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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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Anambra takes action against primary school over N5,000 prefect nomination fee

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The Anambra State Government has slammed a one-month sanction on Blossom Fount School, Awka, for monetising student leadership by charging pupils N5,000 to contest for the position of head prefect.

The sanction, announced on Saturday by the state Commissioner for Education, Prof. Ngozi Chuma-Udeh follows reports that the school imposed the controversial fee on pupils in its primary section vying for leadership roles.

Describing the practice as “despicable,” Chuma-Udeh expressed outrage at what she called an attempt to commercialise student leadership and exploit the ambitions of young children.

She said, “Investigation is going on to know how the school is being run. It is an act of selling the psyche of the children to the highest bidder from the cradle, and it is not acceptable to this government.”

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“The act of commercialising student leadership and exploiting children’s ambitions for financial gain is despicable. It amounts to selling the psyche of the children to the highest bidder from the cradle, and it is strongly condemned,” she added.

Chuma-Udeh stressed that Governor Chukwuma Soludo’s administration remains committed to upholding integrity and fairness within the education system, stating that such practices will not be tolerated.

According to reliable sources, the ministry’s investigation is still ongoing, and further sanctions may be imposed depending on the outcome. The goal, officials say, is to ensure accountability and deter similar actions in schools across the state.

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NELFUND: ICPC deepens probe on loan fraud

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The Independent Corrupt Practices and Other Related Offences Commission has continued its probe into the alleged discrepancies in the disbursement of funds under the Federal Government’s student loan scheme, Sunday PUNCH has learnt.

This comes amid repeated denials from the Nigerian Education Loan Fund that no money was missing in the student loan scheme.

Sources within the anti-graft agency told our correspondent that the investigation began after NELFUND sent a request, asking the agency to track the disbursed funds, after the National Orientation Agency raised the alarm that some schools were cheating the students on the loans disbursed to them.

One of the sources, an official of the agency who spoke anonymously because of the sensitivity of the matter, however, said no one had been indicted yet.

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“We have just started the investigation. It was NELFUND that brought the matter to us to help them track where the money might have gone. We’ve not indicted anyone, but the allegation is still there,” the official said.

According to the source, preliminary findings revealed that N100bn was earmarked for the programme, but N28.8bn was disbursed to students.

Another source said further investigation had, however, shown that N203.8bn was received, out of which N44bn was disbursed.

“So far, we have not indicted anybody. They have disbursed N44bn. But when we get the recipients, we will find out if they did receive that amount. If they received the said amount, we will now find out where the discrepancy came from,” the senior official said.

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The source urged Nigerians to remain patient and avoid insinuations, adding that the agency would disclose its findings once the investigation was complete.

“Nigerians should be patient with us and let us do our work. There is no need for insinuations. We are getting to the root of this. If the amount of N44bn has been received by the recipients, then there won’t be any problem. And if there are discrepancies, we will unearth them and disclose them to Nigerians,” the source said.

“If there are discrepancies, we will unearth them,” another source added.

NELFUND, on its part, has continued to dismiss the allegations of misappropriation as “entirely false and deeply damaging.”

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In a statement issued on May 1, the Fund’s Director of Strategic Communications, Mrs. Oseyemi Oluwatuyi, stated that “the integrity of an institution established to deliver financial hope to millions of Nigerians must not be undermined by unverified claims.”

Managing Director of the Fund, Akintunde Sawyerr, also maintained this position during an appearance on Channels Television on May 4.

He confirmed that the Fund had actually received about N203bn, broken down as N10bn from the Ministry of Finance, N50bn from the EFCC’s proceeds of crime, and N143bn from TETFund.

He said, “The Nigerian Education Loan Fund has received about N203bn. I’ll break it down for you: N10bn from the Office of the Minister of Finance through the Office of the Accountant General, N50bn from the EFCC’s proceeds of crime, and N143bn from TETFund. So you can see already that the actual amount received is in excess of what’s even been said to have been received.

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“Out of that, N54bn has been disbursed to date, while N30bn and N24bn had gone to institutions and for upkeep respectively. So there’s a pocket money side to this. That’s N54bn disbursed already in the space of about 11 and a half months. It’s in the Central Bank of Nigeria.”

Sawyerr reiterated this stance when he appeared before the House of Representatives Committee on Students Loan, Scholarship, and Higher Education on May 8, firmly stating that no funds were missing.

The controversy first gained traction in April following a National Orientation Agency investigation, which uncovered claims that some tertiary institutions, in collaboration with banks, were withholding student loan disbursements.

Efforts to reach ICPC’s spokesperson, Demola Bakare, proved abortive.

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15 pipeline vandals convicted in Niger Delta, says Ribadu

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No fewer than 15 pipeline vandals across the Niger Delta region have been convicted, while 100 others are being prosecuted.

The National Security Adviser, Nuhu Ribadu, disclosed this on Friday at a town hall meeting organised by Petroleum Infrastructure Nigeria Limited, a pipeline surveillance contractor, in Yenagoa, Bayelsa State.

Ribadu, who was represented by his Special Assistant on Energy, Security and Finance, Amakiri Harry-Young, said his office was working assiduously to protect crude oil infrastructure in the Niger Delta region.

He said those convicted were being held at the Port Harcourt Custodial Centre.

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The NSA revealed that a special committee comprising investigative and prosecuting teams had been working round the clock to ensure that pipeline vandals and other offenders face justice.

According to him, the move followed concerns raised during a previous meeting about the arrest and quick release of oil vandals, which often led to further insecurity in the affected communities.

“The President is serious about the 2.5 million barrels, and we are doing everything necessary to reach that goal,” he said.

He added that success would depend on the collective efforts of all stakeholders involved, as the Federal Government was taking strong action against pipeline vandals who threatened national assets and local communities.

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In his opening address, the PINL Consultant on Community Relations, Dr Akpos Mezeh, said the firm had recorded major successes in safeguarding the Trans-Niger Pipeline through close collaboration with host communities, security agencies, and other key stakeholders.

Mezeh also stated that PINL had helped reduce crude oil theft and pipeline vandalism to near-zero infractions on the pipeline by investing in community needs, resolving disputes, and restoring the environment.

He pointed out that PINL had also improved crude oil production and restored greater investor confidence, thereby contributing to an increase in national revenue.

The President of the Ijaw National Congress, Prof Benjamin Okaba, stressed that Ijaw communities had always supported Nigeria’s unity and economic stability and also taken the lead in the management of pipelines through companies like PINL.

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Okaba called on communities to fully support PINL’s operations, stressing that any success recorded in protecting pipelines was also a credit to the Ijaw people.

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