have urged the government at all levels to reduce the multiple taxes in the sector, saying they are crippling their businesses.

    At the launch of their logo in Lagos,  their President, Wemi Jones, said they pay as much as 15 taxes to the federal, state and local governments, urging that the taxes be cut drastically.

    He said the government should see the group with over 100 registered members out of 1000 practitioners as partners in nation building.

    He said his colleagues were discussing with the government on the issue.

    Lagos State Director for Internal Revenue Service (LIRS) Mrs Arinola Koladaisi noted that tax payment was critical for national development. She promised to look into the issue of multiple taxation, asking their support. She accused some AVOLN members of not remitting a particular tax which they had collected from their customers, warning that those involved should stop or be ready to face the law when caught.

    A representative of the state commissioner for Tourism, art and Culture Mrs Babara Wey, advised AVOLN members to partner the ministry, remain focused in their business and be educated to be on top of their game.

    At the event, a logo of the association was unveiled amid fun and fanfare. Jones urged members to keep to the industry’s standards.

    Lagos State Safety Commission Director-General Akin Dickson also advised AVOLN members to be safety conscious. He said constructing slippery floors as well as not having fire extinguishers, among others, could attract punishment.

  • Lawmakers summon telecoms chiefs for alleged defaults in taxes, remittances

    Some heads of telecoms companies have been summoned by the House of Representatives ad hoc committee investigating the operations of telecommunications service providers, equipment and vendors.

    9mobile, Etisalat Nigeria and Globacom Nigeria bosses are to appear before the committee for alleged non-payment of taxes and the required percentages of their profits to Federal Government.

    The chairman of the committee, Ahmed Abu, said  the summon became necessary because the companies failed to attend the various hearings of the companies, in spite of repeated invitations to them.

    According to the lawmaker, the letters to convey the summons to the firms, for a meeting with the committee were being compiled.

    He added that further disregard for the invitations might compel the committee to issue bench warrants against the companies.

    The lawmaker also wondered why the National Lottery Trust Fund has been unable to rake in appreciable revenues for the government based on existing legislations regulating the operations of the firms and lottery activities in the country.

    However, the Executive Secretary of the fund, Habu Gumel, in his submission, said the government has only got N530 million in the last nine years from the companies doing business in the country.

    According to him, poor remittances, which represent value for lottery money, was on account of “issue of under-declaration of remittances by operations,  lack of credible database to ascertain the actual and precise amount due to government as returns for good causes”.

    Gumel’s position was supported by the representative of National Lottery Regulatory Commission (NLRC), Okechukwu Odunna, who decried mechanisms for tracking businesses of the telecommunications firms, from where parts of the proceeds were to be measured by the government.

    The ad hoc committee chairman said those invited should have no fears that his panel was working at crossroads with the statutory committee of the House which oversights the companies.