OPINION VOICES

Wednesday

Nigeria: The Tax Alternative

As cash-strapped Nigeria looks for ways to shore up its dwindling revenue, leaders now in search of ideas on how to turn around the national economy merely look back to the past in nostalgia and call for a resort to a better system of taxation on the citizens.

This is not only simplistic, it advertises a complete flight from the rigour which the Nigerian crisis demands. Better taxation may be one of the solutions but even so, many other variables will have to be in place before it can be an effective one.

Governor Adams Oshiomhole of Edo State is among those voicing a return to stringent tax rule as the way out of the country's current crisis. While noting that the Federal Government must deepen its internally generated revenue as it is done in the developed world, the governor said, "central to every debate to every country with mature democracy is the issue of tax payment. We have to find the courage to be firm and just and we have to give commensurate service." In the same vein, the Governor of Kwara State, Abdulfatah Ahmed said he would prioritize tax collection in his state, especially efficiency of collection, administration and management in order to generate funds for infrastructural development.

Simultaneously, the Acting Chairman, Federal Inland Revenue Service (FIRS), Mr. Babatunde Fowler has called for a tax alternative to the dwindling national revenue during an interactive meeting with members of the Chartered Institute of Taxation of Nigeria (CITN) in Abuja. He said it should by now dawn on the people and government at all levels that the days of reliance on oil revenue often statutorily shared among the tiers of government were over and as a consequence, organisations and individual earning income must be willing to pay tax.

Helicopters: Lagos Commissioner justifies govt. plan

The Lagos State Commissioner for Information and Strategy, Steve Ayorinde, says the purchase of three additional helicopters by the state government has become necessary in the wake of a rising crime rate.

Mr. Ayorinde restated the need for the helicopters in a statement issued by the Lagos State Ministry of Information and Strategy on Wednesday in Lagos.

Governor Akinwunmi Ambode had on October 25 hinted of the plan to purchase the helicopters to boost security and surveillance, but the move had criticism from some quarters.

Mr. Ayorinde, however, insisted that the purchase had become necessary to beef up surveillance and ensure security of lives and property of residents.

The commissioner said that the helicopters would complement ground efforts of security operatives in checking crime in the state.

He said that the purchase had also become necessary in view of the precarious security and traffic situation in the state.

Mr. Ayorinde said the state government had painstakingly studied the situation and resolved to unlock the traffic gridlock being experienced by residents with a motivated workforce and modern technology.

He decried attacks on innocent citizens and said the government would not fold its arms and watch them get molested and dispossessed of their valuables in traffic or anywhere.

Mr. Ayorinde said every available measure would be adopted to fight crime in the state.

“The 33,000 policemen serving in the state with estimated 21 million people is grossly inadequate, thus necessitating complementary efforts from the government’’.

He expressed optimism the helicopters would go a long way in aiding security and traffic surveillance. He, however, did not give details of the projected results of the helicopter, the method the helicopter “technology” will be utilised to curb crime and ease traffic, the modalities involved or how it will complement the effort of ground officers.

Mr. Ayorinde also implored the residents to always alert security operatives of any form of crime noticed within their vicinity, using dedicated and toll free lines 767 and 112. (NAN)

FRC lacks the ‘authority’ to suspend Stanbic IBTC’s directors, says CBN

The Central Bank of Nigeria (CBN) has waded into the crisis involving Stanbic IBTC Holdings and the Financial Reporting Council of Nigeria (FRC), listing a series of procedural infractions committed by the regulator – rather than the bank – and dismissing all allegations of “financial misstatements” brought against the bank.

On October 26, FRC had urged CBN and the Economic and Financial Crime Commission (EFCC) to investigate Stanbic IBTC and KPMG Professional Services for “financial misstatements”.

It also suspended the registration of four directors of Stanbic IBTC – Atedo Peterside, Sola David-Borha, Arthur Oginga and Dare Owei – and that of its audit engagement partner, KPMG Professional Services, “until KPMG’s innocence is ascertained”.

According to the council, the bank misstated its financial reports for the 2013-2014 fiscal year and ceded its banking application rights to Standard Bank of South Africa against the directives of National Office for Technology Acquisition and Promotion (NOTAP).

“The schedules supplied to the council by Stanbic IBTC revealed that the total fee paid to KPMG Professional Services for non-audit services was inconsistent with what was disclosed in the financial statements for the years under review,” it said. “In 2014 for instance, a total penalty of N28,000,000 was imposed on the group. Among the contraventions was improper disclosure of public sector deposits in 2014…. Stanbic IBTC seems to have a penchant for poor disclosures which further corroborates the findings in this report.”

Issuing a stern response, Stanbic IBTC had described the suspension of the registration of its directors as a recourse to “self-help” and “media publicity”. It claimed to have met the disclosure requirements of the international financial reporting standards (IFRS), and accused FRC of making “inaccurate and unfortunate” allegations and breaching the procedural guidelines laid down in the law.

“FRCN’s allegations are inaccurate and unfortunate, and the manner in which it has chosen to make them is procedurally defective,” the bank said in a statement issued by Sola David-Borha, its CEO, and Chidi Okezie, company secretary.

“Whilst FRCN takes refuge in Regulation 21 of the Directorate of Inspection and Monitoring Guidelines Regulations 2014 for the wide publicity that it has given to its regulatory decision, Regulation 21 only applies: ‘Where the Panel and the entity agree that accounts are to be rectified by way of revision or restatement’.

“That is not the case here, because Stanbic IBTC does not agree that its accounts are defective or require rectification. Moreover, Regulation 27 makes clear that where a reporting entity does not accept FRCN’s position, FRCN ‘shall institute a legal action against the entity’.

“FRCN has ignored this laid-down process in preference for self-help and media publicity. The matters that FRCN alleges to be wrong are not wrong in any material respect and many are in any event not matters of financial reporting at all, but matters of business decision and judgment for Stanbic IBTC and its board of directors.”

After taking up the invitation of FRC to investigate the allegedly guilty parties, Godwin Emefiele, governor of CBN, wrote a letter dated November 2, 2015 (which is now in PREMIUM TIMES’ possession) to FRC.

In four of the five allegations of infraction levelled against the bank, CBN said it could not spot any wrongdoing.

In the only case where it agreed that Stanbic erred, it said the error neither increased nor decreased the bank’s income or expenditure, such as would have caused material “missreprentation of the financials”.

On legal issues, CBN expressed concern about the “apparent failure” of FRC to “follow due process as laid down by its own FRC Act and Regulations, in arriving at the Regulatory Decision”.

After listing a series of regulatory breaches made by the council, CBN said FRC lacked the “authority” for suspension “as was done in this case”.

It therefore declined the request of FRC to take disciplinary action against the bank. “Indeed, the CBN does not see any reason to advise/compel SIBTCH to obey the sanctions meted to it by the FRC,” read Mr. Emefiele’s letter.

MTN Seeks to Cut $5.2 Billion Fine by Up to 80%, RenCap Says

MTN Group Ltd. is trying to reduce a $5.2 billion fine imposed by Nigeria’s telecommunications regulator by as much as 80 percent and is considering borrowing money from banks to help settle the penalty, according to Renaissance Capital.

“MTN is pushing to reduce the fine by 60 percent to 80 percent,” Adesoji Solanke, RenCap’s head of research in Nigeria, said in a note to clients on Wednesday, citing a bank he didn’t identify. A second lender said that “MTN is considering borrowing from banks, as it recently checked what the banks’ lending capacity to it is,” the analyst said.

MTN has until Nov. 16 to pay the penalty, which relates to the timing of the disconnection of 5.1 million subscribers and is based on a charge of 200,000 naira ($1,005) for each unregistered customer. The Johannesburg-based company’s shares lost almost a quarter of their value following the disclosure of the fine, before recovering 9 percent over the past two sessions.

“We don’t comment on banking matters and banking regulators in Nigeria are best placed to provide context on these matters,” MTN spokesman Chris Maroleng said by phone. “I don’t have that information,” Tony Ojobo, a spokesman for the NCC, said in a text message.

MTN shares gained as much as 4.1 percent and traded 3.5 percent higher at 160.89 rand as of 2:28 p.m. in Johannesburg. The stock is down 27 percent this year, valuing the company at 297 billion rand ($21.5 billion).

MTN is being advised by some unidentified banks as the company pleads its case with the regulator, according to Solanke. A decision to borrow would be one of financial management rather than an indication of stress, he said.

No power blackouts in South Africa until April 2016 – Eskom CEO

South African power utility, Eskom, does not expect to implement electricity blackouts until April 2016, its chief executive told parliament on Wednesday.

Embarking on a massive maintenance programme to keep its ageing coal-fired power plants running, Eskom was earlier this year forced to implement power cuts known locally as “load shedding”.

However, the utility has only cut power to certain areas for only two hours and 20 minutes in the past 87 days.

“We will continue to supply the country’s electricity and maintain our plant with minimal or no load shedding,” Brian Molefe said. (Reuters/NAN)

6 of 10 children will suffer violence before 18 years- UNICEF

Rachael Harvey, the Chief, Child Protection, United Nations Children’s Fund (UNICEF), has said that six out of 10 children would suffer one form of violence before they reached the age of 18. Harvey made this known on Wednesday at a two-day workshop organised by the Lagos State Ministry of Women Affairs and Poverty Alleviation (WAPA) in collaboration with UNICEF in Lagos.

“The Violence Against Children (VAC) survey shows a huge prevalence of violence against children in Nigeria – emotional, physical and sexual. “Six of 10 children will suffer one form of violence before they reach the age of 18, while one in two suffers physical violence- intentional burning, kicking, whipping and punching.

“Also, one in four girls and one in 10 boys suffer sexual violence, and one in five boys and one in six girls suffer emotional violence,” she said. Harvey said that the major challenge in VAC was that children were suffering in silence. According to her, very few children ever speak out about what is happening to them.

“Even when they speak out, they do not try to access services. Less than five per cent of children ever receive support. “Adults are much more likely to perpetuate violence when they are adults,” Harvey said. She said that it would require everyone including the government, Non-government Organisations (NGOs), communities, parents and the media to take a stand to prevent and respond to VAC.

“We have to have communities that do not tolerate violence and if violence happens, we need to speak out. “We need services that are available and responsive, and when children come to them, they will get the services they need to help them,” she said.

Also speaking, the Director, Child Development, WAPA, Mrs Alaba Fadawo, said that the ministry had put in place many strategies to curb VAC. Fadawo said, “There is an ongoing aggressive campaign. “The other thing is intervention and rescue where children are abused and persecution of perpetrators of abuses.

“Apart from that, there is a team in place, a Sexual Violence Response Team, which is a network of stakeholders working with children to ensure that violence is minimised,” she said.

She said that the ministry had issued Yellow Cards, which, according to her, were warning cards. “In the yellow cards, there are help lines where we can be reached. “Within the communities, the cards are distributed to people so that as soon as a child is being violated, people can call the help line. “Such child will be rescued and the perpetrators will be handled legally,” Fadawo said.

I am not scaring away investors, they know the truth – Buhari

President Muhammadu Buhari yesterday reacted to claims by his critics led by the opposition Peoples Democratic Party, PDP, that his recent pronouncements in India are capable of scaring away foreign investors, by insisting that he will always tell investors the truth about the nation’s economy.

This was as he explained that any serious investor meaning to invest in the Nigerian economy would have found out all he needs to know about the economy as such would not be deter by his sincere comments.

Buhari, who reiterated this position while receiving a report on the confirmation of ministerial nominees from the Senate President, Dr. Bukola Saraki, appraised the economy he had been faced with since assuming office in May and concluded that “we are so much battered.”

According to him, “the economy as I have seen it now since my sitting here for the last four months, that we are so much battered. Although some people are saying I am giving bad publicity and scaring away investors.

“Any investor who is interested in investing in Nigeria will seem to know more about the economy more than ourselves. So when I come and tell the truth about the position of the economy of the country, I am going out looking for investors.

“But I am confirming to them that we are truthful, that we need them to come and help us help ourselves by getting in industries, manufacturing and services.

“They know our needs. The economy of human resources, I believe, will make them come eventually and help us,” he assured.

Thursday

First Photo Of New Ooni Of Ife, Oba Adeyeye Ogunwusi In His Royal Attire

The new Ooni of Ile Ife, Oba Enitan Ogunwusi, is pictured above being dressed in a traditional attire following his recent status.

40-year-old Prince Adeyeye Enitan Ogunwusi of the Giesi ruling house replaces Oba Okunade Sijuwade, 85, who died in London in July after more than three decades on the throne.

He emerged the 51st Ooni of Ile-Ife on Monday.

The Ooni of Ife is considered the most influential monarch by Yorubas.

Abacha’s Loot Is Too Much For Us To Handle – World Bank

Following efforts to uncover looted funds from some leaders in Nigeria, World Bankhas said it needs additional time to provide comprehensive information on the funds looted by the late Head of State, General Sani Abacha.

World Bank made this known in an interogative session with a human civil society group, Socio-Economic Rights and Accountability Project (SERAP) seeking information on the loot.

According to World Bank, additional time is needed to give a full details about the looted funds because the money involved is huge it is compiling information on the spending.

No Coordinating Minister Of Economy In Buhari’s Government – Osinbajo

There will be no coordinating minister for the economy under the administration of President Muhammadu Buhari, Vice President Yemi Osinbajo has said.

The vice president declared this at the Aso Rock Presidential Villa in Abuja on Wednesday while receiving the Australian High Commissioner to Nigeria, Jonathan Richardson.

Osinbajo emphasised that unlike the immediate past administration, the Buhari Presidency would not name a Coordinating Minister for the Economy.

“We are not going to have a system like where there was a coordinating minister. No, there would not be anything like that”, the vice president stated.

He noted his role as vice president was to ensure that Buhari was fully informed of what everyone involved in economic activities was doing “such that we are all on same page and to make it easier for the president to make decisions”

Osinbajo’s spokesman Laolu Akande, in a statement on Wednesday, recalled that at the National Economic Summit held in Abuja four weeks ago, the vice president had noted that his role was to supervise the economy.

The vice president also told the Australian envoy that Nigeria was willing to deepen her bilateral relations with Australia in the areas of mining, agriculture, shipping, transport and infrastructure development.

According to him, “the Federal Government will be interested in exploring deeper relationship with Australia on economic cooperation as it is a major area in diversifying our economy”.

The vice president commended the Australian government for the various capacity building initiatives as well as its investments in some key sectors of the Nigerian economy.

Monday