The Federal Inland Revenue Service will begin its new Value Added Tax regime for companies by September as the Federal Government doubles its search for revenues.

The FIRS said subject to the Finance Act 2023, VAT withheld or collected, VAT on items excluded from building, the new Tertiary Education Tax rate of 3 per cent and Investment Allowances and Convertible Currencies will become effective September 1, 2023.

Certain amended provisions of the Finance Act 2023 were enacted on 28th May, 2023 with the effective date of 1st May 2023.

However, the effective date was changed to 1st September 2023.

Some of the amended Sections are 14 (3) which deals on VAT Withheld or Collected.

The VAT Act was amended to the effect that persons appointed to withhold or collect VAT shall remit the VAT withheld or collected on or before the 14th day of the month following the month in which the VAT was withheld or collected, the FIRS said.

“Consequently. All VAT withheld or collected in August 2023 shall be remitted to FIRS on or before the 14th of September 2023. Similarly, VAT withheld or collected in subsequent months shall be remitted to FIRS not later than 14th day of the month following that in which the VAT was withheld or collected,” FIRS said.

FIRS also said the definition of “building” was amended in Section 46 of the VAT Act to exclude any fixture or structure that can be easily removed from the land.

Examples of items excluded are radio and television masts, transmission lines, cell towers, mobile homes, caravans and trailers.

It added, “As such, all the items removed from the definition of land have become chargeable to VAT. Companies letting. trading in or providing services with such items must charge VAT at the prevailing rate with effect from 1st of September, 2023.”

Companies will also begin the payment of the new 3 per cent rate on Tertiary Education Tax (TET).

By the amendment to Section 1(2) of TET Act, the rate of TET was changed to 3 per cent of assessable profits. The new TET rate of 3 per cent will take effect for TET becoming due in respect of the accounting period ending on or after 1st September, 2023.

On investment allowances and convertible currencies, Sections 32, 34 and 37 of the Companies Income Tax Act (CITA) granting allowances in respect of capital expenditure incurred in certain circumstances, and tax exemption on income earned in convertible currencies from tourists by hotels have been repealed.

“Consequently, the said allowances and tax exemption are no longer available for tax returns becoming due in respect of the accounting period ending on or after 1st September, 2023,” the FIRS said.

Bandits have demanded N4 million in ransom for the release of one of the National Youth Service Corps (NYSC) members kidnapped in Zamfara State.

On Friday, armed gunmen allegedly kidnapped eight members of the National Youth Service Corps (NYSC) along a highway in Zamfara State.

The graduates were alleged­ly traveling in an Akwa Ibom Transport Company (AKTC) bus from Uyo, Akwa Ibom, to Sokoto State to participate in the mandated national service when their vehicle was stopped.

Emmanuel Etteh, the father of one of the victims, Glory Thomas, confirmed the latest development to an online medi­um, in a telephone conversation on Friday.

Etteh said the bandits called with their number to inform him about the abduction of his daughter and asked him to pay N4 million to secure her release.

“They called me with their line; they asked me to pay N4 million. I spoke with my daugh­ter because I asked how they wanted us to pay; she said we should contact the AKTC,” the troubled father said.

“Since that time, they have not called and I have not spoken with my daughter. I don’t know if they have released them but my daughter has not called me.”

The police command in Zamfara State has not passed any comment on the abduc­tion.

However, a military source who preferred anonymity had earlier confirmed the bandits’ ransom demands, adding that a rescue team is currently comb­ing the forest in order to rescue the victims unhurt.

An Ogun State Magistrate Court sitting in the Isabo area of Abeokuta, the state capital, on Thursday, sentenced one Ibrahim Giwa to one-year imprisonment for burglary and stealing.
Giwa was sentenced to a three-count boarding on felony to wit malicious damage and stealing.

The PUNCH METRO gathered that Giwa, on Monday, broke into a dwelling house of the Federal Government of Nigeria Housing Estate in the Ajebo axis of the state.

The Prosecutor, ASP Olakunle, told the court that Giwa damaged and stole some transformer cables worth N1,700,000, aluminum window worth N85,000, OX ceiling fan worth N21,000, aluminum window net worth N25,000 and heat extractor device worth N21,500.

The charge against the defendant before his conviction reads,”That you Ibrahim Giwa ‘m’ sometimes on 21st August 2023 at Federal Government Housing Estate Ajebo Road OGTV Area, Abeokuta in the Abeokuta magisterial district broke into a dwelling house of Federal Government of Nigeria Housing Estate with intent to committee felony to wit malicious damage and stealing, and thereby committed an offence punishable under section 413 of the Criminal Code Laws of Ogun State.

“Thal you brahim Giwa ‘m’ sometimes on 21st August 2023 at Federal Government Housing Estate Ajebo Road OGTV Area Abeokuta in the Abeokuta Magisterial district did willfully and unlawfully damaged some transformer cables worth (N1,700,000), Aluminium window worth (N85,000), OX ceiling fan worth (N21,000), Aluminium window net worth (N25,000) and HEAT extractor device worth (N21,500), and thereby committed an offence punishable under section 451 of the Criminal Code Laws of Ogun state of Nigeria 2006.

“That you Ibrahim Giwa ‘m sometimes on 21st August 2023 at Federal Government Housing Estate Ajebo Road OGTV Arca Abeokuta in the Abeokuta Magisterial district did stole transformer cable worth (N1,700,000), Aluminium window worth (N85,000), OX ceiling fan worth (N21,000), Aluminium window net worth (N25,000) and HEAT extractor device worth (N21,500), thereby committed an offence contrary to section 393 and punishable under section 390 of the Criminal Code Laws of Ogun State of Nigeria.”

The magistrate, Mrs O.O Odumosu, who found the convict guilty of the allegations, sentenced the suspect to six months imprisonment for the first count, three months for the second count and three months for the third count.

Odumosu ordered the convict to pay a N30,000 fine, noting that the one year should be spent concurrently.

Emmanuel Osodeke, president of the Academic Staff Union of Universities (ASUU), has dispelled rumours of a fresh strike by lecturers.

The insinuations have been making the rounds following a ruling in favour of the federal government’s ‘no work, no pay’ policy.

Nigeria’s public universities have seen repeated disruptions in academic calendars over the years, with striking lecturers protesting funding deficits, poor conditions of service, and decay in infrastructure.

ASUU embarked on its 16th strike in 23 years in 2022. The strike lasted for eight months.

In September 2022, the National Industrial Court (NIC) stopped ASUU from continuing with the strike, pending the determination of a suit.

The federal government insisted that the lecturers would not be paid for the period they were on strike, due to its ‘no work, no pay’ policy.

On May 30, the court upheld the government’s stance on the matter.

ASUU revisited the issue on August 19 during a National Executive Council (NEC) meeting at the University of Maiduguri.

Osodeke said the ‘no work, no pay’ policy ignored the fact that only the teaching component of academic work was suspended during the strike.

Reports have been making the rounds that the union is considering a fresh strike over the ruling of the industrial court.

Osodeke while responding, described the reports as “malicious and unfortunate”.

“We never mentioned the issue of another strike. Are we looking to create confusion? I’m just confused,” he said.

Among the issues raised during ASUU’s NEC meeting in Borno were promotion arrears.

The union traced distortions in promotion arrears to the forceful enrollment of academics on the Integrated Payroll and Personnel Information System (IPPIS).
Osodeke said the job racketeering scandal uncovered in the IPPIS has “eroded university employment tradition”.

He said ASUU received reports of mass exit of academics from public universities due to poor working conditions.

“We call on the new administration to save our nation by rejecting the pervasive neo-liberal policies that have brought untold hardship on academics, the working class, and all underprivileged Nigerians,” Osodeke said.

The Delta State Governor Sheriff Oborevwori has reportedly appealed the judgment of a Federal High Court sitting in Lagos which ordered him to disclose how over N200 billion public funds were spent by the government of Ifeanyi Okowa.

The funds in dispute flowed to the government from the Universal Basic Education Commission (UBEC) fund and from the Federation Accounts.

The judgment was delivered by Justice Daniel Osiagor, following a Freedom of Information suit (FHC/L/CS/803/2019) filed by Socio-Economic Rights and Accountability Project (SERAP).

SERAP based its suit on the case of seven year-old Success Adegor, who was sent home because her parents could not afford N900 school fee/levy.

Miss Success was seen in a viral video in March 2019 saying, “No be say I no go pay, dem go flog, flog, flog, dem go tire.”

The trial court had in June 2023 ordered Oborevwori to disclose “details of budgetary allocations and actual spending by the Okowa government between 2015 and 2019, including specific projects carried out to improve primary education in Delta State, and the locations of such projects.”

But on Friday, SERAP tweeted that the trial court judgement has been appealed by the government.

Though it did not state the division of the Court of Appeal where the appeal was filed, it vowed to challenge the appeal when the matter commences.

“Delta State government has filed an appeal against the judgment ordering Okowa government to account for over N200bn education funds and allocations from the Federation Accounts. We’ll see them at the Court of Appeal,” SERAP tweeted.

Nigeria’s Minister of State for Petroleum Resources, Heineken Lokpobiri has said that the Port Harcourt refinery will be ready by December 2023.

This was stated in an August 25 statement signed by Garba Deen Muhammad, Chief Corporate Communications Officer at NNPCL.

The statement read:

“The Federal Government has reiterated its commitment to ending petroleum product importation soon, as efforts are being redoubled to restore the nation’s local refining capacity.
“This was made known by the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, during an inspection tour of the rehabilitation work progress at the Port Harcourt Refining Company (PHRC) Ltd. plant, in Port Harcourt on Friday.
“The Minister, who was in the company of his counterpart, the Minister of State for Petroleum (Gas), Hon. Ekperikpe Ekpo; Permanent Secretary, Federal Ministry of Petroleum Resources, Ambassador Gabriel T. Aduda, and the Group CEO, NNPC Ltd., Mr. Mele Kyari, said considering the level of progress recorded in the PHRC rehabilitation project, the plant will come back on stream by December this year.
“Our objective in coming here today is to ensure that in the next few years, Nigeria stops fuel importation. From what we have seen here today,
“Port Harcourt Refinery will come on board by the end of the year, Warri will come on stream by the end of the first quarter of next year, and Kaduna will also come on board towards the end of next year. If you add that to the Dangote Refinery, we will be able to stop fuel importation, and Nigerians will enjoy the full benefits of deregulation,” the Minister assured.
“The Minister also said he was satisfied with the ongoing rehabilitation work at the Port Harcourt refinery, noting that once all the refineries are back on stream, Nigerians will enjoy a better supply of petroleum products, and foreign exchange will be domesticated, leading to an improved economy.
“Earlier in his remarks, the Group CEO, of NNPC Ltd., Mr. Mele Kyari, said bringing back the refineries to their optimal levels is a national aspiration, and the Company remains focused on delivering that.
“We are aware of our nation’s challenges in terms of fuel supply. But we are not here to give excuses. We are focused on delivering this rehabilitation project, our two other refineries, and all other investments towards revamping the nation’s refining capacity. We are hopeful that in 2024, this country will be a net exporter of petroleum products,” Kyari stated.
“Also speaking, the Minister of State for Petroleum (Gas), Hon. Ekperikpe Ekpo said: “We are here to go into the field. Yesterday was the era of subsidies. Today, we don’t have subsidies. Today, people are in a desperate situation to heave a sigh of relief; and see how to live. You all know that petrol is very vital to our economy. All hands must be on deck to ensure that the refineries are working,” he stated.
“During the visit, the two Ministers also participated in the Refineries’ Rehabilitation Steering Committee meeting and held a meeting with the refinery’s Engineering, Procurement & Construction (EPC) Contractors.”

The federal government in 15 months, has reportedly raked in N1.98tn in taxes from Google, Netflix, Facebook, and other foreign companies operating in the country.

The National Bureau of Statistics said the figure includes both Company Income Tax and Value Added Tax.

The Federal Inland Revenue Service noted that the CIT is a 30 percent tax imposed on the profit of companies, while the VAT is a 7.5 percent consumption tax paid for and borne by the final consumer for goods purchased and services rendered.

The Companies Income Tax (Significant Economic Presence) Order of 2020, an amendment of the Finance Act 2019, was issued by the former Minister of Finance, Zainab Ahmed. The order targeted taxing foreign entities that engage in specific services or digital transactions while having a Significant Economic Presence in Nigeria.

In spite of the complexities encountered in enforcing the law on foreign companies generating income from Nigeria, such companies under the FIRS jurisdiction have collectively paid N1.98 trillion in taxes to the federal government from Q1 2022 to Q1 2023.

Within this time frame, N1.32 trillion was collected through CIT, and N661.93billion through VAT, contributing to the Federal Government’s revenue.

President Bola Tinubu on Thursday promised that his administration would conclude a thorough review of the remuneration templates of judicial officers in the country.

Receiving the leadership of the Nigerian Bar Association (NBA), led by Barrister Yakubu Maikyau (SAN), the President said the battle against corruption necessitates a comprehensive review of the salaries and allowances of judicial officers, an issue that is well known to him, given his landmark success in reforming justice administration in Lagos State.

“We must deal with the review of remuneration if we truly want to fight corruption in the Judiciary. We will look at the cost as well as the consequences,” he said in response to a request by the NBA president.

President Tinubu equally acknowledged the importance of addressing the current vacancies within the Supreme Court, affirming that these vacancies represent obligations that must be fulfilled based on recommendations put forth by the National Judicial Council (NJC).

“Majority of them are on holiday now and when they return, we will take a look at what they have and we will fill the vacancies. It’s a fulfillment of an obligation,” he said.

The President thanked the NBA for extending an invitation to him to declare open the association’s 63rd Annual General Conference this weekend in Abuja.

He acknowledged his privilege of having numerous lawyers as close aides, including the Chief of Staff, Rt. Hon Femi Gbajabiamila, the State Chief of Protocol, Amb. Victor Adeleke, and his Principal Private Secretary, Prince Damilotun Aderemi.

The NBA President, in his remarks, commended the President for appointing very distinguished members of the bar into his cabinet, including Lateef Fagbemi, the Attorney-General of the Federation and Minister of Justice.