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Business News

Stamp Duty Probe: Reps act tough, reveal 14 banks are owing N1.5bn

About fifteen (15) Nigerian banks will have to cough out the sum of N1.5 billion, being the total sum of under-remitted stamp duty funds owed the Federal Government.

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About fourteen (14) Nigerian banks will have to cough out the sum of N1.5 billion, being the total sum of under-remitted stamp duty funds owed the Federal Government.

This became necessary after investigations by an ad hoc committee led by Hon. Abubakar Ahmed into the non-remittance of stamp duties revealed that none of the fifteen banks made full disclosure of their collected stamp duties and remittance.

Earlier Development: In 2017, the Nigeria Senate mandated its committee on finance and banking, insurance, and other financial institutions, to investigate alleged N7 trillion non-remittance of stamp duty revenue over the last five years.

Recall that Nairametrics earlier reported that the Central Bank of Nigeria (CBN) recovered over N35 billion from commercial banks, being part of the N20 trillion stamp duty funds that were not remitted.

The CBN‘s Acting Director of Banking Services, Mallam Abubakar Kure, disclosed this last week when he appeared before the House of Representatives Adhoc committee led by Ahmed.

The Defaulting Banks: According to members of the Ad hoc committee, the fifteen defaulting banks, and their respective under-remittances include: Diamond Bank Plc (N545.8m), Access Bank Plc (N66m), Unity Bank Plc (N40m), United Bank for Africa Plc (N81.08m) and Eco Bank (N78.5m).

Others are- Stanbic IBTC Bank (N231m), Zenith Bank Plc (N265.6m), Fidelity Bank Plc (N32.8) Standard Chartered Bank (N3.6m), Citi Bank (N1.8m),  and Keystone Bank (N24.4m), Jaiz Bank (N2.4m),  Skye Bank (N11.05m) and Polaris Bank (N2.90m). The committee stated that all defaulting banks will be penalised.

“All defaulting banks must be made to pay with interests the amount they under-remitted for the period under review. whileBanks that had cases of delayed remittances should be penalized.”

Banks’ Boycott: The lawmakers noted that four of the banks summoned for investigation disregarded the committees summon. As a result, they should expect further scrutiny. According to the committee’s report, the banks that boycotted the investigation and disregarded summon include First City Monument Bank, Wema Bank, and Suntrust Bank.

CBN to the rescue: While the investigation continues, the Ad hoc committee has called on the CBN to strengthen its supervisory activity so as to help in guiding against future fraud such as the one currently being witnessed.

“In view of the apparent lack of transparency on the part of most financial institutions, the Central Bank of Nigeria (CBN) should strengthen its supervisory activity to ensure that Financial institutions  report and remit all government revenues correctly and promptly.”

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Samuel is an Analyst with over 5 years experience. Connect with him via his twitter handle

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Business News

DPR says it has accurate data of country’s crude production volume

Head, Public Affairs of DPR, Mr Paul Osu, said every litre of crude produced in the country was adequately captured during the process of extraction.

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The Department of Petroleum Resources (DPR) has said that the agency has an accurate record of the crude oil produced in the country.

This is in reaction to claims that the exact volume of crude oil produced in the country has remained unknown.

While making this disclosure in a statement in Lagos, the Head, Public Affairs of DPR, Mr Paul Osu, said every litre of crude produced in the country was adequately captured during the process of extraction.

What the Head, Public Affairs of DPR is saying

Osu said DPR has the responsibility of monitoring and accounting for crude oil production which is the basis for determining the government’s revenue through royalty payments by operators for sustainable development.

He said: “As a further step to boosting crude accounting process from production to export, DPR recently launched the National Production Monitoring System (NPMS).

NPMS is an online platform for direct and independent acquisition of production data from oil and gas facilities in Nigeria.

NPMS as an electronic data transmission tool at production and export terminals is designed to better predict the performance of oil and gas reservoirs and better production forecasting.”

Osu noted that the NPMS tool enables DPR to exercise surveillance, perform production monitoring and data analysis for utilisation and forecasting.

He said DPR as a business enabler and opportunity house would continue to develop robust and strategic initiatives to ensure timely and accurate payment of rents, royalties and other revenues due to the government.

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In case you missed it

  • It can be recalled that the Executive Secretary of the Nigeria Extractive Industries Transparency Initiative (NEITI), Orji Ogbonnaya-Orji, on Thursday said the exact volume of crude oil produced in Nigeria, especially at the deep offshore fields, is not known by anyone.
  • He said the exact volume of crude oil produced in Nigeria had remained unknown because of the absence of meters at wellheads and the lack of capacity to monitor deep offshore fields.

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Business

Sanwo-Olu flags off Red line rail project as Lagos compensates property owners

The 37-km Rail Mass Transit Red Line will traverse from Agbado to Marina, moving over 1 million commuters daily.

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The Lagos State Governor, Babajide Sanwo-Olu, has flagged off the construction of the 37-km Rail Mass Transit Red Line, which will traverse from Agbado to Marina, moving over 1 million commuters daily.

This is as the state started the compensation of identified project-affected persons of the Lagos Rail Mass Transit Red Line project with the Governor handing over cheques to displaced property owners who were affected by the right-of-way.

The groundbreaking ceremony which took place at the Ikeja Train Station on Thursday was witnessed by the Minister of Transportation, Rotimi Amaechi, who was represented by the Director-General of the Nigerian Maritime and Safety Agency (NIMASA), Dr Bashir Jamoh, and the Deputy Governor of Lagos State, Dr Obafemi Hamzat.

What the Lagos State Governor is saying

Sanwo-Olu said the Red Line project which is to be fully operational in the last quarter of 2022 with 8 train stations from Agbado to Oyingbo, is another initiative of his administration to deliver enduring infrastructure for the transport system and make Lagos a competitive megacity.

The Governor said: “Today’s flag-off of the construction of infrastructure for the standard gauge Red Line is another promise kept and it demonstrates, in practical terms, our commitment to achieve the objectives of traffic management and transportation pillar in our development agenda. This is because we recognise the role which an efficient transportation system plays in enhancing people’s quality of life and as a major driver of socio-economic development.

The State’s Strategic Transport Master Plan, which encompasses a number of projects that are germane to achieving our vision for a Greater Lagos, is founded on imperatives that seek to increase transport choices for all users and make the transit system integrated, attractive, convenient, affordable and accessible.

Since efficient transportation is the backbone of any economy, we are happy to be committing this investment in our transport infrastructure, so that our people can meet their daily targets and aspirations. This all-important transport project we are all gathered to witness today represents a major step in this direction.

Sanwo-Olu said that in order to facilitate smooth operations of the Red Line, the State Government would be constructing ancillary infrastructure, including 6 overpasses at strategic level crossing points along the rail corridor to eliminate interactions between the rail system, vehicular and pedestrian traffic.

The overpasses will provide grade-separated crossings that will enhance safety for the rail system and road users.

He said: “The unique characteristics of the Red Line is its integration with the Ikeja Bus Terminal, Oshodi–Abule Egba Bus Rapid Transit (BRT) lane, the future Orange Line, which goes from Ikeja to Agbowa, and the General Aviation Terminal One of the Murtala Muhammed International Airport through a skywalk.

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Another unique feature of the Red Line is that all the stations have elevated concourses with either at grade island or side platforms for easy boarding and alighting of passengers. The Red Line also integrates with our Bus Terminals at Oyingbo, Yaba, Oshodi, Ikeja and Iju, giving modal options to our people in their daily commute, either for business or leisure.”

The Governor presented cheques of different amounts as compensation to 25 residents whose properties, businesses and accommodation will be affected by the project. Over 263 properties are affected with many of the property owners and tenants smiling as they got their cheques.

What you should know

  • The Red Line is part of the state government’s vision of an integrated multimodal transportation system contained in the State’s Strategic Transport Master Plan (STMP), developed by LAMATA, which aims ultimately to birth a world-class transportation network that will support the state’s profile, as the economic capital of Nigeria and Africa.
  • It is to raise mass transportation capacity in the State, complementing the Blue Line that traverses from Okokomaiko to Marina.
  • The rail corridor will be constructed in three phases. The first phase (Agbado-Iddo), which will be completed in 24 months, will be sharing the track with the Federal Government’s Lagos-Ibadan Railway Modernisation Project up to Ebute – Metta and will have its dedicated track from Ebute – Metta to Oyingbo and reduce travel time from about two and a half hours to just 35 minutes.

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