News
State Govs Oppose End to Multiple Taxes
State governments in Nigeria are averse to ending the scourge of multiple taxes which form substantial sources of their internally generated revenues (IGR) despite the damages the taxes are doing to the overall economy, Nigeria CommunicationsWeek has learnt.
Omobola Johnson, minister of Communications Technology said that state governors are reluctant to stop taxes which they see honey pot.
Johnson who was represented by John Ayodele, permanent secretary, Ministry of Communication Technology, at a one-day ‘Focused Industry Roundtable’ organised by the Universal Service Provision Fund (USPF) in Lagos said “Going by provisions of the Constitution of the Federal Republic of Nigeria, States have a right to legislate on how they generate funds. But we’re looking at what is best for the overall good of the country”.
The minister added however that the National Executive Council (NEC), which comprises the President and his entire cabinet and state governors, has set up a five-man Committee headed by Ibrahim Hassan Dankwambo, Gombe State governor to review Nigeria’s tax regime with a view to ending the multiple tax regime.
The Dankwmbo Committee was set up following an earlier report on the vexed issued submitted to NEC last April.
The Committee’s terms of reference includes seeking solutions and ways of sharing taxable funds across the three tiers of governments as an appeasement to the governors. He is expected to turn in his Committee report before December 2013.
Both local and foreign investors see multiple tax regimes as much vexing as poor power supply.
Several industry groups have previously called on the government to bring the unwholesome practice to a stop.
Jackson Iniobong, chairman of Cross River and Akwa Ibom states Manufacturers Association (MAN), said it inhibits competiveness.
Meanwhile, the USPF said it is set to build 1000 telecom base stations (BTS) and lay 3000 kilometres of fibre networks annually across the country with a view to increasing infrastructure capacity.
Maikano Abdullahi, secretary of the Fund said the project would be private sector driven and implemented with the USPF providing financial assistance to will investors.
He noted that previous efforts at increasing infrastructure capacity failed due to adoption of poor implementation strategy. “The big operators were not attracted to the scheme because it was not financially viable for them to participate. Every investor wants to put his money in a project that would give reasonable returns on investment. But what we are proposing is open to every operator and would be enticing enough for all to participate,” said Abdullahi.
The USPF project also includes funding broadband connectivity to all universities and teaching hospitals in a bid to lift their profile. “We aim to connect all federal and state universities with dedicated fibre; this also includes teaching hospitals and their medical colleges. We also believe that universities would be able to share bandwidth infrastructure. We already are in the process of connecting 17 universities. Again, the USPF does not handle projects, but we are partnering with private investors while facilitating access to funding,” said Abdullahi.
Ogba Ogbaga, an Abuja-based lawyer, has said that he has been instructed to institute legal proceedings against MTN Nigeria, Airtel Nigeria, Globacom, 9mobile and MultiChoice Nigeria, operators of DStv, over what he described as unfair consumer practices relating to expiring data bundles and television subscriptions.
In a statement posted on Facebook, Ogbaga said his law firm, GIMBG Legals, received instructions from its client, KAA, also known as KaaTruths, to challenge the companies’ subscription policies in court.
According to him, the proposed suit will question whether telecom operators and DStv’s subscription models comply with provisions of the Federal Competition and Consumer Protection Act (FCCPA) 2018 and other applicable laws.
Ogbaga alleged that telecom providers operate internet data services that are unfair to consumers, claiming subscribers sometimes do not receive the services they paid for but still lose their subscriptions once the validity period expires.
He also criticised DStv’s subscription model, arguing that consumers lose paid viewing time due to factors such as power outages, adverse weather conditions and service interruptions, while subscriptions continue to count down regardless.
“Our clients have complained that MTN data services are unduly one-sided,” Ogbaga said, adding that the legal action would also extend to other telecommunications providers and DStv.
He said the court action would seek judicial determination on whether the companies’ subscription practices comply with consumer protection laws.
The lawyer also invited interested legal practitioners to collaborate on the case, saying his firm would provide updates as the matter progresses.
In a separate Facebook post on Wednesday, Ogbaga said previous policy discussions, town hall meetings and debates at the National Assembly had failed to address the concerns raised by consumers.
He argued that telecom operators regularly carry out maintenance and network upgrades that temporarily disrupt services without extending customers’ subscription periods, while DStv subscribers also lose viewing time because of electricity outages and weather-related disruptions.
The National Insurance Commission (NAICOM) has commenced the issuance of new licence certificates to insurance companies that successfully met the industry’s new minimum capital requirements, marking the formal beginning of a new regulatory era aimed at strengthening the financial capacity, governance and global competitiveness of Nigeria’s insurance sector.
At a ceremony held at the Commission’s headquarters in Abuja, the Commissioner for Insurance, Olusegun Ayo Omosehin, presented the new licence certificates to compliant operators, describing the exercise as a major milestone in the industry’s recapitalisation programme.
According to the Commission, a total of 43 insurance companies declared compliant with the new capital requirements are expected to receive the new licence certificates in phases.
Omosehin congratulated the successful companies, saying the issuance of the new licences signals the beginning of a stronger regulatory framework anchored on improved capitalisation, sound corporate governance, innovation and sustainable growth.
He urged operators to leverage their enhanced capital base to develop innovative insurance products, improve operational efficiency and deepen insurance penetration across the country.
The Commissioner said the Commission expects the recapitalised companies to deliver stronger financial performance while maintaining high standards of professionalism and customer service.
He also announced that NAICOM’s next major regulatory initiative would be the implementation of the Risk-Based Capital (RBC) framework, under which insurers’ capital levels would be aligned with the risks inherent in their respective business portfolios.
According to him, the new framework will further strengthen the industry’s resilience by ensuring that insurers maintain capital commensurate with the risks they underwrite, thereby enhancing policyholder protection and boosting market confidence.
Omosehin reaffirmed the Commission’s commitment to removing regulatory impediments where necessary while maintaining effective oversight to safeguard policyholders and strengthen confidence in the insurance market.
The issuance of the new licence certificates marks the commencement of a phased transition to higher capital standards aimed at improving the financial capacity, solvency and claims-paying ability of insurance companies operating in Nigeria.
Management of Nigeria CommunicationsWeek Media has withdrawn its publication titled “Adefolarin Ogunsanya and the Allegations of Shareholder Interference and Self-Dealing at Pan African Towers,” which was published on its platform.
The decision to retract the story follows an editorial review to ensure that the platform maintains the highest standards of accuracy, fairness and responsible journalism in reporting matters that are the subject of ongoing judicial proceedings.
Nigeria CommunicationsWeek acknowledges that the issues raised in the publication remain before the courts and have not been finally determined.
Accordingly, the organisation has decided to remove the article from its platforms pending the conclusion of the legal processes or the availability of additional verified information.
The publication regrets any inconvenience or misunderstanding the report may have caused to readers or any individuals or organisations mentioned in the story.
Nigeria CommunicationsWeek remains committed to the principles of balanced, factual and ethical journalism and will continue to uphold professional standards in its coverage of judicial and corporate governance matters.
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