HOW FG WILL TAX PROFITS MADE BY GLOBAL TECH, DIGITAL GIANTS IN NIGERIA - OSINBAJO

STATE HOUSE PRESS RELEASE *VP explains enabling provisions in Finance Act *Interacting with Chartered Institute of Taxation members, Osinbajo says no tax increases contemplated for now *CITN to VP: We acknowledge your great zeal Nigeria is set to utilize its legal provisions that empower the Federal Government to collect taxes on profits made in the country by global technology and digital firms not based in the country, but with significant economic presence here. While the Federal Government will not be raising tax rates at this time, based on the Finance Act 2019, it is already empowered to widen the tax net, including by collecting taxes on the Nigerian income of global tech giants with significant economic presence here, even if they have not established an office or permanent establishment and are currently not paying taxes in Nigeria. In this regard, Section 4 of the Finance Act 2019, provides that “the Minister (Finance) may by order (of the President) determine what constitutes the significant economic presence of a company other than a Nigerian company.” Vice President Yemi Osinbajo, SAN, hinted at these issues and others while interacting with a delegation of the Chartered Institute of Taxation of Nigeria, CITN, led by its President, Mr Adesina Adedayo who visited him at the Presidential Villa on Friday. According to Prof. Osinbajo, “we have had severe economic downturns which of course implies that we may not be able to collect taxes with the aggressiveness that would ordinarily be expected. “I think the most important thing is that we must widen our tax net so that more people who are eligible to pay tax are paying. Several efforts have been made, and I am sure you are aware of the initiatives including the Voluntary Assets and Income Declaration Scheme (VAIDS) which was also an attempt to bring more people into the tax net, including those who have foreign assets.” Continuing, the VP said “we have also recently taken a step with respect to a lot of the technology companies that are not represented here but who do huge volumes of business here. “The Finance Act has shown that we are very prepared to ensure that these big technology companies do not escape without paying their fair share of taxation in Nigeria. Many of them do incredible volumes here in Nigeria and in several other parts of the region. “We have drawn up the regulations and we are prepared to go, and I think that we are at least in a good place to tap into some of the tax resources we can get from some of these companies.” Indeed, besides the FG, a recent Bloomberg news article reported that “Governments around the world are grappling with how to modernize their legal frameworks to account for the global reach of the digital economy, reshaping how policymakers think about issues as varied as monopoly power, taxation and workers’ rights.” Also, international talks are currently ongoing in Paris on global standard rules for governments to receive taxes from such digital and technology firms with significant economic presence in foreign countries. In Nigeria, according to the Finance Act 2019, a company will pay taxes if it “transmits, emits or receives signals, sounds, messages, images or data of any kind by cable, radio, electromagnetic systems, or any other electronic or wireless apparatus to Nigeria in respect of any activity, including electronic commerce, application store, high-frequency trading, electronic data storage, online adverts, participative network platform, online payments and so on, to the extent that the company has significant economic presence in Nigeria and profit can be attributable to such activity. “If the trade or business comprises the furnishing of technical, management, consultancy or professional services outside of Nigeria to a person resident in Nigeria to the extent that the company has significant economic presence in Nigeria” Speaking further, Prof. Osinbajo noted that while the Federal Government has no plans to raise taxes now, there are those who argue that “our tax rates are too low, comparing us to other places in the region where the rates are much higher.” “So we have had to balance all of these issues because clearly, higher tax rates can be a disincentive to businesses and investments. In terms of domestic resource mobilization, we are trying to do the best we can given the present circumstances and I believe that there is room for improvement.” Actually, under the Finance Act 2019, the Buhari administration has reduced taxes for small companies – companies with less than N25 million in annual turnover are charged Zero Company Income Tax, CIT. Also CIT for Companies with revenues between N25 and N100m (described in the Act as “medium-sized” companies) has been reduced from 30% to 20%. Besides, Nigerians making minimum wage income are not to pay tax at all. Under the 2020 Finance Act there is also an exemption of small companies from payment of education tax under the Tertiary Education Trust fund (TETFUND)-meaning companies with less than N25m turnover are eligible Similarly, there is a 50% per cent reduction in minimum tax; from 0.5 per cent to 0.25 per cent for gross turnover for financial years ending between January 1st, 2020 and December 31st, 2021 INTERACTION ON OTHER ISSUES Welcoming the delegation, the Vice President emphasized the need for regular interaction between the council and government to address issues bothering on tax legislation, noting that “there is need for continuous engagement with the National Assembly because engagement with government cannot be a one-off thing.” Prof. Osinbajo added that the Federal Government has over the past few years, initiated programmes aimed at improving the growth of small businesses including the formalization of many of them. Under the Economic Sustainability Plan (ESP), there is a formalization of 250,000 businesses. He said the ongoing MSME Week has encouraged many businesses to register with regulatory authorities in order for them to benefit from the numerous programmes earmarked by the government for their growth. Earlier in his remarks, the President of CITN, Mr Adesina Adedayo, commended the leadership of the Vice President in the implementation of key government interventions in the economy, stating that “we acknowledge your great zeal and commitment to Nigeria project.” He said the visit became necessary given the enormous work the Buhari administration has done towards addressing the huge fiscal challenges in the polity, public financing reforms, and sustained efforts towards addressing infrastructural deficit across the country. His words: “the Nigerian Economic Sustainability Plan (NESP) and other measures implemented was a right response to the challenges posed by COVID-19 pandemic and were largely instrumental to creating buffers for the government at all levels in withstanding the pressures and waves created during the peak period and the aftermath of COVID-19. “It is important that we sustain measures already being implemented to improve tax collection at all levels.” Other members of the delegation included the Vice President of the Institute, Barrister Samuel Olushola Agbeluyi, past Presidents of the institute, Dame Gladys Simplice, and Dr. James Naiyeju, and Council members Prof. Muhammad Mainoma and Hon. Babangida Ibrahim. Mr. Adefisayo Awogbade, CITN Registrar/Chief Executive was also in attendance. Laolu Akande, Senior Special Assistant to the President on Media & Publicity Office of the Vice President 27th June 2021

Buhari Stuns Opposition, Releases Massive Completed, Ongoing Projects Across All Geopolitical Zones in Nigeria.

There is new and resurgent president in Nigeria, it may seem as Mohammadu Buhari and his men have suddenly woken up to their responsibility of not just developing Nigeria, but communicating the good works they’re doing. Here is a compilation of some of those developmental projects across regions. SOUTH EAST: 1. Rehabilitation of Sections 1 to 4 of the Enugu–Port Harcourt Expressway (Sukuk Bond) (ongoing) 2. Rehabilitation of Amansea–Enugu Border section of Onitsha-Enugu Expressway (Sukuk Bond) (ongoing) 3. Rehabilitation of 18km critical stretch of Onitsha–Awka Road (ongoing) 4. Construction of Second Niger Bridge: Completed design of the Approach Roads from Onitsha and Asaba; Award of Main Construction Contract to Julius Berger; and funding of the project by the Presidential Infrastructure Development Fund, PIDF. In August 2018 PIDF paid 33 billion Naira (US$90 million) to Julius Berger for the Second Niger Bridge project. (ongoing) 5. Rehabilitation of Arochukwu–Ohafia–Bende Road (ongoing) 6. Ariaria Market Electrification Project (The Federal Government is implementing its Energizing Economies Programme, which will bring stable and reliable electricity to all the 37,000 shops in Ariaria Market, by providing the Market with a gas-powered IPP) (ongoing) 7. Federal Government’s Energizing Education Programme is being implemented in Federal University Ndufu-Alike Ikwo, Ebonyi; and Nnamdi Azikwe University – Awka Campus, Anambra. The Programme will provide these Universities with an Independent Power Plant, as well as upgrade existing distribution infrastructure, and also provide street-lighting. 8. Completed Ikot Ekpene – Alaoji – Ugwuaji Switching Station and TransmissionLine 9. Construction of Modern Medical Diagnostic Centre at the Federal Medical Centre, Umuahia (FMCU) (ongoing) 10. Completed Nnamdi Azikiwe Mausoleum (contract originally awarded in 1996, abandoned at various times, Buhari Administration revived the project in 2016, and completed it in 2018). 11. Enyimba City Special Economic Zone: Definitive Agreements signed between Federal Government, Abia State Government and Enyimba City Development Company Limited on December 7, 2018 (ongoing) 12. Presidential Fertilizer Initiative – has led to the revival of the Ebonyi State Fertiliser and Chemical Company Limited (EFCCL), creating jobs and boosting the supply of fertilizer in the Southeast. 13. Social Investment Programme: 68,000 N-Power Beneficiaries across the 5 States of the South East; the School Feeding Programme has kicked off in all 5 States of the Southeast. 14. Pensions paid to Retired War-Affected (Ex-Biafran) Police: In 2017, the Buhari Administration paid 500 million Naira to clear pensions arrears that had not been paid since their presidential pardon in 2000 SOUTH WEST: 1. Rehabilitation and Expansion of Lagos-Ibadan Expressway: The project is now being funded by the Presidential Infrastructure Development Fund (PIDF) established by President Buhari in 2018 to fund critical infrastructure projects. (ongoing) 2. Rehabilitation of outstanding sections of Sagamu-Ore Expressway (ongoing) 3. Construction of 158km Lagos-Ibadan Standard Gauge Rail, with 10 Stations: Apapa, Ebute Metta, Agege, Agbado, Kajola, Papalanto, Abeokuta, Olodo, Omi-Adio and Ibadan. (ongoing) 4. Reconstruction of Apapa – TinCan – Mile 2 – Oshodi- Oworonshoki Expressway (commenced November 2018): This is the first full reconstruction of the Road since it was first constructed in the 1970s. 5. Dualisation of Oyo-Ogbomosho road (funded by the N100 billion Sukuk Bond issued by the Federal Government in 2017) (ongoing) 6. Rehabilitation of Lagos-Otta-Abeokuta Road (ongoing) 7. Rehabilitation of Ikorodu-Sagamu Road (ongoing) 8. Construction of US$10 million Cancer Treatment Center at the Lagos University Teaching Hospital (LUTH) (ongoing) 9. A $21 million project funded by the Japan International Cooperation Agency (JICA) — will stabilize power supply to more than 200,000 people in and around Apapa in Lagos State. The contract was signed between the Japanese and Nigerian Governments in November 2018. 10. Energizing Economies Programme – ongoing Electrification of Sura Shopping Complex (1,000 shops), Shomolu Printing Community (4,000 shops), Gbagi Market, Oyo (7,872 shops), Ita-Osun Market, Ogun (2,814 shops), Nnamdi Azikiwe Market, Lagos (3,091 shops), Balogun Market, Lagos (1,662 shops), Iponri Market, Lagos (1,305 shops), UMBC, Oyo (700 shops), Isikan Market, Ondo (277 shops), Bariga Market, Lagos (390 shops), Erinwe, Ogun (1,280 fish ponds) 11. Social Investment Programme: 96,000 N-Power Beneficiaries across the six States of the Southwest. School Feeding currently ongoing in 4 States of the Southwest: Oyo, Ogun, Ondo and Osun. SOUTH SOUTH: 1. Afam Fast Power Project: Construction of US$186 million, 240MW expansion for the existing Afam Power Plant (commenced in 2016, almost completed) 2. Dualisation of Yenegwe Road Junction-Kolo-Otuoke-Bayelsa Palm (Sukuk Bond) (ongoing) 3. Rehabilitation of Sections 1 to 4 of the Enugu – Port Harcourt Expressway (ongoing) 4. Construction of 120 billion Naira Bonny-Bodo Road in Rivers State, jointly funded by the Federal Government and the Nigeria Liquified Natural Gas Company Limited (NLNG) (ongoing) 5. Completed new Port Harcourt International Airport Terminal 6. Construction of East-West Road (ongoing) 7. Completed the 60km Alesi–Ugep Road in Cross River State; contract awarded for 72km section from Odukpani Junction to Ugep. 8. Rehabilitation of Calabar–Itu–Odukpani Road that links Akwa-Ibom to Cross River (ongoing) 9. Niger Delta New Vision (Federal Maritime University in Delta State licensed by NUC and commenced academic activities in 2018; Modular Refineries in Delta, Rivers and Akwa Ibom States; Ogoni Clean Up in Rivers – ongoing) 10. Financial Close for Azura Power Plant in Edo State: The necessary Federal Government approvals for this US$900 million private sector investment were given by President Buhari, paving the way for financial close in December 2015, and the commencement of construction in January 2016. The 459MW project was completed in May 2018, seven months ahead of schedule. 11. Water Projects: a. Completed Ogwashi-Uku Dam, Delta State; b. Completed Ekeremor Water Supply Project, Edo State; c. Completed Northern Ishan Regional Water Supply Project, serving Ugboha and Uromi communities of Edo State; d. Completed Rehabilitation of Ojirami Dam Water Supply Project, Edo State; e. Completed Central Ogbia Regional Water Project in Bayelsa State. 12. Social Investment Programme: 85,000 N-Power Beneficiaries in the South South; School Feeding has kicked off in 3 of the six States: Akwa Ibom, Cross River and Delta. NORTH CENTRAL: 1. Construction of Oju/Loko–Oweto bridge over River Benue to link Loko (Nasarawa state) and Oweto (Benue state) along route F2384 (almost completed) 2. Dualisation of Abuja–Abaji–Lokoja Road section I (International Airport link road junction–Sheda Village) (ongoing) 3. Dualisation of Suleja–Minna Road in Niger State Phase II (ongoing) 4. Dualisation of Abuja–Abaji–Lokoja Road: Section IV Koton Karfe–Lokoja in Kogi State (ongoing) 5. Dualisation of Lokoja-Benin Road: Obajana–Okene in Kogi State (ongoing) 6. Rehabilitation of Enugu–Makurdi Road: Otukpa-Otukpo Section completed, work ongoing on Otukpa-Enugu/Benue Border, and on Otukpo-Aliade section. 7. Construction of Otukpo-Oweto Road (almost completed) 8. Completed construction of 93km Ilorin-Jebba Road, (completed in 2018) 9. Dualisation of Abuja–Keffi–Lafia–Makurdi Road (ongoing) 10. Rehabilitation of Suleja-Minna Road (ongoing) 11. Construction of Nigeria’s Central Rail Line (Itakpe-Ajaokuta-Warri Standard Gauge Line), spanning Kogi, Edo and Delta States. Tracks and Communications systems completed, Station Construction ongoing. 12. Completed rehabilitation of the Abuja International Airport Runway, and construction of new Abuja International Airport Terminal. 13. Completed the abandoned Bill Clinton Drive Interchange Bridge along the Umaru Musa Yar’Adua Road (Airport Road), in the 14. Construction of Apo–Wasa–Karshi Dual Carriageway, part of the Outer Southern Expressway (OSEX) in the FCT (ongoing) 15. Construction of the Inner Southern Expressway (Goodluck Jonathan Way) in the FCT (ongoing – some sections have been completed and opened in the last three years). 16. Completed Mangu Regional Water Supply Scheme, in Plateau State 17. Completed Federal University of Agriculture, Makurdi Water Supply Project, Benue State 18. Construction of 30MW Gurara Power Plant, Niger State (ongoing) 19. Construction of 700MW Zungeru Hydro Power Plant, Niger State (ongoing; completion target of 2020) 20. Transmission Grid (ongoing): a. A $12.4 million project funded by the Japanese Government for the upgrading (installation of power capacitor banks) of two Transmission Sub-Stations, in Apo, FCT and Keffi, Nasarawa, respectively, to stabilize power supply to 7,000 households. The project commenced in 2016 and was completed in 2018. b. 150MVA 330/132//33KV Power Transformers at Kanji (Fakun), Niger State, added capacity 120MW (2016) c. 2x60MVA 132/33KV Power Transformer at Lokoja, Kogi State, added capacity 96MW (2016) d. 1460MVA 132/33KV Power Transformers at Kontagora, Niger State, added capacity 48MW 92016) e. 60MVA 132/33KV Power Transformers at Okene, Kogi State, added capacity 48MW (2016) f. 2x40MVA 132/33KV Power Transformer at Kainji (Dogon Gari), Niger State, added capacity 64MW (2016) g. 2x60MVA 132/33KV Power Transformer at Kukuaba, FCT Abuja, added capacity 96MW (2017) h. 60MVA Transformer in Karu Substation, FCT 21. Energizing Education Programme, an initiative of the FGN to provide sustainable and clean power supply to Federal Universities and University Teaching Hospitals across Nigeria, is being implemented in the Federal University of Agriculture Makurdi, Benue 22. Social Investment Programme: a. 98,700 N-Power Beneficiaries across the seven States of the North Central. b. School Feeding currently ongoing in 3 States of the North Central: Benue, Niger and Plateau NORTH EAST: 1. Dualisation of Shuarin-Azare section of Kano–Maiduguri Road linking Kano–Jigawa–Bauchi–Yobe (Section II) (ongoing) 2. Dualisation of Azare–Potiskum section of Kano–Maiduguri Road linking Kano–Jigawa–Bauchi–Yobe–Borno States. (Section III) (ongoing) 3. Dualisation of Potiskum–Damaturu section of Kano–Maiduguri Road linking Kano–Jigawa–Bauchi–Yobe–Borno States. (Section IV) (ongoing) 4. Dualisation of Damaturu–Maiduguri section of Kano–Maiduguri Road linking Kano–Jigawa–Bauchi–Yobe–Borno States. (Section V) (ongoing) 5. Reconstruction of Gombe-Numan-Yola Road, ongoing (Gombe-Kaltungo section completed) 6. Reconstruction of 122km Mayo Belwa-Jada-Ganye-Toungo Road, commenced in 2018 7. Construction of 40MW Kashimbila Dam & Hydro Power Plant, Taraba State (Dam and Power Plant completed; construction of transmission infrastructure to connect the plant to the national grid ongoing) 8. Construction of 29MW Dadin Kowa Hydro Power Plant, Gombe State (ongoing) 9. Completed Takum Water Supply Project, Taraba State 10. Construction of 3,050MW Mambilla Power Plant, Taraba State ($5.8 billion EPC contract awarded and signed in 2017; negotiations for the financing by the China Exim Bank ongoing) 11. Energizing Education Programme, an initiative of the FGN to provide sustainable and clean power supply to Federal Universities and University Teaching Hospitals across Nigeria, is being implemented in the Abubakar Tafawa Balewa University – Gubi Campus, Bauchi 12. Transmission Infrastructure (ongoing): a. 330/132KV Molai Transmission Substation in Maiduguri completed and energized in 2018 b. 330/132KV Damaturu Transmission Substation in Yobe State completed and energized in 2018 c. 60MVA 132/33KV Power Transformers at Bauchi, Bauchi State, added capacity 48MW (2017) d. 40MVA Mobile Substation at Damboa, Borno State, added capacity 32MW (2017) e. 28/40MVA Mobile Substation at Mayo Belwa, Adamawa State, added capacity 22.4/32MW (2017) f. 30/40MVA Mobile Substation at Gombe, Gombe State, added capacity 24MW (2017) 13. Social Investment Programme: a. 74,000 N-Power Beneficiaries across the six States of the North East. b. School Feeding currently ongoing in all 6 States of the North East: Bauchi, Taraba, Borno, Gombe, Yobe and Adamawa *NORTH WEST:* 1. Construction of Abuja-Kaduna-Zaria-Kano Highway. The project is being funded by the Presidential Infrastructure Development Fund (PIDF), established by President Buhari in 2018 to fund critical infrastructure projects. (ongoing) 2. Dualisation of Kano-Wudil-Shuari section of Kano–Maiduguri Road linking Kano-Jigawa-Bauchi-Yobe–Borno States. (Section I) (ongoing) 3. Dualisation of Kano–Katsina Road Phase I, Kano Town (Dawanau roundabout to Katsina border in Kano) (ongoing) 4. Completed 135km Sokoto–Tambuwal–Jega Road. 5. Construction of Kano Western Bypass, as an extension of dualisation of Kano–Maiduguri Road Section I (ongoing) 6. Construction of Kaduna Eastern Bypass, Kaduna (ongoing) 7. Construction of Modern Medical Diagnostic Centre at the Ahmadu Bello University Teaching Hospital (ABUTH), Kano (ongoing) 8. Completed Sabke Water Supply Project, Katsina State 9. Completed Shagari Irrigation Project, Sokoto State *10. Completed Galma Dam, Kaduna State.* 11. Energizing Education Programme, an initiative of the FGN to provide sustainable and clean power supply to Federal Universities and University Teaching Hospitals across Nigeria, is being implemented in the Bayero University–New Campus, Kano; and the Usmanu Danfodiyo University–Main Campus, Sokoto *12. Transmission Infrastructure (completed):* a. 60MVA Transformer in Dan Agundi Substation, Kano b. 2X60MVA Transformer in Kakuri Substation, Kaduna c. 60MVA Transformer in Katsina Substation d. 40MVA Mobile Substation at Zaria, Kaduna State, added capacity 32MW (2017) e. 2x40MVA 132/33KV Power Transformer at Daura, Katsina State, added capacity 64MW (2017) f. 60MVA 132/33KV Power Transformers at Hadejia, Jigawa State, added capacity 48MW (2017) g. 60MVA 132/33KV Power Transformers at Funtua, Katsina State, added capacity 48MW (2017) h. 60MVA 132/33KV Power Transformers at Sokoto, Sokoto State, added capacity 48MW (2016) *13. Social Investment Programme*: c. 95,900 N-Power Beneficiaries across the seven States of the North West. d. School Feeding currently ongoing in 5 States of the North West: Kaduna, Katsina, Kano, Zamfara and Sokoto 14. Sabon Gari and Kantin Kwari Market Electrification Projects: The Federal Government is implementing its Energizing Economies Programme, which will bring stable and reliable electricity to the 13,000 shops in Sabon Gari Market, and 7,700 shops in Kantin Kwari Market, both in Kano. 15. Construction of 215MW Kaduna Power Plant, Kaduna (ongoing) 16. Construction of 10MW Katsina Wind Power Plant, Katsina: (As of Q1 2018, 15 of the 37 turbines had been installed and put to use, producing about 4MW)

N900m Fraud: Court Rejects Ojerinde’s Plea Bargain

The Federal High Court, Abuja has rejected the plea bargain application by the former Registrar of the Joint Admissions and Matriculation (JAMB), Dibu Ojerinde in the N900 million fraud allegation leveled against him. The operatives of the Independent Corrupt Practices and Other Related Offences Commission (ICPC) had, on March 15, arrested Ojerinde, in Abuja, over allegations bordering on misappropriation of funds. The commission said that the former chief executive officer allegedly committed multiple frauds while heading JAMB and the National Examination Council (NECO). See also Ex-Governor Yari govt under probe for N200b ‘fraud’ When the matter was called for arraignment, the defendant counsel, Olorunnisola, told the court that arrangements were being made for a plea bargain. A plea bargain is an arrangement between prosecutor and defendant whereby the defendant pleads guilty to a lesser charge in exchange for a more lenient sentence or an agreement to drop other charges. However, Shogunle, who had already been served with a copy of the process, disagreed with Olorunnisola’s submission, saying the commission was not in agreement with the terms in the application. See also Nigeria privatizes Bank of Agriculture Citing an authority to back his submission, the senior lawyer argued that the application for a plea bargain before arraignment was in conformity with the provisions of the law. Justice Obiora Egwuatu held that since the since the prosecution was not in agreement with the terms put forward by the defence, a written correspondence should be filed to the effect. The judge then adjourned the matter until July 6 for arraignment.

HEARING ON FORFEITURE OF PATIENCE JONATHAN’S $5.78M, N2.4BN FIXED FOR OCTOBER 7

A Federal High Court in Lagos on Monday adjourned till October 7, to hear a motion seeking the final forfeiture of the $5.78million and N2.4billion, linked to a former First Lady, Dame Patience Jonathan. Justice T.G Ringim fixed the date after taking arguments from counsel to the parties in the matter. The Economic and Financial Crimes Commission (EFCC) filed the application for forfeiture in 2017 before Justice Mojisola Olatoregun. The defendants in the suit were Mrs Jonathan alongside LA Wari Furniture and Bathes. According to the EFCC, the funds belonged to the ex-First Lady. The monies were said to be warehoused by Skye Bank Plc and Ecobank Plc respectively. Justice Olatoregun on April 26, 2017, ordered the temporary forfeiture of the monies, sequel to an ex-parte application by the EFCC. The judge’s order was affirmed by both the Court of Appeal and Supreme Court. However, midway to the conclusion of hearing on the final forfeiture on the said sums, Justice Olatoregun retired from the Bench in 2019. The development compelled the Chief Judge of the court to re-assign the matter to Justice Chuka Obiozor for hearing. But Justice Obiozor could not hear the case before his transfer to the court’s Benin division. At the resumed hearing of the matter on Monday, EFCC counsel, Mr Rotimi Oyedepo, narrated to Justice Ringim how far the matter had gone. Oyedepo said: “This matter is a suit instituted before your learned brother, Justice Olatoregun now retired, where we prayed for the final forfeiture of the sum of $5,781,173.55, warehoused in Skye Bank Plc and N2,421,953,502.78, property of LA Wari Furniture and Bathes in Ecobank Plc. “It was instituted and an interim order was granted on April 24, 2017, upon which it went up to Supreme Court and an application for its final forfeiture was moved but the trial judge didn’t deliver judgment before retiring. “It was upon that fact that the file was transferred to the registry where it was reassigned to the former judge and subsequently your Lordship.” Counsel to Mrs Jonathan, Mr Ifedayo Adedipe SAN and Gboyega Oyewole SAN, also informed the judge that the case was adjourned for mention because it was coming up for the first time before him But counsel to the companies, Chief Mike Ozekhome SAN, argued otherwise by urging the court to adjourn the case on the premise that it was starting afresh and that he intended to file an application challenging the constitutionality of the entire proceedings. Ozekhome prayed the court to grant a long adjournment to enable him file the application that the case is supposed to start afresh. But Oyedepo opposed the application, praying the court not to grant it, because, according to him, there a procedure enshrined in section 17 of the Advanced Fee Fraud and other related offences Act, which the EFCC had compiled with except the last step which is a motion for final forfeiture. He invited the judge to look at the proceedings of February 17, 2021 where the former judge adjourned hearing of the motion for final forfeiture till April 13, which could not hold because of the Judiciary Staff Union of Nigeria (JUSUN) strike. He prayed further that should the court be inclined to grant an adjournment, it should be for the motion of final forfeiture. In a bench ruling, Justice Ringim held that a proceeding of this nature is a special one and cannot be truncated by any application. He said: “I say in my humble opinion that there is a procedure to follow in this type of application which cannot truncated. “The court cannot adjourn the matter because of an application which is yet to be filed. However, due to the nature of the application as hinted by the second respondent, the court will not shut the application out. “This court will adjourn for the hearing of the motion for final forfeiture that is pending. “Consequently, the second respondent is hereby ordered to file the application if any within 14 days from today and the plaintiff will have one week to respond. It will be heard alongside the motion for final forfeiture.” He adjourned further proceedings till October 7.

Prof Dibu Ojerinde Ex-jamb Registrar Gets Trial Date

Prof. Dibu Ojerinde, former Registrar, Joint Admissions and Matriculation Board (JAMB) will be arraigned at the Federal High Court, Abuja, for alleged N900 million fraud on 6 July. Ojerinde is being prosecuted by the The Independent Corrupt Practices and Other Related Offences Commission (ICPC). Justice Obiora Egwuatu fixed the date on Monday, after counsel to the ICPC, Ebenezer Shogunle, disagreed with the terms of the plea bargain application the defence counsel, P.A.O. Olorunnisola, SAN, had planned to file before the court. Operatives of the anti-corruption commission had, on March 15, arrested Ojerinde, in Abuja, on allegations bordering on misappropriation of funds. The commission said that the former chief executive officer allegedly committed multiple frauds, while heading JAMB and the National Examination Council (NECO).

FG to tax global tech companies operating in Nigeria by Stephen Angbulu

Vice President Yemi Osinbajo has revealed that Nigeria is set to utilise the country’s legal provisions that empower the Federal Government to collect taxes on profits made in the country by global technology and digital firms not based in the country, but with a significant economic presence here. Osinbajo said this while interacting with a delegation of the Chartered Institute of Taxation of Nigeria led by its President, Adesina Adedayo, who visited him at the Presidential Villa on Friday. He also disclosed that, while the Federal Government will not be raising tax rates at this time, based on the Finance Act 2019, it is already empowered to widen its tax net. That includes imposing taxes on the Nigerian income of global tech giants with significant economic presence in the country, even if they have not established a physical office or permanent establishment and are currently not paying taxes in Nigeria. Senior Special Assistant to the Vice President on Media and Publicity, Laolu Akande, disclosed this on Sunday in a statement titled ‘How FG will tax profits made by global tech, digital giants in Nigeria, by Osinbajo.’ Osinbajo said, “We have had severe economic downturns which of course implies that we may not be able to collect taxes with the aggressiveness that would ordinarily be expected. “I think the most important thing is that we must widen our tax net so that more people who are eligible to pay tax are paying. “Several efforts have been made, and I am sure you are aware of the initiatives including the Voluntary Assets and Income Declaration Scheme which was also an attempt to bring more people into the tax net, including those who have foreign assets. “We have also recently taken a step with respect to a lot of the technology companies that are not represented here but who do huge volumes of business here. “The Finance Act has shown that we are very prepared to ensure that these big technology companies do not escape without paying their fair share of taxation in Nigeria. “Many of them do incredible volumes here in Nigeria and in several other parts of the region. “We have drawn up the regulations and we are prepared to go, and I think that we are at least in a good place to tap into some of the tax resources we can get from some of these companies.” The Vice President based his assertion on the Finance Act 2019 which says a company will pay taxes if it “transmits, emits or receives signals, sounds, messages, images or data of any kind by cable, radio, electromagnetic systems, or any other electronic or wireless apparatus to Nigeria in respect of any activity, including electronic commerce, application store, high-frequency trading, electronic data storage, online adverts, participative network platform, online payments and so on, to the extent that the company has a significant economic presence in Nigeria and profit can be attributable to such activity. “If the trade or business comprises the furnishing of technical, management, consultancy or professional services outside of Nigeria to a person resident in Nigeria to the extent that the company has a significant economic presence in Nigeria”. He added that while the Federal Government has no plans to raise taxes now, saying “there are those who argue that our tax rates are too low, comparing us to other places in the region where the rates are much higher. “So we have had to balance all of these issues because clearly, higher tax rates can be a disincentive to businesses and investments. “In terms of domestic resource mobilization, we are trying to do the best we can given the present circumstances and I believe that there is room for improvement.” Osinbajo added that the Federal Government has over the past few years, initiated programmes aimed at improving the growth of small businesses including the formalization of many of them. Under the Economic Sustainability Plan, there is a formalization of 250,000 businesses. He said the ongoing MSME Week has encouraged many businesses to register with regulatory authorities in order for them to benefit from the numerous programmes earmarked by the government for their growth. In his remarks, the President of CITN, Adesina Adedayo, commended the leadership of the Vice President in the implementation of key government interventions in the economy, stating that “we acknowledge your great zeal and commitment to Nigeria project.” Adebayo said the visit became necessary given the enormous work the Buhari administration has done towards addressing the huge fiscal challenges in the polity, public financing reforms, and sustained efforts towards addressing infrastructural deficit across the country. He said, “The Nigerian Economic Sustainability Plan and other measures implemented was a right response to the challenges posed by COVID-19 pandemic and were largely instrumental to creating buffers for the government at all levels in withstanding the pressures and waves created during the peak period and the aftermath of COVID-19. “It is important that we sustain measures already being implemented to improve tax collection at all levels.” Other members of the delegation included the Vice President of the Institute, Samuel Agbeluyi; past Presidents of the institute, Dame Simplice, and James Naiyeju, and Council members Prof. Muhammad Mainoma and Babangida Ibrahim. CITN Registrar, Adefisayo Awogbade, was also in attendance.

Zamfara Governor Bello Matawalle joins APC, Buhari’s aide suggests By Samson AdenekanandAbubakar Ahmadu Maishanu

Mr Matawalle was elected on the platform of the PDP after the Supreme Court nullified the victory of the APC in the 2019 elections in Zamfara State. Despite repeated denials that he was not planning to join the All Progressives Congress (APC), the Governor of Zamfara State, Bello Matawalle, has now joined Nigeria’s ruling party, an aide to President Muhammadu Buhari has suggested. In a cryptic post shared on his verified Facebook account on Sunday morning, the president’s Personal Assistant on Digital and New Media, Bashir Ahmad, suggested that Mr Matawalle has left the Peoples Democratic Party (PDP) for the APC. “So Zamfara is back home! Welcome Matawalle✊,” Mr Ahmad wrote. Mr Matawalle was elected on the platform of the PDP after the Supreme Court nullified the victory of the APC in the 2019 elections in the state due to an internal party crisis. Before then, Zamfara was an APC state with the governor and majority of the federal and state lawmakers from the ruling party. Prior to Mr Ahmad’s announcement, PREMIUM TIMES reported the dissolution of the Zamfara State Executive Council by the governor, a move a source close to the governor confirmed was in preparation to join the APC on June 12. The source said Mr Matawalle dissolved his cabinet due to the reluctance of some members to defect with him to the ruling party. After that report, Mr Matawalle denied plans to join the APC. The governor said that he sacked his cabinet members in a bid to reinvigorate his government for the second half of his tenure. He said he has not decided on defecting nor fixed a date for such. On Sunday, state officials close to Mr Matawalle confirmed again to PREMIUM TIMES that the governor was set to join the APC. Some of them said they had already been told to start ditching the PDP flag in preparation for the official defection. However, Mr Matawalle’s spokesperson, Yusuf Idris, told PREMIUM TIMES early Sunday morning that Mr Ahmad’s post should be ignored. The governor has not decamped, the spokesperson told this newspaper, declining to speak on whether or not there were plans to decamp/ A Gale of Defections When Mr Matawalle’s defection is made official, the Zamfara governor would be the second governor from the PDP to join the APC in less than two months and the third in the last seven months. The Governor of Cross River State, Ben Ayade, formally defected to the ruling APC in May after months of speculation. His defection came six months after the exit of his Ebonyi State counterpart, David Umahi, who also joined the ruling party in November 2020.