Business
VAT claim is about fiscal federalism- Lagos State
Lagos State government on Thursday said it has a strong case in its demand to collect the Value Added Tax (VAT).
It said its claims were also about fiscal federalism.
The state said VAT collection would neither impoverish other states nor would the process be cumbersome.
Commissioner for Information Strategy Gbenga Omotoso, who spoke on ‘Your View’ on TVC, said: “Lagos has a solid case in the ongoing legal dispute as the crux of the disagreement is about equity, justice and fairness.
“Whichever way it goes, it will also enrich our jurisprudence and enhance the way we see and relate to the law.
“No matter what, Lagos will always stand for true fiscal federalism.”
The commissioner noted that the volume of air, sea and road transport activities in Lagos puts pressure on the state’s infrastructure.
He added that additional revenue from VAT would facilitate infrastructure development for faster movement of goods and services, as well as economic growth for the benefit of Lagos and other states since prices will fall.
On the demand for a special status for Lagos, Omotoso described Lagos as a ‘giant that carries most of the burden of Nigeria on its shoulders and the engine-room of the nation’s financial and business activities.
“Lagos must be empowered to play this role to the benefit of Nigerians”, he insisted.
Omotoso noted that other states can partner with Lagos to generate more revenue or resources by taking advantage of its huge population and massive market to sell their agricultural produce and other products, while profits realised therefrom would be repatriated to create more wealth for farmers and other producers in such states.
According to him, Lagos almost became an orphan following the movement of the Federal Capital Territory to Abuja in 1991, resulting in modest support from the Federal Government.
He was confident there would be resources for more infrastructure and facilities in transportation, health, education, e.t.c, that will benefit Lagosians and others who troop in every day if the state is allowed to collect VAT.
Omotoso added that the state will sensitise residents concerning its position on the debate.
Also yesterday, Akwa Ibom State Governor Udom Emmanuel said states were entitled to collect VAT.
He was a guest on Arise TV News ‘Morning Show’ aired to mark the state’s 34th anniversary.
According to him, it was wrong for the Federal Government to collect and share revenue from VAT because it is generated from businesses and activities in states.
Minister of Finance, Zainab Ahmed, yesterday asked all taxpayers to continue remitting VAT to the Federal Inland Revenue Service (FIRS).
She said in an advertorial: “The ruling of the Court of Appeal employs all taxpayers in all the states to continue to collect VAT on behalf of the government in compliance with the VAT Act.”
But, Emmanuel said despite the huge oil and gas investments in the state, Akwa Ibom receives a paltry N2 billion from VAT.
He backed his Rivers and Lagos states counterparts, Nyesom Wike and Babajide Sanwo-Olu, both of whom have signed their VAT bills.
Emmanuel said: “If my brother state has gone to court, it is the same principle that we stand on. I think we are all in the same bucket, the same basket.
“All the 36 states do not need to join at the same time. Today my brother in Rivers State has gone far enough.
“I think the case has gone to the Appeal Court and there is also a stay of execution.
“Let me allow the rule of law. But for states saying they do not need VAT, maybe they do not know the hidden treasure in VAT.
“If today I sell a house in Uyo, or any other person sells a property, the value is enhanced because of the good roads, electricity, security and water I have created, and the value I have added to the property. Why should the VAT on the property not come to me 100 per cent?
“Just look at the money I have spent on capital projects in the first quarter put at N143 billion, if you take 7.5 per cent of that, why should all not come to me?”
Business
Finally, NERC unbundles TCN, creates new system operator
Finally, NERC unbundles TCN, creates new system operator
The Nigerian Electricity Regulatory Commission (NERC) has set up the Nigerian Independent System Operator of Nigeria Limited (NISO) as it unbundles the Transmission Company of Nigeria (TCN).
The transmission leg of the power sector has over the years been seen as weakest link with obsolete equipment.
The unbundling announcement is contained in an Order dated April 30, 2023 and jointly signed by NERC chairman, Sanusi Garba, and vice chairman, Musiliu Oseni.
By this order, the TCN is expected to transfer all market and system operation functions to the new company.
The commission had previously issued transmission service provider (TSP) and system operations (SO) licences to the TCN, in accordance with the Electric Power Sector Reform Act.
The Electricity Act 2023, which came into effect on June 9, provided clearer guidelines for the incorporation and licensing of the independent system operator (ISO), as well as the transfer of assets and liabilities of TCN’s portion of the ISO.
In the circular, the commission ordered the Bureau of Public Enterprises (BPE) to incorporate, unfailingly on May 31, a private company limited by shares under the Companies and Allied Matters Act (CAMA), 2020.
NERC said the company is expected “to carry out the market and system operation functions stipulated in the Electricity Act and the terms and conditions of the system operation licence issued to the TCN.
“The name of the company shall, subject to availability at Corporate Affairs Commission, be the Nigerian Independent System Operator of Nigeria Limited (“NISO”),” NERC said.
Citing the object clause of the NISO’s memorandum of association (MOU) as provided in the Electricity Act, NERC said the company would “hold and manage all assets and liabilities pertaining to market and system operation on behalf of market participants and consumer groups or such stakeholders as the Commission may specify.”
Business
Naira depreciates again, trades at N1,402/$
Naira depreciates again, trades at N1,402/$
The Nigerian currency, naira, on Thursday slightly depreciated at the official market, trading at N1,402.67 to the dollar.
Data from the official trading platform of the FMDQ Exchange, a platform that oversees the Nigerian Autonomous Foreign Exchange Market (NAFEM), showed that the naira lost N11.71
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This represents a 0.84 per cent loss when compared to the previous trading date on Tuesday April 30, when it exchanged at 1,390.96 to a dollar.
However, the total daily turnover increased to 232.84 million dollars on Thursday, up from 225.36 million dollars recorded on Tuesday.
Meanwhile, at the Investor’s and Exporter’s (I&E) window, the naira traded between 1,445.00 and N1,299.42 against the dollar.
Naira depreciates again, trades at N1,402/$
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Appeal court takes over NURTW case as NIC withdraws
Appeal court takes over NURTW case as NIC withdraws
The National Industrial Court has withdrawn from a case involving Alhaji Najeem Usman Yasin, Board of Trustees chairman of the National Union of Road Transport Workers (NURTW), and Alhaji Tajudeen Ibikunle Baruwa’s ambition to return as president of the union over lack of jurisdiction.
The industrial court’s decision was made to avoid conflict with the Court of Appeal, where the matter is already being heard.
Before the NIC announced its decision to hands-off the case, the defendants’ counsel, Mr. O.I. Olorundare SAN, had informed the court that the matter is currently before the Court of Appeal, Abuja division, and that the industrial court could not continue to adjudicate on the same matter.
The counsel cited authorities to support his claim, adding that the National Industrial Court does not have concurrent jurisdiction with the Court of Appeal.
The presiding judge, O.O. Oyewunmi, struck out the case, stating that the Appeal Court had taken over the matter and that the Industrial Court must respect the hierarchy of courts.
Alhaji Yasin and six others took the case to the Appeal Court, challenging the decision of the industrial court recognising a delegates’ conference held on May 24, 2023, where Baruwa was proclaimed as President of the union for a second term in office.
With the latest NIC judgement, both parties will now proceed to defend their positions at the Court of Appeal and await the final judgement.
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