Fiscal Crunch: LASG to Tax Housemaids, Gatemen, Private Guards

•Vows to prosecute tax avoiders, evaders

Gboyega Akinsanmi

The Lagos State Government on Tuesday said it was mandatory for housemaids, gatemen, private guards and all domestic workers in the state to pay tax henceforth, citing the country’s gnawing fiscal crisis as the rationale for the decision.

Akinwunmi Ambode

The state government disclosed that it had established a rapid tax prosecution unit in the Ministry of Justice, noting that the long hand of the law “will catch up with any resident who avoid or evade tax in the state.”

The Chairman of Lagos Inland Revenue Service (LIRS), Mr. Olufolarin Ogunsanwo, unveiled the reforms at a news conference he addressed alongside the Commissioner for Finance, Dr. Mustapha Akinkunmi and the Attorney-General and Commissioner for Justice, Mr. Adeniji Kazeem, among others.

At the conference, Ogunsanwo explained its decision to bring all categories of domestic staff in the state’s tax net, which he said, became necessary due to the dwindling revenue accruable to the state from the Federation Account.

He also disclosed that the state government had started the process of overhauling informal sector operations with a view to easing voluntary compliance by payers in the huge sector at minimal cost to all stakeholders in the state.

He therefore noted that the state governor, Mr. Akinwunmi Ambode, had approved the upgrading of the informal sector operation to a full directorate, which he said, identified three categories of tax payers including household domestic staff, market women and artisans.

Aside, the executive chairman explained the importance of electronic tax clearance certificate (eTCC), which he said, would be required for a myriad of socio-economic and political activities in the state.

He noted that failure “to demand for eTCC by scheduled officers before concluding some transactions would attract the highest punishment of N5 million fine, three years imprisonment or both as contained in the Personal Income Tax Act (PITA), 2011.

“Section 85(2) of PITA addresses extensively this issue with the obligation of ministries, departments and agencies (MDAs) to demand for the eTCC of the individual resident in the state it has dealings.”

By implication, henceforth, Ogunsanwo noted that any resident who failed to obtain his/her eTCC might not be able to apply for government loan; register motor vehicle; apply for certificate of occupancy; change ownership of vehicle and might not be allowed to vote or be voted for.

He added that any resident who did not meet eTCC requirement might not be able to apply for transfer of real property, firearms license, foreign exchange, award of contracts, approval of building plans, allocation of market stalls and registration of limited liability company among others.

Also at the conference, Akinkunmi disclosed that the tax agency ranked a whopping sum of N24.5 billion in the coffer of the state in January as the internally generated revenue (IGR)

The finance commissioner explained that the era of tax evasion in the state was over as government has put machinery in place to aggressively enforce the tax law in order to shore up revenue.

Akinkunmi said this current government has issuing policies aimed at aligning the economy with these goals, which would set the state on a path to growth and stability as evidenced by the major developments implemented by LIRS.

According to him, the N24.5 billion revenue generation by LIRS in January amounted to 98 per cent budget performance for that month and recording 12 per cent growth from the same period in 2014.

He added that despite the harsher economic terrain presented in 2015, the state managed to realise increased revenue, off the back of collections from taxpaying members of the public, adding that in 2015, the LIRS had contributed 79 per cent to IGR in 2015.

“This equated to 56 per cent of the state’s total revenue, including Federal Transfers. The total revenue achieved in 2015 was just short of N400 billion and is expected to continue growing, driven by strong tax collection.

“This administration has been able to make significant investment in security apparatus across the state and has provided street-lighting across the state. We are reducing costs through investment in technology which is a powerful tool for cost reduction through efficient administration.”

Also speaking, Kazeem, the state’s attorney-general warned that the era of people evading tax in Lagos was gradually coming to an end as government would expand the tax net to cover lots of the working population.

The state attorney-general said the state government would now begin aggressive enforcement of the tax law and go after tax evaders and ensure that they were prosecuted and sent to jail.

He stated that the state government would set up a Rapid Tax Prosecution Unit to partner the LIRS to prosecute tax offenders in court, adding that: “tax dodger, watch out, we will get you.”

Fiscal Crunch: LASG to Tax Housemaids, Gatemen, Private Guards

Cash crunch: Nigerians to pay more tax

Against the backdrop of the economic crisis plaguing Nigeria amid falling global oil prices, the Federal Government is considering changes to the nation’s tax regime in a bid to shore up dwindling revenue.

President Buhari

There are indications that the government will increase Value Added Tax, as recently suggested by the International Monetary Fund, whose Managing Director, Ms. Christine Lagarde, visited the country early this month.

Economic and financial experts have, however, said the move to increase VAT would put further pressure on Nigerians, as it would cause increase in the prices of goods and services, among other implications.

VAT is a consumption tax payable on the goods and service consumed by any person, whether government agencies, business organisations or individuals. It is currently levied at the rate of five per cent in the country.

The sharp drop in crude oil revenues, which provide 95 per cent of the country’s foreign earnings, has led to significant depletion of the nation’s foreign reserves.

Oil prices have fallen in the last few days to their lowest levels since 2003, trading about $10 lower than the oil price benchmark of $38 proposed by President Muhammadu Buhari for this year’s budget. Oil prices staged a rebound on Friday, trading around $32 per barrel on Saturday.

The Minister of Finance, Mrs. Kemi Adeosun, has said the Federal Government plans to borrow up to $5bn from multiple sources, including the Eurobond market, to plug its budget deficit.

Buhari had in December presented a total budget size of N6.08tn, with a deficit of N2.22tn to be financed by both domestic and foreign borrowings of N1.84tn.

He put the revenue projection for the year at N3.86tn, adding that over the medium-term, the government expected to increase revenues and reduce overheads, to bring the fiscal deficit down to 1.3 per cent of Gross Domestic Product by 2018.

Vice President Yemi Osinbajo, who said changes to taxation were being considered, told CNBC in a television interview, “We are looking at increasing our tax coverage.

He added, “VAT, for instance — we have been doing just about 20 per cent coverage. We think that just by increasing coverage, we could do much more, and so we could earn more in terms of local resources,” he said.

Increasing VAT from 5 per cent, among the world’s lowest VAT rates, and broadening the tax base were among suggestions put forward by the IMF boss during her visit.

During her visit, Lagarde also said the IMF did not support foreign exchange restrictions.

The Central Bank of Nigeria, whose monetary policy committee will meet on Monday and Tuesday, imposed forex restrictions last year aimed at conserving foreign exchange reserves and there have been calls from investors for these to be eased.

“We know that the central bank will just have to do the right thing at this time. The central bank has told us, and it was announced even in the president’s budget speech, that they intend to take a flexible approach and deploy whatever tools are necessary to ensure that we stay competitive,” Osinbajo had said.

A Professor of Financial Economics at the University of Uyo, Akwa Ibom State, Leo Ukpong, described the move to increase taxes as ill-timed, saying any increase in VAT would lead to declines in consumption and investment in the country.

He said, “It is not that it is bad to increase taxes; what is bad is increasing it at the wrong time. When the economy is going through recession; when we are not producing; when unemployment is high, that is not the time to raise any tax. In fact, the opposite is the case: it is a time you cut taxes so that you can stimulate consumption and investment.

“Increase in VAT is going to destroy the economy more. Consumption of goods and services will drop because you’re taking money away from people, and investment will drop. Overall, it is going to have negative effects on the economy, households and businesses.”

The Head, Investment Research, Afrinvest West Africa Limited, Mr. Ayodeji Ebo, said the government should explore all avenues to ensure compliance as well as improve on its collection mechanism before considering increase in tax rates.

He said, “Raising VAT will lead to increase in the price of goods and services; cost of production will go up as well as cost of goods. It is going to be telling on Nigerians in the interim. However, if this fund is channelled to proper use, the multiplier effects will cushion the impact of VAT on Nigerians

“If we are able to get good roads, rail and power supply, these are some of the things that form the larger part of the cost of production — it is going to be a short-term pain to get a long-term gain.”

Professor Sheriffdeen Tella of the Department of Economics, Olabisi Onabanjo University, said the government might want to consider increasing taxes in some areas and expand the tax net in some other areas to capture more people and organisations.

He said, “There are a lot of people and organisations that are not paying tax, particularly in the informal sector. The government has to work out a way to capture the informal sector taxes.

“It is not as if they want to impose taxes generally. Let us look at VAT, for example; there are some assets that can be regarded as luxury items. They can increase the tax regime on those assets. People hardly pay tax on wealth in this country. They need to capture those people (the wealthy).”

According to Tella, government needs to raise funds to be able to execute projects and tax is a major thing in increasing internal revenue.

“I think it is not tax changes that will further affect the common man. They can also reduce the tax paid by some levels of income-earners,” he added.

A Partner and Head, Tax Regulatory and People Services, KPMG Nigeria, Mr. Victor Onyenkpa, said, “Given that oil is what it is today, tax is crucial in raising money, and the one that they have talked about is VAT, especially so that they want to increase the rate. The problem is that VAT, as we operate it in Nigeria, is a sale tax.

“Increasing VAT, to my mind, is fine, to the extent that it is together with making companies have recoverable input VAT.”

According to Lagarde, the new reality of low oil prices and low oil revenues means that the fiscal challenge facing government is no longer about how to divide the proceeds of Nigeria’s oil wealth, but what needs to be done so that Nigeria can deliver to its people the public services they deserve.

She said, “This means that hard decisions will need to be taken on revenue, expenditure, debt, and investment going forward. My policy refrain is this: Act with resolve — by stepping up revenue mobilisation.”

Cash crunch: Nigerians to pay more tax

Edo urges federal MDAs to pay N2bn tax debt

The ‎Edo State Internal Revenue Service has called on federal ministries, departments and agencies in the state to clear their tax debts, amounting to over two billion naira in arrears, being owed the state government for 2014 and 2015.

The Executive Chairman of the revenue agency, Chief Oseni Elamah, made the call during a one-day sensitisation programme for heads of federal MDAs in Benin, the state capital.

Elamah, who was represented by the Executive Director (Tax Operations), Mr. John Obaze, explained that while some of the federal institutions failed to file their tax returns, others defaulted in deductions and remittance of accurate taxes, in spite of the provisions of relevant tax laws.

“If they all pay their taxes and file their returns accurately, there is no doubt that it will increase the revenue due to Edo State because, as we speak, there are huge debts owed by federal MDAs from 2014 to 2015,” he said.

“So if there is more compliance, I am sure that it will reduce their level of indebtedness.

“Our expectations are that they (MDAs) will all file their tax returns accurately and remit fully and promptly the taxes due to Edo State.”

However, the Executive Director (Tax Enforcement), Mr. Emmanuel Usoh, noted that the revenue agency would not hesitate to press criminal charges against defaulting institutions in order to ensure that the state improves its revenue generation amidst the current economic downturn.

“Both individuals and federal MDAs, in particular, are defaulting,” Usoh said.

“We also have individual (debts) grossing up over one billion naira for last year (2015).

“We are expecting that by the beginning of this year, for failure to remit those taxes, we will begin to obtain court orders and also bring criminal liability against such individuals and corporate bodies. Immediately we do the assessment, if it is a back duty assessment, the law already prescribes the penalty and interest that follow.”

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Edo urges federal MDAs to pay N2bn tax debt

2016 Economic Growth: FG, World Bank disagree over budget target

LAGOS — Contrary to the projections of the World Bank that pegged the Gross Domestic Product growth rate at 3.7 per cent, the Federal Government economic agenda as contained in the 2016 budget breakdown insisted on GDP growth rate of 4.37 per cent thus making it ambitious.

Earlier this year IMF cut its growth forecasts for the global economy on the back of a slowdown in China, looming recession in Russia and continuing weakness in the eurozone.

Source: U.S Department of Agriculture

The Washington-based fund, while warning of a significant declines in growth rates across global economies especially among emerging markets including Nigeria’s against the backdrop of crash in oil prices, cut its 2016 forecasts from 4.0 per cent to 3.7 per cent.

Meanwhile, the Federal Government’s 2016 budget envisioned an expansionary fiscal measures expected to galvanize the economy to a growth momentum for the forecast GDP rate significantly above 4.0 per cent.

GDP is derived from the value of all goods and services available for final uses and export.

The expenditure approach measures the final uses of, or expenditure on the produced output, as the sum of final consumption expenditure; gross capital formation (investment activities carried out in the economy), and exports less imports.

Though the 2016 target is lower than 5.5 per cent revised projection in 2015 budget it is clearly ambitious in the light of revised figures given by multilateral institutions and several multinational and local financial institutions as well as real outcome recorded so far in 2015 fiscal year.

Budget Breakdown

The growth rate projection, according to the breakdown, would be achieved through alignment of fiscal, monetary, trade and industrial policies.

Also the government intends to enhance the realization of this target by ensuring job creation on every aspect of the execution of the 2016 budget.

Its inclusive growth strategy would entail a reduction in tax rates for smaller businesses as well as subsidized funding for priority sectors such as agriculture and solid minerals.

However a breakdown of the 2016 spending plan showed that non-debt recurrent expenditure was cut by 9.1 per cent to N2.59 trillion indicating that the expenditure approach to GDP will point downwards.

To offset this scenario capital expenditure was increased by 223 per cent to N1.8 trillion which is 30 per cent of total budget.

Works, Power and Housing got the biggest capital votes of N433.4 billion, followed by transport (N202 billion), Special Intervention Programs (N200 billion), Defence (N134.6 billlion).

Economy analysts believe these allocations would add to GDP rate more significantly.

Also budget deficit of N2.2 trillion which translates to 2.16 per cent of Nigeria’s GDP and an overall debt to GDP of 14 per cent, is expected to further stimulate growth.

The economy has witnessed one of its worst declines in the out going year with GDP initially projected at 6.4 per cent revised by the Federal Government to 5.5 per cent and subsequently revised further down by various multinational organisations including the World Bank, the International Monetary Fund, IMF, Renaissance Capital, one of the world’s leading private sector financial institutions as well as Bloomberg, world’s leading financial media giant and African Development Bank, AfDB, Africa’s multilateral financial institution.

Nigerian-based financial institutions such as FSDH Economic Research, an arm of the FSDH Merchant Bank, Afrinvest Group, a Lagos based investment house, among many others have also analysed the economic trend.

Cumulatively, all these organisations brought down the forecast GDP growth rate for 2015 to between 2.5 and 2.8 per cent by year end 2015.

Real GDP growth rate has been largely in the negative this year declining to 3.38 per cent in the first quarter and further down to 2.57 per cent in the second quarter but it made slight improvement in the third quarter to 2.84 per cent, thereby giving an overall picture close to the forecasts by international and local financial institutions.

In the medium to longer term, the Buhari administration intends to pursue economic diversification through import substitution and export promotion.

The policy thrust of the budget included stimulating the economy and making it more competitive by focusing on infrastructural development; delivering inclusive growth; and prioritizing the welfare of Nigerians.

2016 Economic Growth: FG, World Bank disagree over budget target

Edo government to collect taxes on boreholes, sachet water, others

Edo State government has awarded a contract to Najomo resources to collect taxes on commercial boreholes in the state.

Governor Oshiomhole

According to a statement signed by the Managing Director, Comrade Nosa Uhunmwangho, the state government through the Ministry of Energy and Water Resources, retained the service of Najomo Rescourses to collect taxes on commercial boreholes, water tanker haulage and others.

This was disclosed in a statement titled “Charges on Commercial Bore Hole Owners/Operators, Water Tanker and Table/Sachet Water Haulage and Car Wash Operators”.   The company name and address are Aqua Basula,  1 Oghogho Osula street by lucky way.

The details of the statement reads” Our services have been retained by the Edo State Government via an appointment letter referenced MEWR/R/VOL. T4/114 dated December 10, 2015 through the Ministry of Energy and Water Resources to collect charges on commercial Bore Hole Operators, Water Tanker Haulage, Table/Sachet Water Haulage, Car Wash Operators and Subject Operational Tankers to regular cleanliness check.

“By reason of the above you are to pay a daily/monthly charge of (amount not mentioned) for the operation of your (amount not mentioned yet) to the State Government through any of the UBA Branches on Account Number 1019142947 UBA PLC

“Please pay as at when due to enable the Government raise the much needed revenue to develop our dear state and to continue to provide dividend of democracy to our people failure to pay will attract santion which may include the sealing up your business premises”.

Meanwhile Edo youths, civil societies have been protesting against Adams Oshiomhole government for his previous taxes.

The government had introduced Land Use Charges which taxes  commercial and residential houses based on the land space and location.

The youths had complained that the state government policy is anti-people.

The government had resorted to aggressive taxing in the state since the crash of oil price in the country, in order to increase its internal generated revenue to execute capital projects.

It is expected for government to provide water for its people as one of the basic responsibilities. However, the government has turned around to tax commercial boreholes after failing to meet up its responsibilities.

Edo government to collect taxes on boreholes, sachet water, others

Nigeria Must Return to Strict Tax Policy, Says Oshiomhole

Governor Adams Oshiomhole of Edo State has said that as a way of getting out the present economic crisis caused by the crash in the price of crude oil, Nigeria must return to its strict tax policy which was applicable before the oil boom of the 70s.

The Governor also said that nobody was above taxation as even the President and Governors pay their taxes, adding that government at all level must deepen their Internally generated Revenue base as it obtains in developed countries of the world.

Oshiomhole who spoke during a visit to his office by Course 24 participants of the National Defence College, on a study tour of Edo State, yesterday in Benin City, said, “central to every debate on every country with mature democracy is the issue of tax payment. We have to find the courage to be firm and just and we have to give commensurate service.

“When I was growing up, the only thing we had was the Local Government Authority Primary school and everybody who was up to 18 years and above paid a fixed tax. When villagers met at the village square to discuss and you made a bold statement, another villager would challenge telling you to shut up because you have not paid your tax. He will tell you, don’t talk where men are talking because you have not paid your tax, that you are not a man.

Governor Oshiomhole

“Villagers used to recognise that not to pay tax was not an option. And for you not to pay tax, you must show a certificate or evidence that you are ill or bed-ridden, and therefore you could not work.

“So, even villagers were paying tax. So the school in my village, under Awolowo’s Free Education programme, it was free to the people, so it was free to the pupil but funded by adults who paid tax. And when the tax man was coming, if you had not paid your tax, you just found your way into the bush and once you were arrested, they took you to the barracks and you were charged appropriately.

“Somehow, at the peak of our oil boom, this practice was abolished, and today if you go to my village, they have a very beautiful school, but only few people are paying tax.

“How far can we continue like that? For me, this is a national issue that government has to address, not just about Edo but the whole nation whether we truly can have a functioning state where 90% of the people are outside the tax bracket but are entitled to facilities.

“Central to the political debate in every country is question of taxation. Who gets what? Are you going to collect more taxes from the rich or are you going to collect more taxes from the poor?

Continuing, he explained that, “In Edo State, one of the tasks we faced in the course of revenue generation was that many of my comrades in the Civil Service were not paying correct taxes. In fact, I stumbled on a circular in which one of my predecessors agreed under pressure that notwithstanding the law on pay as you earn, that people should pay 7% of their basic salary and I discovered that the three arms of governments were guilty of this; both the judiciary, the House of Assembly and of course the executive including Commissioners, Permanent Secretaries and the entire Civil Service.

“My first task was to see that before we go out to ask other people to pay tax, we have to be on a stronger moral high ground to be able to do that beginning with ensuring that the executive arm pays correct taxes and this for many of my comrades in the Civil Service was not something they contemplated. In fact, they reminded me that when a comrade becomes a governor, they expected a tax free holiday.

“But a progressive government would ensure that taxes are paid, but it would be structured in such a way that the rich will pay more than the poor, but everybody will pay something and it is the taxes collected from the rich that is used to provide a robust social safety net for those who are victims of so-called market forces and competition.

“So tax, whether by government to the left or right are not contestable, they must be paid. But who pays what is where the details lie and that is where the values of the government lie. So I am also proud to be able to say that whereas I cannot even say how many strikes I have organised in my life, but I can say without any fear of contradiction that I have never organised a strike against the payment of taxes, because I understand the poor need taxes for the state to protect them and provide security.

“What Nigeria needs in terms of Internally Generated Revenue are to recognise that governance is about courage, about will and also about fairness. If you are going to apply the law, apply it without any discrimination.”

Earlier, the Commandant of the National Defence College, Real Admiral Samuel Alade said, “We have come around, we have seen for ourselves and for people like us who pass through this place at least once in six months, every time we pass through, we notice one change or the other.

“We want to commend you sir for this feat and we also want to thank you most sincerely for the support we have received since we arrived Edo State and want to ask for more because we know we will continue to have the interest in Edo State and any time we ask to visit Edo State for this kind of research work, we want to ask that you oblige us.

“The college objective primarily is to train middle level officers, colonels and even Civil Servants in the rank of Deputy Directors, Assistant Directors and Directors as it were, to become strategic leaders. That is the job of the college so that we can contribute to the development of the nation.”

Nigeria Must Return to Strict Tax Policy, Says Oshiomhole

Tax enforcement: Edo Govt seals off 23 hotels

In continuation of the on-going tax enforcement exercise, the Department of Tax Intelligence and Enforcement of EIRS on Wednesday sealed off over twenty three  establishments in the hospitality industry   in Edo Central Senatorial District.

Oshiomhole

The Nation reports that the hotels were sealed off for non-compliance with the Hotels and Event Centres Occupancy and Restaurant Consumption Law of Edo State also known as Consumption Tax Law.

In Esan West Local Government Area, establishments visited and sealed-off during the enforcement exercise include Eken International Hotel, Joefel Supreme Restaurants & Bar, Hotel Super Dee, Thy Will Hotels and Suits, Unique Mettle Hotel, Big Taste, Mimi Restaurant & Bar, Uncle Sam Hotel, Beverly Hills Hotels, Hotel De Torino, Zeke Hotel, Supreme Hotel, Big Taste Fast Food amongst others.

While in Uromi, the Esan North East Local Government headquarters, about twelve establishments were sealed off. Those sealed-off include Lins Hotel Rodena restaurants, Samco Bensike Hotel, Citadel Hotel and Suits amongst others.

Speaking during the enforcement exercise, the leader of the enforcement team and Director, Tax Intelligence and Enforcement Department, Mr. Victor Okube said “most hotels and eateries in Esan West Local Government Area were found not to be in compliance with the consumption tax law, and were subsequently sealed off.”

He said “the exercise is not punitive but rather, it is to ensure that operators in the hospitality industry, who are also Agents of Collection, comply with the consumption tax law.”

Mr. Okube expressed his displeasure over the recalcitrant attitude of managers of hotels, eateries, restaurants, event centres and their feigning ignorance of the existence of the Consumption Tax Law saying that “before the law became operational in November, 2011, the Edo State Board of Internal Revenue had a stakeholders meeting with all operators in the hospitality industry where they were registered as Agents of Collection, sensitized and educated on the administration and processes of the law in other to have a hitch free implementation and wondered why they claim not to be aware of the law.”

Okube, who took time to educate operators and managers of hotels and eateries on the operations of the tax law, stated that “consumption tax is percent of total sum paid on goods consumed or services rendered in hotels, eateries, restaurants, use of hotel facilities or event centres in Edo State.”

He warned owners and managers of sealed establishments not to temper with the instruments of distrain as breaking of government seal is a criminal and punishable offence.

He said the enforcement exercise continues.

Tax enforcement: Edo Govt seals off 23 hotels

Oshiomhole seeks downward review of Edo budget

Edo State Governor, Adams Oshiomhole, has sent a bill to the State House of Assembly, seeking a review of the already signed 2015 appropriation budget.

Oshiomhole had last year signed the approved N159.3billion appropriation bill into law with a promise to ensure set out objectives in the budget are realised.

In a letter to the lawmakers and signed by Secretary to the State Government, Prof. Julius Ihonvbere, Oshiomhole said the need to review the budget was because of dwindling revenue and fall in crude oil price.

The governor is seeking a downward review of the budget to N127billion.

The lawmakers who would be having their last sitting on Thursday suspended some sections of the House Rules to enable them pass the reviewed budget.

Oshiomhole seeks downward review of Edo budget

Oshiomhole urges community to pay tax

By Ehi Ekhator, Naija Center News

Edo State Governor, Comrade Adams Oshiomhole has re-stated his desire to leave behind a virile and stronger institutions to affect the necessary changes in the government of the state.

oshiomhole

The governor, who made the statement while inaugurating a fourteen-member Board of Internal Revenue says the state is set to create a compensation system to reward tax loyalists and punish defaulters.

Oshiomhole explained that the board is part of the reforms that will drive necessary changes in the governance of the state.

The governor who noted that the state government is perfecting plans to grant autonomy to the revenue service expressed his desire to emulate other countries that have survived on building institutions.

He however assured civil servants in the revenue service that the inauguration of the board should not be seen as a threat to their jobs.

According to Oshiomhole “If you don’t pay tax, you can’t put your mouth where you are not putting money, too many of our people are still not putting money.

“I see communities talking about erosion problem, road problem but they are not talking about who is paying taxes in those communities. So we have a duty to collect tax and i promise wherever tax is collected will be judiciously managed for the good of Edo State”

Oshiomhole urges community to pay tax

Ending corruption, reforming NNPC my most priorities - Buhari

Oil firms keen to know how Muhammadu Buhari, President-elect, plans to tax them could wait a long time as he makes ending corruption and reforming Nigerian National Petroleum Corporation, NNPC, his most urgent sector priorities.

Four party sources from Buhari’s All Progressives Congress, APC, told Reuters the issue of fiscal terms, seen as crucial by the industry, will have to wait on current thinking about oil and gas policies.

Crude output has stagnated close to two million barrels per day over the past few years, owing partly to under-investment.

“We need to address the structural issues and leave the fiscal for now,” Senator Bukola Saraki told Reuters.

“A more transparent Nigerian National Petroleum Corporation, NNPC, is needed with reasonable accounting,” he said.

Buhari owes his March 28 victory against incumbent Goodluck Jonathan partly to a perception that Jonathan allowed corruption to get out of control— especially in the oil sector.

A string of multi-billion dollar oil corruption scandals tainted NNPC and other bodies that handle energy.

By contrast, Buhari was seen as one of the few Nigerian leaders to have cracked down on corruption during his military rule in 1983-1985. Many Nigerians hope he will again.

A Nigerian investment banker focused on upstream oil and gas projects, who declined to be named, said: “The worry is that there’s going to be a lot of time wasted in witch-hunting. That could take a year in which nothing else will happen.”

APC leader, Bola Tinubu, whose support was instrumental in Buhari’s victory and wields huge influence, told Reuters a transitional committee would be set up.

“No way will we discuss that now,” he said.

 

Ending corruption, reforming NNPC my most priorities - Buhari