By Grace Alegba

The Nigeria Deposit Insurance Corporation (NDIC) on Thursday identified adequate collaboration as an essential strategy for curbing insider influence and financial malpractices in banks and other financial institutions.

Mr Bello Hassan, Managing Director of NDIC, stated this during the 2024 capacity-building workshop for law enforcement agencies in Lagos.

He noted that the corporation had consistently fought against insider abuses and financial malpractices for several years.

Hassan, represented by Mr Bashir Nuhu, Director of Communications and Public Affairs at NDIC, said that collaboration with law enforcement stakeholders remained crucial for achieving desired results.

“A safe and sound banking environment is an essential ingredient of financial system stability, which is the bedrock for economic development in every nation,” Hassan said.

Since 2012, the corporation has held annual workshops to sharpen the skills of law enforcement operatives and regulatory officers to prevent infractions that could lead to the collapse of banks or financial institutions.

Hassan said that the event also provided an opportunity to review the understanding and commitment to NDIC’s mandate of ensuring safe and sound banking in Nigeria.

“It is to provide an avenue for sharing ideas and working together as a team to synergise efforts toward achieving a common goal of financial stability,” he said.

Hassan listed financial and cyber crimes and challenges introduced by technological advancements and the continuous measures the NDIC had adopted in collaboration with law enforcement agencies to curb vulnerabilities.

“This workshop is among the steps taken to provide a platform for the agencies concerned to sharpen their skills, share ideas, and be well-equipped to face challenges,” he said.

Hassan noted that the theme, “Collaboration as a Strategy in the Fight Against Insider Abuses and Financial Malpractices in Banks and Other Financial Institutions in Nigeria,” reaffirmed NDIC’s commitment to tackling the issues.

The workshop aims to complement the efforts of the inter-agency task force on the implementation of the Failed Banks Act.

Hassan appealed to the taskforce to diligently execute its mandate.

“Through our collaborative efforts, I am aware that fourteen prosecution cases are ongoing in various courts, eighteen ongoing investigations with FMIU, eight with EFCC, and nine concluded investigations with the Federal Ministry of Justice for advice and prosecution.

“This indicates that we are on the right course,” he said.

He explained the relevant sections of NDIC laws that empower the corporation to regulate and monitor activities to prevent financial malpractices and ensure sanity in the financial and banking sector.

”Building strong depositors’ confidence in banks and other financial institutions will ensure continuous safety and soundness in the financial system.”

Economic and Financial Crimes Commission (EFCC) Chairman Olanipekun Olukoyede, represented by Michael Wetkas, Acting Zonal Director of EFCC Lagos, said that the theme of the workshop was timely, considering the current economic state of the nation.

He emphasised that the financial sector, as a driver of the economy, requires focus, and all hands must be on deck to maintain trust, security, and stability.

Assistant Inspector of Police (AIG) Romokere Ibani of the Nigeria Police Force Criminal Investigation Department (FCID), Alagbon, said that financial malpractices usually involve insiders as collaborators.

Ibani urged the NDIC to do more to ensure banks were financially stable and called for strategic collaboration among relevant agencies to help Nigerian banks meet international standards. (NAN)(www.nannews.ng

GA/AWA

========

Edited by Olawunmi Ashafa

By Vivian Emoni

Sen. Atiku Bagudu, Minister of Budget and Economic Planning, has inaugurated a Joint Planning Committee for the 30th Nigerian Economic Summit (NES), to shape national development.

Inaugurating the committee on Tuesday in Abuja, Bagudu said the previous summit played vital roles in shaping policies of government across the country.

The minister was represented by Mr Nebeolisa Anako, Permanent Secretary of the ministry.

He said the annual summit provides a veritable platform for dialogue among policy makers, corporate leaders, organised private sectors among others.

According to him, the summit provides the opportunity to strengthen the existing mutual and symbiotic relationship between the public and private sectors in the overall interest of Nigeria.

“The partnership between the sectors has helped in the development of the National Development Plan (NDP) 2021 to 2025 and the Nigeria agenda 2050.

“The key outcomes of the summit have always played important roles in shaping the policies of the government.

“In particular, the summit had in the past contributed to entrenching the culture of development planning in the country.

“The summit has as well provided invaluable policy recommendations for the government,’’ he said.

The committee, he said, was expected to articulate the budgetary requirements and sources of funds for hosting the summit.

Bagudu also said it would also propose the optimal strategy for funding the activities of the committee and the summit.

The minister said that efforts had been concluded to forward the 29th summit recommendations and outcomes to the Federal Executive Council (FEC).

He commended the public and private sector co-chairs and members of the committee for successfully organising the summit, and for working round the clock to produce the Green Book for the summit.

Earlier, Chairman of the NES, Mr Niyi Yusuf, said the summit was not just about changing policies, but redefining philosophy and approach to development.

“The NES remains a crucial catalyst for addressing current challenges and steering Nigeria towards a future of inclusive growth and economic resilience.

“Celebrating the milestone of the summit is an opportunity to reflect on a legacy that has played a critical role in promoting Nigeria’s transition to a private sector-led economy.

“This journey of strategic innovation and steadfast collaboration is vital for our continued economic development,’’ he said.

Yusuf said that one of Nigeria’s pressing concerns was to translate economic growth into improved living standards for the citizens.

“In spite of experiencing growth, the country grapples with rising unemployment, income disparity and multidimensional poverty”.

He said that these challenges are worsened by an uneven allocation of resources, macroeconomic instability and institutional deficiencies.

The chairman said that Nigeria`s weak economic performance was a pressing issue that demands immediate attention.

He added that the performance was reflected in poor socioeconomic outcomes and declining living standards.

According to him, in light of these severe realities, we hope the summit will be a significant conversation for action among public and private sector stakeholders and all Nigerians.

“It is a time to reflect on our economy, rethink our economic fundamentals and deliberate on the short, medium and long-term priorities to tackle our challenges.

“Together, we will explore emerging trends enabling Nigeria to capitalise on new opportunities and chart a path to rapid recovery.

“I am confident that this partnership will yield outcomes that will set Nigeria on the path of economic recovery and sustainable development.

“The NES will be a pivotal moment, highlighting the summit’s role in shaping our economic trajectory.

“It will underscore Nigeria’s significance in transforming the continent through institutions, investment, integration, industry growth and innovation,’’ he said.

Yusuf urged the minister to present the outcomes of the 29th summit to FEC for consideration and integration into government plans and programmes.

The chairman was represented by Omoboyede Olusanya, Vice Chairman of the 30th NES. (NAN) (www.nannews.ng)

Edited by Remi Koleoso/Joseph Edeh

By Gabriel Agbeja

The Federal Government says African countries must adopt unified business laws to enhance investment and promote greater economic integration.l

Mr Adegboyega Oyetola, the Minister of Marine and Blue Economy, stated this on Tuesday in Abuja, at the opening of the 17th International Maritime Seminar for Judges.

“If our business laws are harmonised, it will go a long way in enhancing international investment, reducing transportation and transactional costs.

“It will also promote the ease of intra and inter African trade which is currently encouraged by African continental Free Trade Agreement, “ he said

Oyetola said the ministry was working to strengthen the institutional and legal frameworks of the agencies under the ministry.

He said the effort had led to the repeal of the Nigerian Shippers’ Council Act CAP N113 LFN and the Enactment of the Nigerian Shipping and Port Economic Regulatory Agency Bill, 2024.

The minister said, passage of the bill into law would maximise the gains of the ongoing reforms.

The Minister hailed the collaboration of the Nigerian Shippers’ Council and the National Judicial Institute since 1995 when the seminar was first held.

He said one of the objectives of the seminar was to educate and provide Justices and Judges of superior courts with “knowledge of contemporary development in the complex and dynamic subject of admiralty law and practice, as it affects administration of justice in Nigeria”.

“The maritime sector is a complex and dynamic field that necessitates comprehensive legal and regulatory systems.

“ As Justices and Judges, your role is indispensable in interpreting and applying maritime law to resolve disputes, uphold international standards, and promote justice,“ he said.

According to him, the seminar is a vital platform for exchanging knowledge, sharing best practices, and addressing the evolving legal issues that impact nation`s maritime domain.

The minister stressed that judges and justices, as guardians of the rule of law, played a crucial role in shaping the legal landscape that governed nation`s maritime affairs.

Speaking, Sen. George Akume, the Secretary to the Government of the Federation, said the maritime sector was a vital part of any economy endowed with marine resources.

According to him, the present administration recognised the essential role and economic significance of the maritime sub-sector in diversifying, revamping, and strengthening the economy.

“It was in light of this that the administration of President Bola Tinubu established the Federal Ministry of Marine and Blue Economy, tasked with exploring and harnessing the enormous potential of this critical revenue source.

“This ministry is pivotal in driving economic growth and diversification and generating employment,“ he said

He assured that the Tinubu’s administration remained committed to fulfilling its international, regional, and sub-regional obligations, regarding the conventions, treaties, and agreements to which Nigeria is a signatory. (NAN) (www.nannewes.ng)

Edited by Rotimi Ijikanmi

By Naomi Sharang

The Senate has called for improved budgetary provision for the Securities and Exchange Commission (SEC).

The upper chamber said that the N22.40 billion for the commission’s 2024 budget was inadequate given the important role the commission plays in the nation’s prosperity.

The Chairman of the Senate Committee on Capital Market, Sen. Osita Izunaso, made the call on Tuesday when the Director-General of SEC, Dr Emomotimi Agama, appeared before the committee to defend the commission’s 2024 budget.

Izunaso expressed dissatisfaction that the budget was too small to enable the commission carry out its statutory functions.

“The SEC is regulating a lot things. The budget is too small. Something has to be done. You have to regulate cryptocurrency. Cryptocurrency alone should be able to give you a lot of money,” he said.

Izunaso also tasked the commission on financial literacy calling on the management to provide an item in the budget to deal with financial literacy.

“There should be an item in the budget to deal with financial literacy because Nigerians need to be informed.

“You are aware that people have lost confidence in the capital market, in stock because of what happened in the past.

“So, there is the need to regain that confidence. Financial literacy is extremely important,” Izunaso said.

Agama while giving the budget estimate said that the commission had a budgetary estimate of N22.40billion for the 2024 fiscal year.

He said that out of the figure, N11.72 billion was for the total staff cost, while N1.22 billion would be for retirees’ funds scheme.

“N6.74 billion is for other recurrent expenditure, while capital expenditure was projected at N1.18 billon,” he said.

He said that the total expenditure stood at N20.85 billion, while surplus and deficit was N1.55 billion.

Agama note that the commission in 2023, attempted to improve its revenue base with the introduction of various strategies to shore up funds.

He said the commission had in the last two years attempted to reduce its staff strength.

Agama said that “we are very top-heavy at SEC.”

“We hardly have the middle level staff to do some of the desk work that we ordinarily should do.

“We have a staff strength of 353 in a commission that takes care of over 200 million persons. That is grossly inadequate for us to be able to do our work very well.

“It is our desire to be able to improve on that staff level by providing enough desk offices that will work round the clock to make sure that the investors are properly taken care of,”  he said. (NAN)(www.nannews.ng)

Edited by Kevin Okunzuwa/Chinyere Joel-Nwokeoma

Stakeholders during inauguration of the Informal Economy Report 2024 on Friday in Abuja.

By Lucy Ogalue
The Informal Economy Report 2024, says businesses in the informal market contribute over half of Nigeria’s Gross Domestic Product (GDP).

The Minister of Industry, Trade and Investment, Dr Doris Uzoka-Anite said this when she inaugurated the report on Friday in Abuja.

The News Agency of Nigeria (NAN) reports that the unregistered businesses includes street vendors, artisans, and service providers.

“Put together, businesses in the informal market contribute over half of Nigeria’s GDP.

“This is evident in their revenues, with the bulk of them (72.3 per cent) hitting monthly revenues of more than N1,000,000 monthly. But their actual profit deviates from these high figures.

“Individually, most of them make less than N250,000 monthly. On the higher end of the spectrum, only about 1.3 per cent of businesses in Nigeria’s informal economy earn above N2.5 million monthly.”

According to the report, Retail and General Trade is the leading industry within the informal economy, making up 24 per cent of all informal businesses.

It said this category, along with Food and Drinks, Fashion and Beauty, and Agriculture, collectively account for more than (58.6 per cent) of all informal businesses in Nigeria.

“While the bulk of informal businesses (72.3 per cent) generate more than one million naira in monthly revenue, individual profits paint a different picture.

“Most informal businesses make less than N250,000 monthly, with only 1.3 per cent exceeding N2.5 million monthly earnings.

“In spite of this, a staggering 90 per cent contribute to the national GDP, reinforcing their significance to the Nigerian economy,” it said.

The report also revealed that a significant portion (68.2 per cent) of their income goes towards feeding and family expenses.

It said this was followed by reinvestment in the business (29.7 per cent), with only a small percentage (3 out of 10) prioritising reinvestment.

According to the report, access to credit is a major challenge for informal businesses.

“In spite of 70.1 per cent having accessed credit, friends and family remain the primary source (70.7 per cent), followed by loan apps/platforms (15.1 per cent) and traditional banks (12.2 per cent).”

The report said that informal businesses neglected tax contributions, saying about 90 per cent of them paid some form of tax primarily in the form of market levies.

Uzoka-Anite expressed the Federal Government’s commitment to supporting small businesses in the informal sector as they contributed largely to the nation’s GDP.

The minister hoped that the report would help the government better understand the informal sector’s needs and propose solutions that would enhance growth and inclusion in the country.

“We will see how we can take every recommendation and move the reports forward. We will support you in doing much better.

“We will rely on this report to better understand the informal sector and know their needs as it aligns with the renewed hope agenda of financial inclusion in the country,” Anite said.

Earlier, Mr Charles Odii, the Director-General Small and Medium Enterprise Development Agency of Nigeria (SMEDAN), said that small businesses are the engine of the Nigerian economy.

According to Odii, the informal sector is the piston that provides momentum.

“The numbers support this reality, as reaffirmed by this report. Most of Nigeria’s approximately 40 million small businesses reside in the informal sector.

“They are all around us, from the unregistered beauty shop that began with a simple stool under a tree for customers to sit while the stylist works her magic to the fruit store that grew from a wheelbarrow.

“Born of both necessity and entrepreneurial zeal, they exemplify the famous ‘hustling’,” he said

According to him, the agency is working to formalise these businesses and bring them into the formal sector to increase access to important resources such as finance.

He said this was because formalisation aids the development of brand value and financial history, which indicates creditworthiness and attracts investment.

Odii said that a major obstacle to the formalisation was the fear of taxes.

He, however, said that the government was ensuring the enforcement of existing tax exemptions designed to give small businesses room to grow.

“We are also working with the Association of Local Governments of Nigeria (ALGON) to address the rampant illegal taxation and harassment of small businesses.

“Which discourage formalisation and negatively impact the ease of doing business,” he said.

Representing Vice President Kashim Shettima, his Special Assistant on Financial Inclusion, Nurudeen Zauro, said the Federal Government was committed to economic and financial inclusion in the country.

He expressed the government’s commitment to supporting efforts to realise President Bola Tinubu’s renewed hope agenda.

Also speaking, the Chairman,House Committee on Small and Medium Enterprises (SMEs), Mansur Soro, said the house was taking deliberate steps to prioritise women operating in the informal sector.

He expressed the National Assembly’s commitment to give the report its full attention, subjecting it to the necessary review and internalising it.

NAN reports that top government officials and stakeholders in the sector attended the inauguration. (NAN)(www.nannews.ng)

========

Edited by Ese E. Eniola Williams

By Vivian Emoni

Gov. Mohammed Bago of Niger says the state recorded N3.5 billion Internally Generated Revenue (IGR) in May.

Bago stated this on Wednesday in Suleja, Niger, at the 155th meeting of Joint Task Board (JTB), with the theme: “Post Reform: Repositioning Revenue Authorities for Effective and Efficient Tax Administration.“

He said that his administration remained committed to fostering collaboration with JTB on exchange of ideas and competences.

According to him, through strategic reforms and innovative approaches, the state has witnessed a steady growth in its revenue.

“Between January and May this year, we collected an average of N2.621 billion monthly, as against an average of N1.806 billion monthly the previous year.

“In the month of May alone, we generated N3.508 billion, representing an increase of 45 per cent.

“This growth has not only enabled us to expand infrastructure projects but also, to enhance social service delivery across various sectors, thereby improving the quality of life for our citizens,’’ he said.

The governor said that the administration had prioritised transparency, efficiency and taxpayer education in the state.

He said the state had also made it easier by simplifying processes and leveraging technology for taxpayers to comply, while reducing opportunities for evasion.

“This has resulted in improved compliance rates and enhanced revenue collection.

“We understand the importance of synergy in achieving our collective goals of improved tax administration and revenue optimisation.

“Together, we can explore innovative strategies, share best practices and address challenges that hinder our progress,’’ he said.

Bago urged all the stakeholders to be committed with optimism, determination and confidence to reposition the revenue authorities for future of prosperity and progress.

Chairman of JTB, Dr Zacch Adedeji, commended the governor for ensuring that the state IRS was professionalised while, at the same time, safeguarding its autonomy.

“Coming off the last seven months of 2023, a rejuvenated approach to revenue generation saw the state ending the year on a solid note with total annual IGR performance crossing the N20 billion mark for the first time in its history.

“At N21.67 billion, collections achieved over 28 per cent growth over the total annual collection of N16.93 billion posted in 2022.

“Notably, the percentage growth rate was significantly higher than the cumulative sub-national growth rate of 23.17 per cent.

“The momentum was unrelenting, going into the new year with the N7.03 billion collected in the first quarter of 2024, as against the N6.18 billion in first quarter of 2023.

“We are proud of what the state is achieving under your watch, and we are confident that with diligent implementation of the innovation and relentless drive, a monthly IGR of N5 billion is realisable.

“We are committed to this at the JTB, and our presence here today is an ample testimony of our support,’’ he said.

Adedeji said that JTB was charged with the mandate of promoting and ensuring uniformity, harmony and efficiency in personal income tax administration, while providing advice on general tax matters to all tiers of government.

According to him, the stakeholders` meeting provides an avenue to engage and brainstorm on contemporary and emerging issues in taxation at the domestic, regional and global levels.

“It is necessary to strengthen the fabric of our IGR capacity to ensure that the revenue administration processes, especially at the sub-national level, become as efficient as possible.

“This is to optimise the collection of IGR for socio-economic and human development,’’ he said.

He thanked the stakeholders for making tax issues a matter of priority and for putting tax revenue into excellent use. (NAN) (www.nannews.ng)

Edited by ‘Wale Sadeeq

By Vivian Emoni

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), has advocated stronger collaboration with the Economic and Financial Crimes Commission (EFCC), to ensure recovery of unremitted revenues to the appropriate government coffers.

The Chairman of the commission, Mr Muhammad Shehu, stated this during a courtesy visit to the Chairman of the EFCC, Mr Ola Olukoyede, in Abuja on Wednesday.

Shehu said such collaboration would help to discover the areas of revenue leakages and ensure effective recovery.

“We are calling on EFCC for more collaboration, not only in the area of enforcement but also intelligence gathering and data sharing with respect to government revenue from any source.

“The collaboration with your organisation in the area of enforcement served as an impetus to the success recorded in our recovery exercise.

“It is therefore important to bring to the fore that the collaboration between RMAFC and EFCC is crucial in addressing the challenges of unremitted revenue to the federation account,’’ he said.

Shehu also sought the assistance of the EFCC in respect of capacity building for the staff of RMAFC, especially in the area of forensic investigation.

He said that his organisation had observed that many Revenue Generating Agencies, described as Government Owned Enterprises (GOE) by the office of the Accountant General of the Federation are allowed to generate revenue.

He added that, “such agencies also spend from it and remit the balance as operating surplus to the Consolidated Revenue Fund (CRF).

“This is not known to the constitution as all agencies are constitutionally mandated to remit the revenues generated in gross to the federation account as prescribed in section 162 (1) of the 1999 constitution as amended.

“The constitution states that the federation shall maintain a special account to be called, The Federation Account into which shall be paid all revenues collected by the Government of the Federation.

“Except the proceeds from the personal income tax of the personnel of the Armed Forces of the Federation, the Nigeria Police Force, the Ministry or Department of Government charged with responsibility for Foreign Affairs and the residents of the Federal Capital Territory, Abuja.’’

The chairman said that the collaboration between RMAFC and EFCC in 2013, helped the commission to recovered unremitted and under-remitted revenues.

He said that the revenues were collected and deducted from the third party by the banks to the federation account covering a period from 2008 to 2015, where N74 billion was recovered.

He also disclosed that in 2021, the RMAFC engaged another set of consultants in synergy with EFCC and expanded the scope of recovery to include the public sector as well as oil and gas sector for a period covering 2016 to 2019.

“The exercise has so far recovered over N216 billion to the appropriate government coffers and it is still going on”.

He said the RMAFC was established to ensure effective and efficient management of the nation’s revenue.

Responding, Olukoyede stressed the need for effective collaboration between the two organisations to ensure proper management of government revenue.

“Nigeria can only move forward, when there is transparency and accountability in the conduct of government business.

“Nigeria will be better if the right steps are taken.  There are things we have been able to do together within the scopes of our mandate and your mandate as well.

“Transparency and accountability should be embedded in our public life as a nation. That’s the only way we can move forward.”

According  to him, “one of the things the two agencies are supposed to focus on more now besides recoveries is our systems.

“There is nothing fundamentally wrong with us as Nigerians but with the system that we run here, if you bring in the people that make things work in their own countries to our system here, they will be corrupt.

“There is an entrenched system here that encourages people to steal and it will appear as if nothing will happen. Let’s look at our system of revenue generation, the system that allows leakages in mobilisation and appropriation of funds.

“If we don’t look at the system, we will continue to chase shadows. Let’s get our priorities right. I see no reason why a ministry that has no business with project execution will be awarding contracts.

“We should look at these areas and scale up our surveillance. In all of these let’s support the President in all his efforts to reposition this country.

“The president relies on you and me and all the people he has put in a position of trust and responsibility,” he said. (NAN) (www.nannews.ng)

Edited by Isaac Aregbesola