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ASUU Urges FG To Stop Tax Waivers, as Reps Summon First Bank, Others over Non Remittances of Education Tax

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By Gloria Ikibah 
 
 
 
This President Academic Staff Union of Universities (ASUU), Professor Victor Osodeke has called on the federal government to immediately stop tax waivers meant to fund tertiary institutions in the country.
 
 
Prof. Osodeke who said this during a public hearing on Monitoring of Collection, utilization and other associated services relating to Education Tax from 2011 – 2022, organised by the House of Representatives Committee on Tertiary Education Trust Fund (TETFund), on Tuesday, blamed the poor funding of tertiary institutions and incessant industrial actions to waivers granted to banks and other private institutions.
 
 
Chairman of the Committee, Rep. Miriam Odinaka Onuoha also directed First Bank of Nigeria and other Banks to appear before it alongside its Tax Consultant to reconcile the Education Tax Computation not remitted to TETFund by the banks between 2011 and 2022.

 

 
 
Rep. Onuoha who gave the directive when some commercial banks appeared before the committee to defend their non-remittance of Education Taxes over the years, said there were disparities between the figures that was in the Bank’s Financial Statements as Provisions for that purpose and what the Bank actually remitted to the Federal Inland Revenue Service (FIRS).
 
 
Upon their admittances of such discrepancies, without any substantial explanation, the Committee therefore summoned the Banks to come along with details of their Tax computations, External Auditors and Tax Consultant along with proofs of remittances by 20th June, 2024. 
 
 
‘The Banks disregarded their own Financial Statement liabilities on Education Tax and made  under remittances’.
 
This followed a motion by Rep. Oluwole Oke who prayed that the banks appeared before the committee with the tax consultants with details of that tax computation on a yearly basis.
 
 
The Chairman said out of the 15 banks invited, about seven were supposed to appear before the committee on Tuesday, while only three of them showed up with three other writing to seek a new date to appear.
 
 
Full list of Banks summoned to appear on the 20th June with the aforementioned documents and persons include, Zenith Bank, Access Bank,  First Bank, United Bank for Africa ( UBA), Sterling Bank, Keystone Bank, FBN Quest Merchant Bank, First Bank, Guarantee Trust Bank, Stanbic Bank , Wema Bank, Eco Bank, Fidelity Bank, Jaiz Bank and Unity Bank. 
 
 
Deputy Chairman of the Committee, Rep. Bappa Aliyu Misau had observed that First Bank under remitted its education tax deductions to TETFund, an action which he said was punishable under the law.
 
 
Misau said: “unfortunately, you do not have the year-by-year breakdown but  the available records you submitted in 2011 was N603,801. Then, in 2012, you are owing N301,263,135, in 2013, you have a credit balance of N102,713,615. 
 
 
“Again, in 2014, you had a credit of N2.933, 659, then if you go to 2015, you have N25 million as outstanding, in 2017, N169, 852,600 outstanding, in 2018 you have N98 million outstanding, in 2012, you paid N7.877,451 then in 2020 N148 million credit, in 2021, N269,618,626.6 debit. 
 
 
“Therefore, in 2022, you had N3.748,984, 654.64. Then you add it up, you sum the credit and the debit, you ended up with N3.749,353,260 outstanding. You know there is penalty for Non-Remittance”.
 
 
An Executive Director with First Bank, Bashir Yusuf who represented the bank at the meeting told the lawmakers that between 2011 and 2022, the Bank posted a Profit Before Tax (PBT) of N795,123 billion. 
 
 
When asked to take the figure year by year, the FBN Executive Director said, it was a summary of the presentation, he said, “unfortunately Madam Chair what I have is the summary of the presentation. 
 
 
 
“I crave the indulgence of the committee to take what we shared with the Committee. I prepared the summary for the presentation, so that if there are issues, we can take those issues, especially if there are matters that we need to settle outside the Committee room, our consultants.
 
 
“So, I am very sorry, I don’t have the breakdown by year, but I have the summary over the period. We had the net accessible profits of N28 billion, which is the difference between the allowable and the disallowable expenses on the PBT we posted over the period.
 
 
“In terms of tax liability over the period, we have a tax liability of N5.498 billion. Then, over the periods of the audit by the Committee, that is 2011 to 2022, we had additional assessments. It was on the basis of those assessments conducted between 2014 and 2021 that we had an additional liability of N852 million.
 
 
“So, in terms of total TETFUND Tertiary Education Tax Fund liability and payment, we made a payment of N5.493 billion. 
 
 
 
“And in terms of outstanding liability over the period, we have Nil liability over the period and other subsequent items associated with outstanding liability are also ready”.
 
 
He further stated that there were issues that cannot be resolved at the committee hearing, adding that “what you have are items that are classified as taxable. 
 
 
“We have some differences based on the provision of exemption order that was issued by the President in 2011. That’s why I said some of these issues we will not be able to resolve at this sitting.
 
 
“When the Committee asked the Bank to provide the Exemption Order on Education Tax as it relates to the matter under review, he could not provide any , Furthermore , the Bank already made  provisions in their Financial Statements for same Education Taxes without remittances in those respective years”.
 
 
 
Representatives of ASUU criticizrd the Banks for providing different figures to the Committee after making submissions earlier in January 2024 under Oath. 
 
 
The Union further requested the FIRS to stand-up to their duties on the efficient and honest  tax collection and stop the games playing with the Banks. 
 
 
The Union further commended the Committee for taking up the challenge to expose the fraud and corruption while enforcing compliance in our tax systems by some Corporate gurus despite their huge profits, yet unwilling to pay necessary taxes in support of Education to help the sector grow and the development of the Country human capital.
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Emir of Gumel dies in Egypt

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The Emir of Gumel in Jigawa State, Alhaji Dr. Ahmed Muhammad Sani II, has died.

The monarch passed away on Thursday in Egypt.

His death has thrown the people of the Gumel Emirate and residents of Jigawa State into mourning, with tributes expected to continue to pour in from across the state and beyond.

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The death of the respected traditional ruler is a significant loss to his family, associates and the entire Gumel community. Prayers have been offered for Almighty Allah to forgive his shortcomings and grant him eternal rest in Aljannatul Firdaus.

Prayers were also offered for Allah to grant his family, loved ones and the people of Gumel the strength and patience to bear the loss.

The death of the Emir represents a major loss to the Gumel Emirate, given the important role traditional institutions play in promoting peace, unity, cultural values and community development.

The Gumel Emirate is one of the historic traditional institutions in northern Nigeria, with a rich heritage and longstanding influence in the social and cultural affairs of its people.

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As Emir, the late Alhaji Dr. Ahmed Muhammad Sani II, CON, served as custodian of the traditional institution and provided leadership to the people of the emirate.

His passing is expected to be deeply felt by members of the royal family, traditional title holders, community leaders and residents across the emirate.

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US Federal agents nab Podcaster Azariah over alleged threats to Kill Trump

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United States federal agents have nabbed a podcaster, Azariah Southworth, in Los Angeles over allegations that he threatened to kill US President Donald Trump.

According to New York Post on Thursday, Southworth was taken into federal custody in Los Angeles following an investigation into the alleged threats against Trump.

Southworth is known for hosting the Yass, Jesus podcast and previously hosted the Christian television programme, The Remix. His arrest has brought federal authorities’ attention to statements allegedly made by him concerning the president.

The allegations against Southworth have not been established in court, and details of any criminal charges filed against him were not immediately available in the report. Federal authorities typically investigate threats against the president as potential federal offences.

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US law prohibits knowingly and willfully threatening to kill, kidnap or inflict bodily harm on the president. Such cases can result in federal prosecution if investigators determine that a statement meets the legal threshold for a criminal threat.

Federal authorities have pursued similar cases involving alleged threats against Trump in recent years.

The US Department of Justice has previously announced charges and convictions involving people accused of making threats against the president online and through other forms of communication.

Authorities have also stressed in previous cases that an arrest or criminal charge does not establish guilt. Prosecutors are required to prove the allegations in court, while defendants are presumed innocent unless convicted.

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Southworth’s arrest comes amid continued security concerns surrounding threats against Trump and other US public officials. Further details about the allegations, possible charges and Southworth’s next court appearance are expected to emerge as the federal case proceeds.

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Flooding: FCTA begins desilting of drains, warns against vandalism, illegal structures

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The Federal Capital Territory Administration (FCTA) has commenced a city-wide desilting of drainage channels following heavy torrential rainfalls that triggered flash floods across parts of the nation’s capital.

Inspecting the ongoing clearance operations along the Airport Expressway on Thursday, Mr Richard Dauda, acting Executive Secretary of the Federal Capital Development Authority (FCDA), said the exercise was directed by the FCT Minister, Mr Nyesom Wike.

The directive followed a flash flood that flooded the Airport Expressway on Tuesday.

According to Dauda, the effort is to mitigate flood risks during the peak of the rainy season.

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Dauda noted that while recent downpours align with earlier meteorological warnings and climate change trends, the Abuja Master Plan inherently recognises certain areas, including the Airport Expressway axis as flood plains.

He assured residents that while resilient infrastructure was originally built to handle high water volumes, human activities have severely compromised its efficiency.

“Some of these drainage facilities over time have been silted. Part of the cause is residents dumping refuse into drainage channels.

“When rain falls, it washes down polythene bags, waste, and even large objects that block the outlets,” he said.

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Dauda highlighted two major human factors aggravating the flash floods: illegal development and widespread infrastructure vandalism.

Exposing a major choke point along the expressway, Dauda pointed to a triple-cell box culvert meant to discharge a powerful stream flowing from the Galadima Roundabout.

He explained that a private developer had illegally constricted the waterway further downstream by constructing retaining walls to expand a personal plot.

“What that causes is that the volume of water that ought to pass no longer passes, causing detention, backflow, and eventual flooding.

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“To restore adequate discharge capacity, we must remove the structures built by this developer,” he said.

Dauda also decried the theft of metal gully inlet covers by vandals, which allows large debris to flow directly into underground drains instead of being sieved at the surface.

“When vandals steal these covers, it’s like stealing from yourself as a taxpayer,” he remarked.

To permanently curb the theft, he revealed that the FCDA is exploring replacement materials made from non-recyclable compounds rather than steel or cast iron.

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The FCDA boss confirmed that workers were already desilting trapezoidal drains, U-channels, and culvert outlets along the Airport Expressway, with plans to reconstruct damaged points where necessary.

Dauda urged Abuja residents to stop dumping refuse into waterways, warning that government infrastructure can only protect the city if public cooperation is guaranteed.

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