News

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

Published

5 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

Bill For Independent Candidacy Recommitted, Referred To Constitution Review Committee

Published

8 hours ago

October 17, 2024

Gloria Ikibah

By Gloria Ikibah

A major milestone was recorded on Wednesday at plenary as a bill seeking to alter the Constitution of the Federal Republic of Nigeria, 1999, to provide for independent candidacy in Nigeria was recommitted and referred to the Constitution Review Committee of the House of Representatives for further legislative action.

This development is a significant step towards promoting electoral reforms and strengthening Nigeria’s democracy.

Naijablitznews.com reports that th House of Representatives had earlier inaugurated a Constitution Review Committee to address various issues, including electoral reforms, devolution of powers, and fiscal federalism earlier this year.

The bill, titled “Constitution of the Federal Republic of Nigeria, 1999 (Alteration) Bill, 2024 (HB1630) (Independent Candidates),” is sponsored by Rep. Akin Rotimi Jr., who represents the Ekiti North 1 (lkole/Oye) Federal Constituency. This piece of crucial legislation, is a legacy bill from previous assemblies (7th, 8th, 9th), was reintroduced for consideration after being read for the first time in the 10th Assembly on Thursday, September 26, 2024.

The sponsor of the bill emphasized the importance of expanding political participation through independent candidacy.

He said: “This legislative action is pivotal for the continued evolution of our democracy. It recognizes the constitutional significance of offering citizens the option to run for public office independently, thereby ensuring greater inclusivity. “

The bill’s progress is guided by the combined provisions of Order Twelve, Rule 17, and Order 1, Rule 1(2), of the House of Representatives Standing Orders, underscoring the House’s commitment to a thorough legislative process.

Speaking to journalists on the bill after the plenary on Thursday, the Founder of ElectHER, Ms. Ibijoke Faborode said the recommittal of the Independent Candidacy Bill was a critical and progressive milestone.

She expressed enthusiasm at seeing the National Assembly unite in support of the bill, underscoring their dedication to a legislative agenda that promotes inclusiivity. Faborode also highlighted that the progress of the bill in the 10th Assembly marked a defining moment for Nigeria, with the potential to significantly shape the future of its democracy.

She therefore reaffirmed ElectHER’s continued partnership with the office of the House Spokesperson to champion public advocacy and engagement towards the final passage of the bill.

The bill was recommitted to the House Committee on Constitution Review for further comprehensive consideration and legislative action.

News

Just in :INEC announces date for Anambra governorship election

Published

10 hours ago

October 17, 2024

Kayode Sanni-Arewa

By Kayode Sanni-Arewa

The Independent National Electoral Commission (INEC) has fixed the date for the Anambra governorship election.

Addressing representatives of political parties at the INEC headquarters in Abuja on Thursday, October 17, INEC national chairman, Prof Mahmood Yakubu said the election will be held on Saturday 8th November 2025.

Hear him: “As you are aware, the last governorship election in Anambra State was held on 6th November 2021. By the effluxion of time, the governorship election is due next year.

In compliance with the mandatory requirement of 360 days, the formal notice for the election will be published on 13th November 2024. Party primaries will be held from 20th March 2025 to 10th April 2025.

“The candidate nomination portal will open at 9.00 am on 18th April 2025 and close at 6.00 pm on 12th May 2025. The final list of candidates will be published on 9th June 2025.

“Campaign in public by political parties will commence on 11th June 2025 and end at midnight of Thursday 6th November 2025. Voting will take place in all the 5,720 Polling Units across the State on Saturday 8th November 2025.

“The candidate nomination portal will open at 9.00 am on 18th April 2025 and close at 6.00 pm on 12th May 2025. The final list of candidates will be published on 9th June 2025.

The candidate nomination portal will open at 9.00 am on 18th April 2025 and close at 6.00 pm on 12th May 2025. The final list of candidates will be published on 9th June 2025.

“In the coming weeks, the Commission will provide details of other electoral activities, including the registration of new voters, transfer of voters and the replacement of lost or damaged PVCs.

“The detailed Timetable and Schedule of Activities for the 2025 Anambra State Governorship election will be uploaded to our website and social media platforms before the end of this meeting.”

News

Despite heavy hunger, World Bank Tells Nigerians Not To Oppose, Reverse Tinubu’s Economic Reforms

Published

11 hours ago

October 17, 2024

Kayode Sanni-Arewa

By Kayode Sanni-Arewa

Despite hunger, World Bank has urged Nigerians to support the ongoing economic reforms, warning that opposing or reversing them could have serious negative consequences for the country.

Speaking at the launch of the Nigeria Development Update (NDU) report in Abuja, the World Bank Country Director for Nigeria, Dr. Ndiame Diop, emphasized that while the reforms may be challenging, they are crucial for the nation’s long-term stability.

Dr. Diop cautioned that rolling back these reforms would be detrimental, saying, “Reversing the reforms would spell doom for Nigeria.”

In the same vein, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, reiterated the importance of staying committed to the reforms. He stated, “Any effort that is not sustained will be a waste. Together with the Governor of the Central Bank of Nigeria and the Minister of Budget and National Planning, we’ve been discussing how to stay on course.”

Edun further explained that the government’s focus is on reducing inflation while ensuring investments flow into critical sectors such as industry, where jobs can be created. “We are prioritizing market pricing and sat down with labor unions to explain why we cannot afford to let this opportunity slip.”

On the removal of subsidies, Edun noted, “Every day without subsidies means more funds available for education, healthcare, and other essential expenditures.”

Also speaking, Central Bank Governor Mr. Olayemi Cardoso highlighted the importance of promoting exports in light of the exchange rate adjustments. “The moderation in the FX rate should make our goods more competitive for export and discourage the importation of unnecessary goods,” he said