Business

VAT Discourse And Tinubu’s Pan-Nigerian View By Salamah Akindeko

Published

2 months ago

December 5, 2024

Sahara Weekly

From Homeowners to Squatters: Displacement Woes of Lagos-Calabar Coastal Highway

VAT Discourse And Tinubu’s Pan-Nigerian View

By Salamah Akindeko

If we agree with the utilitarianist view that one thing a leader must do is consider making choices that produce the greatest good for the greatest number of people, then Nigerians should commend President Bola Tinubu for choosing to break away from the past by elevating common national interest to a new level. And this did not start when he became president as this leadership trait had been demonstrated in various spheres he had held sway. His antecedents speak for him.

In May last year, President Bola Tinubu reinforced this view that he is for all. He pledged to govern Nigeria impartially and in accordance with the Constitution as well as the rule of law. He went further to task the citizenry to embrace national affinity and brotherhood. To observers who look at things dispassionately, this avowed commitment of the President has largely reflected in how he has been running his administration since he took over the reins of government.

President Tinubu, in his inaugural speech, among other things, said: “Today, let us recommit our very selves to placing Nigeria in our hearts as the indispensable home for each and every one of us regardless of creed, ethnicity, or place of birth…The South must not only seek good for itself but must understand that its interests are served when good comes to the North. The North must see the South likewise,” he had said.

One area where President Tinubu has again shown fidelity to his commitment is on the discourse around sharing formula for Value-Added Tax (VAT). Let me use this opportunity to correct erroneous impression that the North is against the president’s tax bills. The disagreement voiced by some northern leaders is on the proposed adoption of derivation model/approach to sharing of VAT revenue. VAT is only a portion of the bills. For emphasis, the four bills currently being scrutinized by the parliament seek to overhaul and modernise the country’s fiscal landscape in a way that brings benefits to the citizens and the three tiers of government.

Revealing President Tinubu’s position at an interactive session with members of the parliament recently, chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, said the president is concerned that Lagos and three other states go home with 70% of VAT revenue monthly, with Lagos (the president’s state) collecting the lion’s share of 42%.

“Today, I just signed the data on VAT [sharing] for October. Lagos will take 42% of the VAT[revenue], Rivers will take 16%, Oyo State will take 5.2%, and the FCT will take 10%. Go and check; these three states [and the FCT] are taking more than 70%. Why? Because those are the places where the head offices of those companies.…states like Borno and Bauchi collect only 0.32% and 0.4% of VAT proceeds respectively, compared to Lagos’ 42%.

“Any day I sign off on the data, I don’t feel like I am a Nigerian because this is not what we represent in our prayer as a nation. That is why, in the wisdom of Mr. President, we need to change this structure,” Adedeji told the lawmakers.

Listening to Adedeji, one would know that President Tinubu is a fair and just leader. He could have directed that status quo be maintained when some northern leaders apparently misjudged his intention on the subject. After all, Lagos and two other states will continue to cash out, while majority of the states will be left with what they currently get from the pool. So, the current attempt at reengineering the tax system is a big sacrifice for which Tinubu should be commended.

While there has been opposition to an aspect of the bills from the North, it is salutary that there are equally voices of reason who have studied the Bills and have seen the goodness of the heart of President Tinubu. A pro-North former Kaduna senator, Shehu Sani, while commending the Bills, said they are not in any way anti-North. According to the fiery critic,” It’s in fact economically beneficial and fair to all parts. People should keep aside sentiments and read the Bills carefully. It is a comprehensive and bold move to harmonise and simplify tax administration and streamline its operations and enforcement “

The Speaker of the House of Representatives, Tajudeen Abass, at the interactive session, located the controversy surrounding the VAT aspect of the Bills rightly, describing it as a reflection of their importance. For him, such debates are healthy and necessary in a democracy.

Apart from the fact that these Bills will when passed into law and assented to make states to look inwards and rethink, the issues of imbalance, fairness would be addressed by promotion of equitable distribution of the VAT revenue. These are some of the grey areas the reforms seek to address.

That noted, the total benefits of the bills should have been considered by those raising issues on VAT. People forget easily the confusing overlap of multiple tax laws. For example, why should small businesses pay taxes to the three tiers of government, a development that makes taxation unnecessarily complex? Why should there be multiple laws dealing with almost similar aspects of taxes in such a way that compliance with tax obligation is made difficult for taxpayers? Why should Nigeria not have a law that regulates cryptocurrency operations within its territory? Why in 2024 should we as a country be operating under laws that were made in 1939 (Stamp Duty Act), laws that are archaic and unfit for businesses in this modern time? The Federal Inland Revenue Service (FIRS) has to give way for the Nigeria Revenue Service (NRS) in order to accurately reflect the agency’s comprehensive services.

If there is any state that should be bellyaching over the proposal on restructuring of VAT sharing formula, it should be Lagos State. If there is any region whose voice should be loudest against the bills, it should be the South-West. But Lagos and the South-West understand where the President is coming from and have strong faith in his capacity to act in the best interest of the country.

With the town hall meeting held by Channels TV on the subject and with the kind of end-of-discussion explanation provided by Mr Taiwo Oyedele, who chaired the presidential committee on the matter, all opposition should stop henceforth. The National Assembly is there to look into the concerns raised by a few people and seek out ways to iron out those issues with vitiating the general objective of the Bills. It will not serve the interest of those speaking against the Bills if Lagos, which is going to be the biggest loser in the proposed VAT regime, sees reason to challenge either the status quo ante or the proposal. It will be recalled that in the immediate past administration, the issue of VAT sharing was litigated. A political option was sought to prevent the matter from running its full course.

Salamah Akindeko, a finance enthusiast, writes from Ila, Osun State

Business

TM Foundation: Transforming Lives, One Generation at a Time

Published

1 day ago

January 22, 2025

Sahara Weekly

From Automobiles to Acts of Compassion: Olatunde Mukaila Lawal is Transforming Lives in South Africa

TM Foundation: Transforming Lives, One Generation at a Time

In a world where compassion is increasingly vital, TM Foundation stands out as a beacon of hope and empowerment. Established in 2019 by the visionary Olatunde Mukaila Lawal, this South Africa-based organization is dedicated to uplifting the elderly, less privileged kids, and the vulnerable, fostering stronger communities through a mission rooted in dignity, love, and care.

Making an Impact Since 2019

TM Foundation began with a simple yet powerful goal: to create meaningful change for those often overlooked. Since its inception, the foundation has provided vital resources and emotional support to kids, seniors and young individuals, bridging the gap between generations and creating a sustainable future for all.

“We believe in the transformative power of compassion,” says Lawal. “Our work is about more than just helping—it’s about empowering people and building stronger, more resilient communities.”

A Multi-Faceted Mission

TM Foundation operates on three key pillars:

Social Support and Companionship: Ensuring no one feels forgotten, the foundation offers a caring hand and a listening ear to, kids, seniors and others in need.

Promoting Wellness Across Ages:

Through various programs, TM Foundation prioritizes physical, mental, and emotional well-being for all generations.

Fostering Compassion and Understanding: Building bridges of empathy, the foundation strengthens the fabric of communities.

These programs aim to create lasting change by addressing both immediate needs and long-term challenges.

Why You Should Support TM Foundation

TM Foundation’s efforts rely on the support of individuals and businesses who share their vision. Your contribution—whether through donations, volunteering, or spreading the word—directly impacts lives. From funding wellness programs to providing companionship for seniors, every act of kindness counts.

“Together, we can ensure no one feels forgotten or alone,” Lawal emphasizes. “It’s about leaving a legacy of compassion and empowerment.”

How to Get Involved

There are many ways to support TM Foundation:

Volunteer: Offer your time and skills to assist in their programs.
Donate: Your financial contributions help sustain their impactful initiatives.
Raise Awareness: Spread the word about TM Foundation’s mission to inspire others.

Contact TM Foundation
Email: [email protected]
Website: www.tmfoundation.giving
Phone (South Africa): +27823781398 | +27 81 289 0171 | +27 69 286 4950 | +27747835891
Phone (Nigeria): +234 813 448 0159

Join TM Foundation today and become part of a movement dedicated to empowering seniors and young ones. Together, we can build a brighter, more compassionate future.

Business

Olam Agri and GIZ Sign MoU to Scale Up Sustainable Development in Global Agriculture and Food

Published

2 days ago

January 21, 2025

Sahara Weekly

Olam Agri and GIZ Sign MoU to Scale Up Sustainable Development in Global Agriculture and Food

Singapore, January 20, 2025 – Olam Agri, a market leading food, feed, and fibre agri-business, has signed a Memorandum of Understanding (MoU) with German development agency Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH to scale up sustainable development in the global agri-food sector. The MoU provides a framework that will facilitate collaboration between the two partners across staple agriculture supply chains that include rice, cotton, and rubber in developing markets in Asia, Africa, and Latin America. This extends and deepens the long-standing partnership that GIZ and Olam Agri have shared over the past 15 years helping smallholder farmers become more productive, profitable, and sustainable.

Three key objectives of the MoU are to support sustainable food production at a range of scales towards climate adaptation while protecting and preserving soil health, biodiversity, and water resources; to improve the livelihoods of smallholder farmers and providing them with access to key services and inclusive opportunities; and establishing sustainability and traceability across agriculture supply chains. This is aligned with Olam Agri’s purpose to transform food and agriculture for a more sustainable and food-secure future.

For joint projects, GIZ and Olam Agri have identified six priority intervention areas: nutrition-sensitive regenerative agriculture; harvest and post-harvest loss reduction; access to finance for smallholders; economic inclusion and rights; management of crop residues and reuse; and ecosystem services, including protection and restoration of ecosystems and carbon initiatives. Both partners will continue to identify topics relevant across value chains and regions to drive innovation and scaling, with possible cross-sectoral issues including climate and carbon credits, landscape-scale approaches, and digitisation.

Sunny Verghese, Co-Founder & Group CEO of Olam Agri, said: “We’ve shared a strong and fruitful relationship with GIZ over the years during which we’ve made significant inroads in transforming smallholder farming in several supply chains across many geographies to be more productive, profitable, and sustainable. I am thrilled to be signing this MoU with such a valuable partner that is GIZ and commit to collaborate even further to scale up our sustainability programmes in developing and emerging agriculture economies.”

Anna Sophie Herken, Managing Director at GIZ said: “The signing of this MoU with Olam Agri marks a pivotal step forward in our collaborative efforts towards sustainable food production. I am very happy and grateful that we can deepen and broaden our cooperation efforts simultaneously. We look forward to enhancing the scope and impact of our successful projects in climate-smart farming.”

The MoU builds upon years of successful cooperation between the two organisations since 2008. Starting in Africa, the partnership has expanded through several key initiatives. In the rice supply chain, for example, the progress the partnership has made with the founding of the Sustainable Rice Platform (SRP) in 2011 has led to positive transformation of the sector by advancing sustainable rice cultivation. Through climate-smart methods and technologies, sustainable rice cultivation reduces usage of water and fertilisers, and consequently significantly reduces the emission of methane, a greenhouse gas contributing to global warming. Under the joint efforts of GIZ and Olam Agri, the Market Oriented Smallholder Value Chain (MSVC) rice project in Southeast Asia has improved the livelihoods of more than 28,000 smallholder farmers and their families in four years, raising their incomes by 20 per cent while reducing their ecological impact. GIZ and Olam Agri continue to engage smallholder rice farmers in Southeast Asia in large scale projects and currently also cooperate in a regional sustainable cotton project in Togo, Côte d’Ivoire, and Chad, and in sustainable natural rubber in Côte d’Ivoire and Indonesia.

Business

Shocking Fraud: Nigerian CEO and Companies Sanctioned by World Bank

Published

3 days ago

January 21, 2025

Sahara Weekly

Shocking Fraud: Nigerian CEO and Companies Sanctioned by World Bank"

World Bank Debars Nigerian Companies Over Corruption in Social Safety Net Project

By femi oyewale

The World Bank Group has announced the 30-month debarment of two Nigerian companies, Viva Atlantic Limited and Technology House Limited, along with their Managing Director and CEO, Mr. Norman Didam, for engaging in fraudulent, collusive, and corrupt practices linked to the National Social Safety Nets Project in Nigeria.

In a statement released on Monday, the World Bank detailed unethical actions during the 2018 procurement and contract processes for the project, which was designed to provide financial assistance to poor and vulnerable households.

“The World Bank Group today announced the 30-month debarment of two Nigeria-based companies—Viva Atlantic Limited and Technology House Limited—and their Managing Director and Chief Executive Officer Mr. Norman Bwuruk Didam. The debarment is in connection with fraudulent, collusive, and corrupt practices as part of the National Social Safety Nets Project in Nigeria,” the statement read.

Allegations and Findings

According to the World Bank, Viva Atlantic Limited, Technology House Limited, and Mr. Didam misrepresented a conflict of interest in their bids and gained access to confidential tender information from public officials. These acts violated the bank’s Anti-corruption Framework.

The companies and Mr. Didam also falsified experience records, submitted fake manufacturer authorization letters, and offered inducements to project officials, further undermining the integrity of the initiative aimed at assisting Nigeria’s most vulnerable populations.

The statement added, “Viva Atlantic Limited and Mr. Didam misrepresented Viva Atlantic Limited’s experience and submitted falsified manufacturer’s authorization letters, as well as offered and provided things of value to project public officials. These actions were fraudulent and corrupt practices, respectively.”

Sanctions and Compliance Measures

The debarment bars the two companies and Mr. Didam from participating in World Bank-financed projects and operations for the next 30 months. As part of their settlement agreements, the parties admitted their culpability and agreed to meet specific conditions, including enhanced compliance measures.

Mr. Didam is required to complete individual ethics training, while both companies must strengthen their internal integrity policies and implement corporate ethics training programs aligned with the bank’s Integrity Compliance Guidelines.

The World Bank noted that reduced debarment periods were granted due to the parties’ cooperation during the investigation, voluntary corrective actions, self-imposed restraints from bidding, and the time elapsed since the infractions.

Broader Implications

The debarments are subject to cross-debarment by other multilateral development banks under the 2010 Agreement for Mutual Enforcement of Debarment Decisions, further limiting the companies’ ability to participate in international development projects.

The World Bank reiterated its zero-tolerance policy on corruption, emphasizing that the implicated parties must fulfill the stipulated conditions during the debarment period to regain eligibility for future Bank-funded initiatives.

“The companies also commit to continue to fully cooperate with the Bank Group Integrity Vice Presidency,” the statement concluded.

This development underscores the World Bank’s commitment to ensuring transparency and accountability in its projects, particularly those aimed at improving the livelihoods of the world’s most vulnerable populations.