Taiwo Oyedele, chairman of the presidential fiscal policy and tax reforms committee, says Nigerian businesses are strained due to taxes paid in foreign currency.

Speaking at the Nigerian Financial Intelligence Unit (NFIU) first revenue assurance summit, Oyedele said businesses are required to pay certain taxes in dollars, which amounts to an estimated $3.5 billion annually.

According to Oyedele, the practice not only strains local businesses but also contributes to the depreciation of the naira.

“We found that Nigerian businesses are being asked to pay some taxes in dollars — NIMASA, NPA, etc. which amounts to an estimated $3.5 billion a year,” the chairman said.

“We are crying that our naira is losing value; why wouldn’t it lose value when we impose unnecessary dollar demands?”

In his address, titled “The Importance of Revenue Assurance in Economic Stability,” Oyedele noted that revenue should be used to enhance the lives and livelihoods of citizens rather than simply serving as a financial target.

He called for a coherent policy environment that fosters investment and collaboration among federal and state agencies.

‘RELEASE DATA IN 48 HOURS OR FACE CONSEQUENCES’

Oyedele warned government agencies against withholding data from each other, noting that the data does not belong to them.

Giving an instance, Oyedele said the Joint Tax Board (JTB) was required to pay for data access from governmental sources.

He questioned how the government would generate revenue if the agencies were selling data.

To prevent government agencies from withholding data, Oyedele announced plans to draft legislation mandating the free provision of government-held data, with strict deadlines for compliance.

“Our economy must be designed to be conducive and investment friendly, our policy environment must be purposeful and coherent, let’s not be pulling in different directions, states versus federal or even within federal agencies.

“JTB (Joint Tax Bank) told me as part of the work we are doing, the number of agencies they were looking for data, you know they were commending the NFIU and we are grateful for the NFIU and the leadership… and they were asking them to come and pay for data.

“JTB was being asked to pay for data I couldn’t believe it. In the same Nigeria, government has data and government is selling data and we say government does not have revenue,” he said.

“How are we suppose to have revenue if we are selling data?

“So we drafted a law, it is not your data, it is our data, you will give it. In fact we will give you a deadline of 48 hours. If you don’t release the data, there will be consequences. We are criminalising it. Give the data.”

He further stressed the necessity of linking domestic data with international standards to ensure the integrity of information while making revenue collection processes efficient and transparent.

Oyedele said protocols are being developed to ensure data integrity and protection.

‘FOCUS ON PROBLEM-SOLVING RATHER THAN OBSTRUCTING EFFORTS’

Addressing misinformation surrounding his committee’s initiatives, Oyedele criticised unfounded claims about fiscal policies, particularly a recent report alleging the committee announced a 10 percent reduction in federal government allocations from the federal account allocation committee (FAAC).

On October 13, Oyedele denied proposing a reduction in the federal government’s share of revenue from FAAC.

He said his committee’s recommendation was explicitly in respect of the value-added tax (VAT) revenue.

Speaking on the issue, the chairman urged stakeholders to focus on problem-solving rather than obstructing efforts to improve the economy.

‘EFFECTIVE COLLECTION OF TAXES WILL INCREASE REVENUES WITHIN 3 YEARS’

Oyedele announced that the committee has proposed a synchronised tax system that includes eight key taxes across federal, state, and local levels.

He said the effective collection of the taxes could result in a four- to five-fold increase in revenues within two to three years.

Additionally, Oyedele proposed a national framework for subsidies aimed at alleviating financial pressures on businesses, expressing hope that political leaders will adopt the reforms while calling for unity among stakeholders in implementing the reforms.

In her remarks, Hafsat Bakari, chief executive officer (CEO) of the NFIU, said while the unit’s work on tax crimes initially focused on supporting the Federal Inland Revenue Service (FIRS), NFIU has now expanded its efforts to partner with sub-national counterparts.

Bakari said most tax evasion occurs at the state level and that financial transaction data held by the NFIU would greatly benefit state internal revenue services.

“While FIUs were created by international conventions to address criminal activity, the same international conventions and standards require that we put in place measures to protect the integrity of the information that we provide,” Bakari said.

“To this end, our approach to working with States is built on the establishment of a memorandum of understanding which sets out the principles, objectives and limitations of the intelligence provided.”

She also announced the creation of the crime records information management system (CRIMS), a secure platform for requesting and receiving intelligence from the agency.

Bakari said through CRIMS, paper records, which are prone to compromise, have been eliminated.

Olayemi Cardoso, governor of the Central Bank of Nigeria (CBN), says the country’s foreign reserves rose by 12.74 percent to $39.12 billion as of October 11.

Cardoso spoke on Tuesday when he appeared before the house of representatives committee on banking regulation.

The CBN governor said the country’s reserves stood at $34.70 billion at the end of June.

Data from the apex bank had showed that foreign reserves fell to $32.29 billion on April 15 — the lowest level in over six years.

Cardoso said the nation’s foreign exchange reserves have “grown significantly” with remittance flows currently representing 9.4 percent of total external reserves.

“The reserves rose by 12.74% to $39.12 billion as of October 11, 2024, from $34.70 billion at the end of June 2024,” he said.

The CBN governor said the foreign reserves are driven largely by foreign capital inflows, receipts from crude oil-related taxes and third-party.

“In Q2 2024, we maintained a current account surplus and saw remarkable improvements in our trade balance,” he said.

“The current external reserves position can finance over 12 months of import of goods and services or 15 months of goods only.

“This is substantially higher than the prescribed international benchmark of 30 months, reflecting a robust buffer against external shocks.

“Regarding the foreign exchange market, the bank implemented various reforms including a unification strategy, which streamlined various exchange rate windows into a single model, adopting the willing buyer, willing Seller’ approach to enhance FX liquidity and financial market stability.

“This move was aimed at fostering transparency, reducing market distortions, and enhancing the efficiency of foreign exchange allocations.

“This consolidation involved the implementation of new operational guidelines which included removing the international money transfer operators (IMTOs) quote cap.

“Additionally, the bank resumed the sales of FX at the NAFEM and Bureau De Change (BDC) segments, bolstered by an improved supply from foreign portfolio investors (FPIs).

“In the foreign exchange market, we have achieved increased transparency and improved overall supply. By allowing the foreign exchange rate to be determined by market demand and supply, the CBN has reduced arbitrage and speculative activities and eliminated the front-loading of FX demand.

“These policy measures have effectively narrowed the exchange rate disparities between the NAFEM and BDC segments which have largely led to the convergence of FX rates.

“Improved transparency in the market has restored market confidence leading to increased capital inflows which enabled the CBN to clear existing FX backlogs.

“The settlement of all legitimate backlogs of outstanding FX obligations by the bank has significantly improved Nigeria’s credibility and ratings across the global financial market, helping to boost investor confidence, and enhanced liquidity in the foreign exchange market.

“With improved investor confidence, foreign investments have increased as evidenced by a significant rise in capital importation by 65.56% to $6.49 billion between January and July 2024, compared to $3.92 billion in the corresponding period of 2023.

“Collectively, these actions have contributed significantly to the stability of the financial system.”

‘INFLATION REMAINS A CONCERN’

Cardoso admitted that inflation remains a pressing concern, but said there are reasons for an optimistic outlook.

The latest data by the National Bureau of Statistics (NBS) indicate that the consumer price index (CPI), which measures the rate of change in prices of goods and services, rose to 32.7 percent in September.

The increase was the first in three months after the country’s inflation rate declined twice in July and August.

Cardoso said inflation has shown “gradual moderation,” indicating that the monetary policy measures are “becoming effective”.

“We anticipate steady moderation of inflationary pressures in the last quarter of 2024, supported by our monetary policy measures and the federal government’s recent initiatives such as tax incentives on businesses in the economy,” he said.

“To combat inflation, we have fully reverted to an orthodox monetary policy approach and implemented a comprehensive set of monetary policy measures.

“These include raising the policy rate by 850 basis points to 27.25%, increasing cash reserve ratios and normalising open market operations as our primary liquidity management tool.

“In addition, we have adopted an inflation-targeting (IT) monetary policy framework as part of the bank’s enterprise strategy (2024-2028).

“The IT framework, widely adopted across various global economies, is renowned for its effectiveness in combating persistent inflation.”

The CBN govenor said these measures are aimed at stabilising prices, optimising liquidity management, and engendering an effective monetary policy framework.

The Peoples Democratic Party, PDP has implored the Independent National Electoral Commission, INEC to conduct a free, fair and credible governorship election in Ondo State.

Governor Seyi Makinde of Oyo State, who is also the Leader of the party in the South-West Zone, made the appeal on Tuesday in Akure, during the official flag-off of the PDP governorship election campaign.

The governor said the party would not do what he termed a fraudulent election in Edo State, saying “We don’t want that in Ondo”.

Makinde also called for the removal of the INEC Resident Electoral Commissioner, REC in the state, Mrs Oluwatoyin Babalola, saying the party had no confidence in her to deliver a credible election.

The governor said the call for Babalola’s removal was to safeguard electoral integrity and ensure fairness and level playing ground for all parties in the forthcoming November 16 governorship election in the state.

“The last governorship election in Edo State was a fraud and we don’t want that in Ondo State.

“The current REC is from Ondo State, we don’t want her to conduct this election otherwise we will continue to protest. We will not condone injustice,” Makinde said.

Also speaking at the rally, Osun State Governor, Ademola Adeleke, who doubles as the Chairman, Ondo National Campaign Council, said the PDP governorship candidate in Ondo State, Agboola Ajayi was a tested hand.

The PDP National Chairman, Umar Damagun, who spoke on the last Edo State governorship election, claimed that the PDP candidate, Asue Ighodalo, was the legitimate winner of the election.

According to Damagun, the election in Edo did not meet the necessary democratic standards.

“We don’t want what happened in Edo State in Ondo State.

“We want free, fair and credible elections in Ondo State.

“Our governorship candidate, Agboola Ajayi, is a well-tested candidate that can deliver dividends of democracy to the good people of Ondo State,” he said.

Ajayi, the governorship candidate of the PDP, said that his seven-point agenda would definitely transform the future of the people in the state if voted for.

The Martin Amaewhule-led Rivers State House of Assembly and the faction loyal to Governor Siminalayi Fubara have initiated a fresh round of crisis in the state.

On Tuesday, the Amaewhule faction declared the seats of four of their colleagues loyal to Fubara vacant.

The Appeal Court in Abuja recently granted legality to the Amaewhule leadership of the Assembly.

In its reaction, the Victor Oko-Jumbo-led pro-Fubara lawmakers insisted Amaewhule and his group had ceased to be lawmakers in the state.

The group called on the Independent National Electoral Commission to conduct a by-election to fill the vacant seats.

The new power play followed the battle for the political control of the state between Fubara and the immediate-past governor of the state and the Minister of the Federal Capital Territory, Nyesom Wike.

Those whose seats were declared vacant by the lawmakers loyal to Wike were  Edison Ehie, who is now the Chief of Staff to the Governor and three others, citing their absence from sittings for 56 days.

Amaewhule, who stated this while presiding over plenary in Port Harcourt on Tuesday, said Ehie did not properly write to inform the House of his new office, and as such, his seat had been declared vacant.

The resolution of the House followed a motion by its leader, Major Jack.

In a statement issued in Port Harcourt on Tuesday by the Special Assistant on Media to the Speaker,  Martins Wachukwu, the assembly declared the seats of the three lawmakers vacant for absenteeism.

The statement read, “In compliance with the combined provisions Section of 109 (1)(e),(f) and Section 109 (2) of the 1999 Constitution as altered, the Rivers State House of Assembly, on Tuesday, at its 56th Legislative Sitting of the Second Session, declared vacant the seats of Hon Edison Ogerenye Ehie, Hon Victor Oko Jombo, Hon Adolphus Timothy Oruibienimigha and Hon Sokari Goodboy Sokari, representing Ahoada East II, Bonny, Opobo/Nkoro and Ahoada West Constituency respectively.

“Riding on the back of a motion moved by the House Leader, Hon Major Jack and co-sponsored by 25 other members, that the seats of these four members be declared vacant for their continued refusal or failure to attend and participate in legislative meetings of the House, without just cause for a period amounting in aggregate, to more than one-third of the total number of days the House met in the first session of the Tenth Assembly and for also being absent in the past 56 legislative sittings of the Second Session.”

Commenting on the motion, Amaewhule recalled that after the peace parley that was held at the instance of President Bola Tinubu, the House withdrew its impeachment notice on the governor and also recalled the four suspended members, yet they had obstinately refused to attend sittings of the House.

When the Speaker put the question, the House voted in the affirmative that the seats of the four members be declared vacant and the Independent National Electoral Commission be notified to conduct elections to fill the vacancies.

Amaewhule said that given the fact the Court of Appeal upheld all the injunctive orders given by the Federal High Court, the governor should present the 2024 Appropriation Bill to the House again.

However, the Oko-Jumbo-led faction of the assembly insisted that the legislative seats of Amaewhule and 24 others remained vacant following their defection from the Peoples Democratic Party to the All Progressives Congress.

It said the vacant seats must be filled through a bye-election conducted by the Independent National Electoral Commission.

The Assembly, in a statement signed by its Speaker, Oko-Jumbo, in Port Harcourt, said the 25 legislative seats were declared vacant on December 13, 2024, by the then legitimately recognised Speaker, Ehie, and regretted that the INEC had been foot-dragging on the conduct of bye-election to fill the vacant seats.

He said that the inability of INEC to do the needful since December 13, 2023, created room for unnecessary distractions from Amaewhule and his committee of friends.

Oko-Jumbo then called on the commission to discharge its constitutional responsibilities to the people of the State.

“Please, recall that on the 11th day of December, 2023, Martin Chike Amaewhule and 24 others defected from the Peoples Democratic Party that sponsored their election into the Rivers State House of Assembly to the All Progressives Congress. Their defection was headline news and widely reported in print and electronic media.

“On the 13th day of December 2023, the defection by Martin Chike Amaewhule and 26 others was further cemented in an affidavit deposed to by Martin Chike Amaewhule, when in Suit No. FHC/ABJ/CS/1681/2023, Martin Chike Amaewhule & 26 Ors v. INEC & 5 Ors. in paragraphs 15 thereof, he deposed as follows:‘That faced with the state of uncertainty and confusion in the 2nd defendant (Peoples Democratic Party) caused by division in the political party, the plaintiffs were forced by the state of affairs within the second defendant to defect and join the All Progressives Congress.

“On the 13th day of December, 2023, Rt. Hon Edison Ogerenye Ehie, as then Speaker, declared the seats of Martin Chike Amaewhule and 24 others in the Rivers State House of Assembly vacant and called on the Independent National Electoral Commission to conduct a bye-election to fill their vacant legislative seats. This has not been challenged and set aside by any court of law.

“Subsequently, I was elected as the Speaker of the Rivers State House of Assembly. Myself and the Members of the Rivers State House of Assembly have been piloting the affairs of the Rivers State House of Assembly, including passing resolutions and screening various eminent persons as commissioner-nominees and recommending them to His Excellency, the Governor of Rivers State, to be appointed and sworn in as commissioners, among others.

“Truth and facts are constant, sacrosanct and indelible. The fact of the defection by Martin Chike Amaewhule and 24 Ors cannot be erased by pretenders like Martin Chike Amaewhule and his committee of friends.

“Today, the 15th day of October 2024, Martin Chike Amaewhule & 24 Ors who ceased to be members of the Rivers State House of Assembly, on December 11, 2023, purportedly declared vacant the legislative seats of Rt. Hon Victor Oko-Jumbo and others as members of the Rivers State House of Assembly. They have no such powers. This is an exercise in futility. It is a joke taken too far.

“As the Rt. Honourable Speaker of the Rivers State House of Assembly, I call on INEC to immediately conduct a bye-election to fill the legislative seats declared vacant on December 13, 2023.

“I also call on Nigerians and the good people of Rivers State in particular to ignore the vituperations and ranting of Martin Chike Amaewhule and his committee of friends.

“They are not members of the Rivers State House of Assembly not to talk of having the powers to declare vacant the legislative seats of legitimate Assembly members, who have remained steadfast and did not defect like them,” he added.