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FIRS Commences Direct Tax Collection From OnLine Gaming Operators

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The Federal Inland Revenue Service (FIRS) has commenced deduction of taxes at transaction points from Online Gaming Transactions using the Sentinal National Payment Gateway and Electronic Solution, the Service has stated

In a Public Notice signed by its Executive Chairman, Muhammad Nami, the Service while directing full compliance by the online gaming community, explained that the Sentinal National Payment Gateway was a transaction processing system that enables Integrated Payment Services Providers to deduct taxes at the points of transaction and immediately remit the tax deducted to the government’s treasury.

“The FIRS is automating the administration of tax on online gaming using Sentinal National Payment Gateway and Electronic Solution.

“Sentinal National Payment Gateway is a transaction processing system that enables Integrated Payment Service Providers to deduct taxes at transaction-points and remit the tax deducted directly to government’s treasury.

“The deployment of Sentinal National Payment Gateway will simplify tax compliance for companies engaged in online gaming activities,” the notice read.

The FIRS also noted that all operators offering online gaming services in Nigeria, not later than the 31st of December 2022, were required “to connect to the Sentinal National Payment Gateway, deduct tax from online gaming transactions and remit same directly to the relevant government’s treasury.”

The Notice stated that though it was not mandatory for online gaming operators offering online gaming services from outside Nigeria to be incorporated in Nigeria, they are compelled by extant tax laws to connect to the Sentinal National Payment Gateway for the purposes of dedicating tax from the gaming transactions of players in Nigeria, and remitting same directly to the government purse.

Mr. Muhammad Nami, Executive Chairman of the FIRS, commenting on this approach to tax collection at the point of transaction stated that the country needed to innovate and harness technology for improved revenue generation from e-commerce as well as for accountability.

“The world is entering a challenging time where there is a strong obligation on Governments to increase tax revenue as a percentage of GDP so as to provide much needed funding for local infrastructure and public services. Nigeria needs to innovate and harness technology to ensure that online transactions are taxed and accounted for.

“We have been very impressed with the Sentinal platform which allows us to not only collect tax revenues at source, but also provides us with tax reporting and monitoring tools in real time,” Mr Nami stated, “The system will also integrate with our own TaxPro Max portal.”

In his comments at a meeting with the tax authority head, the Director General of the National Lottery Regulatory Commission of Nigeria, Mr. Lanre Gbajabiamila commended the adoption of this innovation, describing it as a “huge step” for taxation of the gaming industry.

“Online gaming continues to grow rapidly in Nigeria, particularly on mobile, and the adoption of E-technologies’ Sentinal National Payment Gateway is a huge step for us to allow us to capture gaming duty at source.

“We are welcoming all responsible offshore gaming operators to apply for a Remote Operator Permit as long as they pass all the relevant criteria including full AML screening and responsible gaming practices. We are proud to be the first country to adopt the Sentinal System and we believe it will bring a real national benefit to Nigeria,” Mr. Gbajabiamila noted.

David Kicks, the CEO of the E-Technologies Global Limited, the proprietors of the Sentinal National Payment Gateway expressed excitement over the adoption of the system by the Service.

“Governments in rapidly developing nations are struggling to keep pace with the evolution of eCommerce and the ascent of mobile transactions.

“We are thrilled that the Nigerian Government has made the decision to integrate our Sentinal System, which empowers them to streamline online taxation. By understanding better how the payments ecosystem behaves and evolves, we can drive a paradigm shift towards a point of consumption tax methodology,” he said.

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EDSG Trains Batch- 9 Vigilantes, Hunters.

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….. As Gov Obaseki Signs Edo Security Corps Bill into law

By Sim Omo- Benin City

As part of efforts to combat crimes, criminalities, cultism and other social vices bedeviling the state, the governor Obaseki led administration has commenced training of batch Nine hunters and operatives of Vigilantes, bringing a total of over ten thousand Vigilantes and hunters so far trained by the state to tighten security in every nook and cranny

Similarly Governor Godwin Obaseki has signed the State security Corps Bill into law

Speaking at the commencement of the batch- nine training exercise at the Police Training School in Ogida, the State Co-ordinator of the Edo security and Vigilantes network , Col. Kole Omomia( Rtd) commended Governor Obaseki and the state government for prioritizing security in the state and its continuous commitment to providing the necessary logistics for the state’s security apparatus to function

He noted that the training of the corps operatives which included the hunters, as in the instance of the batch- 9 who are currently here today, are concerted effort and determination of the state government to put her citizens at the fore front to enjoy peace, tranquility and have an enabling environment that would promote growth, development and investments.

Col. Omomia reiterated that the trainees would undergo series of exercises such as medical fitness, bio-data, teekwando, Judo, Drills, Parades and mental fitness and other activities ancillary to the job

According to the State Cord, the training would cut across the three senatorial districts in the state , with about One thousand, three hundred,(1300) Vigilantes and hunters expected to be trained in Batch- 9

He, however,urged the trainees to key into the program with keen interest and participate fully.

Recall that only recently, the state governor, Mr Godwin Obaseki, singed the Bill establishing the State security Corps, formerly known as the Edo State Security Vigilante Network,ESSVN, into law

By the establishing Act, the Corps is now a statutory body recognised by law and would perform its roles as provided by the Act

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HAILING THE SUPREME COURT ON LG ALLOCATION JUDGMENT

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Prof Mike Ozekhome, SAN,CON, OFR

The supreme court judgement on

July 11, 2024, directing the Federal Government to pay allocations due to Local Government Areas directly to their account thereby abolishing the old practices of State-Local Government Joint Account,is timely and courageous.

What the judgement has done is more like interpreting section 162 of the Constitution, which provides for a joint State-Local Government Account. In which case, money is normally paid to state governors’ accounts and then for them to disburse to the local governments for them to share. But what has been happening is that, as I noted in 2020,over three years ago, the state governors, have been behaving like ”bandits”, waylaing local governments funds along the way and thus impoverishing them leaving them with nothing to work, just a little for salary. And nothing to actually work for the people whom they represent.
I agree totally with the judgement of the supreme court to grant full financial autonomy so that money is released and paid directly to the 774 local government councils which constitute the third-tier of government,to develop their places because the LGAs are grassrooted and nearest to the people. Rather than allow overbearing state governors throw their weight around and muzzle the local governments and seize their purse,they will now allow LGs breath some air of freedom.

If you take a look at our situation, Nigeria is operating a very lopsided federation,more like a unitary system of government. Where the federal government is supposed to be a small government,it is controlling 67 items on the exclusive legislative list. That is why the federal government gets the lion share of the federation account , the lion share of the money that comes to the federation account to the tune of 52.68%. The states get 26.72% while the entire 774 local government councils in Nigeria get just 20.60% of the monthly allocation by the Revenue Mobilization Allocation and Fiscal Commission, RLASMC.

The question is, what is the federal government doing with almost 53% of the national income? That is because it is a government that is behemoth.That is elephantine. A government that intrudes and intervenes in areas that should not concern it at all. What is the federal government’s business with licensing cars and trucks for states? What is its business with the Marriage Act, dealing with how people marry and wed in Nigeria and how they live together as husband and wife and separate or divorce? What is the federal government’s business with unity schools? A whole FG operating secondary schools? What is their business? Why is the FG not allowing states generate their own power, operate their own railway stations, if they have the capacity? Why should the federal government not allow states have their own police force? Even for the local governments to have their own police force as we have in the United States and other advanced countries of the world where even tertiary institutions have their own police?

The truth is that the federal government is overbloated and overpampered. That is why it is using too much money and make the centre become too attractive,eating deep into funds that ought to be meant for the states and local government areas. The states take not only that which belongs to the states, but also waylays at source that which is meant for the local government areas. No Nation grows that way.

So, I see this judgment as epochal,having

far-reaching effect because money will now be made available directly to the local government areas who will no longer be subservient, like fawning slaves to state governors. In fact, the judgement even went further to say that no state government has the power henceforth to dissolve local government areas. This is because we have been seeing cases where inspite of the provisions of section 7 of the 1999 constitution that give autonomy to local government areas, states normally go ahead and dissolve local government areas ND appoint caretaker committees for them.This is whimsical and capricious.The Supreme Court has said this can no longer go on and that henceforth, no state government should ever be able to dissolve any local government area in Nigeria for any reason whatsoever and howsoever.

The judgement is salutary, timely and regenerative. It should be upheld by all governments and people in Nigeria for better democratic dividends.I see this as victory for our wobbling democracy, even if we are far removed from true fiscal federalism where the federating units control and utilize their God-given resources while paying royalty or tax to the central government. This case is one big plus for tested court room gladiator, Prince Lateef Fagbemi, SAN, the Attorney General of the Federation, who initiated the case at the apex court, invoking its original jurisdiction.Surely,to jaw-jaw is better than to war-war. God bless Nigeria.

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Ex+Abia gov, Senator Kalu backs part-time legislature

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Chairman, Senate Committee on Privatisation, Senator Orji Uzor Kalu has backed calls for part-time legislature at both federal and state levels.

Senator Kalu (APC Abia North) said this would help the nation cut costs and enhance the citizenry’s trust in the polity.

The former Abia governor said this in an interview published on his verified Facebook page over the weekend.

On calls for part-time legislature, Senator Kalu said, “I think it will be a very good idea if my colleagues and other members of the Houses of Assembly will agree that we can sit for three months and do constitutional amendment first.

“So we can sit four times a year and if there’s any emergency, there will be emergency sitting. We can come to do a presidential bid on that basis and go back instead of sitting on a full-time basis.

“Not only the Senate and the House of Representatives, but all the legislative houses in Nigeria will be part-time.”

Senator Kalu maintained that this would be part of austerity measures to reduce cost of governance, arguing that regional government is another viable alternative.

“If we’re going for regional government, it also means that the ministers, the legislators, will be the same. I’ve been tinkering with the idea of how we can save money to run Nigeria because the country needs money.

“I will encourage the President, the National Assembly to make these kind of laws. This will help him, and this will help the system, and this will help everybody,” he said.

The ex-governor explained that contrary to misconceptions among Nigerians, senators are not paid enough.
U
“But I want Nigerians and my colleagues to do a quick constitutional amendment so we can go and be a part-time sitting Senate and part-time sitting House of Representatives, and other 36 state houses of assembly in Nigeria.

“That will bring trust and bring relief to the Nigerian people,” the ex-governor said.

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