NEWS
Unexpected revenue losses threaten N17.126trillion 2022 budget implementation
****Customs, Immigration raises alarm over possible incapacitation
….NAFDAC Warehouses three year capital votes
Funding for the N17.126trillion 2022 budget may not be realizable as some of the revenue generating agencies are complaining of different forms of hiccups.
This was happening as the Director General of National Agency for Food and Drug Administration Control ( NAFDAC), Professor Mojisola Adeyeye, lamented that the 2018, 2019 and 2020 budget of the agency were not passed by the National Assembly leading to warehousing of revenues generated by it for capital expenditure.
Complaints on meeting revenue targets by affected revenue generating agencies came to the fore during the one day interactive session the Senate leadership and its Finance Committee had with them .
The Comptroller General of Nigeria Customs Service ( NIS), Col Hameed Ali ( Rtd), said some provisions of the 2022 Finance Act, have robbed Customs of its operational mandate on some revenue collections.
He specifically cited section 22 and 61(a) of the Act , incapacitating Customs from collecting some taxes like import duties.
“Mr President of the Senate , Distinguished Senators , I thank you for organising this interactive session on the need for improvement by all revenue generating agencies as far as internally generated revenues are concerned and funding of the 2022 budget are concerned .
“However let me bring to the notice of this gathering that some provisions of he Finance Act 2022, are incapacitating Customs from such revenue drive .
“Section 22 of the Finance Act 2022 seeks to amend the Federal Inland Revenue Service law Section 68 (1), (2), (3), (4) and (6) by allowing the Act to takes precedent over any other laws with regards to the administration of taxes, assessment, accounting, collection and enforcement of taxes and levies due to the Federal Government and the federation of Nigeria.
“When the law was signed, it did not state clearly, the extent and scope of the taxes and levies in question. We are aware that the taxes and levies under the responsibilities of the FIRS are income tax, personal income tax, capital gain tax, VAT and so on.
“However, the amendment is so wide and open that we in the Nigerian Customs Service took it that it had hindered our ability to collect levies and other collections.
“Our understanding of the provisions is that all other laws which mandated us to collect are inconsistent with the new Act, then they are voided.
This means that the law that mandates us to collect as revenue generating agencies, are voided completely. This means that we do not have the responsibilities to collect levies. If we don’t have the responsibilities to collect, what are we going to discuss here.
“We have consulted with lawyers and the conclusion is that the Act is confusing and if other revenue generating agencies decided to act on the provisions, they may decide not to collect duties and levies”.
Making similar lamentation, the Director of Finance, Nigeria Immigration Service ( NIS), Professor Aba Georg, said the N400billion the agency supposed to be generating as revenue on yearly basis is being cornered by UK based firm, handing most of its outsourced services and operations .
According to him, contract on the outsourced services and operations given to the UK based firm on behalf of Nigeria Immigration Service in 2003 , gives government 33% of proceeds , Immigration 7% while the remaining 60% is cornered by the firm .
” This is our 7th time of tabling this complaint before the Senate or the House of Representatives . Please rescue us from the hook of this firm.
“The contract was entered into without the knowledge of Immigration since 2003 and those behind it , keep on renewing it and denying us about N400billion revenue on yearly basis .
“It is a rip-off and purely one sided contract bleeding Immigration and Nigeria financially on yearly basis “, he lamented .
Apparently piaued by the submission , the President of the Senate , Ahmad Lawan , directed the Committee Chairman, Senator Olamilekan Adeola ( APC Lagos West), to summon the Ministry of Interior for all the contract documents.
“This is unacceptable . We cannot continue like this. We must see the end of this contract in the National Interest “, he said.
On complaints made by the Customs boss, Lawan said, “I wonder why the Ministry of Finance is not here because we need their intervention now. Their presence here would have provided some clarifications. We took it for granted that since it was an executive bill, that there were some engagements among the agencies of the Federal Government.
“We also called for public hearing so that we could exrayed it. You are saying that you don’t have the legal mandate to collect taxes and it is a scary revelation.
“The Senate Committee on Finance and the Ministry of Finance and other agencies would look at the Act. If it is established beyond reasonable doubts that we need to amend it, we will do so without delay.
‘It will be the fastest amendment because we need you to collect more monies for the Federal Government”
But Senator Adeola in his own response said the section cited by the Customs boss , was not targeted at the agency .
“What necessitated that singular act was as a result of the issue between the Revenue Mobilisation and Fiscal Commission and the FIRS.
There were clashes between them from time to time. Some activities of RMFAC were not in tandem with the Act that established it. We discovered that the only way that we can make their roles explicit is through the Finance Act concerning the assessment and accounting of taxes.
“We discovered that RMFAC are going to agencies to audit their tax accounts which is not part of their responsibilities based on the law that established RMFAC.
“The only agencies saddled with that responsibility is the FIRS. That was what that law tends to address. We are ready to look into it again if other revenue generating agencies believe that it has hindered them from performing their responsibilities and we would amend it accordingly”, he said
Former Vice President, Atiku Abubakar has criticized the federal government’s plan to secure an additional N1.7 trillion loan through Eurobonds to cover a shortfall in the 2024 budget, describing the borrowing as unsustainable and harmful to Nigeria’s economy.
In a statement shared on Thursday via his X (formerly Twitter) handle, Atiku accused the Bola Tinubu-led administration of burdening Nigerians with debt while failing to provide clear answers about the country’s fiscal challenges.
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He also faulted the National Assembly for enabling what he called a “voracious appetite” for loans.
The former Peoples Democratic Party (PDP) presidential candidate expressed alarm over a recent World Bank report ranking Nigeria as the third most indebted country to the International Development Association (IDA), calling the development troubling.
“The recent report released by the World Bank, showing Nigeria as the third most indebted country to the International Development Association (IDA), is very concerning,” Atiku stated.
He raised further concerns about the government’s decision to benchmark the proposed loan at an exchange rate of 1 USD to N800, despite the Central Bank of Nigeria’s official rate being over N1,600.
“What makes this particular loan proposal even more concerning is that it is benchmarked at the exchange rate of 1 USD to N800, whereas the current exchange rate from the Central Bank of Nigeria stands at over N1,600 to 1 USD,” he said.
Atiku questioned the need for additional borrowing, given the government’s earlier claims of record-high revenue collection.
“In July this year, Tinubu boasted that the FIRS and Customs under his watch had collected all-time high revenues to finance the budget. Why are they still borrowing?” he said
He accused the government of a lack of transparency, describing the borrowing spree as detrimental to Nigerians already struggling under economic hardship.
“There is something that they are not telling Nigerians, even as they are being crushed by a combination of their failed trial-and-error policies and loan rackets.”
Atiku also referenced a report by BudgIT, a budget monitoring group, which criticized the 2024 budget for its inefficiencies.
He alleged that corruption, rather than infrastructure or development needs, was driving the government’s borrowing decisions.
“These loans are powered by corruption and not for infrastructure and development needs. This voracious appetite for humongous loans is deeply concerning,” he said.
Reflecting on Nigeria’s financial history, Atiku lamented the return to significant foreign indebtedness just years after former President Olusegun Obasanjo’s administration cleared the country’s debt.
“It is agonizing to see that just a few years after the Obasanjo administration took us out of foreign indebtedness, we are today back at the top spot in the same conundrum,” he stated.
He called for a more cautious approach to borrowing, urging the government to prioritize fiscal responsibility and transparency to avoid worsening Nigeria’s economic challenges.
The International Criminal Court (ICC) has taken a historic step, issuing arrest warrants for Israeli Prime Minister Benjamin Netanyahu and former Defense Minister Yoav Gallant.
The charges include crimes against humanity and war crimes allegedly committed during Israel’s recent assault on Gaza.
In a detailed statement, the ICC accused the Israeli leaders of “intentionally and knowingly depriving the civilian population in Gaza of objects indispensable to their survival, including food, water, and medicine and medical supplies, as well as fuel and electricity.”
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The ICC’s move marks a significant escalation in international scrutiny of the Israeli-Palestinian conflict. Netanyahu and Gallant are alleged to have orchestrated policies that caused severe harm to the civilian population in Gaza, leading to widespread condemnation from human rights organizations.
Alongside the charges against Israeli officials, the ICC also issued an arrest warrant for Hamas military commander Mohammed Deif. Deif has long been a central figure in Hamas’s military operations. Israel’s military claims to have killed him in a July airstrike, although this has not been independently verified.
The warrants highlight growing calls for accountability amid the ongoing conflict in the region. The ICC’s actions are likely to provoke heated debate and may complicate diplomatic efforts aimed at resolving the crisis.
With the warrants issued, global attention now turns to how the international community will respond and whether any practical steps will be taken to enforce them.
Governor Monday Okpebholo of Edo State has inaugurated a 12-member committee tasked with recovering government vehicles reportedly in private hands.
The committee, led by Kelly Okungbowa, has been given a two-week mandate to retrieve the vehicles and ensure their return to the state government.
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Speaking during the inauguration ceremony in Benin City, Governor Okpebholo emphasized the importance of accountability in the management of public resources.
He urged the committee to carry out its assignment thoroughly and within the bounds of the law.
In his response, Okungbowa expressed gratitude to the governor for entrusting the team with the assignment, vowing to deliver results within the stipulated timeframe.
“A lot of vehicles used by the past administration are missing, as those in custody of the vehicles have refused to return them,” Okungbowa said.
“The governor deemed it fit to inaugurate us today with a mandate to recover all government vehicles in private hands.”
The committee, which includes representatives from Edo’s three senatorial districts, is set to investigate and recover the vehicles based on credible intelligence already at their disposal.
“We already have vital information regarding some persons still holding government vehicles,” Okungbowa stated. “We will do the job according to the law, and both the government and the people will be satisfied with the outcome.”
He also called on members of the public to assist the committee by providing information about any government vehicles that may still be in private possession.
“We want to appeal to members of the public who might be aware of anyone still keeping government vehicles in their houses to please inform us to enable the committee to recover such for the Edo State Government,” Okungbowa said.
The committee’s vice chairman, Rt. Hon. Victor Edoror, a former Speaker of the Edo State House of Assembly, will work alongside other members to ensure the success of the initiative. The public can reach the committee at 08110165121.
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