Opinion

PLAUDITS FOR OTTI, SOLUDO AND BAGO

Published

7 months ago

May 23, 2024

By Tunde Olusunle

A video clip which is just about two and half minutes in duration has been trending on the social media in the last few days. It captures the moment top officials of the Abia State government, arrive for a meeting of what could pass as a state executive council meeting, (ASEC), the sub-national variant of the federal executive council, (FEC). The faces of a few of my friends and colleagues indeed stroll past in the short clip. They include Kingsley Agomoh, an Assistant Corps Marshal of the Federal Road Safety Corps, (FRSC) who is on leave-of-absence to help the new administration in Abia and Kazie Uko, my colleague in the old *Daily Times.* Iheanacho Obioma, (we call him *Chomen*), a former federal parliamentarian, also appears in that recording. The curious and discerning will easily know that the venue of that converge is not the designated executive council chambers of Government House, Umuahia.

From the lacquer on the fence of the facility, to the interlocked driveway, and thenceforth to the improvised conference room where the meeting was held, it is obvious this is a private property. I’m indeed told it is the country home of Alex Otti, in Isiala-Ngwa, Abia South senatorial zone. The official address of the governor in Umuahia is probably undergoing renovation. And for Otti that is no reason to negatively impact the course of governance. Each senior Abia State government functionary, secretary to government, chief of staff, commissioner, adviser, technical assistant who walk past in the said video, carried their essentials themselves. They hauled their files, folios, notepads, laptops, handbags, backpacks, to the meeting themselves. There are no squirming, stampeding aides and security details needlessly occupying space, shoving people aside to make way for their principals. And you could see smiles on the faces of some of the officials an attestation to their subscription to the new administrative regimen. Otti, governor of the state himself arrived without fanfare, without ceremony in the said video, holding his mobile phone.

The Alex Otti regime in Abia State is barely one year in office. But the incumbent administration has compelled national attention and admiration to the state for the novel to governance championed by Otti, a former helmsman of the erstwhile Diamond Bank, which has since coalesced into the mega Access Bank. A few months ago, the 141 megawatts *Aba Integrated Power Project, (AIPP),* was commissioned by Nigeria’s Vice President, Kashim Shettima. Reputed to be the first of its kind in Nigeria, it will produce uninterrupted electric power for nine local government areas of the state which is about half the entire Abia State. True it was work-in-progress before Otti’s advent dating back 20 years by the governor’s own admission, the eventual consummation and operationalisation of the initiative was courtesy of the former banker. Critically, the infrastructure will liberate the infinite potentials of Aba, the *Enyimba City* which is the folkloric socioeconomic hub of the state.

Aba’s direct competitor in Nigeria’s South East is Nnewi in Anambra State, an equally vibrant nexus of multilevel entrepreneurial ingenuity. Since he became chief executive of the state two years ago, Chukwuma Soludo the globally recognised economist has worked hard to redefine governance and administration in the state. Soludo came into the job with a virtual truckload of competencies and experience. First, he is a class professor of economics who was called up by the Olusegun Obasanjo/Atiku Abubakar regime to serve first as economic adviser. He was soon after appointed governor of the Central Bank of Nigeria, (CBN), a position from which he superintended over the recapitalisation of Nigerian banks which facilitated their competitiveness in the global financial market. The exercise shrunk the nearly 100 banks, some wobbly and breathless, to 25 solid entities, a process which entailed partnerships and absorptions in many instances.

Soludo signalled his faith in home-made brands when he rode a sports utility vehicle, (SUV) built by the Nnewi-based indigenous vehicle production outfit, *Innoson Motors* to his inauguration in March 2022. The various components of his regalia to his swearing-in ceremony derived from various parts of Anambra State. He inherited a state which had previously assumed worldwide notoriety for large-scale violence. Faceless murderers branded “unknown gunmen” had free reign prawling contiguous streets of communities in the state hunting the innocent like game, in the full glare of the afternoon skies. Abductions, cannibalism, arson were rampant before Soludo’s coming. I had reason in 2021, to engage with the worrying issues in two public discourses, *Unknown Gunmen, November 6 and the Epidemic of Bloodletting* and *Gun Smoke from the East.* It seems the horrendous trends have been on a gradual downward slide, since Soludo’s coming.

Soludo is equally pursuing an aggressive infrastructural development programme. First, he is concerned about congestion in Awka the state capital and Onitsha the commercial capital of the state. His administration is poised to build three new cities. Masterplans for *Awka 2.0,* *Onitsha 2.0* as well as the *Anambra Mixed Industrial City* are being concluded. While those are in the works, Soludo has embarked on a very ambitious road development programme. This encompasses 400 kilometres of roads in the present phase and aims to facilitate seamless commuting by road users. Remediation of failed portions of existing road infrastructure is a regular chore, handled by statutory departments of government and contracting firms. The Soludo government has also been credited with remarkable fiscal prudence, the stuff of the prototype economist.

I began to take studied note of the enterprise of Mohammed Umar Bago the governor of Niger State when I followed his courageous works in the agricultural sector. I was once his guest a few years ago in his Maitama, Abuja home when he was in the House of Representatives. I visited him in company of a mutual friend, Bimbo Daramola who was in the “Seventh Assembly” with Bago. He is a tea aficionado by the way. He is also a dog lover which is a point of mutual convergence between us. Bago began this year by clearing one million hectares of arable land, preparatory to the approaching rainy season. Food security for his constituents is paramount on his agenda. His government has procured a record 500 mega-capacity tractors, as well as irrigation equipment, tillers, water and solar pumps among other accessories, to drive his agricultural vision.

True, Bago ruled against the shipment of truckloads of produce from his state to others earlier this year, in the face of inflation and imminent famine. He is fully cognisant though of the fact that his state has headwind advantage over many others in the country, in the agricultural sector. He is willing to do legitimate, mutually beneficial business. The landmass of Niger State is larger than that of Sierra Leone, by the way. If Niger State was a ravenous python, the belly of the state would effortlessly swallow Gambia and Togo put together! Bago’s administration is willing to partner with other states in agricultural development and exchange which informed the memorandum of understanding, (MOU), signed between Bago and his Lagos State counterpart, Babajide Sanwo-Olu, on behalf of their entities.

Governor Bago has also been unyielding in the battle against sundry criminalities which have held his people helplessly captive over the years. Kidnappings for ransom, routine invasions, occupation of communities by vagrants and wanton banditry, have headlined the security situation in Niger State in recent years. Bago has been at the fore of the mitigation of the situation vis-a-vis increased collaboration with, and support for the security sector in his state. His administration has provided support in terms of motor vehicles and equipments to the various security agencies, to enhance their performance. There is said to be motorised patrol by joint security services which has brought sanity to the state, notably the very important Suleja-Paiko-Minna road.

Bago has also directed the redesignation and remodelling of the moribund *Shiroro Hotel* in Minna as the new *Ibrahim Badamasi Babangida University Teaching Hospital.* The Niger State leader who spots a strikingly luxurious black beard and was a notable banker like the older Alex Otti before his political journey, is redeveloping Minna the state capital, as well as Suleja and Bida into model towns. His fiscal shrewdness evidenced by the fact that he saved N10 Billion from leaking valves within his first four months in office has loosened funds for investment in needy departments of statecraft. Among these is the ongoing construction of roads in all the local government areas of the state to ensure unimpeded movement by commuters and by extension the evacuation of agricultural produce to the secondary markets.

It is instructive that Alex Otti, Chukwuma Soludo and Mohammed Bago belong to different political tendencies, namely: the Labour Party, (LP); the All Peoples’ Grand Alliance, (APGA) and the All Progressives Congress, (APC). What this implies is that if democracy is allowed to grow and fruit without unobtrusive impunity and high-handedness from political high commands, Nigeria can be availed of some of its best across board. Enyinnaya Abaribe the senator representing Abia South for instance, is in the parliament for the fifth successive time for instance. Muscled out of the Peoples’ Democratic Party, (PDP’s) ticket by the immediate past governor of Abia State, Okezie Ikpeazu, Abaribe contested on the platform of APGA and won! Soludo himself had his own share of gravitation from the PDP to the APC before pitching his tent with APGA which ensured his pathway to his present office. Let’s hope that party politics in Nigeria is gradually throwing up some of our best albeit from unanticipated platforms.

Tunde Olusunle, PhD, is a Fellow of the Association of Nigerian Authors, (FANA)

Opinion

Tax Reforms: A Double-Edged Sword for Nigeria’s Economy

Published

4 days ago

December 15, 2024

Austin Ojomah

By Lukman Laleye Babalola.

When President Bola Ahmed Tinubu announced his ambitious tax reform agenda, it was clear that he intended to reshape Nigeria’s fiscal framework. The reforms, targeting personal income tax, corporate tax, and value-added tax (VAT) distribution, are undoubtedly bold and necessary. But like any sweeping policy change, they come with both promises and pitfalls.

As someone deeply invested in Nigeria’s socio-economic progress, I see these reforms as a double-edged sword—a tool for much-needed transformation, but one that requires careful handling to avoid cutting too deeply into the fabric of our fragile federal system.

Let us not downplay the potential benefits. The proposed exemption of individuals earning up to ₦800,000 annually from personal income tax is a welcome relief for low-income earners who have borne the brunt of rising inflation. Similarly, the reduction in corporate tax rates from 30% to 25% is a lifeline for businesses struggling to stay afloat in a challenging economic climate.

The overhaul of VAT revenue sharing, which allocates 60% of VAT revenue to the state where goods and services are consumed, aims to promote fairness and encourage states to boost their economic activity. For consumption-heavy states like Lagos and Rivers, this is a much-needed windfall that could translate into better infrastructure, healthcare, and education for their residents.

But these gains are not without costs. Nigeria’s regional disparities could deepen under this new tax regime. Northern states, with lower consumer activity and VAT contributions, stand to lose out, raising concerns about fairness in a nation already grappling with economic inequalities.

The implementation process is another hurdle. Overhauling a tax system is no small feat, and Nigeria’s tax collection mechanisms are notoriously inefficient. Without significant investment in infrastructure and human capacity, the reforms could collapse under their own weight.

Then there is the issue of political resistance. Many lawmakers and regional leaders, particularly from the north, have voiced concerns about the potential loss of revenue under the revised VAT formula. Balancing these competing interests will be a test of the administration’s political acumen.

Under the proposed tax reforms, states like Lagos, Rivers, and others in oil-producing regions stand to benefit significantly. With 60% of VAT revenue allocated to the state of consumption, high-consumption states like Lagos and Rivers are poised to see a substantial increase in their revenue. Lagos alone generates over half of Nigeria’s VAT, and retaining a greater share will empower the state to fund critical projects.

For oil-producing states, increased revenue can be invested in non-oil sectors such as agriculture, manufacturing, and tourism, helping them reduce dependency on crude oil and build more sustainable economies. The additional funds can be used to improve infrastructure, healthcare, education, and other public services, directly benefiting citizens in these states. The reforms also encourage states to create business-friendly environments to attract investments and increase consumption, further boosting revenue generation.

Members of the National Assembly are tasked with ensuring these reforms benefit all Nigerians equitably while addressing regional disparities. Legislators must address the fears of less economically vibrant states and push for transitional mechanisms, such as a redistribution fund, to support regions with lower VAT contributions. They must oversee how states utilize their increased revenues, ensuring the funds are invested in projects that directly benefit the public.

By engaging their constituents, lawmakers can explain the benefits of the reforms, address concerns, and secure public support, thereby easing tensions surrounding implementation. National Assembly members must also facilitate the passage of laws to strengthen tax administration, close loopholes, and ensure effective implementation of the reforms. Legislators from wealthier and poorer states alike must work together to ensure the reforms foster national unity and equitable development across all regions.

The National Orientation Agency (NOA) plays a critical role in ensuring public acceptance and understanding of the tax reforms. The agency must continue to simplify and disseminate information about the reforms to the grassroots, helping Nigerians understand how these changes will benefit them in the long run. By launching campaigns, the NOA can counter rumors and fears about the reforms, especially in regions where there is resistance due to concerns about inequitable benefits.

The NOA should encourage citizens to ask questions and provide feedback on the reforms. This engagement will foster trust and ensure the government remains accountable to its promises. The agency must also address regional concerns by showing how the reforms can be tailored to benefit less economically vibrant states through collaboration with local governments.

The Federal Inland Revenue Service (FIRS) is central to the success of the reforms, as efficient tax collection and administration are critical. The FIRS must invest in modern technology to improve tax collection processes, reduce leakages, and enhance compliance monitoring. Bringing the informal sector into formal taxation while ensuring compliance is not burdensome will also expand the tax net.

Training and equipping tax officers to handle the new tax structures efficiently will be crucial to prevent administrative bottlenecks. The FIRS must regularly publish reports on tax collection and utilization, fostering public confidence in the system. By collaborating with state governments, the FIRS can provide technical assistance to ensure states maximize their VAT collections under the new sharing formula.

As a nation, we cannot afford to shy away from difficult reforms. For too long, Nigeria’s tax system has been inefficient, inequitable, and unable to meet the needs of our growing population. These reforms, though imperfect, represent an opportunity to address these shortcomings and lay the groundwork for a more sustainable fiscal future. However, the government must tread carefully. Transparency, inclusiveness, and stakeholder engagement are non-negotiable. Addressing regional concerns and ensuring efficient implementation will be critical to the success of these reforms.

President Tinubu’s tax reforms have the potential to transform Nigeria’s economy, but they also carry significant risks. Agencies like the NOA and FIRS, along with the National Assembly, must work together to ensure the reforms deliver on their promise of a fairer, more prosperous Nigeria.

As we navigate this critical moment in our nation’s history, let us remember that true reform is never easy, but it is always worth pursuing when done with the greater good in mind.

*Lukman Laleye Babalola,is Publisher/Editor-In-Chief,Emporium Reporters online and Emporium Magazine.can be reached on [email protected], [email protected]

Opinion

These Tax windfalls from global ICT platforms

Published

1 week ago

December 11, 2024

Kayode Sanni-Arewa

By Sonny Aragba-Akpore

In the midst of mounting agitations for and against, the proposed Tax Reform Bills, the Federal Government of Nigeria recently made a bounteous harvest in taxes of about N2.5 trillion when global Information and Communications Technology (ICT) firms operating in the country complied with the Code of Practice for Interactive Computer Services/ internet intermediaries.

Kashifu Inuwa Abdullahi, the Director General of the National Information Technology Development Agency (NITDA) must be basking in the euphoria of this breakthrough as the guidelines he introduced a little over two years ago in controversial circumstances yield results which are incontrovertible.

Google, Microsoft, Tik Tok and others obeyed the Code of Practice for Interactive Computer Service Platforms/Internet Intermediaries and Inuwa whose collaboration with other government agencies including the Nigerian Communications Commission (NCC) and others, savors the glory.

These figures cover the first half of 2024 according to a statement by Hadiza Umar ,NITDA,s Director, Corporate Affairs and External Relations.

“The code establishes a robust framework for collaborative efforts to protect Nigerians against online harms, such as hate speech, cyber-bullying, as well as disinformation and/or misinformation.

Similarly, to ensure compliance with the Code of Practice, NITDA also wishes to notify all Interactive Computer Service Platforms/Internet Intermediaries operating in Nigeria that the Federal Government of Nigeria has set out conditions for operating in the country.

These conditions address issues around legal registration of operations, taxation, and managing prohibited publication in line with Nigerian laws.

The conditions include the need to:
*Establish a legal entity i.e., register with Corporate Affairs Commission (CAC);

*Appoint a designated country representative to interface with Nigerian authorities;

*Abide by all regulatory demands after establishing a legal presence;

*Comply with all applicable tax obligations on its operations under Nigerian law;

*Provide a comprehensive compliance mechanism to avoid publication of prohibited contents and unethical behaviour on their platform; and

*Provide information to authorities on harmful accounts, suspected botnets, troll groups, and other coordinated disinformation networks and deleting any information that violates Nigerian law within an agreed time frame.”

In line with best practices and In accordance with its mandates, President Muhammadu Buhari, directed NITDA to develop a Code of Practice for Interactive Computer Service Platforms/Internet Intermediaries (Online Platforms), in collaboration with relevant Regulatory Agencies and Stakeholders.

Accordingly , NITDA presented to the Public a Code of Practice for Interactive Computer Service Platforms/Internet Intermediaries for further review and input.

This was on June 13,2022.

The Code of Practice is aimed at protecting fundamental human rights of Nigerians and non-Nigerians living in the country as well as define guidelines for interacting on the digital ecosystem.

“This is in line with international best practices as obtainable in democratic nations such as the United State of America, United Kingdom, European Union, and United Nations.”

The Code of Practice was developed in collaboration with the Nigerian Communications Commission (NCC) and National Broadcasting Commission (NBC), as well as input from Interactive Computer Service Platforms such as Twitter, Facebook, WhatsApp, Instagram, Google, and Tik Tok amongst others. O

ther relevant stakeholders with peculiar knowledge in this area were consulted such as Civil Society Organizations and expert groups. The results of this consultations were duly incorporated into the Draft Code of Practice now a code in line with “the new global reality stating that the activities conducted on these Online Platforms wield enormous influence over our society, social interaction, and economic choices.

Hence, the Code of Practice is an intervention to recalibrate the relationship of Online Platforms with Nigerians in order to maximise mutual benefits for our nation, while promoting a sustainable digital economy.”

Hadiza Umar, quoting data from the Federal Inland Revenue Service (FIRS) and the National Bureau of Statistics (NBS) explained that these figures were clearly a windfall for the government.

This Code was issued jointly by the Nigerian Communications Commission (NCC), National Broadcasting Commission (NBC), and NITDA and it outlines clear guidelines for promoting online safety and managing harmful content including but not limited to the protection of children from harmful online content.

“Data from the Federal Inland Revenue Service (FIRS) and the National Bureau of Statistics (NBS) reveal that foreign digital companies, including interactive computer service platforms and internet intermediaries (such as social media platforms) operating in Nigeria, contributed over N2.55 trillion (approximately $1.5 billion) in taxes in H1 2024.

“This significant increase in revenue underscores the role of robust regulatory frameworks in shaping compliance and driving revenue growth in the digital economy,” NITDA stated.

Updates on the level of compliance with the Code of Practice for Interactive Computer Service Platforms/Internet Intermediaries, show that all the digital platforms made conscious efforts to address user safety concerns in line with the Code and the platforms’ community guidelines.

Overall statistics across all the platforms show that:
“They received 4,125,283 (Four million, one hundred and twenty-five thousand, two hundred and eighty-three) registered complaints in 2023.

Content takedown: 65.8 million Content removed and re-uploaded after appeal by users: 379,433 Closed and deactivated accounts: 12.09 million” NITDA is excited and pleads “ for continued collaboration and innovation to address emerging challenges and ensure a safer and more responsible digital space.”

NITDA in June 2022 announced the Code, which seeks to moderate activities on social media blogs and online publications.

Specifically, the Code states that internet platforms including social media should as a rule
“act expeditiously upon receiving a notice from a user, or an authorised government agency of the presence of unlawful content on its Platform.”

“Act quickly to remove, disable, or block access to non-consensual content that exposes a person’s private areas, full or partial nudity, sexual act, deepfake, or revenge porn, where such content is targeted to harass, disrepute, or intimidate an individual.

Disclose the identity of the creator of information on its Platform when directed to do so by a Court order.”
“Provided that an order of this nature shall apply for the purpose of preventing, detecting, investigating, or prosecuting an offence concerning the sovereignty and integrity of Nigeria, public order, security, diplomatic relationships, felony, incitement of an offence relating to any of the above or in relation to rape, child abuse, or sexually explicit material.”

NITDA commends the efforts of the platforms, for the goal of creating a safer digital ecosystem which requires continuous collaboration and engagement with all stakeholders to strengthen and enhance user safety measures, digital literacy, trust and transparency.

Section 1 paragraphs b to e of the NITDA Act, 2007 are particularly instructive because they empower it to:
“(b) Provide guidelines to facilitate the establishment and maintenance of appropriate for information technology and systems application and development in Nigeria for public and private sectors, urban-rural development, the economy and the government;

(c) Develop guidelines for electronic governance and monitor the use of electronic data interchange and other forms of electronic communication transactions as an alternative to paper-based methods in government, commerce, education, the private and public sectors, labour, and other fields, where the use of electronic communication may improve the exchange of data and information;

(d) Develop guidelines for the networking of public and private sector establishment;

(e) Develop guidelines for the standardization and certification of Information Technology Escrow Source Code and Object Code Domiciliation, Application and Delivery Systems in Nigeria;”

Opinion

Building a Stronger Nigeria Through Health, Transparency and Human Rights

Published

1 week ago

December 10, 2024

Naijablitznews

By Richard M. Mills

Every December, we mark three international observances that are at the heart of the U.S.-Nigeria partnership: World AIDS Day, International Anti-Corruption Day, and Human Rights Day. While distinct, these commemorations underscore a simple truth – Nigeria’s path forward requires progress on health, good governance, and human rights. The United States remains your steadfast partner on this journey.

For two decades, the United States has stood with Nigeria in the fight against HIV/AIDS under the President’s Emergency Plan for AIDS Relief (PEPFAR). The U.S. government has invested more than $8.3 billion in Nigeria’s health sector and provided life-saving anti-retroviral treatment to more than 1.5 million people. These numbers represent improved life expectancy and quality of life for these Nigerians and their families. In clinics across Nigeria, I’ve met dedicated healthcare workers who deliver HIV prevention, treatment, and care, supported by the resources of the American people. This work has done more than save lives – using HIV as an entry point, Nigeria’s health system has also benefited. As Nigeria’s health system is strengthened, this important work will be led by government and engagement with the private sector to sustain the gains. This commitment was reinforced during Ambassador Nkengasong’s recent visit, where his discussions with Nigerian health officials focused on how the Government of Nigeria would sustain the HIV health programs with strengthened Nigerian leadership and local ownership.

But positive health outcomes depend critically on good governance. When medical supplies are diverted, when healthcare workers go unpaid, when facilities buy dangerous, counterfeit medications or lack resources due to mismanaged funds, it costs lives. This is why the United States supports numerous initiatives, not only in the health sector, to enhance transparency and accountability in Nigeria. Our programs work directly with government agencies and civil society organizations to strengthen fiscal responsibility with the goal of the state ensuring resources reach their intended beneficiaries.

The success of these efforts rests on respect for human rights and civic engagement. When members of marginalized communities face discrimination in accessing healthcare, when citizens fear reporting blatant corruption like the need to pay for appointments or ‘free’ healthcare, or when vulnerable populations cannot advocate for their needs, development falters. Through our partnership with Nigeria, we promote the rights of every person to access essential services and enjoy fundamental freedoms without fear or discrimination.

These three areas – health, transparency, and human rights – reinforce each other. Consider the results: U.S.-supported initiatives have helped strengthen pharmaceutical supply chains, reducing theft and ensuring safe medicines reach patients. Our human rights programming has empowered civil society organizations to advocate for marginalized communities, leading to better access to health services. Our health system investments have created platforms for transparency that benefit all sectors. And, perhaps most importantly, according to a recent survey by the United Nations Office on Drugs and Crime, Nigerians are both more frequently refusing to pay bribes and reporting bribe seekers to investigative journalists and rule of law authorities. A shift in norms is beginning to take root and must continue.

The U.S. Embassy stands ready to support Nigerian voices pressing the fight against corruption in Nigeria. To Nigeria’s government officials, civil society leaders, healthcare workers, and citizens: your dedication to building a stronger nation inspires us. Together, we can continue to advance the interconnected goals of better health outcomes, good governance, and human rights for all Nigerians. Challenges remain, but the work we’ve done together shows what could be possible on a larger scale across these crucial domains.

As we mark these December observances, let us use this moment not just for reflection, but for renewed commitment and action. The United States continues to stand with the Nigerian people as they carry out this essential work with their elected government.

*Ambassador Richard M. Mills is the , United .States Ambassador to Nigeria