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Senate passes finance bill 14 days after transmission

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The Senate has passed the Finance Bill 2021, transmitted to the National Assembly by President Muhammadu Buhari, on December 7, 2021.

The passage of the bill coming two weeks later, followed the consideration of a report by the Joint Committee on Finance; Customs, Excise and Tariff; Trade and Investment. 

Chairman of the Joint Committee, Senator Solomon Olamilekan Adeola, in his presentation, said the bill seeks to support the implementation of the 2022 Federal Budget of Economic Growth and Sustainability by proposing key specific taxation, customs, excise, fiscal and other relevant laws. 

According to the lawmaker, a total of twelve Acts were amended under the finance bill which contains thirty-nine clauses. 

He added that the bill seeks to promote fiscal equity, align domestic tax laws with global best practice, introduce tax incentives for infrastructure and capital markets, support small businesses and promote increase government revenue. 

“The Finance Act 2020 was predicated essentially on having no new taxes and no new incentives due to the COVID -19’s impact on the economy as such it was structured across four broad thematic areas; Enacting counter cyclical measures and crisis intervention initiatives; Tax, fiscal responsibility, and public procurement reforms; Reforming fiscal incentives policies for job creation; Ensuring closer coordination of monetary, trade and fiscal policies; and Enhancing tax administration”, Senator Adeola said.

The Joint Committee, based on its observations, accordingly, recommended 5 percent Capital Gains Tax to be imposed on shares’ disposal transactions where gains exceed N250m in 12 calendar months.

It recommended that Gaming and Lottery Companies be taxable, as well as Oil and Gas Companies. 

It underscored the need for Midstream and Downstream Oil and Gas Companies to be made liable to corporate tax without the benefit of tax exemptions for firms exporting goods to earn foreign exchange.

The Committee observed that doing so would prevent Double-Dipping by Gas Utilization Companies such that they cannot claim both (1) 3-year Tax Holidays; as well as (2) Petroleum Profit Tax Act Incentives or (3) Pioneer tax Holidays under IDITRA.

The Joint Committee advocated for qualifying Capital Expenditure rules for small and pioneer Companies, to prevent double dipping by mandating that Companies cannot deduct qualifying Capital Expenditure to reduce their taxable profits where the relevant qualifying Capital Expenditure is used to generate tax – exempt income.

It sought more powers for the Federal Inland Revenue Service (FIRS) to collect NPTF levies on Nigerian Companies on behalf of the fund and to streamline tax levy collection from Nigerian Companies in line with President Buhari administration’s ease of doing business reforms.

The Joint Committee also harped on the need for the Federal Government to ensure that FIRS deploys both proprietary and third-party tech applications to collect information from taxpayers, enhance confidentiality and non-disclosure and to enable them investigate tax evasion and other crimes and sanction non-compliant tax payers.

It further called for FIRS to be empowered to assess Non-Resident Firms to tax on fair and reasonable turnover basis on Turnover earned from digital services to Nigerian customers, with a further mandate to appoint persons for the purpose of collection and remittance of non- resident taxes.

The Committee demanded necessary reforms on securities lending transactions, minimum Tax for Insurance Companies and Companies in general, Taxation of Unit Trust Income, Real Estate Investment Trust, and Insurance Companies Capitalization by NAICOM in line with Tax Equity.

It urged the government to mandate FIRS as Principal Tax Revenue Collection Agency to collaborate with other law enforcement MDAs in streamlining Tax Collections by enhancing Public Financial Management reforms.

According to the Joint Committee, doing so would reduce revenue leakages and better track actual expenditure to revenue performance in line with the provision of the Constitution of the Federal Republic of Nigeria 1999 (as Amended), Fiscal Rules and other Extant Money Acts.

It also called for the diversification of Nigeria’s revenue from Oil sector to other sectors to fund critical expenditures.

The Committee while demanding an increase of 0.5 percent in educational tax, pushed for close monitoring of unfolding development and policies on VAT, Tax Incentives, Projected increase Tariff on Tobacco, Alcohol and Carbonated drinks to fund vital expenditure on Health, Education and Security, with a possibility of introduction of new taxes, tariffs and levies as the economy recovers.

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Legislature

Kogi Assembly, CSO partner on HIV/AIDS anti-stigma legislation

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By Friday Idachaba, Lokoja

Kogi State House of Assembly has assured that the bill for a Law to provide for the prevention of HIV and AIDS Based Discrimination and stigmatization will be accorded smooth and accelerated passage for full implementation in the state.

Deputy Speaker of the Assembly Rt Hon. Comfort Nwuchiola Egwaba, disclosed this at a One-day Capacity Building And Media Round Table on the Proposed Anti-stigma Bill For HIV With Kogi State Assembly members.

She said that the partnership between the House and Initiative for Grassroots Advancement in Nigeria (INGRA), a Civil Society Organization (CSO,) had yielded fruits with the resounding support of members for the bill.

The meeting aimed at building capacity of Kogi State Assembly members and Media personalities on the issue of HIV stigma and discrimination among others, was organized by INGRA with support from AIDS Healthcare Foundation (AHF) in Lokoja.

The Deputy Speaker said that the private member Bill before the House had had its first and second readings and was being primed for Public Hearing and Third Reading by the House Committees on Health and Judiciary.

Nwuchiola-Egwaba said, “We have done more than justice to the Bill. This bill will scale through and will see the light of day. We are not living any stone unturned. We are doing this for our people.”

Also speaking, sponsor of the Bill, Hon. Bin Ebaiya Shehu-Tijjani (APC-Lokoja I) thanked his colleagues for the fervour with which they rallied support round him for the Bill to scale through the legislative mills and urged them to sustain the tempo until it is finally assented to by the governor.

Chairman of the House Committee on Health, Ochidi Usman (APC-Idah) decried the spate of discrimination and stigmatization against people living with the virus saying that they did not bargain for it.

He described them as victims of circumstances as he thanked the sponsor of the Bill and pledged to stand by him to provide support for the Bill to have accelerated passage.

Speaking earlier, Mr Hamza Aliyu Executive Director of INGRA who described the bill as a “Policy Bill” said it was not just for HIV/AIDS alone but against every form of discrimination and stigmatization against affected persons in the state.

He hinted that available statistics showed that over 28,000 persons are living with the virus in the state adding that they could be more as many are not aware of their status and are quite unwilling to get tested for fear of discrimination and stigmatization.

Aliyu said the Bill had been passed in 16 states of the Federation and would only be fair for the Act to be domesticated in Kogi through the legislation to ensure that affected persons are not unnecessarily discriminated against.

Executive Secretary, Kogi State Agency for Control of AIDS (KOSACA), Dr Sheidu Yunusa, who explained some of the provisions of the law, the offences and punishment said stigmatization and discrimination had the potency to destroy all the efforts being made to end the HIV scourge.

Dr Yunusa gave examples of stigmatization and discrimination against Persons Living with HIV (PL-HIV) to include health care professionals refusing to provide care or services to an affected person, Refusing casual contact with someone living with HIV.

It also include among others, socially isolating a member of a community on account of HIV positive status, referring to people as HiVers or Positives, Unlawful disclosure of an affected person’s status.

Amb. Idris Ozovehe Muraina, Chairman, Kogi NGOs Network (KONGONET) said, “we should not see this law as draconian but an attempt to squelch discrimination against out affected brothers and sisters.”

Comrade Jimoh Audu, Kogi State Coordinator of Persons Living With HIV AIDS (PLWHA) commended INGRA and the House of Assembly for their determination to get the Bill passed.

“We appreciate the meeting of our leaders, we believe in you. All we are asking it to reduce to the barest minimum the issue of discrimination against us. The medical practitioners should be more professional in their conduct”, he said.

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Legislature

Senate moves to probe 11, 856 abandoned projects across Nigeria

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***sets up ad-hoc panel

The Senate has pun in place an ad-panel to investigate the number of viable projects abandoned across Nigeria in all sectors.

The committee is also to recommend appropriate actions to be taken to reduce project abandonment in Nigeria and how most of the projects can be recovered.

The member Ad-hoc committee comprised Senators Lola Shiru (chairman), Jimoh Ibrahim, Mpigi Barinada, Abdullahi Yahaya, Victor Umeh and Isah Jibrin, members.

This came following the adoption of a motion on “Urgent need to look into the 11, 856 mega projects abandoned by the Federal Government” sponsored by Senator Jimoh Ibrahim (Ondo South).

The Senate noted that in 2011, President Goodluck Jonathan set up a Presidential committee on federal government- abandoned projects in Nigeria and the committee visited the 36 states in Nigeria and identified 11,866 projects abandoned by the Federal Government since Nigeria’s independence in 1960.
According to Senator Ibrahim, reports have it that about 63% of the entire projects since independence were abandoned, adding that the 63% of projects abandoned in Nigeria is worse than any country under comparison”.

“The abandonment of the project is of significant concern because of project costs which constitute a significant part of the GDP. While spending on a public project in the UK is now about one trillion British pounds Nigeria has no idea of the total amount spent on public projects either successful or unsuccessful since independence,

He observed, for instance that in the investigation carried out at the University of Cambridge doctorate in management science between 2018 and 2022, the value of the 38 projects investigated cost Nigeria over $40 billion”.

“What is now key to this investigation is the need to look inward at our infrastructural development as Foreign Direct investment declined from$8.8b in 2011 to $3.3 billion in 2019, and the current account balances in that year from $10.6 billion to 5-17 billion, while the population was growing around 5% about 86% of the citizen, were living under $2 between 2011 and 2019. Public debt increased from 17% of the GDP in 2011 to 29% in 2019.

According to him, government has the responsibility to set up a professional system that will deliver the critical value from major infrastructure development for its citizens, adding that for 66% of projects to be abandoned since 1960 is “nothing less than a calamity that reduces our pride as a ‘Giant of Africa’ if we are still one”.

He said three abandoned projects out of the 11,886 projects such as Ajaokuta Steel Company, where billion of dollars was spent without any production, Second Niger Bridge, etc are over 30% of the national debt.

In his contribution, Senator Orji Kalu (Abia North) said Nigeria cannot industrialize without steel production.

The former Abia governor said “we should face steel production. If we don’t face it, we are wasting our time. If you check our debt repayment, it is coming on this project.

“Why would Nigeria be suffering on what ought to have been done? We supposed to convert that our money and build these industries for debt repayment on them and save the interest we pay?

“We should appeal to President Bola Tinubu, may be 2026, 2027 budget we dedicate all these industries. They are our own. If we do not do it we will not move forward”, he said.

Senator Isah Jibrin said the abandoned projects should be properly profiled and the viable ones be sold to bring return on investment.

In his remarks, the Senate President Godswill Akpabio said Nigeria cannot be using over 90% of its resources to pay interest on loans.

The committee was given one month to report back to the Senate.

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Convert Oloibiri Shell Airstrip to Airforce Base, Senate tells Aviation Ministry, Airforce

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Senate has urged Ministry of Aviation, Nigeria Airforce to take possession and convert the abandoned Shell Airstrip at Oloibiri oil well in Bayelsa state to modern Airforce base.

This followed adoption of a motion on urgent need for transformation of the abandoned Shell Airstrip at Oloibiri Oil Well 1 in Ogbia Local Government Area of Bayelsa State to an Air Force Base.
The senator representing Bayelsa East SundayAgadaga (PDP) who sponsored the motion said Shell airstrip was constructed in 1958 following the first discovery of crude oil in 1956 at Oloibiri Oil well one.
According to him the airstrip, sitting on over 25 hecters of land has long been abandoned.
Agadaga said that the airstrip, while in effective operation, was a very valuable asset in the company’s oil exploration and exploitation activities in airlifting of personnel and equipment.
He said during the years of its functionality, heavy duty equipment, company workers, captains of Industry, top government functionaries and diplomats resorted to the route for easy access to the Niger Delta region.

He expressed regret that since the gradual decline of Shell’s operations in the area and final departure from Oloibiri oil field, the airstrip and the land where it operated has been abandoned and left desolate.

“The land itself appears to have been sentenced to perpetual condemnation as no agricultural activity which is the economic mainstay of the local dwellers can be carried out anymore due to the concretized topography of the soil.”

According to him, the abandoned airstrip poses environmental challenges and serious ecological complications to the Host Community as Shell has left the people in deprivation, squalor and lamentation after decades of operation.

He observed that upgrading the abandoned airstrip to an airforce base would bring renewed hope to the people, restore life to the area and attract the following benefits to the country:

“It will strengthen the security architecture of Nigeria as the creeks of Bayelsa up to Brass Island and the coast of the Atlantic Ocean in the gulf of guinea where the oil export terminal is located will be easily monitored and protected.”
Agadaga
said its evental upgrade would reduce the rate of oil theft and pipeline vandalism.

This, he said would enhance surveillance activities in the numerous oil producing communities that constitute hub of oil industry activities in Nigeria.

He said the airstrip ,if converted to an airforce base would attract more business opportunities in the area thereby creating additional jobs to boost economic growth of Nigeriaa and ease the cost of living of the people.

Senator representing Kogi East Isah Jibrin (APC) said he was neither in support or against the motion pointing out that the cost implications of converting the airstrip to an airforce base would be huge, adding that government may not be dispose to consider the cost involved.

He said government may decide to confine the project on a long term basis, saying that he do not see the urgency in converting the airstrip to an airforce base at this period.

Sen. Adams Oshiomole (APC-Edo) said the conversion of the airstrip to an airforce base holds great benefits for Nigerians and people of the region especially on quick intervention on insecurity issues.

Sen. Maidoki Garuba (PDP-Kebbi) said the conversion would help strengthen security of the nation, check crude oil theft and pipeline vandalism.

Sen.Victor Umeh (LP-Anambra) said there was need to preserve certain historical monuments like Oloibiri, adding that the conversion of the airstrip to an airforce base would make Oloibiri a national monument, given its contribution as the first oil well in Nigeria.

He said the conversion would also ensure further economic prosperity for the nation.

President of Senate, Godswill Akpabio said efforts should be made to preserve historical monuments, like the Oloibiri Shell airstrip via its conversion to an airforce base.

He also said the conversion to an airforce base would also ensure improved security in terms of emergency, given its closeness to the golf of guinea.

Akpabio expressed hope that the government would see the need for the reconstruction of the airstrip to an airforce base to forestall challenges in the event of any mishaps.

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