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Taxation on Bonds, Short-Term Securities Kick-In

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Taxation on Bonds, Short-Term Securities Kick-In

By Edozie Obasi-Eze

The Nigerian government has commenced the collection of income tax on bonds, short-term securities.

Recall that a 2012 gazette which exempted Companies Income Tax (CIT) from bonds and short-term securities in the past 10 years expired on Monday.

By the gazette, the government granted tax waiver on all bonds and debt instruments issued by all tiers of government and corporate entities.

However, the Securities and Exchange Commission (SEC) last month introduced a 0.025 per cent charge on fixed income (Bonds) secondary market transactions, which was expected to become effective on Tuesday January 4, 2022.

A circular issued by the capital market regulator made it clear that, “It will charge 0.025 per cent of the total value of all secondary market transactions on bonds, while the

Securities Exchange on which the transaction occurs will charge an amount not exceeding 0.025 per cent of the total value of secondary market transactions on bonds while bond transactions by dealing members will attract a single regulatory fee of 0.0001per cent of the total value of the secondary market transactions on bonds, and are exempt from the 0.025per cent fee charge earlier stated.”

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Gov Bassey Otu Increases Minimum Wage

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Cross River State Governor Bassey Otu has announced a new minimum monthly wage of N40,000 for the state’s lowest-paid workers, up from N30,000.

The governor made this declaration during his address to workers at the UJ Esuene Stadium in Calabar on Workers’ Day.

According to Otu, the wage increase is a response to current economic conditions and the limited federal allocations received by the state, rather than a sentimental decision.

Despite acknowledging the state’s industrial output as “very poor” at 5%, the governor expressed his administration’s appreciation for the workers’ efforts.

He said, “Government considers its workforce as the driver of lofty projects and programmes for the common good of the people. Workers in the State are always held in high esteem to achieve good results, which reason  prompt payment of salary and pension has been up to date.”

“The State Government is presently on the verge of concluding necessary arrangements for the staggered payment of outstanding gratuity to its retired workers. I therefore sue for a little patience from the pensioners in this regard.”

Additionally, the Organised Labour in Cross River State has criticized the state government, alleging neglect and deceit.

They are demanding open recruitment to fill vacant positions with qualified youths.

According to Comrade Monday Ogolodom, Chairman of the Trade Union Congress (TUC), the government failed to deliver on its promise to clear the backlog of gratuities owed to senior citizens since 2013, deceiving them.

Addressing workers, Ogolodom said, “Payment of gratuity in the state has become a mirage. I recall on the 4 of October, 2023, during the swearing-in of the Head of Service, Innocent Eteng, His Excellency, the  Governor made a very welcoming, sweet and promising speech, saying “before the end of December, 2023 all backlog of Gratuity in the state shall be cleared”.

“Today is 1″ May 2024, 4 (four) months after, nothing has started”, adding that this has portrayed the governor in bad light and appealed to him to set up machinery towards actualizing the promise  as some of our elder statesmen and women were dying due to lack of funds for medications.

He claims that bribery for promotion has become widespread, which is demotivating for hardworking and qualified employees.

He also expressed frustration with the prolonged verification exercise aimed at eliminating ghost workers, which has delayed long-overdue promotions for deserving workers.

Furthermore, Ogolodom criticized the government’s secretive recruitment practices, urging them to conduct open and official recruitment exercises instead.

 

 

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Reverse Tariff Hike In One Week, TUC Tells NERC

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Festus Osifo, head of the Trade Union Congress, didn’t mince words during his address at the 2024 Workers’ Day event in Abuja on Wednesday.

Osifo slammed the high electricity tariffs burdening Nigerians, labeling them unethical.

Urging immediate action, he called upon the Nigerian Electricity Regulatory Commission to reverse the tariff hike within a week.

Osifo underscored the severe impact of inconsistent power supply on the nation’s economic growth, stressing the urgency of effective energy management to prevent further setbacks.

He said, “One of the pivotal factors constraining our nation is our glaring incompetence in managing this sector for the collective welfare of our citizens.

“Power, regardless of its source, remains paramount in kickstarting any economy, while oil and gas are indispensable for robust energy success in every country.”

He emphasized that despite over a decade passing since the privatization of the power sector, its challenges persist unchanged.

He said “The reasons are glaringly evident. As long as those who sold the companies remain the buyers, Nigerians will continue to face formidable challenges in the power sector.

“It is unethical to force Nigerians to pay higher tariffs for non-existent electricity. Estimated billing is an extortion and a daylight robbery against Nigerians.

Recall that the Nigerian Electricity Regulatory Commission (NERC) greenlit a significant increase in electricity tariffs for customers falling under the Band A classification.

Musliu Oseni, the Vice Chairman of NERC, confirmed that this adjustment would raise the rate from the current N66 per kilowatt-hour to N225 per kilowatt-hour.

Notably, customers categorized under Band A typically receive 20 hours of electricity supply daily.

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Olatunji’s Abduction: NPO, BON Intervention, Ombudsman To Resolve

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The Nigerian Press Organisation (NPO), the Broadcasting Organisation of Nigeria (BON) and Civil Society Partners (CSP), have revealed that the abduction of the General Editor of FirstNews newspapers, Segun Olatunji, has been referred to the national ombudsman for adjudication.

According to a statement jointly signed by President, Newspapers Proprietors Association of Nigeria (NPAN)/President, Nigerian Press Organisation (NPO), Mal. Kabiru A. Yusuf, and elected officers of the other media bodies in Nigeria, following pressure from the concerned groups, the Defence Intelligence Agency (DIA), requested a meeting with the NPO, BON and the CSP on April 14, 2024.

The statement disclosed that the military authorities said that they acted to forestall a potential threat to national security and would have reported the matter to the National Media Complaints Commission (NMCC) – The National Media Ombudsman – if they had been aware of its existence.

After considering this disposition towards the Ombudsman, the NPO, BON and the CSP have decided after reviewing the outcome of the April 14 meeting, to refer the matter to the Ombudsman for adjudication.

The report of the Ombudsman process would be made public.

We hope that the parties concerned will seize this opportunity to settle the matter in the interest of law, order and respect for the provisions of Nigeria’s constitution.

Besides, the specific issue of Olatunji, the group condemns the increasing militarisation of the civic space, which has seen increasing use of excessive force by soldiers in matters that would have ordinarily be handled by the police.

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