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Fashola Raises Hope for Better Electricity Supply

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The Minister of Power, Works and Housing, Babatunde Fashola
  • Fashola Raises Hope for Better Electricity Supply

The Minister of Power, Works and Housing, Mr. Babatunde Fashola, on Sunday raised hope for improved electricity supply in the country, assuring Nigerians that power generation would ramp up to 4,000 megawatts within the next six days.

The minister spoke on the Sunday Morning Show of Arise Television, asserting that: “In six days’ time, we will restore generation to 4,000MW,” promising: “By the time you have the hydro station back during the raining season, you will get more.”

Nigerians had been experiencing frequent power outages, which worsened in the last few weeks even as the weather became hotter, provoking bitter complaints from citizens.

But the minister, who also clarified that the N701 billion power intervention fund recently announced by the federal government would be spread over the next three years to give comfort to the operators, explained that the outages were due to low water levels at the nation’s hydro power stations.

As a result, he said, power generation had gone down to 3,400MW.

“For the first time in a long time, this is the peak of very hot weather where the waters in the hydro plants are down,” he said.

The problem, he stated, was compounded by the shutting down of two power stations on Saturday, assuring Nigerians, however, that government was determined to average generation at 3,400MW.

“Two of our plants are down; they are trying to evacuate the condensates. We are, however, keeping power generation at about 3,400MW,” he said, expressing hope that with the advent of the rain season and restoration of the hydro stations, generation would be ramped up to 4,000MW.

Fashola charged gas suppliers and generating companies to do more to produce power since the government had firmed its debt payment plan.

Restating the federal government’s commitment to pay debts owed distribution companies by the ministries, departments and agencies (MDAs), he said he would not make a recommendation to government to pay any kobo of tax payers’ money for any debt that was not properly verified.

He said: “For debts, one of the earliest statements I made was that we will pay all the debts once they are verified and the process of verification is taking place. Right now, we are looking at over 250,000 invoices comprising of I think 4,000 accounts. I won’t make a recommendation to government to pay any kobo of tax payers’ money for a debt I cannot put my signature to.

“And so I have a team doing that, we are making good progress and raising questions. That is how debts are going to be settled, we will pay every debt that is owed and verified.”

The minister also spoke on the President Muhammadu Buhari administration’s economic blueprint and said when properly implemented, it would protect Nigeria from future fall in prices of crude oil.

Fashola noted that five out of the 60 interventions plans under the Economic Recovery and Growth Programme (ERGP) launched last week by President Buhari were related to power supply, stressing that with the private sector controlling the power sector, the role of the government now was policy and coordination, and creating enabling business environment for the investors to deliver.

According to him, the government has the responsibility to ensure that the environment is right.

He said the government had promised to deliver 4000MW of electricity, adding that it was on that basis that the tariff was defined.

He, however, added that the government could not achieve that because of vandalism, which according to him, was the business of government and not that of the operators.

He said: “You see the vice-president and the president are trying to restore calm in the Niger Delta and in the last one month there hasn’t been any major announcement of any vandalism. And so we are now in a state of repairs because hitherto what happened was immediately we repaired, they were broken again. I have meetings with all the operators in the sector, we are meeting in Osogbo tomorrow and that is where the National Control Centre is, and that is part of what I am doing to know the asset by name and not just on papers.”

Fashola said the country was beginning to see the need to generate more power with solar energy and also revive coal because all of the other sources of energy were also subject to their own inherent weaknesses.

“When it is raining, solar is not very efficient and that is when you should go to gas. When it is not raining, your hydro is not good and that is where you should be able to go to coal. This is what needs to be done, but I assure you that it would be done, we will get it right,” he said.
Explaining the federal government’s cross-cutting project development that is devoid of party lines sentiments, Fashola stated that Buhari was not playing politics as elections had been won and lost.

He noted that the president was personally driving the biggest power project in Nigeria, the Mambilla Power Project, which is located in Taraba State, a non-APC state.

According to him, the president is driving the conclusion of the negotiations on the back of his visit to China, stressing that the federal government is close to concluding the negotiations and to start work late this year or early next year.

“President Buhari is not playing politics, he is governing, that is the mandate he has now and so are we his ministers,” he said.

Fashola claimed that when he was a governor, the National Economic Council (NEC) meetings did not hold to discuss deep and very important economic issues because the last administration did not want opposition governors to raise certain questions.

“Elections are over, this is the time to govern and that is what we are doing. How could you possibly, if you talk about road, achieve interconnectivity between states? Assuming we are minded like them, you cut off Ekiti State and go and build roads in Ondo State, apart from Imo State in the South-east, essentially we didn’t win any state. But work is going on in those states,” he explained.

He argued that if all the economic programmes planned by the government were efficiently implemented, Nigeria would have enough economic firepower to withstand any new fall in oil prices in the next 10 years.

According to him, the government would through the Economic Recovery and Growth Programme (ERGP), invest in Nigerians and the local economy to begin to internally source for goods and services needed by Nigerians.

He specifically stated that in the government’s housing programme where a number of houses would be built every year on a Public Private Partnership (PPP) scheme, he had mandated that all the building materials required for the projects across the country be internally sourced, except if they were not found within the country.

He said the government had prioritised its programmes for the country’s road network, adding that roads with higher economic values are being worked on.

“As an economic intervention, our plan is to restore the roads, reduce journey times, improve travel experience and reduce the cost of goods and services so that we can move cargoes and goods across Nigeria, and that is beginning to happen. Coming into 2017, I know which roads need priority attention and how to spend the monies we have. We have toured essentially all the six geo-political regions of the country,” he said.

“When I assumed office, about 206 roads already contracted by previous administrations hadn’t been completed,” he added.

“When we started with the 206 roads, the total contract sum was N2.2 trillion and the amount that had been paid was about N700 billion. So, we were out by N1.5 trillion, and I don’t have that budget in my ministry, we had to make choices. The choices we made were based on which roads carried the heaviest traffic so we could make impact, which roads carried Nigeria’s energy need like the fuel cargoes because there must be priorities; which roads sustain lives in terms of delivering food and the food basket of Nigeria is from the Middle Nelt up north, so it is those roads that help Nigerians get on with their lives,” he explained.

On housing, the minister stated that some states had offered to contribute land for the National Housing Scheme, adding that the housing units would be built in larger quantities after the first pilots have been completed.

“We are getting lands from the states; they are choosing the location where I believe they want their housing estates to be located. The housing units must pass through tests of acceptability and affordability for the people that they would be built for, and that was why I alluded to consultations, which we spent the last year doing,” Fashola added.

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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House of Reps Warns Tinubu Against Multiple Tax Burdens on Nigerians

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Company Income Tax (CIT) - Investors King

The House of Representatives has warned President Bola Tinubu against imposing multiple taxes, levies, and charges on Nigerians already struggling with subsidy removal and higher electricity bills.

During Thursday’s plenary session, the member representing Anambra East/Anambra West Federal Constituency, Mr. Peter Aniekwe, called for the adoption of a motion on urgent public importance.

Investors King reported that the motion was co-sponsored by the House Minority Leader, Rep. Kingsley Chinda, and four others.

In defense of the motion, Aniekwe noted that the government’s introduction of additional taxes, which he described as sometimes unnecessary, only adds an undue burden on Nigerians.

He emphasized the need for the government to strike a balance when imposing taxes that are essential for revenue generation.

Aniekwe said, “The imposition of multiple taxes, levies, and charges at various levels of government only serves to exacerbate the financial strain on citizens, particularly those in low-income brackets, many of whom are already struggling to meet basic needs such as food, healthcare, housing, and education.

“The introduction of additional and sometimes unnecessary taxes, including consumption taxes, service taxes, and levies on essential goods and services, places an undue burden on the masses, further widening the inequality gap.

“While taxation is necessary for government revenue, a balance must be struck between revenue generation and the economic well-being of citizens, particularly at a time when many families and businesses are still recovering from the economic impact of global and local challenges.

“The government’s primary responsibility is to alleviate the economic challenges faced by the masses, ensuring policies that promote economic development, social welfare, and prosperity for all citizens.”

After Aniekwe’s defense, the House of Representatives adopted the motion.

The House cautioned the Federal Government against multiple taxation and mandated the committees on Finance and FIRS to, within three weeks, conduct a thorough review of existing tax laws and policies to streamline tax collection processes and eliminate redundant or overlapping taxes.

The committee was also tasked with identifying areas of double taxation at all levels for necessary action.

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Boosting Nigeria’s Digital Future: STEM Education and AI Could Add $15 Billion to Economy by 2030

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Business

If Nigeria can enhance its Science, Technology, Engineering, and Math (STEM) education and prepare its workforce for future opportunities in the digital space, the economy could expand by an additional $15 billion, a new report has revealed.

The report, issued by consultancy Public First on Thursday, also indicated that Nigeria reaped an estimated $1.8 billion in economic benefits from Google’s tools and services in 2023.

Presenting the report in Lagos State, the Nigeria Digital Opportunity study highlighted the financial value contributed to the nation’s economy through services such as Google Search, Ads, Google Play, YouTube, and Google Cloud.

These services have played a significant role in boosting the productivity of Nigerian businesses, content creators, and workers.

It is no secret that a large number of young Nigerians have become tech-savvy, with many venturing into the thriving world of technology and content creation on social media platforms.

According to Google, its digital skills programs and career certificates are key drivers of Nigeria’s digital transformation, with over 1.5 million young Nigerians acquiring new digital skills in 2023.

Google’s Director for West Africa, Olumide Balogun, expressed the company’s satisfaction with the positive impact that digital technology is having on Nigeria’s economy.

He emphasized that the findings highlight the importance of continued investment in digital skills and infrastructure to unlock the full potential of Nigeria’s growing digital economy.

Balogun noted that with rapid digital advancements, particularly in areas such as cloud computing, connectivity, and artificial intelligence (AI), Nigeria is well-positioned to solidify its standing as a leading digital economy in Africa.

He advised the country to strengthen its technology policies, stating that Nigeria’s economic future will largely depend on its ability to harness technology. Balogun added that Google remains committed to supporting Nigeria’s journey through strategic investments and partnerships.

The report underscored the significant role digital technology plays in Nigeria’s economy, with Balogun noting that for every $1 invested in digital technology, the country generates over $8 in economic value.

Meanwhile, Google has called on Nigerian policymakers to prioritize STEM education to maximize the economic benefits of technology.

The report also projected that AI could contribute $15 billion to Nigeria’s economy by 2030.

Balogun highlighted Google’s efforts in promoting responsible AI development, noting that in 2021, the company committed $1 billion to support Africa’s digital economy.

He added that this initiative included the 2022 landing of the Equiano fiber-optic cable in Nigeria, which is expected to boost internet penetration by seven percent by 2025, significantly enhancing internet access and reliability.

Google also recommended that Nigerian policymakers adopt cloud-first strategies and strengthen the country’s digital infrastructure to harness the full potential of AI, while emphasizing the need for improved STEM education to prepare the workforce for future opportunities.

Amy Price, Director and Head of Technology Policy at Public First, praised Nigeria as a digital leader in Africa. She emphasized that tech investment will serve as a catalyst for further growth and development across the nation.

Price further highlighted the critical role AI will play in shaping Nigeria’s future economy, with the report estimating that AI could add $15 billion to the country’s GDP by 2030. She stressed that the nation must focus on building strong digital infrastructure and investing in STEM education to prepare its workforce for the jobs of tomorrow.

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Lawmakers to Deliberate on Nigerian Tax Reform Bills, Change of FIRS to NIRS

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Value added tax - Investors King

The National Assembly is set to begin deliberations after receiving President Bola Tinubu’s communication seeking consideration and passage of the proposed Fiscal Policy and Tax Reform Bill to align with ongoing financial reforms of the Federal Government and enhance efficiency in tax compliance.

In addition to the Senate, the House of Representatives received four bills forwarded by the President. They include the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Establishment Bill and the Joint Revenue Board Establishment Bill.

The Nigeria Revenue Service (Establishment) Bill seeks to repeal the Federal Inland Revenue Service (Establishment) Act, No. 13, 2007, and establishes the Nigeria Revenue Service, to assess, collect, and account for revenue accruable to the government of the federation.

The Transmission of Fiscal Policy and Tax Reform Bills to the National Assembly is The Nigeria Tax Bill, which seeks to provide a consolidated fiscal framework for taxation in Nigeria.

The Nigeria Tax Administration Bill seeks to provide a clear and concise legal framework for the fair, consistent and efficient administration of all the tax laws to facilitate ease of tax compliance, reduce tax disputes and optimize revenue.

Meanwhile, the Joint Revenue Board (Establishment) Bill aims to establish the Joint Revenue Board, the Tax Appeal Tribunal and the Office of the Tax Ombudsman for the harmonization, coordination and settlement of disputes arising from revenue administration in Nigeria.

This comes after President Tinubu during his speech on Nigeria’s 64th Independence Anniversary on Tuesday (October 1) said some Economic Stabilisation Bills would be transmitted to the National Assembly.

“We are moving ahead with our fiscal policy reforms. To stimulate our productive capacity and create more jobs and prosperity, the Federal Executive Council approved the Economic Stabilisation Bills, which will now be transmitted to the National Assembly.

“These transformative bills will make our business environment more friendly, stimulate investment and reduce the tax burden on businesses and workers once they are passed into law,” he said.

Recently, the Chairman of the Presidential Taskforce on Fiscal Policy and Tax Reforms Committee, Mr Taiwo Oyedele, said the Withholding Tax Regulations 2024 has been gazetted.

“I do have some good news, the good news is that the withholding tax regulation has now been gazetted. So, the only reason it hasn’t been published today is because it is public holiday, so first thing tomorrow you will see a copy of the gazette and that provides a lot of relief not just for manufacturers but also every other business in terms of taking away some of the burdens of funding their working capital,” Mr Oyedele said.

Nigeria has been seeking to harmonise its tax base as it has a tax-to-gross domestic product (GDP) ratio of 10.8 percent; comparatively, the average tax-to-GDP ratio for Africa is about 18 percent.

 

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