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MultiChoice Gets Breather in  FIRS ‘s N1.8 Trillion Tax Claims

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Lagos zone of the Tax Appeal Tribunal (TAT) hearing the N1.8 trillion tax dispute between the Federal Inland Revenue Service (FIRS) and MultiChoice Nigeria has announced October  20 as the date for the ruling on the matter.

MultiChoice Gets Breather in  FIRS ‘s N1.8 Trillion Tax Claims

The announcement was made by Professor AB Ahmad, the tribunal chairman, at the resumed hearing. MultiChoice described the alleged tax liability as a product of “hastiness, lack of thoroughness and presumptuousness”.

The saga which began earlier this year has taken several dramatic twists akin to MTN, communications giant, which also a couple of years back faced the censure of Nigerian authorities over disputed regulatory issues, involving the non-disclosure of subscribers.

At the hearing, counsel to the FIRS urged the tribunal to demand proof of deposit of N900billion (50 per cent of the alleged tax liability) it ordered MultiChoice to make on 24 August before the continuation of its appeal.

The FIRS argued that Paragraph 15(7) of the Fifth Schedule to the FIRS (Establishment) Act 2007 compels a taxpayer disputing its assessment to make a statutory payment of 50 per cent of the disputed sum before the tribunal could prosecute an appeal brought before it.

The agency stated that in the absence of a proof of deposit, it should discontinue hearing of the appeal and enter judgment against MultiChoice.

MultiChoice, however, stated that it has complied, as the referenced section of the FIRS Act does not compel it to pay N900billion but an amount equal to its tax in the preceding year of assessment or one half of the disputed tax assessment under appeal, whichever is the lesser amount plus 10%.

MultiChoice stated that in fulfillment of the condition and demonstration of good faith, it deposited N10billion with the FIRS pending the determination of the actual tax liability, if any. In a counter-affidavit attached to its notice of appeal, MultiChoice stated that depositions in FIRS’ affidavit are arbitrary and contrived.

It branded, as false, the FIRS’ claim that it receives third party payments as part of its revenue streams, saying it only receives payments on its products and services through third party platforms such as Interswitch and Quickteller, which are only payment channels.

It also faulted the FIRS’ inclusion of DAAR Communications and Channels Television among third parties from which it receives payments, saying the two broadcasters free-to-air offerings on its platforms.

MultiChoice similarly denied that it receives most of its revenue through online channels, stating that its dealers and agents sell decoders and dishes for cash, while it receives most of its payments in its bank accounts.

In similar vein, MultiChoice said the FIRS erred in its claim that it receives revenues from outside Nigeria, as it services are limited to country.

It noted that what the FIRS interpreted as remittances from outside Nigeria was a summary of the 2019 and 2020 financial performance of MultiChoice Group (MCG).

It branded as misleading FIRS’ assumption that Nigeria accounts for 34 per cent of MCG’s subscription revenue, saying the figure refers to 34 per cent of the revenue from the rest of Africa except South Africa.

“Of the 7.7million active subscribers that MCG had in the rest of Africa in 2019, Nigeria accounted for 34 per cent of them. That is about 2.6million thereof. It is important to re-stress that the 34 per cent of active subscribers in 2019 is 34 per cent of the active subscribers in the rest of Africa and not 34 per cent of MCG’s revenue as erroneously claimed by the Applicant,” MultiChoice said.

On the allegation that it has refused to cooperate with the FIRS over forensic systems audit, MultiChoice said aside from being compliant in its tax obligations, it is the FIRS that has frustrated the audit by demanding a payment of any of 10%, 25%, 50% or 100% of the disputed tax sum as a condition.

 

 

 


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NELFUND Investigates 34 Universities Over Students’ Missing Tuition Refunds

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Nigerian Education Loan Fund (NELFUND) says it is investigating about 34 tertiary institutions over allegations that they failed to refund students whose tuition fees were paid twice under the Federal Government’s student loan scheme.

The Managing Director of NELFUND, Mr Akintunde Sawyerr, disclosed this during an interview on Arise Television.

Sawyerr said the agency had deployed a five-member investigative team, including operatives of the Economic and Financial Crimes Commission (EFCC) and internal auditors, to examine the allegations.

According to him, the investigation was prompted by numerous complaints received from affected students.

“As of right now, there are 34 institutions that we are looking at closely with respect to this issue,” he said.

Sawyerr explained that the double payment issue arose because President Bola Tinubu directed that the student loan scheme commence in the middle of an academic session instead of at the beginning.

He said the decision compelled many students to pay their tuition fees to meet registration deadlines while awaiting approval of their loan applications.

“What happened is that a lot of schools got double payment; some from the students and some from us,” he said.

“The refund process is entirely out of our hands. It is the recipient of the double payments that is obliged to make refunds to the students.”

The NELFUND boss noted that many students had borrowed money from family members, friends and other sources to pay their tuition with the expectation of receiving refunds once the loans were disbursed.

He said while some institutions had promptly refunded affected students, others had failed to do so.

“Some have been very good at this. Others haven’t been so good at it,” Sawyerr said.

“I reserve judgement on the intentionality around it because, for some of them, they just didn’t have the process to make refunds.”

Sawyerr disclosed that NELFUND was exploring a tokenised payment system that would enable students to authorise tuition payments directly to their institutions, thereby reducing the likelihood of duplicate payments.

He said the agency deliberately chose not to disburse tuition loans directly to students to minimise the risk of fund diversion.

“Paying the funds to the students could really lead to the temptation for them to divert and do other things,” he said.

The managing director, however, acknowledged that NELFUND lacked the statutory powers to compel institutions to refund students or prosecute officials found culpable.

He added that many frustrated students had submitted complaints not only to NELFUND but also to anti-corruption agencies, including the EFCC and the Independent Corrupt Practices and Other Related Offences Commission (ICPC).

Sawyerr also expressed concern over increases in tuition fees by some institutions following the introduction of the student loan scheme.

He said NELFUND had declined to pay institutions that increased their tuition fees beyond acceptable levels.

“Some schools, because they get paid easily, started to put up their fees. We refused, point blank, to pay institutions who had hiked their fees beyond a certain level,” he said.

He reaffirmed the agency’s commitment to investigating every reported irregularity and strengthening the implementation of the student loan programme through continuous monitoring and internal reviews.


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Obi, NDC Presidential Candidate Faces N50Bn Defamation Claim over Alleged Podcast Remark

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Abayomi Arabambi, national vice chairman (South-West) of the Labour Party, has demanded a public apology, a retraction, and N50 billion in damages from Peter Obi, presidential candidate of the Nigeria Democratic Congress (NDC), over an alleged defamatory statement made during a podcast interview.

Obi, NDC Presidential Candidate Faces N50Bn Defamation Claim over Alleged Podcast Remark

The demand was contained in a letter issued by the law firm Neplus Ultra Attorneys and signed by Anderson U. Asemota, Peter O. Asimegbe, and Stanley C. Eziefulle on behalf of Arabambi.

According to the letter, the legal dispute arose from comments allegedly made by Obi during the interview, where he reportedly stated that Arabambi “does not have an address.”

Arabambi’s legal team described the statement as false, malicious, and defamatory, arguing that it portrayed their client as a faceless individual without legitimacy, credibility, or standing in public life.

The lawyers further claimed that the interview was widely circulated on television stations and digital platforms, exposing Arabambi to public ridicule and damaging his reputation.

“Our client has had a known residential and business address, maintains professional and political affiliations within Nigeria, and has never been a person whose whereabouts or identity were unknown,” the letter stated.

The legal team maintained that the alleged publication caused embarrassment and harmed Arabambi’s public image and political standing.

As part of their demands, the lawyers called for an unreserved public apology to be aired on national television, published on Obi’s verified social media platforms, and carried as full-page apologies in national newspapers.

They also demanded the payment of N50 billion as compensation for the alleged injury to Arabambi’s reputation, dignity, political standing, and public image.

 


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Why We’re Partnering With NIHOTOUR To Bring Nigerians In South Africa Home – Steve Babaeko

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When Nigerians began arriving back home on emergency flights following an ultimatum from anti-migrant groups in South Africa, Steve Babaeko, alongside The Nigerian Institute of Hospitality and Tourism (NIHOTOUR), saw an opportunity to step up for his fellow citizens.

Why We’re Partnering With NIHOTOUR To Bring Nigerians In South Africa Home - Steve Babaeko

Steve Babaeko

The CEO of X3M Ideas explains that he saw a deep obligation, one that had nothing to do with advertising and everything to do with hospitality. For Babaeko, it was a reminder that an agency owes a duty of care to the community it exists within.

That conviction shaped the creative agency’s partnership with the Nigerian Institute of Hospitality and Tourism (NIHOTOUR) for the newly launched ‘Welcome Home’ pilot programme at Murtala Muhammed International Airport (MMIA) in Lagos. Rather than simply crafting a messaging campaign around the crisis, X3M Ideas helped design a tangible, physical system.

“This wasn’t built as a campaign about a crisis,” Babaeko said. “It was a hospitality agency deciding what it owes its own citizens the moment they land.”

For Babaeko, what X3M has built is infrastructure, something returnees can physically walk through, use, and benefit from the instant they clear the arrival gate.

With the MMIA pilot now officially running, NIHOTOUR directs returnees to immediate support services and issues them a Returnee Card. This card grants individuals a free first night at partner hotels, immediate transport assistance from the airport, and fast-tracked business registration support.

Furthermore, the initiative features a dedicated Restart Desk to assist returnee entrepreneurs and tradespeople with job placement referrals and business registration. This operates alongside a public Homecoming counter that tracks the cumulative number of returnees welcomed, businesses restarted, and jobs facilitated.


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