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Southern govs okay VAT collection by state governments

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Governors of the southern states have agreed that collection of value-added tax (VAT) should be undertaken by state governments.

Chairman of the Southern Governors Forum and Governor of Ondo State, Rotimi Akeredolu, disclosed this on Thursday while reading a communique at the end of a meeting of the governors in Enugu.

The Federal Inland Revenue Service and some state governments are currently in court over VAT collection.

Rivers and Lagos state governments have enacted laws empowering their respective states to collect the tax (VAT).

Last week, the Court of Appeal directed states to maintain status quo on VAT collection pending the determination of an appeal filed by the FIRS.

Akeredolu said that the governors affirmed that the collection of VAT fell within the powers of state governments.

“We resolved to support the position that the collection of VAT falls within the powers of the state,” he said.

He also said, “The meeting reaffirmed its earlier commitment to fiscal federalism and emphasised the need to pursue its inclusion in the Nigerian Constitution through the ongoing constitutional amendment.”

Akeredolu urged states in the south to leverage the competence of their houses of assembly and representation at the national assembly to pursue the goal.

He said that the meeting reviewed the state of the nation and the progress made in the implementation of the ban on open grazing of cattle in the south of Nigeria.

He said, “The meeting expressed satisfaction with the rate at which states in the south of Nigeria are amending or enacting the anti-open grazing law.

“This aligns with the uniform template and aspiration of governors in the south and we encourage the states that have yet to enact the law to do so expeditiously.

“The meeting agreed to encourage the full operationalisation of the already agreed regional security which will share intelligence and collaborate toward the safety and security of the region.”

The meeting was attended by Ifeanyi Ugwuanyi of Enugu, Nyesom Wike of Rivers, Emmanuel Udom of Akwa Ibom, Babajide Sanwo-Olu of Lagos and Ifeanyi Okowa of Delta.

Others are Adegboyega Oyetola (Osun), Douye Diri (Bayelsa) and Dapo Abiodun (Ogun).

The deputy governors in attendance were Bisi Egbeyemi (Ekiti), Rauf Olaniyan (Oyo), Kelechi Igwe (Ebonyi), Ude Oko-Chukwu (Abia), Philip Shuaibu (Edo), Prof. Ivara Esu (Cross River) and Placid Njoku (Imo).

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World Bank blacklists 17 Nigerians, firms over corrupt practices

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The World Bank has disqualified nine Nigerian individuals and firms from executing any contract with it for engaging in corrupt, fraudulent and collusive practices.

Eight Nigerian companies debarred by the African Development Bank (AfDB) were also recognised by World Bank under the cross-debarment policy.

Cross-debarment is the recognition of debarment decisions by signatories to the Agreement for Mutual Enforcement of Debarment Decisions on the same terms as the initial decision.

This is contained in its recent report titled ‘Sanctions System Annual Report for Fiscal Year 2021’.

This report covers the Fiscal Year 2021 (FY21) — from July 1, 2020 to June 30, 2021 — and was prepared by the offices of the World Bank Group’s (WBG) sanctions system.

The report stated, “In the fiscal year 2021, the World Bank Group sanctioned 57 firms and individuals, of which 54 were debarred with conditional release, making them ineligible to participate in projects and operations financed by institutions of the World Bank Group. In addition, three firms were sanctioned with conditional non-debarment, leaving them eligible to participate in World Bank Group-financed operations after meeting certain agreed-upon conditions.

“The institution also recognised 92 cross-debarments from other multilateral development banks (MDBs), while 45 World Bank Group debarments were eligible for recognition by other MDB.”

They are Sangtech International Services Limited, Sangar & Associates (Nigeria) Limited, Mashad Integrated And Investment Co Limited, and Medniza Global Merchants Limited — all banned for two years.

Others are ALG Global Concept Nigeria Limited, Abuharaira Labaran Gero, Qualitrends Global Solutions Nigeria Limited, and Maxicare Company Nigeria Limited. These firms are ineligible to participate in projects and operations financed by institutions of the World Bank for three years.

Commenting on the report, World Bank President, David Malpass, said; “The World Bank Group is firmly committed to placing governance, anti-corruption and transparency front and centre in our work. A stable, respected rule of law is essential to good development outcomes. An important piece of our anti-corruption efforts is the World Bank Group’s sanctions system.”

He said that since the beginning of the COVID-19 pandemic, the World Bank Group had deployed more than $157 billion in critical assistance to developing countries.

“Yet, for these resources to have the needed development impact on the hundreds of millions of people who live in extreme poverty, we must ensure that resources are used efficiently, effectively and for their intended purposes,” he said.

“And that means remaining vigilant to the scourge of corruption and ensuring that we promote the highest integrity and transparency standards in public finance.”

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eNaira: FG targets $29bn from blockchain, digital currency

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Digital currency and its underlying technology, blockchain, can increase Nigeria’s Gross Domestic Product by $29 billion in the next 10 years, President Muhammadu Buhari has said.

He stated this in Abuja on Monday at the unveiling of eNaira, stressing that Nigeria’s digital currency would help move people and businesses from the informal into the formal sector and increase the tax base of the country.

He said eNaira would cater for businesses and households seeking faster and cheaper means of payment instead of “private currencies” that have gained popularity and acceptance across the world, including Nigeria.

The President said, “In recent times, Your Excellencies, the use of physical cash in conducting business and making payments has been on the decline. This trend has been exacerbated by the onset of the COVID-19 pandemic and the resurgence of a new Digital Economy.

“Alongside these developments, businesses, households, and other economic agents have sought new means of making payments in the new circumstances.

“The absence of a swift and effective solution to these requirements, as well as fears that Central Banks’ actions sometimes lead to hyperinflation created the space for non-government entities to establish new forms of ‘private currencies’ that seemed to have gained popularity and acceptance across the world, including here in Nigeria.

“In response to these developments, an overwhelming majority of Central Banks across the world have started to consider issuing digital currencies in order to cater for businesses and households seeking faster, safer, easier and cheaper means of payments.”

Buhari added that the benefits of digital currencies cut across different sectors of and concerns of the economy.

He said, “Let me note that aside from the global trend to create Digital Currencies, we believe that there are Nigeria-specific benefits that cut across different sectors of and concerns of the economy.

“Alongside digital innovations, Central Bank Digital Currency (CBDC) can foster economic growth through better economic activities. Indeed, some estimates indicate that the adoption of CBDC and its underlying technology, called blockchain, can increase Nigeria’s GDP by US$29 billion over the next 10 years.

“CBDCs can also help increase remittances, foster cross border trade, improve financial inclusion, make Monetary Policy more effective, and enable the government to send direct payments to citizens eligible for specific welfare programmes.

“It is on this basis that I am delighted to officially launch the Central Bank of Nigeria Digital Currency, called the eNaira, and in so doing, we have become the first country in Africa and one of the first in the world to introduce a Digital Currency to her citizens.”

governor of the CBN, Godwin Emefiele, said the eNaira would make a significant positive difference to Nigeria and Nigerians.

The apex bank rolled out two applications for the digital currency on Monday — eNaira speed wallet and eNaira merchant wallet.

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As Buhari launches eNaira, CBN unveils 100 for 100 financial instrument

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President Muhammadu Buhari has launched the Central Bank of Nigeria (CBN) digital currency, the e-Naira.
While launching the digital currency, at the State House,Abuja, this afternoon, the president commended the CBN Governor, Mr. Godwin Emefiele, for his efforts towards ensuring a more efficient payment system in the country.
In his address, Emefiele announced a new financial instrument titled “The 100 for 100 PPP – Policy on Production and Productivity,” to reduce the nation’s overdependence on imports.
According to the governor, the instrument, “will be anchored in our Development Finance Department under my direct supervision.
“Under this policy the CBN will advertise, screen, scrutinize and financially support 100 targeted private sector companies in 100 days, beginning from 01 November 2021, and rolling over every 100 days with new set of 100 companies, whose names will be published in National Dailies for Nigerians to verify and confirm.

“The purpose of this instrument is to take further steps to reverse our over reliance on imports.”

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