The National Assembly has passed the Finance Bill 2021, transmitted to the National Assembly by President Muhammadu Buhari, on December 7, 2021.
The passage of the bill two weeks later was sequel to the consideration of a report by Senator Olamilekan Adeola, All Progressives Congress (APC), Lagos West-led Senate Joint Committee on Finance; Customs, Excise and Tariff; Trade and Investment.
The passage of the Finance Bill in the House of Representatives was sequel to the consideration of the report presented by the Chairman, House Committee on Finance, Hon. James Faleke.
“Report on a Bill for an Act to Amend the Capital Gains Tax Act, Companies Income Tax Act, Federal Inland Revenue Service (Establishment) Act, Personal Income Tax Act, Stamp Duties Act, Tertiary Education Trust Fund (Establishment) Act, Value Added Tax Act, Insurance Act, Nigerian Police Trust Fund (Establishment) Act, National Agency for Science and Engineering Infrastructure Act, Finance Control and management Act, Fiscal responsibility Act; and for Related Matters”, he said.
In his presentation, Chairman of the Senate Joint Committee, Senator Solomon Olamilekan Adeola, said that 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 Adeola, a total of 12 Acts were amended under the finance bill which contains 39 clauses, adding 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.
Adeola said, “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.”
The Joint Committee, based on its observations, accordingly, recommended 5per cent Capital Gains Tax to be imposed on shares’ disposal transactions where gains exceed N250million 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 Utilisation 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 to investigate tax evasion and other crimes and sanction non-compliant taxpayers.
It further called for FIRS to be empowered to assess Non-Resident Firms to tax on a 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 Capitalisation 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 0.5per cent 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.
Compromised People Accuse Judiciary Of Corruption, Wike Affirms
Rivers State Governor, Chief Nyesom Wike has said that those accusing the Judiciary in Nigeria of being corrupt, are not clean themselves.
He noted that while corruption in the Judiciary undermines the courts’ credibility, those who often are quick to throw tantrum at Judiciary, particularly legal practitioners, are culpable as well.
Wike made this assertion, last Monday night, during a state banquet organised at the Government House, Port Harcourt, in honour of Hon. Justice Mary Peter Odili, on her 70th birthday and retirement from the Supreme Court of Nigeria.
“For me, those who are abusing the Judiciary of corruption, their hands are not clean. Anybody who is abusing the Judiciary or judges, their hands are not clean. But that does not also mean that even you in the Judiciary should not keep your house in order. That is the truth.”
Ahead of the 2023 general election, the governor urged state High Courts to abide by the provisions of the new Electoral Act, which prohibits them from handling pre-election or electoral matters.
According to the governor, some state High Courts are already acting in contravention of the law.
“The truth is that the Electoral Act says anything about pre-election or electoral matters, is now to be decided by the Federal High Court.”
Wike declared he would remain eternally grateful to Hon. Justice Mary Odili, for creating the opportunity for him to meet her husband and former governor of Rivers State, Dr. Peter Odili, when he ventured into active partisan politics in 1998.
The Rivers State governor reiterated that there was no politician serving at the federal or state level since 1999 that would deny the fact that they did not pass through the tutelage of Peter Odili.
He said despite the generosity of Peter Odili and his family, some of those whom they had helped politically, have regrettably betrayed and humiliated them.
“I have never seen a man who has suffered humiliation; I have never seen a man who has suffered betrayal in life like Peter Odili.”
Wike further explained that Peter Odili’s insistence that someone from the Ikwerre extraction should succeed him as governor in 2007, earned him some enemies.
“Dr. Odili’s biggest problem in this state today, people must know the truth, is because he said Ikwerre man must become governor, that’s it. If any man tells you that Odili has committed any other sin, it’s a lie. It’s just because he said Ikwerre man must become governor.
“Unfortunately, we the Ikwerre people whom he said should be governor, are the ones that put him in the witness box. But I want to appeal to him, forgive, you are a Christian. Forgive all of us.”
Wike, who recalled how the Odili family suffered blackmail and humiliation because of him, vowed never to grieve or engage in acts that would bring them into disrepute.
He reaffirmed that Dr. Odili’s fatherly counsel has been one of the reasons why he has succeeded in the governance and transformation of Rivers State since 2015.
In his remarks on behalf of his family, former Rivers State Governor, Dr. Peter Odili, said all through his wife’s career as a judicial officer, he never for once attempted to influence her in any matter.
The former recalled two instances when a late traditional ruler in Port Harcourt and his extended family members from Ndoni had approached him to intervene in matters before his wife’s court, but he declined and offered to help them pay their legal fees.
“When I finished being governor and went to Abuja to spend time with her, and a lot of political cases as you know were rolling over each other. All my friends in Abuja know and they tell each other, the moment you have case either at the Court of Appeal when she was there or at the Supreme Court, the access you use to have to come as a personal friend ceases until the case is over.”
Odili thanked Wike and the people of Rivers State for honouring his wife after 44 years of meritorious service in the Judiciary.
The Chief Justice of Nigeria, Justice Ibrahim Tanko Muhammad, described Justice Odili, as an epitome of dignity, hard work, fairness and excellence.
Represented by Justice of the Supreme Court, Justice Kudirat Kekere-Ekun, he said Justice Odili remains an inspiration to the girl-child.
“My Lord has shown what is possible with diligence, hard work and integrity. Through you we see that the sky is the limit.”
Wike Slams NBA’s Lacklustre Approach To Social Change
Rivers State Governor, Chief Nyesom Wike, has urged the leadership of Nigerian Bar Association (NBA) to go beyond issuing of statements, to taking concrete actions against attacks on the nation’s Judiciary.
Wike gave the charge at the book presentation in honour of Justice Mary Odili as part of activities marking her retirement from the Supreme Court of Nigeria and her 70th Birthday celebration, which held at Dr. Obi Wali International Conference Centre in Port Harcourt, last Monday.
Governors present at the event were: Dr. Okezie Ikpeazu (Abia); Rt. Hon. Ahmadu Fintiri (Adamawa); Mr. Udom Emmanuel (Akwa Ibom); Senator Douye Diri (Bayelsa); Samuel Ortom (Benue); Ifeanyi Ugwuanyi (Enugu); and Engr Seyi Makinde (Oyo).
The governor expressed regrets at the NBA’s lacklustre approach to social change, which is more of a disservice to the nation and exposes it to contempt.
“What is even worrisome on the part of the president of the NBA is his failure to admit that the NBA, including the inner and outer Bar, which he leads, have failed in their responsibility to protect the rule of law and defend the judiciary from punitive intimidation and erosion of its independence by the All Progressives Congress-led Federal Government.
“It is quite unfortunate that the NBA is only good at issuing bland statements of condemnation without more, while the judiciary continues to suffer ferocious bouts of harassment from a Federal Government that has become notorious for its contemptuous attitude towards the rule of law and the rights of Nigerians to an effective justice system.”
Wike also expressed his disagreement with some speakers in last Thursday’s valedictory court session organised in honour of Justice Odili, who laid the blame on politicians over the problems that the judiciary suffers.
Specifically, Wike said Chief Wole Olanipekun, SAN, speaking for the Body of Senior Advocates at the valedictory court session, identified corruption as the bane of the Nigerian Judiciary and pointed fingers of responsibility at politicians, lawyers and the Federal Government.
Wike noted that while the learned Senior Advocate was largely correct with respect to the issues of forum shopping by lawyers and the intimidation of the courts by the Federal Government, he was, however, wrong in his allusion to political cases as responsible for the debasement of Nigerian courts.
“Now, if I may ask: are lawyers not behind the contemptuous criticisms of judges by clients? How many lawyers have withdrawn from political cases in protest against unwarranted castigation of the court by clients?
“How many lawyers have withdrawn their services to clients on account of frivolous petitions against the court without their consent? Who are those who advice politicians to reach out to judges? Where are the lawyers that have ever advised their clients against reaching out to judges handling their matters?
“For me, let us stop the scapegoating and tell ourselves the truth that as lawyers, most of us are all involved in this despicable conduct, perpetrating the same evil, only at different levels because of our predisposition for success through backdoors without any regard to the damage we are doing to the reputation of the entire judicial system.”
The governor said the Federal Government had in 2016 unleashed premeditated midnight raids on judges’ homes, including the Justices of the Supreme Court, in Abuja, Port Harcourt, Gombe, Kano, Enugu and Sokoto states.
“In 2020, when the sanctity of Justice Mary Odili’s home was violated by hired members of the APC over the Supreme Court’s judgement that sacked the party’s governorship candidate for Bayelsa State, the NBA just condemned it, without any further follow-up action to forestall a reoccurrence.”
Wike also pointed out that there was need not also lose sight of the fact that the Judiciary is also a problem to itself because it is weak and incapable of asserting and safeguarding its independence from the predatory tendencies of other arms of government.
He noted that when judges are lacking in courage and integrity, they easily give up to improper pressure, influence and control, and the entire Judiciary suffers.
Wike assured that if elected the President of Nigeria in 2023, he will work with the National Assembly to prioritize the welfare of all judicial officers, including the provision of official cars and life-long accommodation as we have done here in Rivers State.
“With me on the saddle as the President and Commander-in-Chief, the Judiciary in Nigeria shall be in safe good hands and Nigerians will again experience the glorious days of an independent, vibrant and progressive Judiciary.”
In her remarks, former Justice of the Supreme Court of Nigeria, Justice Mary Odili, noted that though Nigerian judges are among the best in the world, they have never been treated right.
“A lot has been said about judges, judgements and corruption and what have you. The truths be told, the Nigerian judges have not been treated right, and the truth has not been said of Nigerian judges who in my view are the very best in the world. I’ve not delivered any judgement and have gone to sleep easily.”
Justice Odili, who was the first lady of Rivers State between 1999 to 2007, expressed delight that some of her judgements have been published for the public to assess.
“I am very happy that some of my judgements have been captured in print. And as I peeped through the judgements of those big judges and magistrates of the old Bendel State, my own judgements are now in the open for everyone to look at. All anyone can say is that she didn’t apply the law properly here; she did not understand the law properly. But, no one can ever say she gave judgement because of an interest in the matter.”
Benue State Governor, Samuel Ortom, who spoke on behalf of his colleagues, described Justice Odili as an epitome of humility.
Chairman of the occasion and former president of the Nigerian Bar Association, Onueze C.J.Okocha, SAN, noted that Justice Odili served the country meritoriously, honourably and without blemish to her character.
The five books written in honour of Justice Mary Odili are: Judicial Journey of Hon. Justice Mary U. Peter Odili; Essays in honour of Hon. Justice Mary Ukaego Peter Odili; Icon and On: Leading judgements on women’s rights in Nigeria in honour of Justice Mary Peter Odili; Mary Odili and the Law: Legal essays and Understanding the administration of criminal justice in Nigeria through the eyes of Hon. Justice Mary Ukaego Peter Odili.
Inflation Hits 16.82%, Exceeds IMF’s 2022 Projection
The Consumer Price Index rose to 16.82per cent in April from 15.92per cent in March, latest figures from the National Bureau of Statistics (NBS) have revealed.
The NBS disclosed this in its ‘Consumer Price Index April 2022’ report, last Monday.
The report read in part, “In April 2022, the consumer price index, which measures inflation increased to 16.82per cent on a year-on-year basis.”
The International Monetary Fund had recently projected that Nigeria’s Consumer Price Index would hit 16.1per cent in 2022.
This projection was presented in a tabular illustration in the IMF’s ‘Regional Economic Outlook for Sub-Saharan Africa’, which was published on its website.
The latest inflation rate in April is the highest in the country since August, 2021 when it was 17.01per cent.
The rise in the inflation rate in April shows that Nigeria is not left out in the global inflation surge.
But it is also an indication that citizens are becoming poorer, especially given the weakening state of the currency.
In the World Economic Outlook report, the IMF warned about the effects of inflation.
The report read in part, “In sub-Saharan Africa, food prices are also the most important channel of transmission, although in slightly different ways. Wheat is a less important part of the diet, but food, in general, is a larger share of consumption.
“Higher food prices will hurt consumers’ purchasing power, particularly among low-income households, and weigh on domestic demand. Social and political turmoil, most notably in West Africa, also weighs on the outlook.”
Recently, the World Bank said COVID-19 pandemic-induced inflation pushed about 23million Nigerians into a food crisis in 2021, especially in regions battling conflicts.
It added that the war-driven disruptions in the food trade, higher food price inflation, and higher costs of administering food assistance efforts are likely to make more people food insecure.
Aside from the pandemic and the ongoing war in Ukraine, the World Bank in a different report had said that import restrictions and non-flexible exchange rate management of the Central Bank of Nigeria were the major driving forces for food inflation in Nigeria.
The report had read in part, “Rising food prices are the underlying factor behind the surge of headline inflation in Nigeria. Food prices have increased due to import restrictions and a nonflexible exchange rate management.
“The current regime is keeping the official exchange rate of the naira artificially strong while the naira has weakened significantly on the parallel market. Additionally, the central bank has restricted importers’ access to foreign currency for 45 products and has reduced the supply to other importers.”
This, coupled with border closures across Nigeria in recent times, also worsened inflation, analysts said.
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