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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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Wike Hails Near-Completion Of Major FCT Projects, Backs Chinda’s Emergence As Rivers APC Guber Candidate (Photos)

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The Minister of the Federal Capital Territory (FCT), Nyesom Wike, on Monday expressed satisfaction with the quality and pace of ongoing infrastructural projects across Abuja, declaring that several of them were ready for inauguration.

Wike, who also threw his weight behind the emergence of Hon. Kingsley Chinda as governorship candidate of the All Progressives Congress (APC) in Rivers State, said “the lawmaker has the experience and political pedigree needed to be a governor.”

Speaking on Monday, during an inspection tour of key projects in the nation’s capital, Wike said the projects reflected the commitment of President Bola Tinubu’s administration to delivering visible governance through infrastructural renewal.

“I think today is one of the happiest days. The projects we inspected, obviously, they are ready for inauguration,” the minister said.

Wike first inspected the Renewed Hope City road project in Karsana, which he said was about 98 per cent completed, commending the contractor, Lubriks Construction Company, for what he described as excellent delivery.

He also expressed satisfaction with work on the Old Keffi Road and Dei-Dei road projects, noting that asphalt work had largely been completed while installation of streetlights was ongoing.

At the Airport Road to Kuje Road project being handled by Arab Contractors, Wike described the work as “fantastic,” saying the road would significantly improve connectivity and boost economic activities in the area.

“I’m sure anybody who goes there will admire it and that is what is called governance. We are very proud of the contractors and what they have done,” he stated.

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The minister further inspected the Kuje-Gwagwalada road project being executed by Gilmor Engineering Limited, where he said infrastructure development had transformed the landscape of the area.

“You can see how infrastructure has changed the entire landscape of the Kuje area,” he said.

Wike later visited the City Gate project being handled by Julius Berger, describing the ongoing transformation as a major facelift for the capital city.

According to him, the project, initiated by Nigeria’s First Lady, Senator Oluremi Tinubu, would redefine the entrance into Abuja, especially at night.

“When you have a good woman who means well for the administration of her husband, I’m talking about the First Lady of Nigeria, Senator Oluremi Tinubu, this is her brainchild,” he said.

“I’m happy with the contractor. They promised that by the end of May or first week of June they would hand over this project and they have kept to time.

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“Anybody who passes here in the night will see a different city when they are coming in. They will know they are coming to the capital of Nigeria.”

On the emergence of Hon. Kingsley Chinda as the APC governorship candidate, Wike said; “A good product markets itself. Everybody knows that Kingsley Chinda is the material. He is quite experienced. He has worked with the executive and now in the legislature.”

The FCT minister added that Chinda’s political credentials and public acceptance made his emergence unsurprising.

Wike also said he was not surprised that the incumbent governor, Siminalayi Fubara, eventually withdrew from the governorship race, insisting that an earlier agreement had barred him from seeking a second tenure.

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“I’m not surprised that the governor withdrew. In the first place, he ought not to have collected the form because the agreement was reached that impeachment should be dropped while he should also not talk about second tenure,” he stated.

Wike accused the governor of failing to demonstrate “gentlemanliness” by initially obtaining nomination forms despite the political understanding reached among stakeholders.

According to him, President Bola Ahmed Tinubu had intervened several times to restore peace in the state and prevailed on lawmakers not to proceed with impeachment moves against the governor.

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“You do for me, I do for you,” no be so, FCT minister Wike tells Kado residents (Video)

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FCT Minister, Nyesom Wike, addressing residents at Kado Fish Market,during his inspection of Deidei to Life Camp Road today.

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2027: ADC threatens to drag to court Atikui if he withdraws from presidential race

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The African Democratic Congress, ADC, in Zamfara State has thrown its weight behind former Vice President Atiku Abubakar ahead of the 2027 presidential election, declaring him the party’s preferred candidate for the race.

Party stakeholders also warned that they would “sue” the Waziri Adamawa if he eventually decides not to contest the election.

The endorsement was made during a stakeholders’ meeting held on Saturday at the International Conference Hall in the Government Reserved Area, Gusau, the Zamfara State capital.

The gathering had in attendance members of the State Executive Committee, National Executive Committee representatives from the state, as well as the party’s governorship, National Assembly and House of Assembly candidates.

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In a communique released after the meeting, the party leaders said the decision followed wide consultations and discussions on the country’s current political and economic situation.

According to them, Nigeria needs an experienced leader with a national outlook who can restore stability, improve security and revive public confidence in governance.

The stakeholders described Atiku as a seasoned democrat with years of political experience and commitment to democratic governance and economic reforms.

They noted that his leadership experience places him in a strong position to lead the country at a difficult period.

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The meeting also witnessed strong support from party members, many of whom insisted that the former vice president must not withdraw from the race.

“We will sue the Wazirin Adamawa if he refuses to contest,” some members reportedly declared during the session.

Party leaders further stated that Nigerians were becoming more interested in transparent leadership and credible electoral processes ahead of the next general election.

Speaking at the meeting, Alhaji Abubakar Abdullahi, popularly known as Doctor, a former APC Zamfara Central Coordinator for the 2023 presidential election, said the political events that shaped the outcome of the last election in the state would not repeat themselves in 2027.

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He expressed confidence that voters would be allowed to freely decide their choice in the next election cycle.

The ADC in Zamfara also pledged full support for Atiku’s possible presidential ambition and promised to begin aggressive grassroots mobilisation across the state.

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