Legislature
Unexpected revenue losses threaten N17.126trillion 2022 budget implementation
****Customs, Immigration raises alarm over possible incapacitation
….NAFDAC Warehouses three year capital votes
Funding for the N17.126trillion 2022 budget may not be realizable as some of the revenue generating agencies are complaining of different forms of hiccups.
This was happening as the Director General of National Agency for Food and Drug Administration Control ( NAFDAC), Professor Mojisola Adeyeye, lamented that the 2018, 2019 and 2020 budget of the agency were not passed by the National Assembly leading to warehousing of revenues generated by it for capital expenditure.
Complaints on meeting revenue targets by affected revenue generating agencies came to the fore during the one day interactive session the Senate leadership and its Finance Committee had with them .
The Comptroller General of Nigeria Customs Service ( NIS), Col Hameed Ali ( Rtd), said some provisions of the 2022 Finance Act, have robbed Customs of its operational mandate on some revenue collections.
He specifically cited section 22 and 61(a) of the Act , incapacitating Customs from collecting some taxes like import duties.
“Mr President of the Senate , Distinguished Senators , I thank you for organising this interactive session on the need for improvement by all revenue generating agencies as far as internally generated revenues are concerned and funding of the 2022 budget are concerned .
“However let me bring to the notice of this gathering that some provisions of he Finance Act 2022, are incapacitating Customs from such revenue drive .
“Section 22 of the Finance Act 2022 seeks to amend the Federal Inland Revenue Service law Section 68 (1), (2), (3), (4) and (6) by allowing the Act to takes precedent over any other laws with regards to the administration of taxes, assessment, accounting, collection and enforcement of taxes and levies due to the Federal Government and the federation of Nigeria.
“When the law was signed, it did not state clearly, the extent and scope of the taxes and levies in question. We are aware that the taxes and levies under the responsibilities of the FIRS are income tax, personal income tax, capital gain tax, VAT and so on.
“However, the amendment is so wide and open that we in the Nigerian Customs Service took it that it had hindered our ability to collect levies and other collections.
“Our understanding of the provisions is that all other laws which mandated us to collect are inconsistent with the new Act, then they are voided. This means that the law that mandates us to collect as revenue generating agencies, are voided completely. This means that we do not have the responsibilities to collect levies. If we don’t have the responsibilities to collect, what are we going to discuss here.
“We have consulted with lawyers and the conclusion is that the Act is confusing and if other revenue generating agencies decided to act on the provisions, they may decide not to collect duties and levies”.
Making similar lamentation, the Director of Finance, Nigeria Immigration Service ( NIS), Professor Aba Georg, said the N400billion the agency supposed to be generating as revenue on yearly basis is being cornered by UK based firm, handing most of its outsourced services and operations .
According to him, contract on the outsourced services and operations given to the UK based firm on behalf of Nigeria Immigration Service in 2003 , gives government 33% of proceeds , Immigration 7% while the remaining 60% is cornered by the firm .
” This is our 7th time of tabling this complaint before the Senate or the House of Representatives . Please rescue us from the hook of this firm.
“The contract was entered into without the knowledge of Immigration since 2003 and those behind it , keep on renewing it and denying us about N400billion revenue on yearly basis .
“It is a rip-off and purely one sided contract bleeding Immigration and Nigeria financially on yearly basis “, he lamented .
Apparently piaued by the submission , the President of the Senate , Ahmad Lawan , directed the Committee Chairman, Senator Olamilekan Adeola ( APC Lagos West), to summon the Ministry of Interior for all the contract documents.
“This is unacceptable . We cannot continue like this. We must see the end of this contract in the National Interest “, he said.
On complaints made by the Customs boss, Lawan said, “I wonder why the Ministry of Finance is not here because we need their intervention now. Their presence here would have provided some clarifications. We took it for granted that since it was an executive bill, that there were some engagements among the agencies of the Federal Government.
“We also called for public hearing so that we could exrayed it. You are saying that you don’t have the legal mandate to collect taxes and it is a scary revelation.
“The Senate Committee on Finance and the Ministry of Finance and other agencies would look at the Act. If it is established beyond reasonable doubts that we need to amend it, we will do so without delay.
‘It will be the fastest amendment because we need you to collect more monies for the Federal Government”
But Senator Adeola in his own response said the section cited by the Customs boss , was not targeted at the agency .
“What necessitated that singular act was as a result of the issue between the Revenue Mobilisation and Fiscal Commission and the FIRS. There were clashes between them from time to time. Some activities of RMFAC were not in tandem with the Act that established it. We discovered that the only way that we can make their roles explicit is through the Finance Act concerning the assessment and accounting of taxes.
“We discovered that RMFAC are going to agencies to audit their tax accounts which is not part of their responsibilities based on the law that established RMFAC.
“The only agencies saddled with that responsibility is the FIRS. That was what that law tends to address. We are ready to look into it again if other revenue generating agencies believe that it has hindered them from performing their responsibilities and we would amend it accordingly”, he said
Former President of the Senate, Ahmad Lawan has extended his condolences to Governor Babagana Zulum and the people of Borno State following the recent devastating floods that have ravaged parts of the state.
A statement by his media adviser Dr. Ezrel Tabiowo quoted Lawan to have expressed deep sadness over the loss of lives and property caused by the disaster, which has left many residents displaced and without livelihoods.
He urged swift intervention from the National Emergency Management Agency (NEMA) and other relevant agencies to provide relief materials and assistance to the affected communities.
Lawan, who represents Yobe North Senatorial District, commended Governor Zulum’s efforts in responding to the flood disaster and pledged his support for the affected communities.
The former Senate President’s statement conveyed his solidarity with the people of Borno State during this challenging time.
The statement reads, “I am deeply saddened by the news of the severe flooding in Borno State, which has caused untold hardship and suffering to our compatriots. My heart goes out to those who have lost loved ones and property in this disaster.
“I urge the National Emergency Management Agency (NEMA) and other relevant agencies to swiftly provide relief materials and assistance to the affected communities.“
“I want to commend Governor Babagana Zulum for his proactive efforts in evacuating residents from the flooded areas and providing temporary shelters for them. His leadership has been instrumental in minimizing the impact of the disaster.“
He commended the federal government for providing additional support to Borno State to enable it to cope with the aftermath of the flood.
Lawan also urged the Borno State government to work with relevant agencies to find lasting solutions to the flooding in the state.
“While we commiserate with the victims of the flood, we must also work towards finding lasting solutions to this perennial problem. The Borno State government, in collaboration with relevant agencies, should embark on a comprehensive flood control programme to mitigate future disasters,” he said.
Senator Lawan prayed for the repose of the souls of those who lost their lives in the flood and wished the injured a speedy recovery.
From Friday Idachaba, Lokoja
The Kogi State House of Assembly has reconvened after a lengthy recess, with Speaker Rt. Hon. Aliyu Umar Yusuf expressing gratitude and excitement over the Supreme Court’s affirmation of Governor Ahmed Usman Ododo’s victory in the November 11th governorship election.
In his welcome address to members, Speaker Yusuf commended the lawmakers for their solidarity and assured them of the ruling All Progressives Congress (APC)’s commitment to collaborative governance for the state’s betterment.
Yusuf stated, “The Supreme Court’s pronouncement has profound significance for all of us, both as members of this esteemed assembly and as a state. We attribute this triumph to the Almighty God.”
The Speaker emphasized the legislature’s unity across party lines, saying, “As lawmakers, we have collectively rejoiced at this outcome, demonstrating our commitment to working harmoniously for the state’s progress.”
The assembly pledged its support for the executive branch, ensuring a harmonious working relationship to drive development and progress in Kogi State.
***Applauds Numerous Achievements in 7 Months
By Friday Idachaba, Lokoja
The Kogi State House of Assembly has passed a Vote of Confidence on Governor Ahmed Usman Ododo, lauding his outstanding achievements over the past seven months.
The vote of confidence was passed during Tuesday’s plenary session following the adoption of a motion on Urgent Public Importance, moved by Hon. Akus Lawal (APC-Ankpa 1).
In his motion, Hon. Akus highlighted the governor’s significant accomplishments in fiscal discipline, financial management, agriculture, health, security, infrastructure development, and education.
The motion commended Governor Ododo’s efforts in reducing the state’s domestic debt from N121 billion to N38 billion, earning Kogi State a “B-” rating with a positive outlook from FITCH Ratings.
The governor’s initiatives in agriculture, such as designating 8,000 hectares of farmland, releasing N8 billion to farm clusters, and refurbishing 200 tractors, were also praised.
In health, the motion recognized the governor’s efforts in formalizing the Health Insurance Scheme, revitalizing over 70 primary health centers, and distributing essential consumables and hospital equipment.
The governor’s commitment to security, infrastructure development, and education was acknowledged as well, including the engagement of local hunters and vigilantes, the launch of a metropolitan quick response unit, and the construction of roads and model colleges.
The House of Assembly’s vote of confidence is a testament to Governor Ododo’s dedication to transforming Kogi State and improving the lives of its citizens.
Hon. Jibrin Abu (APC-Ajaokuta) seconded the motion, which was supported by other members. In their various submissions, they applauded the governor for his achievements despite the pressure from ongoing litigation.
In his ruling on the motion, Speaker of the House, Rt. Hon. Aliyu Umar Yusuf, noted that despite the pending litigation from the election, the governor had achieved a great deal within seven months. He highlighted Governor Ododo’s impact on fiscal discipline, financial management, debt reduction, improved Internally Generated Revenue (IGR), and advancements in the agricultural sector.
Speaker Yusuf also emphasized the tremendous support the health sector has received under Ododo’s administration, from private healthcare to tertiary health institutions. He noted significant improvements in security, infrastructure development across the three senatorial districts, continuity and support for education, as well as reforms and improvements in Kogi’s civil service at both the state and local government levels.
He concluded that the governor not only deserves a pass mark but also excellence, and that a Vote of Confidence to support and encourage him was indeed in order.
Speaker Yusuf then adopted the motion following overwhelming voice votes in favor of the motion.
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