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FEC Orders Probe of Past JAMB, NIMASA Chiefs

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Kemi adeosun
  • FEC Orders Probe of Past JAMB, NIMASA Chiefs

The exercise is to recover unremitted revenues, according to Minister of Finance Mrs Kemi Adeosun, who briefed State House correspondents at the end of the Federal Executive Council (FEC) meeting.

With Mrs Adeosun were Minister of Water Resources Suleiman Adamu, Minister of Budget and National Planning, Udoma Udo Udoma and Special Adviser to the President on Media and Publicity Femi Adesina.

According to her, some of the government agencies suspected to be diverting government revenues will be made to account for the past revenues.

She said the Joint Admissions and Matriculation Board (JAMB), which had been remitting N3 million annually, remitted N5 billion this year alone and disclosed that it had N3 billion more to remit to the government’s purse this year.

The minister also listed past management of the Nigerian Maritime Administration and Safety Agency (NIMASA) among the offenders.

She said: “Secondly, we spoke about revenue generation. The VAIDS Programme is ongoing and we are having quite a positive response in terms of tax compliance.

“We also reported on the progress made by a number of our agencies some of whom have reported very significant increases in the amount paid into the consolidated revenue fund.

“Council discussed JAMB, which recorded significant progress and NIMASA as well as others and gave us the charge to really go and look at these agencies, look in some cases the past management of those agencies and see where those agencies were leaking and to encourage agencies that haven’t done so to continue with efficiencies,” she said.

Asked to disclose the figures expected from the agencies, Mrs Adeosun said: “The highest amount that JAMB has ever remitted to the consolidated revenue fund before this management was N3 million. This year, so far, they have done N5 billion and the Minister of Education reported that they have additional N3 billion that they are ready to remit, which will take this year’s figure alone to N8 billion.

“Now they have not increased their charges nor their fees. So the question that Council members were asking was that where were all these monies before?

“So the directive was given that we must call those who were the heads of those agencies and similar ones to account and that is what we intend to do.”

She added: “It’s a similar story with other agencies and these are the leakages which we are now blocking. These are the monies in the consolidated fund that is now being applied in the projects that really need to get the economy moving. These are the monies that are missing that has led us to the position we are in. It is the grandest looting that this administration action has come in to address.”

The minister also disclosed that FEC approved for Nigeria to rejoin the African Trade Insurance Agency.

She said: “This is an agency that is out to provide risk guarantee for private investors coming into Nigeria as well as exporters from Nigeria.

“It will provide risk guarantees, so instead of projects asking for sovereign guarantees, we will be able to provide that risk mitigation through the African Trade Insurance Agency. Many other countries are already members, so Nigeria will also be joining.

“This agency has an A rating international and is able to guarantee long term projects. So, what we see as a result of this is that there will be increased level of investments particularly PPP where every often the investors want some guarantee from the government. Instead of the government issuing sovereign guarantee directly, this agency will step in and issue it. It is very similar to MIGA, the Multi-lateral Insurance Guarantee Agency that is owned by the IFC.”

She went on “My second activity was part of the briefing on the economy and to speak to the fiscal conditions and outlook.

“As you know, we are on the part way of resetting the economy and adjusting permanently to a sort of lower oil pricing.

“The recent announcement of the exit from recession we see as statically backed indicator that we are moving in the right direction.

“We recognised that there is a lot to be done. I briefed the council on various fiscal initiatives that we are pursuing. These include continued fiscal consolidation and cost efficiency, driving cost savings in government; there is still a great need to do so.

“I have some progress report on the work we have done with payroll where we are still seeing contraction. Every time we put agencies into our automated payroll system we see contraction and we intend to continue with that.

“So, in summary, the outlook is positive. We did some comparative analysis in June 2014 with oil price of $109, federation allocation was N844 billion and in June 2017 it was down to N318 billion, just to give you an idea of how much income the country has really lost in the last few years.

“So, we are adjusting very strongly and we believe if we continue with this trajectory not only will we stay permanently out of recession but, more importantly, we will have a positive and growing economy what works for all Nigerians which is our aim,” she said

Udoma Udo Udoma said his ministry briefed the Council on the recent 2017 Second Quarterly Report of the National Bureau of Statistics (NBS).

He said: “We were encouraged by the GDP growth rates. The report is very encouraging for the government as it shows that we are on the right direction.”

The Minister of Water Resources disclosed that he briefed FEC on floods and possible threats of flood.

He said there was no threat of flood in the country.

The Ministry has observatory units in Niamey and Lokoja, he said, adding: “If there is any indication of significant risk or threat to lives and properties, we will promptly issue warning alerts.

“For now, there is no cause for alarm. We cannot stop the flood but we can provide early warnings.”

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Finance

Stanbic IBTC Obtains Approvals, License to Establish Life Insurance Subsidiary

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stanbic IBTC Insurance

Stanbic IBTC Holdings Plc on Friday announced that it has obtained all required Regulatory Approvals and a license from the National Insurance Commission to establish a wholly-owned Life Insurance subsidiary, Stanbic IBTC Insurance Limited (SIIL).

In a statement signed by Chidi Okezi, Company Secretary, Stanbic IBTC and released on Friday, the bank said “The establishment of this new subsidiary essentially complements the bouquet of product offerings by Stanbic IBTC as it continues its goal of being the leading end-to-end financial solutions provider in Nigeria. In this regard, SIIL will aim to facilitate long term insurance for already financially included individuals and will seek to become the preferred Insurer in the Life Insurance Business.

“Stanbic IBTC Holdings PLC, a member of Standard Bank Group, is a full-service financial services group with a clear focus on three main business pillars – Corporate and Investment Banking, Personal and Business Banking and Wealth Management. The group’s largest shareholder is the Industrial and Commercial Bank of China (ICBC), the world’s largest bank, with a 20.1% shareholding. In addition, Standard Bank Group and ICBC share a strategic partnership that facilitates trade deals between Africa, China and select emerging markets. Standard Bank Group is the largest African financial institution by assets. It is rooted in Africa with strategic representation in 21 countries on the African continent.

“Standard Bank has been in operation for over 158 years and is focused on building first-class, on-the-ground financial services institutions in chosen countries in Africa; and connecting selected emerging markets to Africa by applying sector expertise, particularly in natural resources, power and infrastructure.”

 

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World Bank to Discuss New $1.5 Billion Loan Request From Nigeria

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Zainab Ahmed

The Finance Minister, Budget and National Planning, Mrs. Zainab Ahmed, on Friday said the Federal Government has met all the conditions for a fresh loan of $1.5 billion from the World Bank.

The minister disclosed this on Bloomberg TV.

She said the multilateral financial institution is in the final stage of approving the loan. The minister explained that the loan will be discussed in the bank’s next meeting and possibly be approved in the same meeting.

In June, the Senate approved the borrowing plans but the World Bank pushed back demanding Nigeria fulfill the conditions attached to the $3.4 billion loan received from the International Monetary Fund (IMF) in May.

Some of the conditions were to increase revenue generation by upping VAT, the introduction of tariff reflective electricity bill, the removal of subsidy and the unification of the nation’s foreign exchange.

Most of which the Federal Government has done despite protests from most Nigerians who called the new policies anti-people given their current situation.

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Finance

Nigeria Realises Over N400 Billion from Company Income Tax in the Third Quarter of 2020

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tax relief

The Federal Government realised N416.01 billion from Company Income Tax (CIT) in the third quarter of the year, according to the latest report from the National Bureau of Statistics (NBS).

This was 3.48 percent higher than the N402.03 billion generated in the second quarter of the year and represents a decline of 20.13 percent year-on-year from N520.89 billion realised in the third quarter of 2019.

A breakdown of the report showed the professional services sector including the telecoms generated the highest amount of CIT at N55.52 billion during the quarter, while the manufacturing sector followed with N42.03 billion.

The banking and financial institutions realised N24.05 billion while the mining generated the least and closely followed by Textile and Garment Industry and Local Government Councils with N120.93 million, N167.51 million and N321.72 million generated, respectively.

The report added that out of the total amount realised during the quarter under review, a sum of N244.70 billion was generated as CIT locally. The federal government collected N70.34 billion as foreign CIT payment and the remain N100.97 billion was received as CIT from other payments.

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