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Auto Policy: FG Dragged To Court Over Finance Act 2020

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The Abuja division of the Federal High Court has been asked to strike down Section 38 of the Finance Act 2020 which gives legal basis to the implementation of the 5 percent levy on some categories of cars which is reduction from 35 percent implemented by the government of Nigeria since 2020.

President Muhammadu Buhari had assented to the Finance Act 2020 on December 31, 2020.

Following the Presidential assent, the Nigeria Customs Service had planned the implementation of the policy.

But dissatisfied with the policy, Pan Nigeria Limited, Lafbart Innovation and Consulting Limited, Mikano International Limited and the Incorporated Trustees of Global Integrity Crusade Network, the Incorporated Trustees of Global Integrity Crusade Network (GICN) dragged the government to court to challenge the policy.

Defendants in the suit are the National Assembly, the Federal Government, Ministry of Industry Trade and Investment, Ministry of Finance and the Nigeria Custom Service.

The Finance Act 2020 reduced tariff on the importation of Fully Built Vehicle (FBU) from 35% to 5% whereas import duty for Semi Knocked Down (SKD) remains at 10%.

The implication of the policy is that all the businessmen who have invested in the assembly of SKD commercial vehicles including tankers for which Nigeria has a history of competence beyond the New Automotive Industry Development Plan (NAIDP) will suffer.

However, dealers in FBU can now import freely without recourse to Nigerian assemblers, including body builders that have existed for generations.

In a suit marked FHC/ABJ/CS/157/2021 and filed on February 10, 2021, the plaintiffs, through their counsel, Ayodele Akisanya and Adamson Adeboro, want the court to determine the following questions: “Whether by the provisions of Section 13(1) of the Customs and Excise Tariff ETC (Consolidated) Act, the failure of the President to rely on the recommendation of the Tariff Review Board to modify duties and levies as mandated by the said Section 13(1) before transmitting the Finance Bill 2020 as an Executive Bill to the 1st Defendant for passage into law and which Finance Bill 2020 includes Section 38 whereat the President purports to modify duties and levies, did not incurably contaminate the said Section 38 of the Finance Bill 2020 now Section 38 of the Finance Act 2020 and render same null and void ab initio and liable to be struck down.

“Whether by the provisions of Order 77(3) of the Senate Standing Order as Amended 2015 the 1st Defendant ought not to have received and if not provided by the Executive, demanded information or evidence of compliance with the statutory condition precedent set in Section 13(1) of the Customs and Excise Tariff ETC (Consolidated) Act as a precondition for passing the Finance Bill 2020 to an Act which Act now contains Section 38 whereat the President purports to exercise the powers granted by in Section 13(1) of the Customs and Excise Tariff ETC (Consolidated) Act but ignored the accompanying responsibility to rely on recommendation of the Tariff Review Board”.

The plaintiffs also sought the following reliefs from the court: “A declaration that Section 38 of the Finance Act 2020 is the by-product of non-compliance with statutory conditions precedent set in Section 13 of the Customs and Excise Tariff ETC (Consolidated) Act and therefore null and void ab initio rendering said Section 38 of the Finance Act 2020 liable to be struck down.

“A declaration that the President, subject to compliance with the precondition set in Section 13(1) of the Customs and Excise Tariff ETC (Consolidated) Act has the powers to modify tariffs, duties and levies without any reference, recourse and or resort to the 1st Defendant for approval or ratification.

“An order striking down all the provisions of Section 38 of the Finance Act 2020 as being invalidly made, null and void ab initio.

“An order of perpetual injunction restraining the 1st, 2nd, 3rd and 4th Defendants either by themselves, or agencies under them, parastatals and or organization, privies and assigns from implementing, enforcing, giving effect howsoever to the provisions of Section 38 of the Finance Act 2020”.

No date has been fixed for the hearing of the case.

 

 

 

 

 

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An ICT Centre Set To Be Established In Omoku

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An Information and Communication Technology (ICT) Centre is set to be established in Omoku, Ogba/Egbema /Ndoni Local Government Area of Rivers State.

The initiative is being championed by the Omoku People’s Forum, a global association of Omoku elites, under the leadership of its President-General, Dr. George Ada Ubah.

As part of efforts to ensure the successful execution of the project, a prominent son of Omoku, Chief (Barr.) Dennis Masi, has been appointed by the Forum as the Chairman of the ICT Centre Project Committee, entrusted with the responsibility of coordinating and driving the initiative to fruition. Upon completion, the ICT Centre is expected to serve as a major hub for the training and empowerment of youths in digital and technological skills, equipping them to actively participate in the increasingly technology-driven global environment.

The project is also widely regarded as a significant step towards positioning Omoku as an emerging ICT hub within Rivers State, fostering innovation, digital literacy, and economic development in the region.

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Concerned Rivers Chiefs For Peace And Development Denies Political Affiliations

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Concerned Rivers Chiefs For Peace And Development has said it formation was not politically motivated or has any links to political parties or candidates.

The group which said this at a media briefing at Abuloma in Port Harcourt City Local Government Area said it’s formation has nothing to do with politics.

According to the text for the briefing jointly signed by Chief Boma Kele Oyika it’s chairman and Chief Inemo T Ikama Deputy Secretary General said the organization is expected to focus on conflict Resolution, community engagement, collaboration with government and private sector actors

‘it mandate also includes promoting peace building initiative, supporting local economic empowerment programms and strengthening traditional institutions in our state and beyond as partners in governance ”

It said the body is led by a team of respected traditional leaders serving as trustees

“Their collective leadership reflects a blend of experience cultural authority and grassroots connection
“Key elements considered vital for addressing long standing,socio economic and security challenges in the region”

The release further says ” the formation of this organization comes at a time when communities in Rivers state continue to navigate between issues ranging from youth unemployment, environmental concerns and intermittent conflicts amongst the traditional rulers and beyond
“By bringing together influential traditional figures under a unified platform, the group aims at serving as stabilizing force while advocating for inclusive development policies ” it said

It also described its emergence as a new chapter in grass roots leadership and regional development

Earlier,  chairman of the body, Chief Boma Kele Oyika said the organization will work with relevant authorities to promote peaceful coexistence in the state, reduce crime and promote economic development.
He said it is open to all Chiefs from the 23 local government areas.

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NDCCTMA, NDDC MDS Challenge Niger Delta Indigenes on Investment in The Region

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The Chairman of The Nigeria Delta Chamber of Commerce, Trade, Mines and Agriculture  NDCCTMA,Ambassador Idaere Gogo Ogan and the Managing Director of the Niger Delta Development Commission ( NDDC ) Dr Samuel Ogbuku have challenged Niger Delta entrepreneurs to close the gap in Gross Demostic Products (GDP) differences between the region and that of the South Western part of the country by coming home to invest.

The two leaders  spoke at a business round table organized by NDDCTMA in Port Harcourt

Chairman of NDDCTMA Ambassador Idaere Gogo Ogan, said to close the gap between the south west region which he said has a GDP seize of about #59 trillion and that of the Niger Delta which is about #34 trillion was to massively invest in the region.

He said no other persons can  do this except sons and daughters from the region.

“For me I believe in statistics,I believe in data and everyday I looked at the data concerning development in Nigeria and from the GDP point of view, the South West has #59 trillion, that is the seize of the south west region economy, the second region following them is the Niger Delta region with GDP seize of #34 trillion,so there is a yearning gap of #25 trillion that separates the south west and the Niger Delta region, that is why we are here”
Ogan said the region has the capacity to close the gap and even surpassed it but regretted that indigenes of the region have chosen to ignore it in terms of investment.

“We need to close that gap .If we close that gap and even surpassed it,all the negative problems of militancy and unemployment will automatically erase “he said
Ogan said the event was organized to remind the people that past efforts of militancy and agitations have not led the region to any where
“That is why we are gathered here in this room “he said.

Also speaking Managing Director/Chief Executive officer of the Niger Delta Development Commission( NDDC) Dr Samuel Ogbuku urged indigenes of the region not to use the problem of insecurity as an excuse to continue to deny the region of investment  as every part of the country have in one time or the other experienced crisis.

Ogbuku said most indigenes have displayed high level of unpatriotism towards the region by taking investments that would have benefited the people to either Lagos or Abuja.

“With little threat we have left the city,we have gone to Lagos,we have moved  our families to Abuja and Lagos
“If you go round GRA all the property, you will see,”to let to let”most of them are now empty “he said.

The NDDC MD said despite the fact that people from the region are doing well in the oil and gas, banking and other sectors, its impact are not being felt at home because they are stationed outside the region.

He said time has come for potential investors from the region to have a change of heart by coming home to invest.

 

John Bibor

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