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Unexpected revenue losses threaten N17.126trillion 2022 budget implementation

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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

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200 Jobs At Risk As Microsoft Set To Close Down Centre In Nigeria

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In a blow to Nigeria’s tech sector, Microsoft is reportedly considering shutting down its African Development Centre located in Lagos, potentially affecting around 200 jobs.

The move, if finalised, could have far-reaching consequences for the country’s tech landscape, impacting both job prospects and innovation within the sector.

Reports emerged suggesting that Microsoft notified employees of the closure plans on Monday, leaving many in uncertainty about their future.

While affected staff are said to receive salary payments until June and maintain health insurance coverage, the closure’s motives remain unclear.

Although Microsoft’s Lagos office neither confirmed nor denied the closure when approached, industry insiders speculate that Nigeria’s challenging economic climate may have influenced the decision.

Notably, the closure appears to affect only the ADC’s operations in West Africa, with its East Africa facility in Nairobi, Kenya, remaining unaffected.

Microsoft launched its African Development Centers initiative in 2019, with facilities in Lagos and Nairobi, aiming to foster tech talent and innovation on the continent.

Upon its launch in 2022, the Nigeria centre employed over 120 engineers, with plans to expand to 500 by 2023, showcasing Africa’s abundance of tech talent, according to Gafar Lawal, Managing Director of Microsoft ADC West Africa.

The Lagos Centre was established to develop technology solutions addressing challenges both locally and globally, providing engineers with opportunities to contribute meaningful work from their home countries while being part of a global engineering network.

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Reps Sets 14-Day Deadline For Dangote, BUA, Others To Attend Hearing

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The House of Representatives Joint Committee has issued a stern ultimatum to major cement industry players, including Dangote Cement, BUA, and IBETO, demanding their presence within 14 days to address soaring cement prices.

This ultimatum comes in response to their failure to attend a crucial investigative hearing on the matter on Tuesday.

The House’s Joint Committee, responsible for probing the sudden spike in cement prices, has summoned Minister of Solid Minerals Development, Dele Alake, to appear on Tuesday, May 21, following his absence from the initial hearing.

Meanwhile, major industry players, including Dangote, BUA, and IBETO, are ordered to appear before the committee on Monday, May 20, 2024, to address concerns about the price surge.

Chairman of the Joint Committee, Rep. Jonathan Gaza Gefwi, who also heads the Committee on Solid Minerals, criticized the companies for disregarding the invitation, stating that their actions demonstrate insensitivity to the challenges faced by Nigerians.

Rep. Gefwi emphasized in his opening statement that a comparative analysis of cement prices in countries such as Kenya, India, and Zambia in 2021 revealed that Nigeria had the highest cement prices when considering the official exchange rates of each nation.

He said, “Nigeria’s price of cement doubles that of India at a difference of 69%, similarily the price is 29% higher than that in Kenya and 39% higher in Zambia. Hence the need for us to come together and find out why. In order to bring succour to our citizens while protecting investors alike.

“Our concern is for all legitimate businesses especially cement production companies in Nigeria to thrive and deliver their objective and services to the people in such a manner that can foster development”.

The chairman of the Joint Committee stressed the significance of the public hearing and debunked the notion propagated by some companies involved in the investigation that parliamentary committees lack the authority to summon private entities.

He clarified, “There is no court order presented to restrain the committee from fulfilling its duties under section 88(2)(b) of the 1999 Constitution as Amended.”

He emphasized that parliamentary committees routinely conduct public hearings to gather evidence from the public, guiding their decisions on matters directly impacting citizens, such as the current inquiry.

He added “However, an entity recognised as private under the Law, does not oust in entirety the Powers of the Committee to investigate its affairs especially when the attainment of the objectives of said entity heavily relies on the Resources of the populace.

“Let me also reiterate the objectives of the Legislative Powers and Privilges Act sections 4,5,6 and 7 on the Powers of committees to invite, investigate and summon any person for the purpose of extracting evidence on any matter, whether its public or private. Most especially when the matter affects the citizens and the people for which they represent”

Chairman of the House Committee on Commerce, Rep. Ahmed Munir, expressed concern that the failure of any invited entity to attend the joint committee session would strengthen suspicions that the surge in cement prices was a deliberate move to burden Nigerians unnecessarily and hinder government efforts to alleviate the housing shortage in the nation.

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Adeleke, Sanwo-Olu Jaw-Jaw Over Lagos’ Deportation To Osun

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Osun State Governor, Senator Ademola Adeleke has been in strong conversations with his Lagos State counterpart, Babajide Sannwo-Olu over the alleged deportation of Osun indigenes from Lagos.

A statement from the government of Osun State highlighted that Sahara Reporters had on Saturday published a story about several luxury buses dropping hundreds of youth at Ilesa after allegedly rounding them up in several parts of Lagos State.

According to the statement, “The report was confirmed by an investigation team set up to confirm the veracity of the story by the Osun State Government.”

This, it was gathered has prompted strong conversations between the governors of the two states, which led to the Sanwo-Olu assuring that the matter would be thoroughly investigated.

On the authenticity of the report, Osun State, declared, “The state team reported that eye witness accounts confirmed the dropping of the youths in several luxurious buses by a team suspected to be from Lagos State.

“The state’s report showed that the youths were systematically dropped at Ilesa-Akure Express junction, Breweries; Ilesa – Ibodi – Iginla to Ife Express junction; Osun Ankara Express junction; Imelu Express junction; and Iperindo Express junction.”

It was gathered that Gov Adeleke expressed shock at the development, urging Governor Sanwoolu to look into the matter and put an end to it if the report is true.

Gov Adeleke said, “I spoke with my brother, Governor Sanwo-Olu on the matter. He too was surprised and he denied ever authorizing any such action.

“Governor Sanwo-Olu has promised immediate investigation to unravel the facts of the situation. The Lagos team will update us as quickly as possible.

“I am subsequently directing our security agencies in Osun to mount surveillance in and around Ilesa to track the deported youths and their destinations.

“I will update our people on this development. I urge residents to be calm while the security agencies carry out surveillance.”

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