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Despite Paying High Taxes, Nigerians Still Provide Water, Electricity For Themselves —– Akinwumi Adesina

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3 years ago

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Akinwumi Adesina, president of the African Development Bank (AfDB), has condemned a situation where Nigerians do not enjoy basic infrastructure that should be provided by the government despite paying taxes.

Speaking at the ‘First National Tax Dialogue’ organized by the Federal Inland Revenue Services (FIRS), Adesina said Nigerians are among the top implicit taxpayers in the world. Implicit taxes are levies that are borne but are neither seen nor recorded.

He said residents provide their own electricity, road, security, water, among others, adding that the government must rise to its duty rather than allowing citizens to bear such burdens.

“We must also distinguish between nominal taxes and implicit taxes — Taxes that are borne but are not seen nor recorded. Truth be told, Nigerians pay one of the highest implicit tax rates in the world — way higher than developed countries,” he said.

“Think of it: they provide electricity for themselves via generators; they repair roads to their neighborhoods if they can afford to; there are no social security systems; they provide security for their own safety, and they provide boreholes for drinking water with their own monies. That is incredulous in itself. Boreholes are not the way to provide water in the 21st century. Every household should have pipe-borne water!

“Take for example that 86% of small and medium-sized enterprises in Nigeria spend $14 billion annually on diesel for generators. Nigeria’s companies lose on average 10% of sales because they do not have access to reliable and affordable electricity.

“Governments, over time, have simply transferred their responsibility to citizens. When governments or institutions fail to provide basic services, the people bear the burden — a heavy implicit tax on the population.”

He said Africa’s gross domestic product (GDP) growth declined in 2020 by 2.1 percent, the worst in two decades, while the cumulative loss to Africa’s GDP is estimated at $173-236 billion for 2020 and 2021, respectively.

“The (Nigeria) economy shrunk by 3% in 2020 on account of falling oil prices and effects of the lockdowns on economic activity. The pandemic has impacted on budgetary balances and increased debt burdens,” he said.

“Nigeria’s Debt-to-GDP ratio will push debt service payments beyond more than 60% of federally collected revenues. With shrinkage in oil revenues, debt service payments pose the greatest risk to Nigeria.

“To put a human face on the pandemic effects, we estimate that 28-40 million people in Africa are projected to fall into extreme poverty, and 30 million jobs would be lost due to the pandemic.

“We project that Nigeria’s economy is poised to recover to the growth of 1.5% in 2021 and 2.9% in 2022, according to the African Development Bank’s soon to be released African Economic Outlook.”

Adesina said building back will require a lot more resources, adding that taxes form a significant part of government revenue.

He urged the federal government to focus on corporate taxes and ensure full compliance.

The AfDB president added that small and medium enterprises should be supported through tax exemptions or tax deferments.

“It is crucial to ensure that the tax base expands. Given that over 60% of Nigerians are in the informal sector, priority should be to support measures to move a large part of this from informal to formal sectors,” he said.

“The Government should focus a lot on corporate taxes, and ensure full compliance. But it is important to ensure that such taxes do not discourage investments.

“Profit shifting, base erosion, and tax avoidance by multinational corporations form a huge part of “Africa’s missing taxes”; and account for a large share of the over $60 billion illicit capital flows that Africa loses annually.

“If a company works in Nigeria, benefits from Nigeria, it should pay taxes in Nigeria. Small and medium-sized enterprises should be further encouraged and supported, as they are the lifelines of earnings and the creators of jobs. Tax exemptions or tax deferments can be used to support their growth.”

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BIG STORY

Court Sentence FCMB Branch Manager To 121 Years In Prison For Embezzling N112million From Customer’s Account In Anambra

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12 hours ago

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May 4, 2024

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One of FCMB’s employees was sentenced to prison for fraud and embezzlement, which was the worst shock of the year for the prestigious financial organisation in Nigeria.

Mr. Nwachukwu Placidus, the bank manager at First City Monument Bank FCMB, Onitsha, Anambra State, was sentenced to 121 years in prison by Justice S. Odili at the Anambra State High Court in Onitsha, Anambra State, for embezzling N112 million from a customer’s fixed deposit account.

A former manager of the First City Monument Bank branch in Onitsha was found guilty and sentenced to 121 years in prison for stealing N112,100,000 in fixed deposit money from a customer for personal use.

The honourable justices delivered the verdict that resulted in this outcome. This is tantamount to a breach of trust by the former manager which has attracted a huge jail term.

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BIG STORY

Lagos Government Intensifies Effort To Arrest Dolphin Underbridge Illegal Landlord

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13 hours ago

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May 4, 2024

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The Lagos State Government has launched a manhunt for the individual who gave the apartments to tenants under the Ikoyi bridge after 36 illegal residents of the Dolphin underbridge bridge were apprehended.

It further revealed that during the clearance operation, the Lagos State Environmental Sanitation Corps (LAGESC), the ministry’s enforcement unit, arrested no fewer than 36 renters.

Tokunbo Wahab, the commissioner for the environment and water resources, revealed this on Friday at a briefing for reporters regarding the government’s actions through the ministry during the previous year.

He said: “Just about 24 hours ago, the operatives carried out an operation that unearthed a major illegal housing settlement constructed under the Dolphin Bridge Ikoyi.

“An unbelievable 80 rooms partitioned 10×10 and 10×12 and a container used for different illegal activities was also discovered.

“All the structures have been dismantled and a total of 36 miscreants who lived under the were arrested while efforts are being intensified to arrest the ring leaders who rented out the underbridge apartments which also add electricity supply,” it added.

The state government had earlier dislodged tenants under Dolphins Estate Bridge, who paid N250, 000 annually to yet to be identified landlords.

The tenants, who were dislodged in the process were discovered during an enforcement exercise by officials of the state government during demolition of illegal structures.

He added that the enforcement team of Lagos State’s Ministry of Environment and Water Resources had successfully removed all structures, including a container utilised for various illegal activities, from beneath the Dolphin Estate Bridge.

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BIG STORY

Olubadan: New Twist As Ladoja, Kingmakers Disagree On Settlement Terms

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1 day ago

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May 3, 2024

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The enthronement of Oba Owolabi Olakulehin, the 43rd Olubadan of Ibadanland, took a new turn yesterday when the Otun Olubadan, High Chief Rashidi Ladoja, the former governor of Oyo State, and other kingmakers couldn’t agree on the terms of settlement that would have made the enthronement process easier.

While entertaining Mogajis in Ibadanland led by Chief Asimiyu Ariori in his Bodija residence, Ladoja indicated his willingness to drop the lawsuit he had brought against Olubadan-in-Council members, provided that both sides agreed to sign the settlement conditions as they were written.

He said: “Myself and other members of Olubadan-in-Council have been sitting together and talking. We have accepted to withdrawal the case.

“I heard that they have started signing the agreement. After all of them have signed, I will also sign my own aspect, and the next day, we will file for withdrawal of the case from court.

However, other members of Olubadan-in-Council who are defendants in the suit have argued that there is no need for signing of any terms of settlement paper, as they have already abided by the 1957 declaration.

A meeting held yesterday at Olubadan palace, Oja’ba was attended by Osi Balogun, Oba Lateef Gbadamosi Adebimpe; Asipa Olubadan, Oba Abiodun Kola-Daisi; Asipa Balogun, Kola Adegbola; Ekerin Balogun, Oba John Isioye-Dada and Ekaarun Olubadan, Oba Adebayo Akande.

The Otun Olubadan, High Chief Rashidi Ladoja; Osi Olubadan, Oba Eddy Oyewole; Otun Balogun Oba Tajudeen Ajibola; Ekerin Olubadan, Oba Hamidu Ajibade Salaudeen and Ekaarun Balogun, Oba Abiodun Azeeez were absent.

Oba Adebimpe, speaking on behalf of other members of the council in attendance at the meeting, said event had overtaken the terms of reference as contained in the agreement paper, hence no need to sign it.

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