By Mustapha Sumaila

The Federal Inland Revenue Service (FIRS) has created 35 additional Tax Audit Units across the country to address illicit financial flow.

Mr Abdullahi Ahmad, Director, Communications and Liaison Department of the service, made this known in a statement in Abuja on Monday.

Ahmed explained that the decision was in a bid to stem illicit financial flow and improve tax compliance rate in the country.

The director quoted the Executive Chairman, FIRS, Mr. Muhammad Nami, as saying this at a workshop in Abuja on Monday on Effective Audit of Multinational Corporations for Domestic Revenue Mobilisation in Nigeria.

Nami observed that some multinational corporations were leading in tax compliance in various sectors.

He, however, expressed worries that many rich Multinational Corporations did not pay the right taxes due to them, let alone pay their taxes voluntarily.

Nami also stated that between 2007 and 2017 Nigeria was reported to have lost over 178 billion dollars (N5.4 trillion) through tax evasion by Multinationals doing business in the country.

He also cited a 2014 report by the High-Level Panel on Illicit Financial Flows from Africa, which stated that “Nigeria accounted for 30.5 per cent of money lost by the continent through illicit financial flows.

“At the FIRS we are paying greater attention to tax audit in general and Transfer Pricing audit in particular in order to improve the level of tax compliance in the country.

“As a result, in the last one year, we have created more than 35 additional Tax Audit Units and deployed experienced and capable staff to take charge of these offices” he explained. (NAN)

By Rukayat Moisemhe and Florence Onuegbu

The Lagos State Year 2021 Appropriation Budget named ” Budget of Rekindled Hope”  has been pegged at  N1.164 trillion.

Mr Sam Egube, the Commissioner for Economic Planning and Budget, Lagos State, made the disclosure in Lagos on Thursday at a media briefing of the Year 2021 Analysis.

Egube said that the budget was made up of  N702.93 billion and N460.58 billion for both capital expenditure and recurrent expenditure respectively.

This, he explained, represented a 60:40 capital to recurrent expenditure ratio strongly in favour of capital expenditure.

Egube added that the state’s expected total revenue was estimated at N971.028 billion, with a deficit of N192.494 billion.

He revealed that the deficit would be financed by a combination of external and internal loans and also  bond well within the state’s fiscal sustainability benchmarks.

The commissioner highlighted that the budget earmarked the  N5.09 billion for  the commerce and industry sector to improve economic activities within the state.

Egube detailed that the said sum was for the on-going development of Lekki Free Zone, Imota Light Industrial Park/Hubs, Gberigbe Enterprise Zone in Ikorodu and other areas within the state.

“Though the Y2020 was very challenging, we considered the challenge as an opportunity.

“Therefore, in spite of the gloomy socio-economic outlook across the world and dwindling oil revenue, Lagos has made significant fiscal progress.

“The year 2021 is indeed a year of Rekindled Hope with the recent global and national events such as the COVID-19 pandemic, EndSARS protests, and the general feeling and demand of our people for an inclusive governance, equitable quality of life and consistent economic growth.

“We have tagged the 2021 Appropriation Bill the “Budget of Rekindled Hope” to reflect our determination to rise above the challenges that have affected our development indices in the last 11 months.

“This Budget of Rekindled Hope demonstrates our willingness to overcome all obstacles and deliver all electoral promises to Lagosians.

“The Budget of Rekindled Hope reflects the continued execution of the THEMES agenda, which is just as relevant as it has always been,” he said.

The News Agency of Nigeria (NAN) reports that N143.16 billion was earmarked for General Public Services,  N42.27 billion for Public Order and Safety and N332.69 billion for Economic Affairs.

Also, N59.65 billion for Environment, N37. 08 billion for Housing,  N105.98 billion for Health,  N7.29 billion for Recreation and Religion, N146.93 billion  for Education and N9.15 billion for Social Protection.

Others include N21.55 billion for Contingency Reserves, N162.71 billion for Loans, N37.98 billion for Personnel Costs and N57.04 billion for  Grants. (NAN)

By Constance Athekame
The Minister of Power, Mr Saleh Mamman, has directed the Nigerian Electricity Regulatory Commission (NERC) to inform all Electricity Distribution Companies(DISCOs) to revert to tariffs that were applicable in Dec. 2020.

Mr Aaron Artimas, Senior Special Adviser, Media and Communications to the Minister of Power, made this known in a statement in Abuja on Thursday.

He said that the reversal to the old tariff was to promote a constructive conclusion of the dialogue with the Labour Centres (through the Joint Ad-Hoc Committee).

“I have directed NERC to inform all DISCOs that they should revert to the tariffs that were applicable in December 2020 until the end of January 2021 when the FGN and Labour committee work will be concluded.

“This will allow for the outcome of all resolutions from the Committee to be implemented together,” he said.

The minister spoke against the backdrop of the report that electricity tariff had been increased by 50 per cent.

“I would like to affirm that these reports are inaccurate and false. It is unfortunate that these reports have led to confusion with the public.

“On the contrary, Government continues to fully subsidise 55 per cent of on-grid consumers in bands D and E and maintain the lifeline tariff for the poor and underprivileged.

“Those citizens have experienced no changes to tariff rates from what they have paid historically, aside from the recent minor inflation and forex adjustment. Partial subsidies were also applied for bands A, B and C in October 2020,” he said.

Mamman said that these measures were all aimed at cushioning the effects of the pandemic while providing more targeted interventions for citizens.

He said that the public was aware that the Federal Government and the Labour Centres had been engaged in positive discussions about the electricity sector through a Joint Ad-hoc Committee.

He said that the committee was led by Mr Festus Keyamo, Minister of State for Labour and Productivity and Co-Chaired by the Minister of State for Power, Mr Goddy Jedy-Agba.

According to him, progress has been made in these deliberations which are set to be concluded at the end of January.

“Some of the achievements of this deliberation with Labour are the accelerated rollout of the National Mass Metering Plan and clamp downs on estimated billing.

“Improved monitoring of the Service Based Tariff and the reduction in tariff rates for bands A to C in October 2020 (that were funded by a creative use of taxes),” he said.

The minister stated that it should be cleared that the regulator must be allowed to perform its function without undue interference.

He said that the role of the Government was not to set tariffs, but to provide policy guidance and an enabling environment for the regulator to protect consumers and for investors to engage directly with consumers.

According to him, Bi-Annual Minor reviews to adjust factors such as inflation are part of the process for a sustainable and investable Nigeria Electricity Supply Industry (NESI)

He also stated that the regulator must be commended for implementing the subsisting regulations while putting in place extensive actions to minimise the adverse impact on end user tariffs.

“The administration is committed to creating a sustainable, growing and rules-based electricity market for the benefit of all Nigerians.

“The administration and the Ministry of Power will also continue to devise means to provide support for vulnerable Nigerians while ensuring we have a sustainable NESI,” he said.

By Solomon Asowata

The Liquefied Petroleum Gas Retailers (LPGAR), branch of National Union of Petroleum and Natural Gas Workers (NUPENG), on Thursday decried the increase in the prices of cooking gas across the country.

Its National Chairman, Mr Michael Umudu, told the News Agency of Nigeria (NAN) in Lagos that the increment was an impediment to the Federal Government’s moves to deepen gas usage in Nigeria.

Umudu said the price of 12.5kg cooking gas had increased from about N3, 200 to about N5, 000 in some parts of the country within the last few weeks.

He said: “We as retailers are not happy with the increment because we are no longer getting patronage as we used to.

”Some people in semi-urban areas have switched back to firewood and kerosene stoves because they cannot afford to refill their gas cylinders.

”This totally negates all the efforts the government has been making to encourage Nigerians to embrace gas as the preferred choice for cooking in their homes. “

According to him, while the government has declared Jan. 1, 2021 to Dec. 31, 3030 as the decade of gas, such declarations should be backed with proactive actions to make it successful.

”What we are saying is that government should own the gas space in Nigeria and not just leave it totally to other private businessmen who are profiting from the situation.

”If we want the price of gas to be stable, government can direct the Nigeria Liquefied Gas Company (NLNG) and others producing gas to allocate sufficient quota to the domestic market annually.

“The 350,000MT supplied to the domestic market by NLNG annually is not enough to meet the demand hence more than 60 per cent of gas we use is imported into the country.

”By doing this, we will stop importation of gas which will reduce the strain on our foreign exchange,” Umudu said.

He added that the pricing of LPG should also be done in Naira against the current situation where the product is being sold to Nigerian marketers in dollars.

A restaurant owner, Mrs Chima Okereke, told NAN that the increase in the price of cooking gas was negatively affecting her business.

Recall that the National Bureau of Statistics (NBS) in its latest “Liquefied Petroleum Gas (Cooking Gas) Price Watch’’ publication, which was for November, had indicated a month-on-month increase in the average price for refilling a 12.5kg cylinder of the product.

It said that average price for the refilling of a 12.5kg cylinder for the product increased by 0.11 per cent month-on-month and decreased by -0.93 per cent year-on-year to N4,082.97 in November from N4,078.65 in October.

“States with the highest average price for the refilling of a 12.5kg cylinder for cooking gas were Akwa Ibom at N4,587.60, Bayelsa N4,558.33 and Cross River N4,505.77.

“States with the lowest average price for the refilling of a 12.5kg cylinder for were Kano N3,497, Oyo N3,553.13 and Lagos N3,682,” it said.