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Payment Of Taxes In Foreign Currency Affecting Naira, Businesses — Taiwo Oyedele

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Taiwo Oyedele, chairman of the presidential fiscal policy and tax reforms committee, says that Nigerian businesses face pressure due to taxes paid in foreign currency.

At the Nigerian Financial Intelligence Unit (NFIU) first revenue assurance summit, Oyedele explained that businesses are required to pay certain taxes in dollars, totaling an estimated $3.5 billion annually.

According to Oyedele, this practice not only burdens local businesses but also contributes to the depreciation of the naira.

“We found that Nigerian businesses are being asked to pay some taxes in dollars — NIMASA, NPA, etc. which amounts to an estimated $3.5 billion a year,” the chairman stated.

“We are crying that our naira is losing value; why wouldn’t it lose value when we impose unnecessary dollar demands?”

In his address, titled “The Importance of Revenue Assurance in Economic Stability,” Oyedele emphasized that revenue should improve citizens’ lives and livelihoods, rather than serving merely as a financial target.

He advocated for a coherent policy environment that encourages investment and collaboration among federal and state agencies.

  • ‘Release Data In 48 Hours Or Face Consequences’

Oyedele cautioned government agencies against withholding data from one another, asserting that the data does not belong to them.

As an example, Oyedele shared that the Joint Tax Board (JTB) was required to pay for data access from government sources.

He questioned the logic of government agencies selling data while seeking to generate revenue.

To address data withholding, Oyedele announced plans for legislation requiring the free provision of government-held data, with strict deadlines for compliance.

“Our economy must be designed to be conducive and investment-friendly; our policy environment must be purposeful and coherent, let’s not be pulling in different directions, states versus federal or even within federal agencies.

“JTB (Joint Tax Bank) told me as part of the work we are doing, the number of agencies they were looking for data, you know they were commending the NFIU and we are grateful for the NFIU and the leadership… and they were asking them to come and pay for data.

“JTB was being asked to pay for data I couldn’t believe it. In the same Nigeria, government has data and government is selling data and we say government does not have revenue,” he explained.

“How are we supposed to have revenue if we are selling data?

“So we drafted a law, it is not your data, it is our data, you will give it. In fact we will give you a deadline of 48 hours. If you don’t release the data, there will be consequences. We are criminalising it. Give the data.”

He emphasized the need to align domestic data standards with international norms, ensuring both data integrity and a transparent, efficient revenue collection process.

Oyedele shared that protocols are being developed to safeguard data integrity and security.

  • ‘Focus On Problem-Solving Rather Than Obstructing Efforts’

Addressing misunderstandings surrounding his committee’s initiatives, Oyedele criticized baseless claims about fiscal policies, particularly a recent report suggesting the committee recommended a 10 percent reduction in federal government allocations from the federal account allocation committee (FAAC).

On October 13, Oyedele clarified that he had not proposed reducing the federal government’s share of FAAC revenue.

He noted that his committee’s recommendation related specifically to value-added tax (VAT) revenue.

He encouraged stakeholders to concentrate on solving problems instead of hindering efforts to strengthen the economy.

  • ‘Effective Collection Of Taxes Will Increase Revenues Within 3 Years’

Oyedele announced that the committee has proposed a synchronized tax system including eight key taxes at federal, state, and local levels.

He projected that effective tax collection could increase revenue four- to five-fold within two to three years.

Additionally, Oyedele proposed a national framework for subsidies to ease financial pressure on businesses. He expressed hope that political leaders would adopt the reforms, urging stakeholders to work together in implementing them.

In her comments, Hafsat Bakari, chief executive officer (CEO) of the NFIU, stated that while the unit initially focused on tax crimes to support the Federal Inland Revenue Service (FIRS), it has now expanded its efforts to collaborate with state-level counterparts.

Bakari noted that most tax evasion happens at the state level and that financial transaction data held by the NFIU could significantly support state internal revenue services.

“While FIUs were created by international conventions to address criminal activity, the same international conventions and standards require that we put in place measures to protect the integrity of the information that we provide,” Bakari said.

“To this end, our approach to working with States is built on the establishment of a memorandum of understanding which sets out the principles, objectives and limitations of the intelligence provided.”

She also announced the introduction of the crime records information management system (CRIMS), a secure platform for requesting and receiving intelligence from the agency.

Through CRIMS, Bakari said, paper records prone to compromise have been eliminated.

BIG STORY

JUST IN: Reps Reject Bill Seeking Single Six-Year Term, Zonal Rotation For President, Governors

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The House of Representatives on Thursday, November 21, rejected a proposed constitutional amendment aimed at instituting a single six-year term for the president, governors, and local government chairmen across the federation.

The bill, sponsored by Ikenga Ugochinyere (PDP, Imo) and 33 co-sponsors, also sought to divide the country into six geopolitical zones and establish a rotational system for the presidency and governorship within these zones.

Additionally, the bill proposed that all elections be conducted on a single day.

It aimed to amend Section 132 of the Constitution by inserting a new subsection (2), deleting the extant subsection (4), and renumbering the entire section accordingly. The proposed amendment would have stipulated that elections to the office of President of the Federal Republic of Nigeria be rotated between the North and South regions every six years.

The bill also sought to amend Section 180 of the Constitution, replacing “four years” with “six years.”

Furthermore, it proposed altering Section 76 by inserting a new subsection (3), which would read: “(3) For the purpose of Section (1) of this section, all elections into the offices of President, Governors, National Assembly, and State Houses of Assembly shall hold simultaneously on the same date to be determined by the Independent National Electoral Commission in consultation with the National Assembly and in accordance with the Electoral Act.”

When the bill, which was scheduled for a second reading, was put to a vote, the majority of lawmakers voted against it. This is not the first time the House has rejected a bill seeking a six-year single term for the president and governors.

In 2019, a similar bill, sponsored by John Dyegh from Benue State, also failed to progress to the second reading.

Dyegh’s bill had also proposed a six-year term for Members of the National Assembly and State Houses of Assembly. He argued that a six-year term would allow members of the National Assembly to gain more experience, as opposed to the current four-year term.

According to Dyegh, re-election for the president and governors costs three times more than the first election and is often marked by violence. He believes a single term of five years would help curb the irregularities associated with re-election.

Former Vice President Atiku Abubakar had also proposed a further amendment to the 1999 Constitution and the Electoral Act 2022, advocating for a six-year single term for the president for each of the six geopolitical zones.

He added that the law must mandate electronic voting and the collation of results, and require the Independent National Electoral Commission (INEC) to verify the credentials of candidates, among other reforms.

The governor of Anambra State, Prof. Chukwuma Soludo, also backed calls in June this year for a single term for elected politicians.

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BIG STORY

I Appointed Aides On Garden Egg, Yam, Pepper To Boost Food Production — Enugu LG Chairman

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Eric Odo, chairman of Igbo Etiti LGA in Enugu state, has defended the appointment of aides for yam, pepper, and garden egg.

On Tuesday, Odo announced the appointments of Ezeugwu Ogbonna as senior special assistant on agriculture (yam and pepper) and Nwodo Ugonna as special adviser on garden egg and pepper.

The appointments attracted criticism from many Nigerians, who viewed the positions as an anomaly.

In his defense on Wednesday, Odo explained that the appointments were designed to increase the production of these crops in large quantities, aiming to meet local demands and support export.

The chairman emphasized that the Igbo-Etiti area is particularly well-suited to cultivating these crops and holds a significant comparative advantage.

“Their appointments are to ensure that local farmers receive adequate attention, needed resources, support, and expertise to enhance production, improve market access, and increase income for farmers,” NAN quoted Odo as saying.

“In essence, the appointment, which is wrongly misunderstood by disgruntled individuals, bad losers, and opposition, reinforces my determination to create a thriving local economy based on the strengths and potentials of Igbo-Etiti’s agricultural landscape.”

Odo explained that the decision was part of a carefully considered plan aimed at boosting productivity, creating jobs, and improving the livelihoods of farmers within the LGA’s communities.

He called on the public to disregard any online or offline comments intended to discredit the appointments, asserting that the council is committed to massive food production and sustainable development.

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BIG STORY

JUST IN: Simon Ekpa, Four Others Arrested In Finland Over Terror-Related Activities

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Finnish-Nigerian separatist agitator, Simon Ekpa, and four other individuals have been arrested in Finland over terror-related activities.

A local report in Finland stated that Ekpa, the self-declared “Prime Minister of Biafra Republic Government In-Exile,” was remanded in custody by the district court of Päijät-Häme on suspicion of public incitement to commit a crime with terrorist intent.

In a Thursday statement published on its website, the Central Criminal Police in Finland said it had arrested five people on suspicion of terrorist crimes.

The police said the main suspect was arrested “on suspicion of public incitement to commit a crime with terrorist intent,” while four others were arrested “for financing a terrorist crime.”

The police added: “Claims will be heard in Päijät-Häme district court today, November 21.”

The statement reads: “The detention demands are related to the preliminary investigation, in which a Finnish citizen of Nigerian background, born in the 1980s, is suspected of public incitement to commit a crime with terrorist intent.”

“The police suspect that the man has promoted his efforts from Finland by means that have led to violence against civilians and authorities as well as other crimes in the region of South-Eastern Nigeria.”

The statement quoted the head of the investigation, Crime Commissioner Otto Hiltunen from the Central Crime Police, as saying that “the man has carried out this activity, among other things, on his social media channels.

“Four other persons are suspected of financing the aforementioned activity. All five suspects of the crime have been arrested during the beginning of the week.”

“International cooperation has been carried out during the preliminary investigation,” the statement added.

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