Business

2020 finance bill gets special Senate action, passes 1st, 2nd reading

Published

3 years ago

December 2, 2020

The 2020 finance bill seeking to reduce import levy on buses, tractors and other motor vehicles has passed first and second reading at the Senate.

The proposed law passed first and second reading on Wednesday after the senators gave it a special consideration.

A letter by President Muhammadu Buhari asking the National Assembly to pass the bill was only read on the floors of the House of Representatives and Senate on Tuesday.

Normally, when a bill is read for the first time, a day is fixed to debate the general principles of the legislation after which it will be passed for second reading.

But the Senate Leader, Yahaya Abdullahi, on Wednesday said special consideration should be given to the bill because of its importance to the economy.

He said the legislation was seeking to “provide fiscal relief for taxpayers by reducing the applicable minimum tax rate for two consecutive years of assessment.”

The senate leader said the bill was also seeking to amend the procurement act to implement key procurement reforms previously proposed by the national assembly in 2019.

“The Capital Gains Tax Act is amended at section 36(2) of the CGTA to the extent that exemption on tax liability for compensation for loss of office which was hitherto limited to N10, 000.00 is now extended to N10, 000, 000.00,” he said.

“There is a new section 32 which provides that no tax shall apply to any trade or business transferred to a Nigerian company for the purposes of better organization of that trade or business.

“Section 4 of the Value Added Tax (VAT) act has been amended by increasing the value added tax payable by consumers from 5% to 7.5%. Section 19 increased the penalty payable by a taxable person for non-remittance within the specified period from 5% to 10%.

“Under section 28, the penalty for failure to give notice of change of address or permanent cessation of business was increased from N5,000 to N 50,000 in the first month and N25,000 in subsequent months.

“There is a new section 8 of the VAT Act to cater for the registration of a taxable person upon commencement of business.

“The penalty for failure to register has been increased from N10,000 to N50,000 in the first month and from N 5,000 to N 25, 000 in the subsequent months.”

Yahya also said the bill sought to boost the Small and Medium Enterprises by reducing their tax burden.

However, Ike Ekweremadu, senator representing Enugu west, was opposed to the bill being hurried.

“It is important that we put it to a public test and see what the Nigerian people will say. We must ensure that the people of Nigeria are carried along,” he said.

The bill passed second reading after it was put to a voice vote by Senate President Ahmad Lawan.

Business

Finally, NERC unbundles TCN, creates new system operator

Published

59 mins ago

May 4, 2024

Trends Admin

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/$

Published

22 hours ago

May 3, 2024

Trends Admin

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

Naira depreciates again, trades at N1,402/$

Auto

Appeal court takes over NURTW case as NIC withdraws

Published

2 days ago

May 1, 2024

Trends Admin

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.