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TELECOMMUNICATION: Call Tariff Hike Looms As FG Slams 5% Duty On Recharge Cards

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President Muhammadu Buhari has approved the collection of five percent as excise duty on telephone recharge cards and vouchers.

The charge is part of new items on the list of goods liable for excise duty on the Finance Act in the country.

Excise duty is a levy charged at the time of manufacturing. It is also a form of indirect tax on the sale or consumption of certain goods, products, services, or activities such as tobacco, alcohol, narcotics, gambling, etc., mainly to discourage their use and consumption. Nigeria’s Finance Act has extended the list to include beverages, non-alcoholic drinks, etc.

According to a circular, Zainab Ahmed, minister of finance, budget, and national planning, directed the Nigerian Customs to create a tariff line for the collection of the excise on mobile telephones, and electricity meters (components) and set up boxes at five percent.

It was gathered that the federal government is expected to raise at least N150 billion from the duty while customs will pocket about 10 billion, a 7 percent collection fee.

The circular conforms with another list of excisable items by customs to include telephone recharge cards and vouchers at five percent.

TheCable also understands that the collection was part of new items on the 2020 Finance Act signed by President Buhari. Although no rate was not stated, it is clear that the president might have okayed the collection of the duty at five percent as empowered to do by the Act.

Section 21 (1) of the Act describes goods liable to excise duty as “Goods imported and those manufactured in Nigeria and specified in the first schedule of this Act shall be charged with duties of excise at the rate specified under the duty column in the Schedule.

Subsection 2 further added that “telecommunication services provided in Nigeria shall be charged with duties of excise at the rate specified under the duty column in the Schedule as the President may by Order prescribe pursuant to section 13 of this Act”.

In the current (2021) finance act, a new section was inserted to include “excise duty on non-alcoholic, carbonated and sweetened beverages shall be charged at a specific rate of N10 per liter”.

The new 5 percent levy on recharge cards will increase call costs and add to other taxes levied on telcos operating in the country. Some of these levies include the right of way charges, National Information Technology Development Fund Levy, National Cybersecurity Fund, and Annual Operating Levy in addition to existing statutory taxes like tertiary education tax, companies income tax, and value-added tax.

On Wednesday, telecommunication companies under the Association of Licensed Telecom Operators of Nigeria (ALTON) asked for upward reviews in voice calls, short message services (SMS), and data costs. In a recent letter addressed to the Nigerian Communications Commission (NCC), ALTON cited the rising energy costs and high operating expenses as major reasons.

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Lagos Government Council Chairmen Meet On Sustainable Environment Drive

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The Lagos State Government has reaffirmed its commitment to achieving a cleaner, flood-free, and sustainable environment through closer collaboration with the 57 Local Government Areas (LGAs) and Local Council Development Areas (LCDAs).

At a strategic meeting held on Wednesday in Alausa, the Commissioner for Environment and Water Resources, Tokunbo Wahab, urged council chairmen to intensify efforts in educating residents on proper waste management and sanitation habits.

Wahab said the state was transitioning from a linear waste system (“pick and drop”) to a circular model where waste becomes a resource. He stressed the need for councils to partner fully with the state in tackling environmental challenges and reducing the volume of waste sent to landfills.

He disclosed that the government plans to decommission the Olusosun and Soulos III landfills, which have outlived their lifespan, while maintaining others like the Epe landfill.

Wahab also directed the LGAs and LCDAs to complement the state’s ongoing flood-control efforts by ensuring regular desilting of drainages and maintaining existing flood infrastructure.

> “Now is the time for all LGAs and LCDAs to work collaboratively with the state to find a lasting solution to flash flooding. We have continued to build resilient infrastructure, and local councils must now replicate this effort in their communities,” Wahab said.

 

He noted that the ban on street trading remains in force and urged council chairmen to enforce it rigorously.

> “If government cannot enforce its own laws, then it begins to look like a failed state,” he warned.

 

The commissioner assured that Private Sector Participation (PSP) waste operators continue to function effectively and that the Lagos Waste Management Authority (LAWMA) intervenes when necessary to sustain smooth operations.

Responding, the Chairman of Conference 57 and Executive Chairman of Ibeju-Lekki Local Government, Hon. Sesan Olowa, commended the state government for the engagement, noting that councils were already working toward a cleaner Lagos through improved waste management systems.

Olowa added that some LGAs and LCDAs had procured waste collection tricycles for inner streets to promote house-to-house waste collection, rather than residents dumping refuse along major roads and medians.

He further appealed for support in establishing mini Transfer Loading Stations (TLS) across local councils to enhance waste disposal efficiency.

Also present at the meeting were the Secretary to the State Government, Barr. Bimbola Salu-Hundeyin, Commissioner for Transportation, Mr. Oluwaseun Osiyemi, and the Commissioner for Local Government, Chieftaincy Affairs and Rural Development, Mr. Bolaji Robert, among others.

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BIG STORY

BREAKING: Nnamdi Kanu’s Lawyers Withdraw From Case, IPOB Leader To Defend Himself

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Lead counsel to the detained leader of the Indigenous People of Biafra (IPOB), Nnamdi Kanu, and former Attorney-General of the Federation, Kanu Agabi (SAN), has withdrawn from representing him in the ongoing terrorism trial before the Federal High Court in Abuja.

Kanu is currently facing a seven-count charge bordering on terrorism, filed against him by the Federal Government.

When the case came up on Thursday, Agabi informed the court that he and other members of the defence team would no longer be representing the IPOB leader, explaining that the defendant had chosen to take back the case from them.

In a similar move, all other Senior Advocates of Nigeria (SANs) on Kanu’s legal team also announced their withdrawal from the case.

Confirming the development, Kanu told the court he would represent himself for now, though he noted that the arrangement could change later.

During the proceedings, Justice James Omotosho, who presided over the trial, asked whether a lawyer should be assigned to represent Kanu, but the defendant declined the offer.

The IPOB leader also made an oral submission, arguing that the court lacked jurisdiction to try him.

Justice Omotosho had, on October 16, granted Kanu six consecutive days, beginning from October 23, to open and close his defence in line with the court’s earlier directive for an accelerated hearing.

The defendant had previously listed several high-profile individuals — including former Attorney-General of the Federation, Abubakar Malami (SAN); Minister of the Federal Capital Territory, Nyesom Wike; Minister of Works, Dave Umahi; Governor of Lagos State, Babajide Sanwo-Olu; former Chief of Army Staff, Lt. Gen. Tukur Buratai (rtd); and former Minister of Defence, Gen. Theophilus Danjuma (rtd) — as part of his proposed witnesses.

The case continues before the Federal High Court in Abuja.

 

More to come…

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Sacked Dangote Refinery Engineers Deny Sabotage Claims, Accuse Company Of Victimisation

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Some engineers recently dismissed by the Dangote Refinery have denied claims that there were 22 incidents of sabotage at the multibillion-dollar facility, including attempts to set it on fire.

The sacked workers, who spoke anonymously due to the sensitivity of the issue, insisted that the allegations were false and accused the refinery of punishing them for joining the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).

According to them, if the refinery truly recorded several sabotage attempts, “someone would have been arrested or prosecuted by now.”

“From media reports, they said they have evidence. How can there be evidence without suspects?” one of the engineers asked.

The group said no member of the refinery’s technical team ever attempted to destroy or damage the facility, adding that many of them were part of the core professionals who built the plant.

“Some of us helped build this refinery. How could we turn around to destroy it? We love the project and want it to succeed,” a dismissed worker said.

During a media tour of the refinery last Friday, Devakumar Edwin, Vice President of the Dangote Group, had said the sacked engineers were dismissed for acts of sabotage, not union activities.

Edwin maintained that the company had documented “22 cases of sabotage,” including incidents where some workers allegedly attempted to set fire to certain sections of the refinery or tamper with key equipment.

“We have been under repeated attacks. Fortunately, it’s an ultramodern refinery. Whenever someone tries to start a fire or tamper with a system, our safety mechanisms respond automatically,” he stated.

He added that the company embarked on a massive reorganisation to protect its operations and dismissed suggestions that the exercise was linked to pressure from PENGASSAN.

However, the sacked engineers insist their dismissal was a direct response to unionisation efforts, noting that they had merely volunteered to join PENGASSAN before their contracts were abruptly terminated.

The dispute had led to a strike by oil and gas workers three weeks ago, which disrupted operations and affected national oil output and power generation.

The Federal Government later intervened, directing the Dangote Group to recall or redeploy the affected staff.

Although sources within the company hinted at plans to redeploy the engineers to other business units such as the Dangote Sugar and Dangote Cement plants, the workers told reporters they had not been contacted since their September salary was paid on October 6.

“We are still at home; no communication so far. We’re waiting for the next decision of the company,” one of them confirmed.

The Dangote Refinery, commissioned in 2023, remains one of Africa’s largest industrial projects, but recent labour tensions have renewed debates over workers’ rights and corporate accountability within the private sector.

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