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Tag: adeosun

  • Senate summons Adeosun, Amaechi over alleged diversion of $600m Euro bond

    The Senate on Thursday invited the Minister of Finance, Mrs. Kemi Adeosun, to appear before it to explain how the $600 million Euro bond sourced from the Chinese Government was used.

    The upper chamber said $600 million loan received to revive the power sector was allegedly diverted by the Federal Government to remodel four airports in the country.

    It noted that there was $600 million Euro bond from the Chinese Government for the rehabilitation of the power sector, out of which $100 million was allegedly diverted as counterpart funding for the remodeling of Lagos, Abuja, Kano and Port Harcourt Airports.

    The Chairman, Senate Committee on Public Accounts, Senator Mathew Urhoghide, issued the summon at the meeting of the committee on Thursday.

    Urhoghide, (representing Edo South), said the Minister of Transportation, Rotimi Amaechi and the Director- General of Debt Management Office (DMO), Mrs. Patience Oniha, would also appear before the committee on the matter.

    Urhoghide, who spoke when the Permanent Secretary, Ministry of Transportation, Sabiu Zakari, appeared before his committee, said those invited should appear before the committee next week to explain the rationale behind the movement of such loans from its original purpose to another.

    He said there was the need to establish the desirability of the loan.

  • FG’ll retain capital budget despite forthcoming elections – Adeosun

    FG’ll retain capital budget despite forthcoming elections – Adeosun

    The Federal Government’s capital budget would be strictly deployed to fund infrastructural projects across the country, particularly the completion of ongoing projects, the Honourable Minister of Finance, Mrs. Kemi Adeosun, has said.

    The Government, she added, would retain the capital budget despite forthcoming elections in the country.

    The Minister made this known on Friday in Abuja while representing the Vice President, H.E. Prof. Yemi Osinbajo, at a lecture delivered to the National Defence College (NDC) Course 26 participants.

    Responding to an enquiry by a member of the NDC Course 26 on the use of the capital budget for the general elections, Adeosun maintained that the present Administration would not engage in the diversion of the capital project funds for the forthcoming elections.

    The Minister said, “The Administration remains committed to infrastructure spending at the high levels of the past two years and the completion of major ongoing projects.”

    She further reiterated the commitment of the Administration to its programme of transformation, and jobs and wealth creation across the country.

    President Muhammadu Buhari had on November 7, 2017 presented a budget of N8.612 trillion to the National Assembly, with focus on massive infrastructure development which includes: key strategic roads, rail projects and power projects, among others.

    Earlier at the National Defence College, the Finance Minister had delivered the Vice President’s lecture to the Course 26 participants titled “Economic Dimensions of National Security: The Nigerian Experience”.

    In the speech, Vice President Osinbajo said improvement in economic security was vital to Nigeria’s economic growth, human security improvement, and realisation of national defence and security requirements.

    He assured that the Federal Government would continue to play a key role in ensuring national cohesion by promoting social inclusion as a Key State objective.

    “Economic development is a springboard for improved national security because it comes with growth which enables more resources for a growing population.

    “National economic development means that a country can meet its national security needs without depending on outsiders for the provision of its defence and security needs. Depending on food and energy imports makes a nation vulnerable to external pressure,” said the Vice President, who chairs the Economic Management Team (EMT) of the Government.

    He disclosed that the Administration adopted the Economic Recovery and Growth Plan (ERGP) as a response to the recession towards restoring growth and reducing Nigeria’s vulnerability to external shocks.

    He explained that the ERGP was initiated to address macroeconomic balance, increase contribution of agriculture, manufacturing, mining and high value services to the economy, build a competitive economy through the provision of infrastructure, and invest in the Nigerian people.

    On the Social Investment Programme, Vice President Osinbajo revealed that about 200,000 N-Power Jobs had been created under the programme while 250 million meals had been served under the Home Grown School Feeding Programme.

    He added that 300,000 micro loans had been issued under the Government Enterprise and Empowerment Programme.

    Osinbajo was upbeat about Nigeria’s outlook for 2018, noting that the Federal Government expects the economy to grow by 3.5 per cent, which is 1.4 per cent more than the International Monetary Fund’s projection of 2.1 per cent for Nigeria.

    “The inflation projection of 15.74% by end of 2017 was achieved and there is good reason to believe that the EGRP target of 12.42% by the end of 2018 can be achieved.

    “With regard to foreign exchange reserves, the level of $40.3 billion achieved by end January is already quite close to the amount of $43.53 billion projected in the ERGP for the end of this year. Given the current state of the oil market, this is a target that can readily be achieved,” the Vice President stated.

  • Over 56m Nigerians evade tax – Adeosun

    Over 56m Nigerians evade tax – Adeosun

    …Says wealthy Nigerians can longer evade tax

    The Minister of Finance, Mrs. Kemi Adeosun has said it will be difficult for the rich to avoid paying taxes given the plans by the government to widen the tax net and capture all those who should be paying.

    She expressed regret that no fewer than 56 million Nigerians, who should be paying taxes, are not paying.

    Mrs Adeosun spoke in Enugu during a sensitisation programme on the Voluntary Assets and Income Declaration Scheme (VAIDS). It was hosted by the Enugu State Government.

    The minister said huge sums of money had been moved out of Nigeria without the owners paying any tax. She said such people would be fished out.

    ”The good news for government, which is bad news for the tax evaders, is that globally, nations have agreed to share data under the Automatic Exchange of Information. This means that sitting at our desks in Abuja, we are getting information about assets that the owners thought were well hidden from the tax authorities.

    “As you know, Nigerians are entitled to keep their wealth anywhere in the world, including under their mattress, but what the law requires is that they pay tax on their income as they earn it,” Mrs Adeosun said.

    The event was attended by Enugu State Governor Ifeanyi Ugwuanyi; Deputy Governor Cecilia Ezeilo; Speaker. Edward Uchenna Ubosi; Commissioner for Finance Eucharia Uche Offor, members of the State Executive Council, members of the House of Assembly and traditional rulers, among others.

    The minister said: “Payment of taxes is a fundamental requirement for our growth story. Nigeria has a very poor scorecard in tax payment. When oil came, we abandoned the old system of tax collection that provided most of our infrastructure since colonial days.

    ”Currently, we have just 14 million tax payers out of 70 million who are economically active. So, many people who should be paying are not paying anything. It is the development of taxes that will help the states and the Federal Government to achieve their true potentials.”

    She explained that payment of taxes had become imperative to avoid the recent collapse in oil prices and the resultant recession.

    Mrs. Adeosun recalled that after years of neglect, the Federal Government has revived some road projects, including the 9th Mile – Ngwo – Milken Hill – New Market.

    “Indeed, the President Muhammadu Buhari Administration has completely transformed road expenditure. In 2015, the figure was N19 billion for the whole nation; in 2016, we increased it to N220 billion and we plan to do much more.

    “This government has recognised that infrastructure is the key to creating jobs, growth and wealth. We have already released N1.2 trillion in capital so far for the 2017 Budget, which commenced in June 2017 and most of this was applied to roads, bridges, rail, power, our airports and other key infrastructural projects.

    “How will this capital investment translate to jobs? Not only do we get the direct jobs with construction companies and others but there is indirect opportunity for suppliers of building materials and aggregates.

    “In the longer-term, efficient infrastructure reduces the costs of doing business and makes many ventures viable and profitable. We are seeing young entrepreneurs springing up to replace imported items with locally made goods of the highest standards. We are seeing export of foods and finished goods into international markets,” Mrs. Adeosun said.

    On VAIDS, the minister said the scheme was initiated to provide an opportunity for tax payers to regularise their tax status relating to previous tax periods.

    She maintained that tax defaulters who failed to take advantage of the programme would be subjected to tax investigations as well as made to face criminal prosecution for tax offences.

    Ugwuanyi lauded Buhari and the minister for their “resourcefulness and dynamism” in the establishment of VAIDS.

    He enjoined all tax payers to take advantage of VAIDS to regularise their tax liability.

    The governor urged the President and the minister to prevail on federal agencies in the state to pay their taxes.

    He said the state government was committed to growing its Internally Generated Revenue (IGR), which had increased from N14 billion in 2016 to N22 billion in 2017.

     

  • Rich can longer escape tax in Nigeria – Adeosun

    Rich can longer escape tax in Nigeria – Adeosun

    It will be difficult for the rich to avoid paying taxes given the plans by the government to widen the tax net and capture all those who should be paying, Finance Minister Kemi Adeosun said yesterday in Enugu.

    She expressed regret that no fewer than 56 million Nigerians, who should be paying taxes, are not paying.

    Mrs Adeosun spoke in Enugu during a sensitisation programme on the Voluntary Assets and Income Declaration Scheme (VAIDS). It was hosted by the Enugu State Government.

    The minister said huge sums of money had been moved out of Nigeria without the owners paying any tax. She said such people would be fished out.

    ”The good news for government, which is bad news for the tax evaders, is that globally, nations have agreed to share data under the Automatic Exchange of Information. This means that sitting at our desks in Abuja, we are getting information about assets that the owners thought were well hidden from the tax authorities.

    “As you know, Nigerians are entitled to keep their wealth anywhere in the world, including under their mattress, but what the law requires is that they pay tax on their income as they earn it,” Mrs Adeosun said.

    The event was attended by Enugu State Governor Ifeanyi Ugwuanyi; Deputy Governor Cecilia Ezeilo; Speaker. Edward Uchenna Ubosi; Commissioner for Finance Eucharia Uche Offor, members of the State Executive Council, members of the House of Assembly and traditional rulers, among others.

    The minister said: “Payment of taxes is a fundamental requirement for our growth story. Nigeria has a very poor scorecard in tax payment. When oil came, we abandoned the old system of tax collection that provided most of our infrastructure since colonial days.

    ”Currently, we have just 14 million tax payers out of 70 million who are economically active. So, many people who should be paying are not paying anything. It is the development of taxes that will help the states and the Federal Government to achieve their true potentials.”

    She explained that payment of taxes had become imperative to avoid the recent collapse in oil prices and the resultant recession.

  • Public Finance: Adeosun Tasks Treasury Managers on Accountability, Transparency

    Public Finance: Adeosun Tasks Treasury Managers on Accountability, Transparency

    …Wants Weak Finance Control Act Reviewed

    The Honourable Minister of Finance, Mrs. Kemi Adeosun, has challenged Treasury managers to ensure transparency and accountability in the management and control of the country’s public finance.

    She gave the advice at the second National Treasury Workshop held in Tinapa, Cross River State.

    The workshop was attended by Directors of Finance and Accounts in all Federal and State Governments’ Ministries, Departments and Agencies, Heads of Finance and Directors of Internal Audit and other stakeholders in national public finance management.

    The Minister, who was represented by the Director of Special Projects in the Federal Ministry of Finance, Dr. Mohammed K. Dikwa, emphasized the need for a change in the mindset of Treasury managers in order to reform the basic polity.

    She said, “The basic and fundamental approach to financial and economic reforms is to reform the basic polity. Reforms must be impacting and sustainable and should fit into the cultural ethos of Nigeria, among others.

    “There is the need to evolve a culture which is value-based. It is expected that this workshop would draw from universal public values such as public trust, accountability, equity, transparency, ethical standard and selflessness.”

    Adeosun called for a review of the Finance Control and Management Act of 1958, noting that the law was outdated and weak in instituting greater accountability and transparency in the conduct of government financial businesses

    The Finance Control and Management Act provides detailed guidelines on control and management of the public finance of the country.

    The Minister tasked the nation’s Treasury managers to critically examine the Finance Control and Management Act and other related financial issues with a view to addressing some of the inherent deficiencies in the provisions.

    On the Economic Recovery and Growth Plan (ERGP), she explained that it was conceived by the President Muhammadu Buhari Administration towards laying a solid foundation for long-term economic growth.

    She added that the emphasis of the ERGP was on local content business empowerment.

    “The ERGP has been further designed to build competitive market, invest in infrastructure and human resources as well as harmonize monetary, trade and fiscal policies for the purposes of boosting non-oil revenue, reduction in cost of governance, privatization of selected public enterprises/assets, delivery on agriculture and transportation, among others,” the Minister stated.

    Adeosun recalled that the Federal Government through the Federal Ministry of Finance had embarked upon a number of financial reforms with a review to strengthening governance, accountability, reduce corruption and deliver service more effectively.

    She listed some of the initiatives introduced by the Government to include: full implementation of the Treasury Single Account (TSA), Presidential Initiative on Continuous Audit (PICA), Revenue Boosting Initiatives, Fiscal Sustainability Plan, Voluntary Assets and Income Declaration Scheme (VAIDS), Whistleblower Policy, Cash Management, Efficiency Unit, Healthpay Project, Family Homes Project, Asset Tracing Team, and Road Trust Fund, among others.

    Earlier in his address at the workshop, the Accountant-General of the Federation, Alhaji Ahmed Idris, had urged public financial managers to come up with innovative ideas to address some of the challenges facing the Treasury and economy.

    Idris said, “I will advise our public financial managers to see the current challenges facing the treasury and the economy as an opportunity to spur them to form a united front that will generate great ideas resulting in the provision of lasting solutions to the problems.”

     

  • FG no longer paying subsidy to marketers on fuel importation – Adeosun

    The Minister of Finance, Kemi Adeosun, says no more payment of fuel subsidy to marketers as the Nigeria National Petroleum Corporation bears the loss of fuel importation “on behalf of all Nigerians”.

    Adeosun said this while fielding questions from State House correspondents after the Federal Executive Council meeting, which was presided over by President Muhammadu Buhari at the Presidential Villa, Abuja on Wednesday.

    She said the NNPC was presently doing all the importation of Premium Motor Spirit and hence “there is no subsidy but rather under recovery”.

    Adeosun said: “So for every time we get excited that the oil price is going up, there is also a knock on effect on the price of imported PMS and that is a function of us not having refining capacity.

    “It is one of the unfortunate impact of that.

    “Now, when there is talk of payment of subsidy, technically today, there is no subsidy but there is under recovery.

    “Why that is because NNPC is presently doing all the importing.

    “They are importing at a higher price than they are selling, which means they are losing money, which means effectively that loss is being borne by everybody and effectively it reflected in the Federation Account.

    “So, there is no subsidy payment in the way the old subsidy scheme use to work where they were paying the oil marketers but there is an under recovery.

    “A loss on the importation of PMS being borne by NNPC and, therefore, indirectly being borne by every one of us.”

    The minister further explained that the revenue being generated by all Federal Government revenue generating agencies was being shared to fund the budgets of the three tiers of government in the country.

    Adeosun said: “But if you also follow those who cover the FAAC accounts, you will know that that money is shared every month among the three tiers of government.

    “That is what makes up the FAAC.

    “The FAAC is made up of Customs revenue, FIRS revenue and NNPC revenue.

    “So that money is not just for federal budget, it is all for the three tiers of government.

    “That’s all they all live on.

    “So customs has improved its revenue significantly and will continue to do so, but you do need to remember that there are three tiers of government sharing that money.”

    The minister said Nigeria was able to pull out of the economic recession due massive budget spending on infrastructure by the government.

    According to Adeosun, the massive spending, which also resulted to debt deficit, helped to create jobs and drive growth.

    She said: “When you are in a recession, the way you get out of it is to spend money.

    “So, we increased the size of our budget deliberately, so we will need to borrow the difference and that is why you have the debt deficit, which is what really translates to the massive spending on infrastructure.

    “This helped us out of recession in five quarters when many oil producing countries stayed in recession for two, three years.

    “That was a deliberate strategy of this government because we needed to spend our way out of recession.

    “We spent specifically on infrastructure, which we felt will create jobs and drive growth.

     

  • Adeosun suspended me because I refused to stop Oando audit – Gwarzo

    Suspended Director General of Securities and Exchange Commission, SEC, Munir Gwarzo has said the Minister of Finance, Mrs. Kemi Adeosun because he (Gwarzo) refused to stop the audit of Oando.

    The suspended DG revealed this at an investigative hearing organised by the House Committee on Capital Market and Institutions on Tuesday at the National Assembly.

    However, the minister insisted that the suspension of Mr. Gwarzo followed due process.

    “Mr. Munir was suspended in accordance with the public service rule. The suspension is in line with the Public Service Rules (PSRs) 03405 and 03406,” the minister said.

    She said the Investment and Securities Act empowers the minister to act in absence of the board.

    “In absence of the board, the minister has the power to suspend the Director General. We have not gone outside the context of the law in suspending the DG,” she added.

    On the allegations linking Mr. Gwarzo’s suspension to the forensic audit being conducted on Oando, she said simply: “it is mischief to link the matter to Oando.”

    Meanwhile, the suspended director general, insisted that the minister had no powers to suspend him.

    He said that interference by the minister of finance into the affairs of SEC has never happened in the history of the organisation.

    He said the commission should not be seen, ”as a public service.”

    “I was removed pursuant to non-existing laws in Nigeria,” Mr. Gwarzo said.

    He added that the minister earlier told him before his suspension that he should stop the forensic audit on Oando and Oasis Insurance Company which he attributed as the reason for his suspension.

    He accused the minister of having special interest in the two companies.

    The minister had suspended Mr. Gwarzo, from office over allegations of financial misappropriation.

    She further clarified that the suspension was to allow ”unhindered investigation into several allegations of financial impropriety leveled against Mr. Gwarzo.”

    Recall that Mr. Gwarzo was suspended alongside Abdulsalam Naif-Habu, the Head of Media Division and Anastasia Braimoh, who heads the Legal Department.

    Mr. Gwarzo was alleged to have ”paid himself” N104 million severance package when he was appointed DG SEC, from the position of a director in the same commission.

    This, the minister said is in total disregard to the standing rule in the civil service which states that severance benefit can only be paid to an employee who has concluded his or her service or has completely disengaged from service.

    Prior to these controversies, the House of Representatives resolved to probe all allegations of corruption in the SEC.

    The committee on capital markets and institutions are expected to lay their recommendations before the House soon.

     

  • Reps open public hearing on Adeosun, Gwarzo rift

    The House of Representatives has opened a public hearing on the rift between the Minister of Finance, Mrs. Kemi Adeosun, and the suspended Director-General of the Securities and Exchange Commission, Mr. Mounir Gwarzo.

    The hearing is being conducted by the House Committee on Capital Market and Institutions.

    It is chaired by a Peoples Democratic Party member from Kogi State, Mr. Tajudeen Yusuf.

    Reps and Gwarzo are already seated, but Adeosun sends words that she will join the session later.

    Details later…

  • Work harder, we’ll increase your salaries soon, Adeosun tells Customs officers

    The Minister of Finance, Kemi Adeosun, has promised to ensure a salary increase for officers of the Nigeria Customs Service, NCS.

    Mrs. Adeosun made the promise at the celebration of International Customs Day at the Customs Command and Staff College Gwagwalada, Abuja, on Friday.

    The theme of the event was “A secure business environment for economic development’’.

    The minister was represented by the Ministry’s Director of Finance, Oladudumi Bisola.

    Mrs. Adeosun urged officers of the NCS to put in more efforts to rise above target in revenue drive.

    She said that security of trade environment was central for business to proper, adding that security aspect of Customs role was as important as its revenue role.

    “The theme of this year Customs day coincides with the current ease of doing business initiative of the Federal Government.

    “We understand that the initiative is already yielding dividends based on the fact that we have improved by 24 points in the World Bank ranking system,’’ Mrs. Adeosun said.

    She commended the NCS for its remarkable success in ensuring national security in the past years.

    According to her, seizure of arms and ammunitions at the seaports were the possible indications that the Service is alive to its responsibilities.

    The minister also pledged to give the NCS the required support to succeed.

    The Comptroller-General of Customs, Hameed Ali, said the Service had made steady progress in automation of its processes.

    The Comptroller-General said in addition to these were other reforms aimed at ensuring a secured business environment.

    Mr. Ali said that other ongoing reforms in the Service were repositioning it through strategic deployment, training and automation of Customs processes.

    He said that clearance process through Pre-Arrival Assessment Report (PAAR), fast track facility for compliant traders and the post clearance audit were aimed at reducing clearance time and cost.

    “The minister has been working diligently on how to see the welfare of the NCS improves.

    “We are presently working on the computation of figures and she is waiting for that figure.

    “As soon that is made available, then, the decision between her and Mr President will determine what Customs gets.

    “I assure all Customs officers that between the minister and the President, both are all ready to see that there is an improvement in welfare of NCS,’’ Mr. Ali said.

    The Customs boss urged Nigerians to support indigenous businesses by patronising made in Nigeria goods to encourage local production and boost industrial base.

     

  • We need AfDB to assist African Nations to mobilise resources – Adeosun

    Nigeria’s Minister of Finance, Mrs. Kemi Adeosun, has called for a strong and well capitalized African Development Bank (AfDB) that is capable of fulfilling its commitments to member-countries.

    Adeosun made this call at the Regional Consultative Meeting between the AfDB President, Mr. Akinwumi Adesina and the Bank’s Governors and Ministers of Finance from West Africa and Central Africa held recently in Abidjan, Côte d’Ivoire.

    The meeting was the first consultations of its kind since the creation of the Bank in 1963.

    The Nigerian Minister stated that a solid AfDB was required to assist the African countries to mobilise their internal resources.

    She stated, “At the height of the crisis that shook our economy due to the fall in oil prices, the AfDB provided us with substantial budget support, while other partners were very reluctant.”

    Adesina told the Bank Governors that the annual meetings had hitherto been the only setting for group dialogue between the Governors and the Management of the Bank.

    “We intend for this type of consultation to be an annual event that provides another opportunity to listen to you, to seek your advice and discuss important developments and matters important to the work of the Bank and Africa’s development.”

    At the meeting, the Governors and the AfDB Senior Management agreed to accelerate the implementation of the Bank’s five strategic priorities which include: light up and power Africa, feed Africa, industrialise Africa, integrate Africa, and improve the quality of life for the people of Africa

    They also called for an increase in capital mobilisation to allow the Bank to meet its mandates for Africa, in view of considerable reductions in official development assistance.

    The AfDB Governors recalled that the sixth capital increase, ratified in 2010, made it possible for the Bank to take the volume of loans to unprecedented levels.

    They added that aid to countries receiving African Development Fund financing had increased seventeen-fold.

    Meanwhile, the AfDB Treasurer and Acting Vice-President, Finance, Hassatou Diop N’Sele, has assured that the Bank was financially strong.

    “We know that our continent needs substantial resources to meet its development goals. Without Africa, the sustainable development goals will not be achieved globally,” N’Sele said.