Abuja cranks out new taxes, levies, and tariffs to fund 2022 budget
By Jeph Ajobaju, Chief Copy Editor
Abuja has backed down from demanding Taxpayer Identification Number (TIN) to operate a bank account, which would have been another social bottleneck in a country with an unemployment rate of 33.3 per cent, the second highest in the world.
South Africa, the global jobless chart topper calibrated by Bloomberg, comes in with
34.4 per cent in the second quarter of 2021 (Q2 2021) from 32.6 per cent in Q1 2021.
Muhammadu Buhari, however, plans to crank out more taxes, levies, and tariffs in the new year for money to finance the budget but which, in reality, will service loans that are being wasted through padded contracts or stolen in raw cash.
The Economic and Finance Crimes Commission (EFCC) announced on December 12 that a Governor in one of the North Central states – of Nasarawa, Niger, Kwara, Kogi, Benue, Plateau – withdrew over N60 billion in cash from state coffers in the past six years.
That is, one single Governor has been stealing over N10 billion each year for six years from the treasury of a state in one of the poorest regions of Nigeria.
Finance Minister Zainab Ahmed told lawmakers in Abuja the following day that once the economy improves Nigerians will pay more taxes, levies, and tariffs to fund projects.
However, at least 257 projects worth N20.138 billion are duplicated in the 2021 budget alone, according to Independent Corrupt Practices and Other Related Offences Commission (ICPC) Chairman, Bolaji Owasanoye.
Such sums are siphoned into private pockets through various forms and layers of financial corruption in the public service.
The ICPC is also probing heads of Ministries, Departments, and Agencies (MDAs) and other officials who engage in project racketeering, budget, and payroll padding and keep “ghost workers” whose salaries they collect.
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Governor steals his state dry
EFCC Chairman Abdulrasheed Bawa did not name the thieving Governor he fingered in the latest EFCC Alert, the in-house magazine of the agency.
Five of the six states in the North Central are ruled by Buhari’s All Progressives Alliance (APC). Only Benue is ruled by the Peoples Democratic Party (PDP).
Nigerian Tribune reports that Bawa’s interview, originally given to TVC, was published in EFCC Alert under “Setting the records straight”.
Said he: “Very soon, Nigerians are going to see some of the things that we are doing. I can tell you for free that the new Department of Intelligence that we have created is working wonders. They have come up with a lot of intelligence.
“In one of them, a governor in a North Central state within the last six years (one individual) has withdrawn over N60 billion in cash.
“We are looking at all of that, and I assure you that at the end of all of our investigations, Nigerians are going to be briefed of what we are doing behind the scene on cybercrime, politically-exposed persons, as well as engaging government agencies to ensure that we have better processes and procedures on how to do government business.
“We are not setting out to be engaging with people on the pages of newspapers or press conferences. We are working hard trying to see what we can do behind the scenes [to eradicate corruption].”
Female minister caught with stolen $37.5 public funds
Bawa disclosed on Channel Television on June 15 that a female minister bought a $37.5 million property with the “proceeds of … crime” and deposited $20 million in cash.
He said: “We investigated a matter in which a bank Managing Director (MD) marketed a property to a minister who agreed to purchase it at $37.5 million.
“The bank then sent a vehicle to her house to evacuate $20 million from her house in the first instance.
“The bank succeeded to put it in their system and paid the developer and then a lawyer set up a special purpose vehicle where the title documents were transferred into and of course, he is posing as the owner of the house.
“Without the help of the banker, the minister couldn’t have imagined collecting $20 million from anyone with opportunity from the real sector; she could not have thought of where to launder the proceeds of the crime.”
That day, Bawa did not name the female minister but Nigerians believe she is in Buhari’s cabinet. Bawa immediately came under public pressure to name the thief, and privately under heat from the Northern cabal protecting their quarry.
Two days later, on June 17, he said at a press conference hurriedly organised by the Presidential Communications Committee in Aso Rock that he was referring to Diezani Alison-Madueke.
Diezani was Petroleum Minister in the administration of former Goodluck Jonathan and Nigerians already knew she stole millions of dollars during her tenure
Diezani’s embezzlement was global public knowledge long before Buhari became President on May 29, 2015 and before he appointed Bawa anti-graft Czar on February 24, 2021.
Bawa simply diverted attention to Diezani at the behest of the Northern clique because of public speculation that the “female minister” he said was caught with stolen $37.5 million was Ahmed.
There are yet more Nigerian treasury looters named in the PandoraPapers published by PREMIUM TIMES this year in collaboration with global media outlets.
The EFCC has not prosecuted these criminals and most others before them.
Additional taxes in the offing
Ahmed announced the new taxes at a public hearing on the Finance Bill 2021 held at the National Assembly (NASS) in Abuja by the House of Representatives Finance Committee.
Speaker Femi Gbajabiamila stressed the need to reposition the financial system to plug wastes, close openings for corruption, create opportunities for employment, as well as stimulate stability and growth in the productive sectors.
Ahmed pressed the need to focus more on non-oil sector revenue, saying it has performed better than oil sector, recording 171.3 per cent above projection as of September 30 averaging N1.31 trillion.
“As of September 2021, the Federal Government’s retained revenue was N4.56tr, achieving 75 per cent of Budget; Federal share of Oil Revenues was N845 billion (56.3 per cent pro-rated performance). Federal share of Non-Oil revenues was N1.31 trillion (117.3 per cent above budget),” she disclosed.
“Companies Income Tax (CIT) & Value Added Tax (VAT) collections were N616 billion and N274.4 billion representing 121 per cent and 153per cent, respectively, of the pro-rata targets. Also, Customs collections were N418.97 billion.
“Clearly, our ongoing fiscal reforms of the last six years are yielding tangible results. However, the ministry is closely studying the following issues, developments & policies.”
Ahmed said some reforms and amendments are recommended in the Finance Bill and more will be introduced in the middle of 2022 when more proposals would have been received from stakeholders.
“These issues may require most increases in taxes and tariffs on certain businesses, industries, and individuals over the medium term ….
“Our aspiration is to do a midterm review with a possibility of another Finance Bill in mid-year 2022 to bring in more amendments.”
She explained that the court cases against the government on VAT and stamp duties have prompted the Finance Ministry to steer clear of those areas.
She, however, expressed hope that by mid-2022, the cases might have been dispensed with, and reforms in those areas could be proposed for the NASS to consider.
“We prepared this draft bill along five reform areas, the first domestic revenue mobilisation, the second is tax administration and legislative drafting, third is International taxation, fourth is financial sector reforms and tax equity and fifth is improving public financial management reform.
“The provision in the draft bill is proposing to amend the Capital Gains Tax Act, Company Income Tax, FIRS Establishment Act, Personal Income Tax, Stamp Duties Act and Tertiary Education Act, Value Added Tax, Insurance Police Trust Fund, and the Fiscal Responsibility Act.
“This is to amend the Police Trust Fund Act and the Nigerian Trust Fund Acts, the purpose is to empower the FIRS to collect the Nigerian trust fund levies on companies on behalf of the fund itself.
“Currently, because there is no such provision, the FIRS is unable to start collecting on behalf of the fund.
“Also, it is to streamline the tax and the levy collection from the Nigerian companies in line with Mr. President’s administration’s ease of doing business policy.
“So, we do not have NASENI going out to collect that tax, the FIRS will collect on their behalf during their collection process, and it will be passed through to them.”