News

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

Published

8 months ago

May 28, 2024

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.

News

Port Harcourt refinery: NNPCL disowns recruitment notice

Published

3 hours ago

January 19, 2025

Kayode Sanni-Arewa

The Nigerian National Petroleum Company Limited (NNPCL) has disclaimed a purported recruitment announcement for the Port Harcourt Refining Company (PHRC), warning the public against falling victim to fraudulent schemes.

In a statement released on its official X handle (formerly Twitter) on Friday evening, the oil company clarified that no separate recruitment process was ongoing for PHRC beyond the one initiated in 2024.

The statement, titled “NNPC Ltd Disclaims Purported Recruitment Announcement for PHRC,” was signed by the Chief Corporate Communications Officer, Olufemi Soneye.

“The Nigerian National Petroleum Company Limited (NNPC Ltd) has urged members of the public to discountenance purported recruitment announcement for the Port Harcourt Refining Company (PHRC) circulating in certain online platforms,” the statement read.

NNPC Ltd further explained that its recruitment process, which commenced last year, covered all its subsidiaries, including PHRC. The company noted that candidates who passed the Computer-Based Aptitude Test were proceeding to the interview stage.

“The purported recruitment link being circulated in various online platforms is the handiwork of fraudsters who are keen on taking advantage of the newly revamped Port Harcourt Refinery to fleece unsuspecting members of the public with a phantom recruitment announcement. We, therefore, call on members of the public to be wary of the ploy and not fall for it,” the statement warned.

News

Hajj 2023 refund: Pilgrims from Adamawa get N61,080 each

Published

3 hours ago

January 19, 2025

Kayode Sanni-Arewa

The Adamawa State Muslims Pilgrims Welfare Commission has disbursed N61,080 to each of the 2023 pilgrims from the state over poor services rendered to them by the service providers while in Saudi Arabia.

The executive secretary of the pilgrims commission, Malam Abubakar Salihu, disbursed the refunded money, saying it was a step of accountability.

The disbursement was paid into the account of the pilgrims or, for those without account numbers, through the local government schedule officers of the 21 local governments of the state.

Responding on behalf of the beneficiaries, Alhaji Shuaibu Musa Mele appreciated the commission for ensuring that each pilgrim gets his rightful refund.

The Kingdom of Saudi Arabia had earlier refunded money through the National Hajj Commission of Nigeria, for sharing among the 36 states of the country.

News

Security operatives destroy Bello Turji’s food storage facility

Published

3 hours ago

January 19, 2025

Kayode Sanni-Arewa

A school building in Fakai village, reportedly used as a food storage facility by the notorious bandit leader Bello Turji, has been destroyed.

The facility, which had been stocked with large quantities of food supplies, was completely razed, leaving the structure in ruins.

According to local sources, the school was repurposed by the bandits to support their operations in the region.

It served as a key logistical hub for storing essential supplies, ensuring the group’s ability to sustain its activities over time.

The destruction of the stockpile is seen as a major setback for Bello Turji’s network. By eliminating a critical resource hub, the operation is expected to disrupt the group’s supply chain and hinder their ability to operate effectively in the area.

Counter-terrorism expert Zagazola Makama reported that the incident underscores ongoing efforts to counter the influence and operations of bandit groups in the region.

Residents of Fakai village and surrounding areas hope this effort signals further strides toward restoring peace and security.