Tag: Tax

  • NCC seeks end to multiple taxation

    NCC seeks end to multiple taxation

    The Nigerian Communications Commission (NCC) has called for a continuous telecoms stakeholders engagement to eliminate the effects of multiple taxation on economic development.

    NCC Executive Commissioner, Stakeholders Management, Mr Adeleke Adewolu, made the call during NCC South West Regional Telecoms Stakeholders’ Workshop on Multiple Taxations and Regulations held in Ibadan on Wednesday.

    Adewolu said that multiple taxation in the telecoms industry had continued to be the bane of economic development in the country.

    According to him, taxation by design remains an instrument for economic development.

    He added that the initiative of all tiers of government in using taxation as an instrument for socio-economic development needed to be supported.

    He, however, noted that supporting the tax initiatives by the various tiers of government includes indicating where a category of taxes had become cancerous to economic development.

    “These types of taxes typically manifest themselves in the form of multiple taxation and by design, they reverse growth, stifle innovation and discourage investment.

    “The 2017 Tax Policy specifically states that taxes similar to those being collected by a level of government should not be introduced by the same or another level of government.

    “President Bola Tinubu, in his commitment to address the vexed issue of multiple taxation, recently signed a number of Executive Orders to curb arbitrary taxes in the country.

    “This I believe will facilitate a conducive environment for local and foreign investment into the country, ” Adewolu said.

    Also the Director, Monitoring and Enforcement, NCC, Mr Efosa Idehen, said that the workshop theme “Navigating the Landscape of Multiple Taxation and Regulations: Fostering Sustainable Growth Through Collaboration”, was apt.

    According to him, the theme was chosen to reflect the NCCs core value of strategic partnership and the dire need for concerted effort to allow the telecoms sector breathe to its full potential.

    “This campaign is not against the fair and legitimate tax heads of respective government agencies as prescribed by law but a solemn call for the review and implementation of a workable structure that ensures only legitimate payment, “he said.

    In his contribution, the Executive Secretary, Association of Licensed Telecoms Operators of Nigeria (ALTON), Mr Gbolahan Awonuga, said that Mobile Network Operators (MNOs) now paid up to 49 different taxes to governments and their agencies in Nigeria.

    He noted that multiple taxation and other challenges such as power, vandalism, host communities problems, amongst others, remained major impediments to infrastructure and network penetration in Nigeria.

    The workshop featured contributions from heads of government agencies, MNOs, subscribers and other critical stakeholders in the telecommunications industry.

  • Nigeria sets ambitious N20 trillion revenue target

    Nigeria sets ambitious N20 trillion revenue target

    Nigeria, Africa’s largest economy, has announced a sweeping review of its existing tax incentive framework with the aim of boosting revenue collection and fostering economic growth.

    This ambitious initiative is part of a broader strategy to achieve N20 trillion in revenue which is nearly double its current N10.1 trillion collection, simplify the tax system, and stimulate economic prosperity.

    The reforms, spearheaded by the Presidential Fiscal Policy and Tax Reforms Committee chaired by Taiwo Oyedele, are expected to stimulate economic activity, attract foreign investments, and encourage specific sectors.

    Oyedele revealed that approximately N6 trillion is disbursed annually as tax incentives, often without yielding the intended benefits for the nation’s economy.

    “If you look at our tax expenditure reports over the past three to four years, on the average, we are giving away around N6tn per annum. That is significant. What we have not been measuring enough is the benefit we are getting from that,” he said.

    Balancing Economic Growth and Revenue Generation

    The Nigerian government’s decision to revisit tax incentives comes in the wake of the need to strike a balance between promoting economic growth and increasing revenue generation.

    Simplifying the tax system is an essential element of this reform. By reducing the complexity of the tax code and streamlining the number of taxes payable by Nigerians, the government aims to create a more business-friendly environment and reduce the burden on taxpayers, ultimately fostering economic growth.

    The first pillar of these reforms is a commitment to data-driven decision making. By harnessing data and evidence, the government aims to design incentives that are tailored to the nation’s specific needs and goals.

    This approach will ensure that incentives are targeted, effective, and subject to periodic evaluation.

    Another vital aspect of this initiative is the harmonization of tax collection. Streamlining the processes and procedures for tax collection will ensure greater efficiency and minimizes potential revenue leakage, according to Oyedele.

    He said the harmonization will also reduce the administrative burden on both taxpayers and government agencies.

    The committee Chairman added: “So to close that gap, we will rely on automation and the efficiency of collection including harmonisation of how those taxes are collected.

    “The other thing is, if you also consider the incentive rationalisation maybe it’s not N6 trillion we should be giving away maybe it’s N2 trillion which must be targeted at people that need them the most.”

    He  further acknowledged that while challenges abound, the reform strategy has the potential to unlock Nigeria’s full economic potential and position the country as a regional and global powerhouse.

  • We have no plans to increase taxes – FG

    We have no plans to increase taxes – FG

    The Federal Government says it has no plans to increase taxes or add to the burdens of the country’s tax paying citizens.

    The Chairperson, Presidential Committee on Fiscal Policy and Tax Reforms, Mr Taiwo Oyedele, said this on Tuesday while reacting to unconfirmed reports of government’s plans to increase taxes.

    The tax expert revealed that what government proposed was to reduce the country’s over 60 official taxes down to a single digit tax number.

    According to him, the plan is to be able to reduce the number to single digit so that across all levels of government, you do not pay more than 10 taxes.

    “We are confident that this is possible with the support of everyone and we will continue to do what we can to close the tax gap to generate revenue instead of increasing taxes.

    “We have the inaugural meeting of the committee and workshop next week Tuesday and more information will be provided to the public afterwards,” he said.

  • JUST IN: Tinubu vows to end Nigeria’s over reliance on borrowing

    JUST IN: Tinubu vows to end Nigeria’s over reliance on borrowing

    President Bola Tinubu on Tuesday in Abuja expressed his resolute commitment to break the vicious cycle of overreliance on borrowing for public spending, and the resulting burden of debt servicing it places on the management of Nigeria’s limited government revenues.

    Inaugurating the Presidential Committee on Fiscal Policy and Tax Reforms, chaired by Mr. Taiwo Oyedele, the President charged the committee to improve the country’s revenue profile and business environment as the Federal Government moves to achieve an 18% Tax-to-GDP ratio within three years.

    The President directed the Committee to achieve its one-year mandate, which is divided into three main areas: fiscal governance, tax reforms, and growth facilitation. He also directed all government ministries and departments to cooperate fully with the committee towards achieving their mandate.

    President Tinubu told the Committee members the significance of their assignment, as his administration carries the burden of expectations from citizens who want their government to make their lives better.

    “We cannot blame the people for expecting much from us. To whom much is given, much is expected. It is even more so when we campaigned on a promise of a better country anchored on our Renewed Hope Agenda.

    “I have committed myself to use every minute I spend in this office to work to improve the quality of life of our people,” he declared.

    Acknowledging Nigeria’s current international standing in the tax sector, the President said the nation is still facing challenges in areas such as ease of tax payment and its Tax-to-GDP ratio, which lags behind even Africa’s Continental average.

    “Our aim is to transform the tax system to support sustainable development while achieving a minimum of 18% tax-to-GDP ratio within the next three years.

    “Without revenue, government cannot provide adequate social services to the people it is entrusted to serve.

    “The Committee, in the first instance, is expected to deliver a schedule of quick reforms that can be implemented within thirty days. Critical reform measures should be recommended within six months, and full implementation will take place within one calendar year,” the President directed.

    Recounting the President’s sterling track record on revenue transformation, the Special Adviser to the President on Revenue, Mr. Zacchaeus Adedeji described the committee members, drawn from the public and private sectors, as accomplished individuals from various sectors.

    “Mr. President, you have the pedigree when it comes to revenue transformation. You demonstrated this when you were the Governor of Lagos State over 20 years ago,” the Special Adviser said.

    Chairman of the Committee, Mr. Taiwo Oyedele pledged the total commitment of members to give their best in the interest of the nation.

    “Many of our existing laws are out-dated, hence they require comprehensive updates to achieve full harmonisation to address the multiplicity of taxes, and to remove the burden on the poor and vulnerable while addressing the concerns of all investors, big and small,” he said.

  • Everywhere don red – By Francis Ewherido

    Everywhere don red – By Francis Ewherido

    I am not an economist. If you want to listen to or read real economic analysis, both the ones you understand and the ones that are alien to you, go and listen to Mr. Bismarck Rewane and his likes. But I did economics in secondary school and got a credit, plus what I have learnt since then, especially in a turbulent economy like ours. That is the foundation on which I am tiptoeing into this unfamiliar terrain.

    I have been an advocate of the discontinuation of fuel subsidy. I am not averse to enjoying a little of the natural gifts God gave to us, but the poor management of our economy made the stoppage inevitable. More annoying is our inability to police our borders properly which made us subsidise fuel for at least four other countries. Common sense readily tells you that it is senseless. Fuel subsidy had to go.

    But I agree with people who feel that the subsidy removal should have been better managed and measures should have been put in place to lessen the inevitable negative effects on Nigerians. Now that we have realised that, how are we going to go about it? Please note that we are all affected. We go to the same petrol stations to buy fuel and markets to buy food and other items. Some state governments are getting buses for civil servants to ease transportation challenges, etc. Some states are also about to pay civil servants N10,000 monthly to cushion the effects of the high cost of living. I have no problem with that, but the gesture should be extended to other citizens. Many of them are taxpayers and therefore stakeholders.

    Two, sometime ago, the federal government exempted companies with less than N25m annual income from paying certain taxes. It is about time the federal government and all state governments implement such a policy in PAYE for low income earners. Righty now, the Nigerian Labour Congress and other trade unions are asking for a review the minimum wage to between N200,000 and N300,000 monthly for their members. When the new wage age is agreed on, where is the money to pay government workers going to come from? Apart from the federation account and federal allocation to states, internally generated revenue is the only other source of revenue states have. IGR includes PAYE of employees within the state. Right now, many private businesses are unable to pay the subsisting N30,000 minimum. When government now increases the minimum wage of civil servants, it will now use income from PAYE of non-government workers who are already underpaid to pay the new salaries of civil servants. That does not make sense to me. Some of the companies remitting PAYE to states owe their own staff salaries in arrears but they are forced to remit PAYE every month to avoid sanctions!

    Talking about minimum wage, if it is increased to N200,000, only oil companies, telecoms companies, banks, fintechs and a few others can afford that amount. Most accounting firms, insurance broking firms, architectural firms and other practitioners within the building industry; retail shops and many others in the informal sector are struggling to pay the N30,000 minimum, not to talk of increment. They just can’t afford it. The government needs to look into this to stem the attendant of massive unemployment.

    The major problems that most Nigerians have right now is dwindling purchasing power. The weak purchasing power has been worsened by increase in price of petrol and depreciation of the naira. A wholesome solution should be on how to boost the purchasing power of many more Nigerians, not just civil servants and those who work in companies that can pay N200,000 minimum wage. They are a small percentage of the population. MSMEs and the informal sector employ more people. Small businesses need more support to be able to pay better salaries and employ more people. The ease of accessing loans at minimal interest rates need to be improved on. Government needs to come up with policies to breathe life into MSMEs. As I said at the beginning, I am not an economist, I am writing as a small business owner who is also feeling the pinch.

    Finally, let me add my voice to the plan by the federal government to give 12 million vulnerable families N8,000 monthly over a designated time to cushion the effect of the economic hardship. Many people have criticised the plan. I also feel N8,000 monthly is not enough. It needs to be increased and the process has to be transparent. But I do not share the view that N8,000 is rubbish money. Our NGO worked with many vulnerable people in those days and I appreciate the value of every kobo. We gave one woman additional N5,000 for her roadside akara (bean cake) business and that helped her to see two or three of her children through the university. The release of one inmate in Kirikiri Correctional Centre was delayed for months until we met him paid the N5,000 and got him released. Many Nigerians currently earn below N30,000 monthly. An extra N8,000 will do them a world of good.

    At a personal level, I used to buy goods from Aba in the 90s. I travelled with the first flight to Port Harcourt, concluded my transactions and came back with the last flight. On this day, there was a heavy rain in Aba and everywhere was flooded. By the time I got to Port Harcourt, the last flight had departed and I had to spend the night in Port Harcourt. I had limited cash left. After paying for accommodation and taking dinner, I had exactly N2,650. The ticket was N2,610. I could not go to the airport in a chartered taxi anymore. Sharing the taxi with others cost N40, so what was left was exactly money for flight ticket was exactly N2610. The taxi driver had earlier told me that he would charge N10 extra for excess luggage which I vehemently opposed. When we got to the airport, I gave him a N50 note. He refused to give me the N10 change and I needed it to complete the money for my flight ticket. At that point, I knew I had to eat humble pie. I waited for all the passengers to leave. Then I pulled him back and explained to him that I needed the N10 to complete the money for my flight ticket. “Is that true,” he asked me in Igbo. “Yes o,” I responded. He returned the N10 and that was how I was able to fly back to Lagos. I had left my car at the airport. Instead of taking the shorter route through the toll gate, I went through the longer Ikeja-Maryland route because I had no money to pay for toll. As a result of these experiences and a few others, I learnt to treasure every kobo. Before debit card took over, I used to have every denomination of note either in my wallet or car. No money is small.

    I agree that the N8,000 should be increased, but no take your big man eye look N8,000 as small money. The sum of N8,000 means the world to some people. For people who earn N20,000 monthly, additional N8,000 will bring a lot of relief. I once worked with some “agbaya” (unserious) artisans. They would be absent from work for days. At the end of the month, we deducted money for the period they were absent. I saw in their eyes that if it were possible they would kill me. I insist N8,000 is not chicken feed, but government should please increase it. What is worth doing is worth doing well.

  • Lagos Govt begins enforcement of annual Proof of Ownership certificate for vehicles

    Lagos Govt begins enforcement of annual Proof of Ownership certificate for vehicles

    The Lagos State Government has announced its implementation of the annual Proof of Ownership (PoC) certificate for vehicles, as approved by the Joint Tax Board (JTB).

    The Permanent Secretary, Ministry of Transportation, Mr Abdulhafiz Toriola, made the announcement at a news briefing in Ikeja, on Tuesday.

    Toriola said that the PoC was one of the components that verified ownership of vehicles and ensured compliance with legal or regulatory requirements.

    He said that the initiative aims to streamline and enhance the process of vehicle ownership verification.

    According to him, the implementation is in line with legal requirements fundamental to transparency, security, and accountability within the transportation network.

    “The initiative is in accordance with the National Road Traffic Regulation 2012 as amended, No. 101, Vol. 99; Section 73- (1) which states that ‘There shall be Proof of Ownership Certificate for all registered Vehicles’.

    “Section 73- (1-6) also adds that ‘The commission shall establish and maintain a Central Data Base for Vehicles and drivers for the federation’.

    “To this end, the Federal Government has introduced the issuance of annual Proof of Ownership Certificate for all registered vehicles.

    “This certificate will serve as official documentation of a vehicle’s legal owner, upon successful completion of the necessary requirements and procedures,” Toriola said.

    He said that the PoC would contain vital information including the vehicle’s registration details, such as, licence number plate, model, year of manufacture, in addition to owner’s name and address.

    Toriola said that PoC would be issued to motorists on an annual basis nationwide.

    The permanent secretary said that for effective security administration, the annual certificate was specially printed and connected with other vehicle documents in the state.

    “We believe that the PoC will help track the real time status and guarantee the integrity of all vehicles registered on the National Vehicle and Identification Scheme (NVIS) database,” Toriola said.

    He said that the Governor of Lagos State, Mr Babajide Sanwo-Olu, had approved its commencement in Lagos State, hence the news conference to enlighten the public.

    Toriola urged the media to help in cascading the information down to the people in Lagos State for acceptance, as it was with other states of the federation.

    The Lagos Sector Commander  Federal Road Safety Corps (FRSC), Mr Babatunde Farinloye, represented by Deputy Corps Commander in charge of Logistics, Mr Tajudeen Mafe, said that FRSC was empowered by law to implement government policies.

    Farinloye said that it was incumbent on the FRSC to enforce, regulate and coordinate road safety transport management.

    He said that the data base that would be generated by the certificate would enhance national security.

    The representative of Motor Vehicle Adminstration Agency (MVAA), Mrs Mrs Olabisi Olowolagba, said that the agency, which is in charged with generating data for the state, was happy with the introduction of PoC .

    She said that the PoC was desirable to aid security, and the MVAA would ensure its success.

    The representative of Joint Tax Board (JTB), Mr Segun Obayendo, emphasised on the benefit of POC, saying that it helped with the statistics of vehicular population nationwide, which could easily be obtained.

    Obayendo said that PoC would provide solution to minimise car theft and recovery of stolen vehicles.

    According to him, it would streamline the fulfilment of uniform licensing scheme mandate.

    “State motor vehicle document can easily be verified regardless of the issuing state, as well as safety and security of vehicles and other owners.

    “The POC will enhance National Vehicle data for national security, for planning and economic development,” he said.

  • Ebonyi Govt denies imposing tax on petrol dealers

    Ebonyi Govt denies imposing tax on petrol dealers

    The Ebonyi Board of Internal Revenue has said the board did not impose any tax on the Petroleum Dealers Association of Nigeria (PEDAN) operating in the state.

    Mr Agwu Nweze, Chairman of the Board disclosed this in Abakaliki on Wednesday, stressing that they only placed a demand notice on them over the money owed to the state government.

    “They have refused to pay the N3.5 million owed to the state government. We did not impose fine on them; we were only following the law of the Federal Government.

    “Some members of the Association have not been filing the tax they paid since 2015. Filing of tax paid gives authority the breakdown to ascertain whether you have under or overpaid the state government.

    “So many filling stations have not been filing since 2015 when this administration came on Board.

    “The filling stations are to pay N3.5 million each to the state government. That is N500,000 per year for seven years.

    “The Association have not been fair to the government of Ebonyi. Though, some of the operators have started filing and hopefully others will follow suit,” he said.

    Recall that PEDAN had on Monday, shut down all its stations in the state over what it described as excessive taxation and fines by the State Board of Internal Revenue Office (IGR).

    It was, however, observed that the filling station operators had on Tuesday resumed work in the state.

    In his reaction, the State Chairman of PEDAN, Mr Silas Njaka, said its members shut down operations on Monday because of the state government’s action on the issue of Pay as You Earn Income Tax.

    Njaka explained that some of his members failed to make their filing on the issue of Income Tax.

    “Our members, who are involved have been sued to court over the matter and the case will be heard on May 15,” he added.

  • FG cautioned to tread cautiously in raising tax rates

    FG cautioned to tread cautiously in raising tax rates

    The Lagos Chamber of Commerce and Industry (LCCI) on Tuesday urged the Federal Government to tread cautiously in raising tax rates in an attempt to shore up its revenue in 2023.

    Dr Michael Olawale-Cole, President, LCCI, gave the charge at the chamber’s second quarter state of the economy conference held in Lagos.

    He suggested that rather than increase taxes, government should explore new ways of rescuing some tax expenditures to raise its revenue.

    According to him, leaving the tax rates at their current levels will not lead to loss of revenue against what is proposed in the Finance Bill 2022.

    He said based on feedback from operators in the oil and gas sector and the wider business community, the chamber recommended the retention of the Tertiary Education Tax rate at 2.5 per cent.

    He noted that at government’s proposed increase to 3 per cent, Nigeria’s corporate income tax rate would effective rise to about 36 per cent; one of the highest rates in the world.

    Olawale-Cole urged the Federal Government to retain the 30 per cent Company Income Tax for all oil and gas companies.

    He said government should also consider amending the Petroleum Profit Tax Act with the same provisions in the Petroleum Industry Act 2021.

    He noted that with divestments by some large corporations from Nigeria’s oil and gas sector, government needed to reposition the industry through a steeply implemented PIA to pave the way for new investments.

    He added that gas flare-out projects should be supported with the right incentives to ensure monetisation of the resource for the benefit of the economy.

    “We recommend that finance bills are presented for extensive stakeholders’ consultations before the National Assembly passes them into law.

    “The LCCI will continue to work toward rallying the private sector to support the implementation of the 2023 federal budget.

    “On achieving revenue targets, Ministries, Departments and Agencies and government-owned enterprises can intensify their revenue mobilisation efforts in an enabling environment where the private sector thrives.

    “To achieve the laudable objectives of the 2023 budget, we urge government to sustain current efforts toward the realisation of crude oil production and export targets.

    “This it could do by strengthening the investment-friendliness of the oil and gas industry,’’ the LCCI president said.

    On Naira redesign and circulation, Olawale-Cole advised the CBN to obey and to implement to the letter, Supreme Court’s judgment that allowed old notes as legal tender till Dec. 31.

    He stressed that lessons learnt in the aborted implementation of the policy should be used to prepare for a more improved and hitch-free implementation with necessary infrastructure put in place for a truly cashless economy.

    The LCCI also noted that government, being the biggest spender, should establish a cashless payment for all its procurements with more automation of its services.

    “With more automation and less human interface, corruption tendencies will reduce.

    “We commend Federal Government’s planned policy that all payments from the public treasury beyond the threshold approved for daily cash limit by the CBN must be done electronically with effect from March 1.

    “The implementation of this policy and the strict monitoring of it can be very effective in deepening a cashless economy,’’ Olawale-Cole said.

  • The poverty narrative: Federal versus State Governments – By Dakuku Peterside

    The poverty narrative: Federal versus State Governments – By Dakuku Peterside

    Poverty is all around us. You see it in all aspects of our lives. It is so ubiquitous that it has been ingrained in our collective psyche. We seem to have accepted it as inevitable and use it to explain our personal and collective reality. It is one condition many people work and pray hard to overcome, yet we seem not to make any meaningful progress. We have more poor people now than at any other time. Poor Nigerians are the majority , from big cities to rural Neighbourhoods. Even the minority well-off people suffer from the “poverty tax” levied on them by poor relatives, family members and friends. Statistically by 2018, we are the poverty capital of the world.

    There is a famous saying in Nigeria, an untested hypothesis or supposition, that if you do not want a matter dealt with conclusively, set up a committee, which will naturally lead to several other committees till infinity. The same applies to an issue nobody wants to take responsibility for or address. The most popular strategy, evasive as it is , is to blame some phantom body, which will also blame another  body, and at the end, nobody will take responsibility, and nothing will be done. This script has found expression in the blame game between the federal and state governments on the seemingly unconquerable affliction of poverty, which is cancerous in Nigeria. One can easily argue that more people die because of poverty than any other cause of death in Nigeria.

    There is a consensus by all Nigerians on our puzzling state of poverty. All available data points to the fact that most Nigerians live below the poverty line. However, the ordinary man’s experience on the street is hellish . In early 2018, Nigeria ingloriously overtook India as the country with the most significant number of extremely poor people. The 2022 Multidimensional Poverty Index survey reveals that 63% of persons in Nigeria (133 million people) are multidimensionally poor. The same Global Multidimensional Poverty Index 2022 for India shows that as many as 415 million people exited multidimensional poverty in India in 15 years (2005/06 to 2019/21), with the incidence of poverty showing a steep decline from 55.1% to 16.4%. More worrisome is that while global poverty is reducing, the reverse is the case here as more Nigerians migrate towards poverty. Why is this the case?

    The first reason is that poverty has been weaponised as a form of control of people by a minority elite class that is feeding fat on Nigeria. This political and business elite class have never had it so good, and they are bent on keeping the status quo. They perpetuate poverty through corruption, poor governance, poor leadership, lack of infrastructure, lack of access to quality education, poor quality health care , dearth of economic opportunities ,lack of shelter, hunger and food insecurity, and weak moral and ethical standards. The summation of the generally poor state of everything in Nigeria is the poverty of the majority. Even the morbid fear of poverty by some in the elite class forces them to engage in primordial and wanton wealth accumulation without a corresponding value creation, leaving the system warped.

    There is no genuine commitment by the leadership class to allow for the “prosperity of all” and reduce poverty in Nigeria. The local government and the state (subnational entities} are the nearest to the people and are expected to be at the forefront of confronting poverty within their areas. All their policies and programmes must be tied to growth and development that reduces poverty and improves residents’ living standards. The state government must champion the economic growth and human capital development in the state and ensure that factors of production within its area are utilized efficiently and effectively for productivity and growth and, where possible, wealth created is redistributed to reduce extreme poverty of some. poverty exists where there is low productivity. States must provide an enabling environment for production and create opportunities for their residents to be optimally productive. In Nigeria, state governments are doing the opposite.

    Some engage in counterproductive actions.

    The state governments have been irresponsible in project and programme initiation and execution as there is often no linkage to the human development index. Again, they need effective oversight from the state assemblies to keep them responsible. The legislatures have been captured at the subnational levels by the executive, and they are next to useless; hence governors can do as they like. No one holds them accountable for their policies and programmes or measures their effectiveness.

    Their increasing reliance on federal allocation for income rather than economic activities like agriculture and industrialisation, which will spur rural development, contributes to escalating poverty. Their priorities are often not right and should ordinarily  be tailored to address the root causes of poverty. The local governments are moribund and dead in most cases. They are, at best, appendages of the state government and are controlled by the  respective state governors. This is the sad reality of our current condition in Nigeria.

    China, the acclaimed hero of the world’s most successful poverty-reduction effort successfully reduced the number of people living below the poverty line in cities to insignificance and decreased the number of rural people below the official poverty line from 775m in 1980 to 43m in 2016. China is working hard to eradicate poverty soon wholly. What did China do? The China government focussed on agriculture, capacity building and industrialization, specifically focused on certain farm produce using modern science and technology, developed businesses and industries that will use the farm products as raw materials, and built infrastructure to attract people to move to the area and create new cities.

    The Fujian province is an example. The bottom-to-top poverty alleviation model is very effective, especially where there is a genuine effort from government and business underpinned by great altruistic poverty reduction philosophy.

    The town has been the epitome of the philosophy of “common prosperity” for decades. The per capita net income has risen nearly 30-fold in the past 26 years. The Gobi Dessert wine industry is booming, and specific industries, such as mushroom and wolfberry farming, are attracting young people to return to their hometowns to start businesses. The village, with a population of 8,000 residents 20 years ago, was turned into a demonstration town accommodating over 66,000 residents, whose annual disposable income soared from 500 yuan ($77.53) before the relocation to 14,961 yuan ($2,320) last year.

    Back to the needless argument on who is responsible for poverty , it is pointless shuffling blames as to which tier of government is responsible for our poverty burden . All tiers are in-fact responsible. I believe the Federal Government has the greater responsibility for containing poverty because they oversee financial and fiscal policy, which have implications for the economy at large. The FG has yet to be sincere in dealing with poverty, and it provides cosmetic and lips service solutions to poverty. The same policies that will grow Nigeria are the same policies that will eradicate poverty. Nigeria’s development and poverty eradication are entwined. One cannot happen without the other.

    The different tiers of Government must increase the quantity and quality of the “pie” and then worry about how to share it equitably. Through its policies and projects, the FGN must create the enabling environment for economic growth through improved governance at all levels, including strengthening institutions to deliver services more effectively and efficiently. And provide capacity building both in human capital and infrastructure, increase access to economic opportunities for all, especially the poor, and improve fiscal decentralisation and socioeconomic restructuring where possible.

    I vehemently believe that Nigerians do not care about who is responsible, and they want poverty addressed. It is the serial failure of different levels of government to provide the building blocks of poverty eradication that has led to the ballooning poverty . The present narrative on which tier of government front-loaded poverty in Nigeria is simply political, unhealthy, and diversionary.

    What is not disputed is the prevalence of poverty and its worsening dimension. The resolution to this debate on whether the states or the federal government is responsible for the ballooning  poverty is unlikely. All tiers of government are responsible to different degrees. The challenge is who will come forward with an innovative solution to address the pervading and pervasive poverty?

    The literature on poverty eradication is filled with various models adopted by different countries to fight and defeat poverty, from the rise of the Asian Tigers of the late twentieth century (Japan, South Korea, Singapore, to the modern miracles of Dubai, Malaysia, China and India, there are many examples to imitate. This begs the question of why Nigerian leaders have failed to imitate leaders of these countries and eradicate or ameliorate poverty in Nigeria. With our vast human and material resources, one wonders why we have refused to grow our economy and lift many citizens from poverty. I used the word “refused” to buttress the fact that our state of poverty is our choice, consciously or unconsciously. Most Nigerians can adequately articulate the causes of our poverty and even proffer solutions. Poverty is the lived experience of many and not an academic or intellectual exercise or construct. Why must something well-known and so perversive be so elusive to solve? Nigeria needs leaders committed to Nigeria’s economic growth and development with an eagle eye focus on eradicating poverty. Only then will we stop the blame game and tackle the challenge for the benefit of our posterity.

  • Reps grill Shell, Total, other over alleged tax evasion

    Reps grill Shell, Total, other over alleged tax evasion

    The House of Representatives on Wednesday grilled Shell Petroleum Development Company of Nigeria, Total Energies and First E and P over alleged tax evasion.

    The companies appeared before the ad hoc Committee investigating the Structure and Accountability of the Joint Venture (JV) Business and Production Sharing Contracts (PSCs) of the NNPC since 1990 to date.

    Rep. Abubakar Fulata, the Chairman of the committee, frowned at their operations regarding the payment of taxes to Federal Inland Revenue (FIRS) Service.

    He said the FIRS does not rely on Stock Certificate of Crude Oil as well as Certificate of Acceptance of fixed Assets (CAFA).

    The committee said the Stock Certificates gave clearer pictures of the oil being lifted while the CAFA certificate was the basis for capital allowances claims.

    The leader of the Shell delegation, Mr Bashir Bello, said SPDC had been in operation since 1929 and promised to furnish the committee with the relevant documents being requested with exception of CAFA certificate.

    The committee said Shell, Total and First E & P were in violation of Nigeria Law for making capital allowances claims without the CAFA Certificate.

    The companies in their separate submissions and presentations said indeed they had been in operation and relying on Petroleum Tax Act to make capital allowance claims.

    They claimed that the CAFA was domiciled with the Ministry of Industry.

    The committee argued said it was not only the PT Act they were bound to obey, adding that they had no power to select which law to obey and which one not to obey.

    The panel demanded that the oil companies, among other things, furnished the committee with stock certificate, capital allowance enjoyed and the contributions to NNPC-JV and PSCs Account.