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FG Okays Concession of Lagos, Abuja Airports

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  • FG Okays Concession of Lagos, Abuja Airports

Vice President Yemi Osinbajo announced on Monday that the Federal Executive Council had agreed to the concession of the Murtala Muhammed Airport, Lagos and the Nnamdi Azikiwe Airport, Abuja.

Osinbajo also asked the private sector to report Ministries, Departments and Agencies of government stalling the implementation of the ease of doing business, saying naming and shaming was the only way to improve the business environment.

The vice president said these at the 5th Presidential Quarterly Business Forum in Abuja on Monday.

He said, “First, we want to do a general overhaul. Second, we want to enter into concession of the airports. I am pleased to say that the Federal Executive Council has approved the concession of the Lagos and Abuja airports,” he stated.

On naming and shaming those demanding rents and gratification, Osinbajo said, “We are ready to confront the system that is used to rent and gratification. In order to reverse that and for things to be done properly, we need to call out officials involved. If we don’t, we will never solve the problem.

“Part of the problem is that nobody is willing to report anybody asking for gratification.”

Osinbajo stated that though change was always slow, those involved in the process must remain focused.

“Change is often slow but we must remain focused. We’ve issued four executive orders so far and we’re training civil servants to implement them,” he added.

He urged regulators to see the interactions as meaning that “our work is far from being done. It is a systematic change that is required.”

The vice president, who said that government’s approach to ease of doing business in Nigeria was dynamic, delved into the current challenges confronting the power sector.

He said while the country was currently generating 6,700 megawatts of electricity, 2,000MW was being wasted daily because of problems associated with connection difficulties as well as problems between the transmission and distribution companies.

Osinbajo said the distribution companies also expressed their unwillingness to take the 2,000MW because of the unwillingness of some consumers to pay.

He also stated that part of the business overhaul initiatives of the government was to ensure the provision of power in some notable business environments such as the Ariaria Market in Aba, Abia State; the printing industry in Somolu, Lagos; and a Kano market, without the necessary connection to the national grid, describing it as “all sorts of off-grid initiatives to get power.”

He stated that the government was promoting solar power initiative as well as the construction of integrated power plants in nine universities to boost electricity supply.

While reacting to the news, stakeholders in the aviation industry said that the concession of the two airports as approved by FEC was long overdue.

The Chief Executive Officer, Centurion Aviation Security and Safety Consult, Group Capt. John Ojikutu (retd), said the development was not unexpected as the process had been ongoing since the last administration.

“We as a country have spent too much public funds on airports. The concession is long overdue so that the government can concentrate on other things,” he said.

He stated that the concession would give room for the government to focus on safety issues.

Ojikutu added, “If the MMA2 can be managed properly by a private investor and is considered one of the best in the country, then the others should be given to private investors as concessions.

“There is nothing like terminal buildings under the 18 annexes of the International Civil Aviation Organisation. It is nothing more than a shopping mall.”

Ojikutu, however, said that the concession should be limited to the terminals alone so that safety and security would not be compromised.

He explained that areas such as the runway and safety facilities like the air navigational aids should not be included in the concession agreements.

The President, Aviation Roundtable Initiative, an industry pressure group, Mr. Gbenga Olowo, said the concession would help to address some of the issues that airport users had been contending with for a long time.

Olowo, who is also the chief executive officer of Sabre Network, West Africa, said, “The concession is long awaited and I am happy it is finally happening. I hope the terms will be clear and will be respected by subsequent governments.

“The government should also take lessons from the existing concession of the MMA2 and avoid some of the mistakes made.”

The Accountable Manager of Dana Air, Mr. Obi Mbanuzuo, said it was a welcome development as airlines were in need of functional airports.

“Unfortunately, airlines have not been carried along in the process, we need more information on who is involved, the areas and aspects of the concession,” he stated.

A former Director of Operations, Nigeria Airways, Capt. Dele Ore, who was the Chairman of the Ministerial Committee on Airport Concession in 2009, said the move was long overdue, adding that the Federal Government needed not to delay the process of handing over the management of the nation’s airports to private hands.

Ore, however, advised the government to ensure that the process was transparent.

The former DC aircraft pilot said, “The advert seeking for investors must be international such that foreign investors will get to see it. Privatisation should not be the transferring of state assets to cronies of those in power.

“For the workers of the Federal Airports Authority of Nigeria, my advice to them is that they should embrace privatisation, otherwise their fate will be like those of the liquidated Nigerian Airways.’’

An aviation consultant and Chief Executive Officer of Belujane Konzult, Chris Aligbe, while welcoming the news, congratulated the Minister of State for Aviation for securing the approval.

Aligbe said, “I feel extremely happy with this development. What is left is for the concession to be done transparently.”

A former Director of Operations, IRS Airlines, Capt. Ken Wemambu, also described the development as a good move, saying nothing better could happen to the nation’s airports that had become public shame.

According to him, FAAN has not been able to manage the airports and there is a need to give them to private investors.

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.

Economy

Gov Aiyedatiwa Signs ₦96 Billion Supplementary Budget Into Law, Hails Ondo House of Assembly For Swift Passage

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Lucky Aiyedatiwa

The Governor of Ondo State, Lucky Aiyedatiwa, has expressed gratitude to the State House of Assembly for the swift passage of the Supplementary Budget as he signs the ₦96 billion budget into law.

Governor Aiyedatiwa spoke on Tuesday, November 15, during the signing of the supplementary budget in Akure.

The governor explained that the supplementary budget is necessary to help his administration address the economic challenges in the state.

According to him, the new budget signed into law is also essential for the state government to implement the new ₦73,000 minimum wage for civil servants and new employees, as well as for the recruitment of workers in the state.

Aiyedatiwa said, “The supplementary budget is necessary because of the time we are in and the trends of what is happening in the state and country in general; the new minimum wage, subsidy removal, and the recent recruitment of workers.”

Aiyedatiwa stated that his administration was grateful to the leadership and members of the House of Assembly for passing the bill.

He highlighted the harmonious relations between the two arms of the state and reaffirmed that his administration will continue to work with the House of Assembly for the betterment of the Ondo people.

The Speaker of the House of Assembly, Olamide Oladiji, thanked the Governor, stating that the steps taken by his administration have not only transformed the state but also proven the governor’s ability and capacity to deliver on the job ahead.

He expressed optimism that the bill signed into law would positively impact the lives of the citizens.

“These giant strides have not only transformed the state in all facets but have clearly demonstrated your vision, capacity, intellectual ability, zeal, passion, direction, and a clear understanding of the enormous job ahead.

“It is therefore hoped that the implementation of these laws will meaningfully impact the lives of the good people of the state.”

Oladiji pledged the continuous support of the House to Aiyedatiwa’s administration, saying, “I want to, on behalf of my colleagues, assure you, Mr. Governor, of our continuous support and cooperation to ensure the success of this administration.”

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MEND Tackles Ex-Agitators For Threatening To Bomb Oil Installations In Rivers 

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A war of words has ensued between a militant group, the Movement for the Emancipation of the Niger Delta (MEND) and a coalition of ex-agitators over alleged plan to attack oil installations in the region by the latter group.

Following the political crisis rocking Rivers State, a coalition of ex-agitators and fighters in the region under the aegis of Niger Delta Development Force had last week threatened to blow-up oil facilities in the region over what it termed a plot to seize financial allocations meant for local government areas in Rivers State through the courts.

The former warlords dared the Federal Government and the Central Bank of Nigeria, saying if they proceeded in withholding the funds for the state, it would have grave consequences.

Kicking against the threat, MEND’s spokesman, Jomo Gbomo, in a statement on Friday, said it will support security operatives in safeguarding crude oil installations from any attack.

Gbomo also said MEND is not in support of the violence that Rivers State has been experiencing due to the lingering feud between the Minister of the Federal Capital Territory, Nyesom Wike, and his successor and estranged political godson, Siminalayi Fubara.

Describing the attack plan as threat to the economy of the country, Gbomo said it would be most unfortunate for a political dispute between two politicians to cost the state and Nigeria assets that are pivotal to nation’s survival.

Noting that the both feuding political gladiators are sons of the Niger Delta, the spokesman asked those making the threats not to allow themselves be tricked using the present circumstance into carrying arms against the Nigerian state on behalf of any of them, not even for any price.

He said as an Ijaw son, he knows the gains of having an Ijaw man as governor in Rivers, adding that it is an achievement which would not have been possible but for the collaboration of other ethnic groups.

According to him, the current healthy collaboration from the various ethnic groups which produced an Ijaw son as governor was spearheaded by the FCT Minister.

The statement said not only would MEND back the Federal Government in protecting oil facilities, but it would also ensure that the masterminds of the threats to attack oil installations are fished out and meant to face justice.

The MEND spokesman, however, urged the elders and traditional institutions in the region to intervene in the face-off between Governor Fubara and the FCT Minister.

He also urged parties in the festering political crisis to seek judicial redress if peaceful dialogue fails.

 

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Northern Governors Oppose New VAT Model as FG Defends Tax Reform Bills

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The Federal Government has addressed concerns raised by the Northern Governors’ Forum regarding the proposed tax reform bills before the National Assembly.

Investors King gathered that Governors of 19 Northern States of Nigeria, under the platform of the Northern Governors’ Forum met with the traditional rulers from the region to agree to disagree with the Federal Government’s new value-added tax model.

In a communiqué read by the chairman of the forum, Governor Muhammed Yahaya of Gombe State, the governors strongly opposed the new derivation-based model for Value-Added Tax (VAT) distribution in the new tax reform bills proposed by President Tinubu’s government.

Addressing the governors’ concern, the FG in a statement on Thursday by the President’s Special Adviser on Information and Strategy, Bayo Onanuga stated that the proposed bills will streamline Nigeria’s tax administration processes, enhance efficiency and eliminate redundancies across the country’s tax operations.

According to Onanuga, the bills which is currently before the National Assembly for consideration emerged after extensive review of existing tax laws.

The statement reads, “While we commend the Governors and traditional rulers for supporting President Bola Tinubu over the success recorded in addressing the country’s security challenges, we consider it necessary to address the misunderstandings and misgivings around the tax reform already embarked upon by the administration.

“President Tinubu and the Federal Executive Council recently endorsed new policy initiatives aimed at streamlining Nigeria’s tax administration processes, enhancing efficiency and eliminating redundancies across the nation’s tax operations.

“These reforms emerged after an extensive review of existing tax laws. The National Assembly is considering four executive bills designed to transform and modernise Nigeria’s tax landscape.

“First is the Nigeria Tax Bill, which aims to eliminate unintended multiple taxation and make Nigeria’s economy more competitive by simplifying tax obligations for businesses and individuals nationwide.

“Second, the Nigeria Tax Administration Bill (NTAB) proposes new rules governing the administration of all taxes in the country. Its objective is to harmonise tax administrative processes across federal, state and local jurisdictions for ease of compliance for taxpayers in all parts of the country.

“Third, the Nigeria Revenue Service (Establishment) Bill seeks to rename the Federal Inland Revenue Service (FIRS) as the Nigeria Revenue Service (NRS) to better reflect the mandate of the Service as the revenue agency for the entire federation, not just the Federal Government.

“Fourth, the Joint Revenue Board Establishment Bill proposes the creation of a Joint Revenue Board to replace the Joint Tax Board, covering federal and all states’ tax authorities.

“The fourth bill also suggests establishing the Office of Tax Ombudsman under the Joint Revenue Board, which would serve as a complaint resolution body for taxpayers.

“It is instructive to note that these proposed laws will not increase the number of taxes currently in operation. Instead, they are designed to optimise and simplify existing tax frameworks.

“The tax rates or percentages will remain the same under these reforms, as they focus on ensuring a more equitable distribution of tax obligations without adding to the burden on Nigerians.

“The reforms will not lead to job losses. On the contrary, they are structured to stimulate new avenues for job creation by supporting a dynamic, growth-oriented economy.

“Importantly, these laws will not absorb or eliminate the duties of any existing department, agency, or ministry. Instead, they aim to harmonise revenue collection and administration across the federation to ensure efficiency and cooperation.

“At the moment, tax administration lacks coordination among federal, state, and local tax authorities, often resulting in overlapping responsibilities, confusion, and inefficiency. Without reform, this inefficiency will persist.

“The proposed laws aim to coordinate efforts between different tiers of government, resulting in better tax resource management and greater clarity for taxpayers.

“Under existing laws, taxes like Company Income Tax (CIT), Personal Income Tax (PIT), Capital Gains Tax (CGT), Petroleum Profits Tax (PPT), Tertiary Education Tax (TET), Value-Added Tax (VAT), and other taxing provisions in numerous laws are administered separately, with individual legislative frameworks.

“The proposed reforms seek to consolidate these multiple taxes, integrating CIT, PIT, CGT, VAT, PPT, and excise duties into a unified structure to reduce administrative fragmentation.

“On the proposed derivation-based VAT distribution model, which the Northern Governors oppose, it must be stressed that the new proposal, as enunciated in the Bill, is designed to create a fairer system.

“The current model for distributing VAT is based on where the tax is remitted rather than where goods and services are supplied or consumed. The ongoing tax reform seeks to correct the inherent inequity in the current derivation model as a basis for distributing VAT revenue.

“The new proposal before the National Assembly outlines a different form of derivation which considers the place of supply or consumption for relevant goods and services. This means that states in the Northern region that produce the food we eat should not lose out just because their products are VAT-exempt or consumed in other states.

“These reforms are critical to improving the lives of Nigerians and were not put forward by President Tinubu to undermine any part of the country. There is no better time than now for the National Assembly to give due consideration to these bills that will overhaul our tax systems and create the revenue all the tiers of government require to fund the development our country and people urgently need.”

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