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Nami: Road Infrastructure Tax Credit Scheme, one of the greatest innovations of FG

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The Road Infrastructure Tax Credit Scheme has been described by the Executive Chairman of the Federal Inland Revenue Service (FIRS), Muhammad Nami as one of the greatest innovations of the Federal government in its resolve to tackle Nigeria’s infrastructure deficit.

The scheme which provides for public-private partnership intervention in the construction, refurbishment and maintenance of critical road infrastructure in the country with participants being entitled to Tax Credits against their future Companies Income Tax was the subject of debate at the Senate Stakeholder and Public Hearing on the 2023 Medium-Term Expenditure Framework (MTEF) and Fiscal Paper, which held yesterday at the Senate Chambers.

“I think one of the greatest innovations of the government of the day is the Executive Order 007, which was signed into law in 2019,” Mr. Nami said. “I want to speak to the one we are handling jointly with the NNPC. The NNPC through its subsidiary for instance is investing in about 1,824 kilometres of roads across the 6 geopolitical zones in Nigeria.

“Some of these roads had been constructed as far back as 1976. I could remember when I was still rounding up my primary school education, the road that leads Suleja to Lapai-Agaie-Bida was constructed by a company called DTV. I am not aware of any significant work done on that road 40 years later, only until now when the NNPC is using Executive Order 007 to reconstruct the road.

“I can report authoritatively to the Chairman and members of this committee that from December 2021 to July this year, the contractor has completed the reconstruction of well over 50 percent of that road.

“The challenge of road construction in Nigeria has always been funding. Yes, there are contracts for the construction of roads, but funding these constructions is the challenge.

“The road leading from Suleja to Minna for instance was awarded some 11 years ago to a company for over N20 billion. Ironically, annual budgetary provision in our National Budget every year stands between N150 million to N200 million per annum. If we are to complete that road, going by the annual budgetary provisions it would take an average of 35 to 40 years before we finish it.

“I can confirm to the Chairman that with Executive Order 007, NNPC is now providing funds and in the next two to three years that road will be completed. This is an important innovation of the government and I would plead with this distinguished Committee of the National Assembly to support the government on it,” Mr. Nami noted.

Supporting the position of the FIRS Executive Chairman, the Minister of Finance, Budget and National Planning, Hajia Zainab Shamsuna Ahmed explained further that the tax credit was only provided to the beneficiaries after completion of the construction work, and not before.

She noted that several companies had indicated interest in carrying out construction and rehabilitation of roads under the scheme across the country, adding that while some of these companies had commenced work, others were yet to as they were still finalising on some of the documentation requirements such as Bill of Quantities.

On the issue of revenue challenges being faced by the country, Mr. Muhammad Nami noted that a major cause of tax revenue loses for the country is the issue of having “fragmented tax systems and agencies.”

“In Nigeria we have 774 Local Governments, each of them have a tax authority; each of the 36 States, too, have revenue authorities with their respective mandates; then we have the FIRS and Customs. What I would advise for efficiency and to do things in line with global best practices, is that we should amend our tax laws to harmonise the tax agencies and tax system.

“With this, when the FIRS, for instance visits ‘Company A,’ it can serve one assessment on the company, and also on the individual that owns the Company; it can also ask the company to account for the VAT it has collected, and ask for PAYE it has deducted from its employees as well as the Personal Income Tax of the Promoters of the Company.

“This is currently not the case, and as such has created a huge gap in our tax system.”

The Senate Finance Committee, led by Senator Solomon Adeola charged the Federal Government through the Ministry of Finance and members of the government’s economic team to explore novel strategies that would shore up revenue for the Federal Government, including restructuring the remitting formula for Government Owned Enterprises (GOEs).

The Committee urged the Federal Government to consider a situation where Government Owned Enterprises (GOEs) remit 100% of their revenue to the government, while being funded by a determined percentage of Cost of Collection as is the case with the FIRS and Customs.

Arguing for this, the Committee opposed the current situation where some government agencies were retaining hundred percent of their revenue, spending from it, and paying government operating surplus.

The Committee recommended that these GOEs should keep only 5 to 15 percent as their cost of collection from the revenue generated to cater for their salaries, operational expenses and capital expenditure as is currently done by the Nigerian Customs and FIRS, while remitting the difference of 85 to 95 percent of their gross earnings as against the current practice of operating surplus where they spend between 70 and 90 percent of their gross earnings.

The Committee noted that this also has the capacity to make them put in more effort to improve their revenue when compared to the FIRS and Customs.

The Committee further urged the Federal Government to apply the same logic to the running of government owned universities by providing funding for only research and infrastructure needs through the Education Tax already being administered by the FIRS, while allowing the Vice Chancellors to use the revenue from school fees and other innovative revenue sources to run the Universities.

 

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Nigeria committed to ensure security, peace in West Africa – Akpabio

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The President of the Senate, Sen. Godswill Akpabio, has restated Nigeria’s commitment to ensuring peace and security in West Africa.

Akpabio said this on Thursday in Abuja at the opening of the international roundtable on Parliamentary Security Sector Governance.

The roundtable was organised by National Institute for Legislative and Democratic Studies (NILDS) in collaboration with Konrad Adenauer Stiftung (KAS).

The roundtable drew lawmakers from Nigeria, Sierra Leone, Senegal, Mali, Burkina Faso and Ghana.

Represented by the Chairman, Senate Committee on Navy, Sen. Daniel Gbenga, Akpabio recommend synergy among countries in the sub-region to address insecurity.

“Nigeria is a country that is willing and determined to ensure that the West Africa sub- region enjoys peace, security, shared prosperity in our developmental goals.

“In order to mitigate the challenges already identified, it is important to properly address insecurity in the West African sub region.

“This can be done through deep cooperation and deliberate policies and laws by our parliament, as well as empower the parliament to assume full legislative powers,” he said.

The Speaker of the House of Representatives, Rep. Tajudeen Abbas, said the security sector plays a pivotal role in ensuring peace, stability, and development within any nation.

Represented by the Deputy Speaker, Rep. Benjamin Kalu, Abbas said effective governance and reform of the security sector were essential for upholding the rule of law, protecting human rights, and safeguarding democratic principles.

“In this regard, the role of parliament is indispensable as it serves as a key institution for oversight, legislation, and budgetary control over the security sector.

“I urge all stakeholders present to consider practical strategies for enhancing parliamentary engagement in security sector governance.

“This may involve developing specialised training programs for parliamentarians on security related matters, establishing robust mechanisms for information sharing between security agencies and parliamentary committees.

“Also for fostering a culture of dialogue and cooperation between the executive and legislative branches on security policy formulation,” he said.

The Director-General, NILDS, Prof. Abubakar Sulaiman said that in recent times, West Africa faced a scourge of terrorism, insurgency, and transnational crime.

He said that the menace presented formidable threats to the collective peace and stability of the region.

According to him, security issues, including illicit trafficking and the movement of armed groups, further compound the complexities.

“We must confront these urgently; internal conflicts, driven by various factors, pose additional challenges that require our immediate attention.

“More recently, the series of military coups that have taken place in and around our region which remains a threat to peace, the rule of law and democratic stability within the region.

“As legislators, you stand at the forefront of crafting responses to these challenges.

“The laws and policies you shape must not only address the immediate threats but also lay the foundation for sustainable security sector governance and reform,” he said.

Sulaiman said the roundtable provided an opportunity to pool insights, share best practices, and develop legislative frameworks that are responsive to the unique security dynamics of West Africa.

Peran said that there has been a spread of terrorism and violent extremism with terrorist groups becoming more and more sophisticated.

“Wave to try to understand better why the security situation is so complex and what can be done to improve it in a sustainable fashion said the Resident Rep of KAS, Ms Marija Peran.

According to her, security sector reforms and governance plays a vital role in stabilising the region.

She said they had also been recognised as an essential precondition not only for conflict prevention, post-conflict reconstruction and peace-building but in general for good governance.

“Security sector reforms, repurposing of security institutions and agencies, improved interagency cooperation and effective oversight of the security sector are critical enablers to create the peaceful and secure Africa,” she said.

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Senate threatens to step down NCoS budget over insufficient information

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The Senate has threatened to step down consideration on the 2024 budget of the Nigerian Correctional Services (NCoS) over insufficient information

Sen. Adams Oshiomhole, the Chairman,Senate Committee on Interior, Sen.Adams Oshiomole, said this said this at the 2024 budget defence of the National Assembly Joint Committee on Interior on Thursday in Abuja.

Oshiomole said he was unhappy with the services being rendered to inmates by the NCoS.

“Your organisation has transformed from Nigeria Prison Service to Nigerian Correctional Service but you have yet to change in your attitudes toward inmates.

“It’s not just your fault because the government appropriates little money for you, it is either you don’t feed the inmates or you feed them only once and even at that, very miserable food.

“This is why they have completely emaciated and some can never live a decent life again even when they did not commit an offence.

“You all know the price of food items in the market, so how can you look us eye to eye and tell us that you feed a man in Nigeria with N750 a day, how much is a bottle of water,” he said.

He said that the committee would not be in a haste to approve any budget for the service until it received satisfactory answers.

He requested for a breakdown of the number of inmates and security dogs at the correctional centers and how they were fed daily.

“I would like to see a breakdown of how you feed the inmates. If you say you feed inmates three times a day with N250 each.

“How many dogs do you have and how much does it cost to feed them daily,” he said.

Responding, the NCS Comptroller General, Alhaji Haliru Nababa, said the service had a total of 81,358 inmates nationwide, saying that 53,362 of the inmates were awaiting trial.

“We feed each inmate with N750 daily and they are fed three times daily (N250 for each square meal).

“We have 900 security dogs and to feed a dog each day we spend N800,” he said.

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Army Chief tasks NASS on funding

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Lt.-Gen. Taoreed Lagbaja, the Chief of Army Staff, has appealed to the National Assembly to review the current envelope budgeting system of the Federal Government to ensure adequate funding for the Nigerian Army.

Lagbaja said this when he appeared before the National Assembly Joint Committee on Nigerian Army on Thursday in Abuja.

He said that the envelope system had led to inadequate funding for the Nigerian Army, especially its anti terrorism operation and other operations across the country.
Lagbaja also called on the national assembly to expedite action on the passage of the Armed Forces Support Trust Fund Bill, saying that the passage would enhance the operations of the Armed Forces, through improved funding.
The Chairman, of the Joint Committee, Sen. Abdulaziz Yar’ adua assured of transparency in the handling of the Nigerian Army 2024 budget.

He comended Lagbaja for taking responsibility for the bombing of Kaduna villagers and taking steps to investigate the matter.

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