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FIRS Cautions MDAs To Stop Contracting Tax Assessment, Collection, Enforcement To Consultants
The Federal Inland Revenue Service (FIRS) has cautioned Ministries, Departments and Agencies of Government (MDAs) against the appointment of consultants and concessionaires to collect taxes due to the Federal Government or any of its agencies, as the FIRS is the sole agency of government saddled with the responsibility of tax collection.
In a Public Notice it issued Thursday, 22nd September, 2022, signed by its Executive Chairman, Muhammad Nami, the FIRS accused some MDAs of including functions of assessment, collection, accounting and enforcement of taxes and levies in their agreements with concessionaires and consultants.
“It has come to the notice of the Federal Inland Revenue Service that some Ministries, Departments and Agencies of Government (MDAs) are appointing concessionaires or consultants for the assessment, collection, accounting or enforcement of taxes and levies due to the Federal Government or any of its agencies.
“Some MDAs include such functions in their agreements with concessionaires or consultants,” the Public Notice read.
Citing Section 68(2) of its Establishment Act, the FIRS highlighted that by law it is “the primary agency of the Federal Government of Nigeria responsible for the administration, assessment, collection, accounting and enforcement of taxes and levies due to the Federal Government or any of its agencies, except as may be authorised by the Minister responsible for Finance by regulation as approved by the National assembly”.
The Notice also stated that while Section 12(4) of the FIRS Establishment Act has provided that the Service may engage consultants, accountants or other agents to carry out certain functions on its behalf, the law has expressly prohibited the carrying out of assessing and collecting tax by consultants.
The law provides that: “The Service may appoint and employ such consultants, including tax consultants or accountants and agents to transact any business or to do any act required to be transacted or done in the execution of its functions under this act; provided that such consultants shall not carry out duties of assessing and collecting tax or routine responsibilities of tax officials”.
According to the Notice, going by “the above provisions of the law, it is clear that the duty of administration, assessment, collection, accounting or enforcement of taxes and levies due to the Federal Government or any of its agencies is that of the Federal Inland Revenue Service and its tax officials. No part of these responsibilities can be contracted to a private enterprise by any other MDA.”
The Executive Chairman FIRS further cautioned MDAs who were in the business of appointing consultants for tax assessment and collection that they were not just acting against the letters of the law, but were committing offences that were punishable under the FIRS Establishment Act as amended.
“Furthermore, appointment or authorisation of any person, other than by the Federal Inland Revenue Service, to assess, collect, enforce or account for taxes constitutes an offence under Section 68(3) of the FIRSEA. Such appointment or authorisation is punishable, upon conviction, with fine, imprisonment or both under Section 68(6) of the Act.
“In view of the foregoing, where any person, individual or corporate, has any information or assistance that may be of use to the Service for the purpose of administration, assessment, collection, accounting or enforcement of taxes and levies due to the Federal Government or any of its agencies or for the performance of its duties under the FIRSEA, such person should approach the Service directly with such useful information,” the Notice read.
Johannes Oluwatobi Wojuola
Special Assistant to the Executive Chairman, FIRS
(Media & Communication)
September 22, 2022
News
Nigeria Senators Visit Maiduguri, Donate N74m To Borno Flood Victims
Senators in the 10th session of the National Assembly have donated N74m to support the victims of the devastating flood that ravaged Maiduguri, the Borno State capital, last week.
The Deputy President of the Senate, Senator Barau I Jibrin, disclosed this on behalf of the President of the Senate, Senator Godswill Obot Akpabio, when he led some senators to Maiduguri on Tuesday.
According to Senator Barau, each of the 108 Senators would donate N500,000 (N54m), while he personally contributed N10m. The Northern Senators Forum also donated N10, totalling N74m.
The Senators, who were received by the Borno State Governor, Professor Babagana Zulum, included the Chairman of the Northern Senators Forum, Senator Abdulaziz Musa Yar’Adua, Chairman of the Southern Senators Forum, Senator Mukhail Adetokunbo Abiru, Senator Ikra Aliyu Bilbis(Zamfara Central), Senator Onawo Mohammed Ogoshi (Nasarawa South) and Senator Sadiq Suleiman Umar (Kwara North).
Others are Senator Diket Plang (Plateau Central), Senator Babangida Hussaini (Jigawa North-West), Senator Pam Mwadkon Dachungyang (Plateau North),
Senator Mohammed Tahir Monguno (Borno North) and Kaka Shehu Lawan (Borno Central).
Senator Barau commiserated with the Borno State Government and the entire people of the state over the devastating flood.
” Your Excellency, we are here to register our condolences and commiserate with you and the entire state over the ugly flood incident in this beautiful Borno last week.
“Whatever touches Borno has touched the entire country. This is why I’m here with some of my colleagues, even though the President of the Senate was here yesterday (Monday) representing the Senate as a whole.
” But it’s our tradition, normally in an occurrence such as this, even if the father or a leader came to register his condolences, that doesn’t stop those that are under him to go individually or collectively and commiserate with the victims.
” We commiserate with you, and we pray that may Allah grant those who lost their lives Jannatul Firdaus. May Allah SWT quicken the recovery of the injured persons, and may He make those who lost their valuables regain them as soon as possible.
” Yesterday, when the President of the Senate came, he did not tell you what we intended to donate. The situation of the victims profoundly touches us. After our meeting yesterday, we agreed to donate the sum of N54,000,000 (Fifty Four Million Naira). Each senator is donating N500,000, which will be N54m.
” Personally, I am donating the sum of N10 million. I pray that this flood will not occur again in Borno State and the entire country, ” he said.
The Senators also paid a condolence visit to Senator Baba Kaka Garbai, who represented Borno Central in the Eighth Senate over the demise of his mother last week.
News
Exclusive: NNPCL, Others Import Tonnes of Off-Spec Fuel into Nigeria
Contrary to its assurances, the Nigerian National Petroleum Corporation Limited (NNPCL) and independent marketers have continued to import substandard and off-specification Premium Motor Spirit (PMS), also known as petrol, into Nigeria.
Investigation revealed that the ‘dirty petrol’ could account for as much as a quarter of the estimated 50 million litres of daily consumption when the volume imported by independent marketers is added to that of the NNPCL.
According to a Motor Tanker Vessels Report of Friday, September 13, 2024, sighted by our reporter, the combined amount of petrol imported through the Apapa, Tincan, Lekki, Calabar, Port Harcourt and Warri ports stood at 261,938 metric tonnes.
These deliveries were imported from the same sources deemed off-specification and damaging to automobiles.
Of the reported quantity, NNPCL received 134,938 metric tonnes, while independent marketers received 127,000 metric tonnes, accounting for about one-quarter of the amount of petrol consumed by Nigerians every month.
The off-specification petrol imports were received as months-long fuel queues persist across the country leaving Nigerians no option but to buy the fuel even as NNPCL management continues to assure that all is well.
An industry source, who does not want his name mentioned to protect his business interest, said: “They (NNPCL and independent marketers) have brought into the country the same kind of fuel that was condemned as dirty petrol but they know people are forced to buy this because the queues and shortage are forcing people to be desperate.”
News
Climate Change: Nigeria Makes Case For Borno, Zamfara Flood Victims At AU Parliament
…As Deputy Speaker Narrates How PAP’s Support For PISE-P, Others Can Enhance Peace
Nigeria has strongly advocated payment of taxes by multinationals and billionaires globally to support African countries exposed to the effects of climate change.
The Deputy Speaker of the House of the House of Representatives, Rt. Hon. Benjamin Okezie Kalu and leader of the Nigerian delegation to the ongoing special sitting of the Committees of the Pan African Parliament (PAP) in South Africa on Tuesday presented the country’s position.
Reacting to a paper titled “The Impact of Climate Change and Africa’s Strategic Pursuits Going into COP” delivered by the Director of Programmes and Research, Pan African Climate Justice Alliance (PACJA), Mr. Charles Mwangi Nyambura, Kalu proposed a global climate tax to support climate adaptation in the world’s most vulnerable regions, such as Africa, relying however on the submission of Nobel Prize-winning Economist, Esther Duflo.
The Deputy Speaker who bemoaned the recent flooding in Borno, Zamfara States amongst others said that the idea of the climate tax is to help mitigate the impacts of climate change on the continent.
He said: “Africa is disproportionately impacted by climate change despite contributing just 3.8% to the global share of greenhouse gas emissions in contrast to 23% by China, 19% by the US, and 13% by the European Union.
“Climate change undermines Africa’s progress towards sustainable development goals, hindering economic growth and human well-being.
“At present, nearly 600 million Africans lack access to electricity according to the World Bank, which hinders economic growth, industrial development, and access to essential services.
“Furthermore, Africa faces a widening energy gap compared to South Asia and Latin America, which have made more significant progress in bridging their energy deficits.
“Simultaneously, Nobel Prize-winning economist Esther Duflo has proposed a global climate tax to support climate adaptation in the world’s most vulnerable regions, such as Africa. Duflo’s proposal includes a tax on multinational corporations and billionaires to fund climate adaptation in low-income countries, helping them prepare for and mitigate the impacts of climate disasters.
“This need for climate resilience was brought into stark focus between August and September 2024, when heavy rains affected many local government areas (LGAs) in Borno State, Nigeria, resulting in significant flooding. These floods devastated various communities, displacing many households and damaging infrastructure, crops, and shelters.
“On September 9, 2024, Maiduguri was hit by a massive flood caused by the collapse of the Alau Dam in the neighboring Konduga LGA, marking the first time the dam had overflowed since 2012. The resulting damage from these floods underscores the growing challenge posed by climate variability and human-induced factors, which have increasingly displaced populations across Nigeria.
“In Borno State alone, the International Organization for Migration’s Displacement Tracking Matrix (DTM) identified 320,791 individuals in 65,731 households affected by the floods across 19 LGAs. These include 157,274 internally displaced persons (IDPs) and 108 returnees, all severely impacted by the floods”
Kalu who was accompanied to the event by some members of the Nigerian parliament including members of the House and Senators while speaking on Agenda 2063 of the African Union (AU) said that food and energy insecurity are emerging threats to the stability and prosperity of African nations.
The leader of the Nigerian delegation to the Pan African Parliament’s intervention highlighted the devastating effects of food insecurity, worsened by climate change, conflicts, and economic disruptions.
Emphasizing that Africa’s agricultural potential remains largely untapped, Kalu called for comprehensive agricultural reforms and investment in agribusiness as solutions to the growing food crisis.
While identifying some pressing issues facing the African continent, the Deputy Speaker also emphasized the pivotal role of education as the foundation for Africa’s future.
He underscored the critical role education plays in shaping the continent’s future, aligning it with the African Union’s goals under Agenda 2063.
The leader of the Nigerian delegation called for continental cooperation to ensure that every child, regardless of background, has access to quality education.
This, he said, includes addressing gender disparities, supporting rural schools, and increasing funding for teachers and infrastructure.
“We cannot speak of a prosperous Africa when our education systems are failing to prepare our youth for the challenges and opportunities of tomorrow,” Kalu remarked, calling for unified education policies across Africa.
Also speaking on the issue of security as one of the most significant challenges that has continued to plague Africa, the Deputy Speaker who recalled Nigeria’s experience stressed the importance of collective security mechanisms, such as the African Union’s African Standby Force, and regional cooperation to combat terrorism, organized crime, and violent extremism.
Kalu also decried the unconstitutional changes in government, condemning
coups and unconstitutional transitions as threats to the continent’s democratic progress.
He called on the Pan-African Parliament to take a zero-tolerance stance on undemocratic change of government, encouraging sanctions and regional interventions to restore democratic
governance.
“We cannot allow a return to the dark days where the will of the people is undermined by the actions of a few,” Kalu said.
In his remarks on how PAP can enhance its role of fostering peace across the continent, Kalu said that the parliament should leverage the kind gestures by the African Union (AU) Peace Fund Committee to support some community- driven initiatives such as Peace In South East (PISE-P).
“How can the African Union’s Peace Fund integrate peace initiatives led by civil society and non-governmental organizations that play a significant role in promoting peaceful co-existence?
“Specifically, how can grassroots and community-driven initiatives, such as the Peace in the Southeast (PISE-P) Initiative in Nigeria, be co-opted into the AU’s broader peace projects to enhance their impact?
“Has the AU Peace Fund provided support for community-led peace initiatives, such as PISE-P or similar programs across the continent, that are crucial in addressing local conflicts? If not, what are the reasons for the lack of engagement with such initiatives? Kalu inquired.
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