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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

Federal Government Lifts Ban On Mineral Exploration In Zamfara

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After more than five years of security restriction, the Federal Government has lifted the ban on mining exploration activities in Zamfara State, citing significant improvements in the security situation across the state.

Making the announcement during a press briefing at the weekend, the Minister of Solid Minerals Development, Dr. Dele Alake stated that the nation has a lot to gain from reawakened economic activities in a highly mineralised state like Zamfara that is imbued with vast gold, Lithium, and copper belts. He noted that the previous ban, which was good intentioned, inadvertently created a vacuum exploited by illegal miners to fleece the nation of its resources. He emphasized that the state’s potential for contributing to national revenue is enormous.

It will be recalled that in 2019, the federal government imposed a total ban on mining activities in Zamfara State due to the escalating security concerns, particularly the links between banditry and illegal mining.

Since the beginning of the Tinubu administration, however, intelligence-driven, coordinated security operations have resulted in the neutralization of key bandit commanders, significantly reducing incidents of insecurity. A recent success was the capture of one of the most wanted bandit commanders, Halilu Sububu, in a covert operation in Zamfara.

“The existential threat to lives and properties that led to the 2019 ban has abated. The security operatives’ giant strides have led to a notable reduction in the level of insecurity, and with the ban on exploration lifted, Zamfara’s mining sector can gradually begin contributing to the nation’s revenue pool,” Alake asserted.

The minister added that the lifting of the ban would also facilitate better regulation of mining activities in the state. This will enable more effective intelligence gathering to combat illegal mining and ensure the country benefits from the state’s rich mineral resources.

Commending members of the fourth estate of the realm for championing the propagation of reforms and initiatives of the ministry in 2024, Alake noted that the press have been key allies in efforts to sanitise the mining sector, and promote market reforms which have made the industry attractive to indigenous and foreign investors.

On the recent controversy surrounding the Memorandum of Understanding (MOU) with France, Alake reaffirmed the Federal Government’s position that the agreement does not imply Nigeria is relinquishing control over its mineral resources or entering into any military pact with France. He emphasized that Nigeria’s military remains fully capable of safeguarding the nation’s territorial integrity.

“The high point of the MOU is on training and capacity building for our mining professionals. We need all the assistance we can get in terms of capacity, technical, and financial support from abroad, and that wasn’t even the first we are signing. We’ve signed similar ones with Germany and Australia. Deliberate peddling of misinformation, despite facts to the contrary, is uncalled for, “the minister emphasised.

Dr. Alake also urged the media to continue to play its crucial role in educating the public about government policies in order to prevent ignorance, mischief, and the spread of misinformation.

Looking ahead to 2025, the minister hinted at upcoming policy initiatives aimed at revitalizing the mining sector. He revealed that the ministry plans to further consolidate reforms, enhance the enabling environment for investments, and continue efforts to reposition the sector for long-term, sustainable growth.

 

Segun Tomori, FSCA

Special Assistant on Media

to the Honourable Minister of Solid Minerals Development

 

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BIG STORY

Emefiele Loses Warehouse Built On 1.925 Hectares To Federal Government

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The Economic and Financial Crimes Commission (EFCC) has secured the final forfeiture of a warehouse linked to Godwin Emefiele, the former governor of the Central Bank of Nigeria (CBN).

According to The Guardian, top sources revealed that Justice Deinde Dipeolu of the Federal High Court in Lagos issued the forfeiture order on Thursday, December 19, 2024, with the property forfeited to the Federal Government of Nigeria.

The warehouse, built on a 1.925-hectare piece of land located at Km 8 along the Lagos-Ibadan Expressway in Magboro, contained 54 general-purpose steel containers.

The containers were filled with various types of sewing machines.

Earlier, on November 28, the judge had ordered the interim forfeiture of the assets after the Commission filed an application for their forfeiture.

Following the court’s directive for the EFCC to publish the order in two national newspapers, allowing any interested party to show cause why the assets should not be finally forfeited, the Commission later returned to court to request the final forfeiture of the assets.

According to the source, the court also ordered the forfeiture of the land on which the warehouse is situated to the government.

“At the resumed hearing of the matter on Thursday, EFCC Counsel, Rotimi Oyedepo, SAN, told the court that the EFCC had complied with the court’s directives to publish the assets in two national newspapers,” the source said.

“Citing Section 44(2)(B) of the constitution and Section 17 of the Advance Fee Fraud and Other Fraud Related Offences Act 2006, he prayed the court to grant the final forfeiture of the assets.

“Justice Dipeolu granted the order, making the forfeiture another milestone in the asset recovery drive of the EFCC.”

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BIG STORY

10 Feared Dead, Several Others Injured At Catholic Church’s Palliative In Abuja

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A stampede at the Holy Trinity Catholic Church in Maitama District of Abuja on Saturday morning has resulted in several deaths and numerous injuries.

The tragic incident occurred during a palliative distribution event organized by the church to assist struggling residents.

It was reported that chaos erupted as thousands of residents rushed to receive relief items, leading to the deadly crush.

Over 3,000 people, including children, mostly from nearby areas such as Mpape and Gishiri Village, had gathered for the event before the unfortunate incident took place.

Mike Umoh, the National Director of Social Communications at the Catholic Secretariat of Nigeria, confirmed the incident.

“Yes, it’s true, but the details are sketchy,” he said in a brief statement.

On the same Saturday, a stampede in Okija, a community in Ihiala Local Government Area of Anambra State in Nigeria’s South-east, also left many people dead.

According to Premium Times, witnesses reported that the victims had gathered to participate in the distribution of bags of rice donated by a well-known entrepreneur, Ernest Obiejesi, commonly referred to as Obijackson.

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