The Nation Newspaper

Tag: Unremitted

  • Ogun workers decry 106 months unremitted pension funds, others

    Civil servants in Ogun State have expressed worry over the “uncertain future” that awaits them, following the non-remittance of 106 months of Contributory Pension by the Ibikunle Amosun administration.

    Acting under the aegis of Joint National Public Service Negotiating Council (JNPSC), the workers sent a letter, dated December 5, to the governor on their plight.

    They decried the unpaid four-year leave bonus, 10 months of unpaid Trade Union check-off due and gratuity payment suspended since January 2014.

    In the letter, titled: Revisiting Our Plight: Unpaid Entitlements and Other Issues, was signed by its Secretary, Comrade Adebiyi Olusegun,

    The workers also listed months of unpaid global deductions and outstanding promotion from 2016, 2017 and this year as arrears owed them by the state government.

    They said the situation had left them at the “crossroads where capacity to absorb shocks and uncertainties any longer has been exhausted”.

    According to them, the government breached an agreement on the last tranche of the Paris Club refund of N17.3 billion to the state for the payment of arrears of trade union check-off dues.

    The letter said: “We must as well register our displeasure on the sort of maltreatment meted out to the Organised Labour over the last tranche of the Paris Club refund of N17.3 billion to the state, which from the outset, we collaborate with open conscience to have addressed a press conference hurriedly that the state government will commit over N10 billion of it to offering various outstanding due to state workers, inclusive of all arrears of Trade Union check-off dues as communicated to us by the Commissioner of Finance.

    “We, therefore, take the outright neglect of Trade Union’s in eventual payment of some these arrears as betrayal of trust.”

    The workers urged the government to address the issues they raised to avoid an industrial disharmony.

    They called for an “immediate action at addressing these long-drawn issues would go some miles at dousing the tensed situation now at its ebbs which, as it were, might disrupt the relative industrial harmony currently being experienced in the state”.

    Also, workers of Tai Solarin College of Education (TASCE), Omu-Ijebu, Ogun State, have urged President Muhammadu Buhari to order Amosun to pay them their salary arrears.

    In a letter to the President by the Chairman of the school’s Coalition Staff Union, Mr. Daniel Aborisade, the workers said the state government was owing them N4 billion Consolidated Tertiary Institutions Salary and Consolidated University Academic Salary Structure arrears from July 2009 to last October.

    Aborisade said the money is owed them by the former administration of Gbenga Daniel and his successor, Amosun.

    The letter reads: “We were further subjected to frustration and untold hardship by the government due to the non-payment of salary for 14 consecutive months, making it difficult to feed ourselves, our immediate family and cope with the present economy imbalances.

    “After much persuasion and appeals to the government, vis-a-vis the appointment of a new Provost for the college, the state government resumed the payment of half-salary with effect from August, 2016 to July 2017 and October 2017.

    “Between August, 2017 and the time of writing this report, the percentage of the monthly salary paid to workers in the college has increased to 60 per cent (September 2017 to September 2018).

    “Between May 2011 and October 2018, the college has lost 45 employees. Some of them died because of little medical expenses that could not be paid at hospital.”

  • N20trn unremitted?

    N20trn unremitted?

    •It is incredible that stamp duties are not paid into govt coffers despite cash crunch

    According to the latest report of the National Bureau of Statistics (NBS), Nigeria has only just exited, no matter how fragilely, the most severe economic recession she has experienced in the last two decades. The roots of the country’s slide into recession in August, 2016, could be traced to the drastic decline, in the middle of 2014, of international oil prices, a commodity on which Nigeria is dependent for 90% of her export income and 70% of national revenues.

    The country’s economic predicament was worsened by resurgent militancy in the Niger Delta leading to an acute drop in crude oil production due to destruction of key oil infrastructure by militants. The resultant sharp drop in state revenues has resulted in the inability of governments at all levels to effectively discharge their responsibilities to the citizenry, including funding of infrastructure, securing lives and property, providing critical social services and alleviating poverty.

    Against this background, the report that trillions of Naira due to be paid into the Federation Account from stamp duty charges on bank transactions in the country have been withheld over the last several years is most disturbing. This revelation has come into the public space as a result of the ongoing tussle between the School of Banking Honours (SBH), an Innovative Enterprise Institution (IEI) legally mandated by the Memorandum of Association (MOA) setting it up, to research into banking operations and collaborate with banks and government on banking matters, and the Nigerian Interbank Settlement System (NIBSS) on the matter.

    According to the Acting Rector/Project Consultant of the SBH, Mr. Adetola Adekoya, the school had, on September 14, 2012, entered into a Masters Services Agreement with the Nigerian Postal Services (NIPOST) to help the latter increase its internal revenue by facilitating the collection of stamp duties on banking receipts in accordance with the Stamp Duties Act, 2004. Based on the agreement with NIPOST, the SBH sought and obtained an approval from the Central Bank of Nigeria (CBN) on December 3, 2012, to engage deposit money banks (DMBs) and other financial institutions as collecting agents on the stamping and remittance of stamp duty on manual and electronic transfer receipts with a value of N1,000 and above to be swept into government coffers on a monthly basis.

    Thus, empowered to act as the ‘official sweeping agent’ for the collection and transmission of the fund to government coffers, the SBH said it secured written commitments from three banks to lead other banks on manual stamp duty collection to actualise the objective. The SBH’s claim to copyright ownership of the initiative on stamp duty collection has been recognised by the Nigerian Copyright Commission (NCC), which issued the institution a requisite Copyright Certificate (No. LW1023) on October 15, 2015.

    The SBH has alleged that the sum of N7.719 trillion accruing from stamp duty on electronic cashless transfer receipts between 2013 and 2014 has been illegally kept in the custody of the NIBSS rather than remitted into the Federation Account for the benefit of the federal and state governments. This amount represents the sum of an aggregate N160 billion realised daily from these bank transactions in just five states. According to the institute’s estimates, the unremitted stamp duty revenue has risen to approximately N20 trillion when account is taken of the amount that has accrued in this regard over the last three years.

    For a country just getting out of the throes of recession and needing every kobo it can get to accelerate the rate of economic recovery and further growth, the SBH’s allegations are too serious to ignore. The appropriate authorities must urgently look into the issue with a view to unearthing the truth and recovering any due amount into the Federation Account if the SBH’s claims are found to be credible.

  • Fed Govt loses trillions as stamp duty fee is unremitted

    Fed Govt loses trillions as stamp duty fee is unremitted

    Stamp Duty charges on bank transactions may have yielded trillions of naira, but the revenue is unremitted to the Federation Account, The Nation has learnt.

    The fate of the revenue, which is believed to have risen to over N7trillion as at 2015, has pitched the Nigerian Interbank Settlement System (NIBSS) against the School of Banking Honours (SBH), an institution registered by the Nigerian Copyright Commission. The SBH is spearheading the recovery and remittance of the funds into the Federation Account for sharing by the Federal Government and the 36 states.

    SBH’s Project Consultant/Acting Rector Tola Adekoya said based on findings from the research arm of SBH, he raised a Demand Notice dated 10th March, 2015, entitled, “Stamp Duty On Electronic Transfer Receipts (2013-2014)” on NIBSS for N7.719trillion as accruing and unremitted revenue to the Federal Government and the states.

    He was invited by NIBSS for a discussion, but Adekoya is yet to honour the invitation.

    “That invitation is traceable to the Demand Notice of 10th March 2015 that SBH raised on NIBSS as Stamp Duty of N7.7 Trillion due to 36 states and the Federal Government on electronic cash-less transfers which turned over an aggregate N160 Billion daily in just five states of the federation in early 2013, as reported by Central Bank Nigeria (CBN),” Adekoya said.

    He told The Nation that from all indications, that figure may have risen close to N20trillion. He said: ”Further reports revealed that the Stamp Duty revenue has now increased to N20trillion (in local banks), or $53.3 billion (in foreign banks) in four years to 31st March, 2017, and out of which less than one per cent was later swept into a dedicated account with Central Bank of Nigeria, in 2016.”

    To him, the matter of diverted public fund should be of serious concern to the public in view of the amount that is in contention and the involvement of agencies and persons allegedly denying governments of such huge revenue collected from the unsuspecting banking public and for appropriate disciplinary action to be taken.

    By its Memorandum of Association, the SBH is approved to research into banking operations, and collaborate with banks and government on banking matters. It is empowered to represent government in the suit under its Copyright Certificate No. LW1023 dated 27th September 2012, and titled, “50-Naira Stamp Duty for Government on Electronic Cashless Transfers and Manual Bank Teller Deposits”.

    Adekoya said the alleged diversion of public funds should be of serious concern to the public in view of the amounts involved, and the culpability of agencies and persons that have been denying government of such huge revenue collected from unsuspecting banking public, for appropriate disciplinary action.

    He said the SBH had approached the CBN in 2012 to partner on the research outcomes that would absorb retrenched and ex-bankers to lead its young emerging bankers on practical part-time banking jobs at a lower career level that is branded as “Shadow-Banking”.

    “SBH clarified that Shadow-Banking products would birth other Shadow Industries to absorb the youth in high volume, until vacancies exist in their target career sectors, and for which they could be employed,” Adekoya said, adding that the SBH offer was turned down by the CBN, hence the body later aligned its job creation activities with CBN’s Financial System Strategy (FSS) 2020, but the CBN did not complement this, either, he stated.

    Undeterred, Adekoya said, “the Institute then proceeded with a proposal to Nigerian Postal Services (NIPOST) on 20th April 2012 to increase its internal revenue by exploring a narrow window provided for affixing adhesive stamp on banking receipts in Stamp Duties Act 2004, and a Master Services Agreement was signed by both parties on 14th September 2012”.

    “The institute then reverted to CBN on its first research work by a letter dated 27th September 2012, titled, “Revenue Collection for Government through Banks”, requesting for approval to engage banks and other financial institutions as collecting agents on the stamping and remittance of Stamp Duty on manual and electronic transfer receipts from N1,000 ( inclusive of all those from below N500,000 that CBN had earlier set as limit for banks) into government coffers,” the report said.

    The SBH got approval letters from the CBN. Its two defined roles were firstly to affix N50 stamp as evidence of Stamp Duty Paid on bank receipts, as covered by the Master Services Agreement with NIPOST, and secondly to sweep Stamp Duty Revenue to government, as duly covered by the Copyright Certificate No. LW1023.

    Based on the CBN approvals, the institute secured written commitments from three banks to lead other banks on manual stamp duty collection for government.

    Adekoya said  since “NIBSS needed no such circular on electronic stamp duty collection for the government, because it runs a central operation, it joined the institute at a press conference on 4th January 2013 to support the government’s revenue project, and was engaged as the ‘official sweeping agent’ for government on 7th January 2013.”

    He said the government directed that the only thing we should not charge stamp duty on is naira currency. “We went to Nigeria Interbank Settlement System (NIBSS), which is the firm maintaining the portal for cash-less policy for all the banks. By January 2013, we were ready to run it. Since 1993, NIBSS has not remitted any stamp duty to the government,” Adekoya, said.

  • NCAA reads riot act to airlines over unremitted funds 

    The Nigerian Civil Aviation Authority (NCAA) has directed all airlines operating in the country to forward in full unremitted funds accruable to the Authority without further delay.

    Investigations reveal that the funds run into the tune of over N6 billion.

    This directive was handed down at a meeting with the operators on non-remittance of five per cent Ticket, Cargo and Charter Sales Charges (TSA/TCA) held at the Authority’s Headquarters Annex in Lagos.

    The Director General of the NCAA, Capt. Muhtar Usman presided over the meeting.

    According to Usman the directive is with regards to the five per cent TSA/TCA collected at source from the air passengers by the airlines on behalf of the Federal Government of Nigeria.

    These sales charges, he said is to enable all aviation agencies carry out their responsibilities of providing safe, secure and efficient regulatory services for the overall benefits of all aviation stakeholders.

    He said:” It is imperative that all unremitted funds must be forwarded in full to the NCAA immediately. The airlines must desist from using these funds ‘’held in trust’’;

    The ongoing five per cent Ticket/Cargo/Charter/Sales Charges automation of payments which offers real-time transparent transactions must be completed within two (2) months.

    “This will remove endless reconciliation of data and reduce high debt profile of Airlines to NCAA;

    “Reconciliation of all outstanding debts must be completed within sixty (60) days;

    “The five per cent Ticket/ Cargo/ Sales Charges must be On Gross Ticket excluding VAT and Passenger Service Charge (PSC) only;

    “All airlines must provide to the Authority the breakdown of the recently introduced ‘Taxes+Fees’’ component on all passenger tickets which include the amount due to each Government Agency.

    “This include: FAAN -Passenger Service Charge (PSC); Federal Inland Revenue Services (FIRS) – five per cent  VAT; and NCAA  five per cent Ticket Sales Charges (TSC)

    “Any add-on charge, surcharge or any other miscellaneous added on passenger ticket must be approved by the Authority before applying these charges on passenger tickets.”