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Finance Act dwindling NIPOST revenue as Post Master General plead for review

According to the Post Master General of the Federation, the removal of stamp duty collection from the duties of NIPOST is depleting their revenue.

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Finance Act dwindling NIPOST revenue as Post Master General plead for review

Nigerian Postal Service says the recently signed Finance Act bill is negatively affecting its finances. According to the Post Master General of the Federation, Adebayo Adewusi, the removal of stamp duty as part of the collectable revenue of NIPOST is depleting their revenue.

Adewusi who said the Finance Act was hindering their revenue generation drive, requested that the Senate Committee on Communications review the Finance Act and return the stamp duty collection to NIPOST. Nairametrics had reported that the right to collect stamp duty was handed to the Federal Inland Revenue Service (FIRS).

FG orders NIPOST to stop cash transactions

This has caused division between the two agencies of the Federal Government, pitting NIPOST against the FIRS. It had also led to NIPOST workers picketing the Federal Ministry of Finance, as they lay the blame on the Minister of Finance, Zainab Ahmed.

The workers frowned at the decision of Ahmed to have the proceeds of the stamp duty warehoused by the FIRS since it’s a tax-related responsibility. In a Nairametrics report, the Secretary-General of the workers’ union, Ayo Olorunfemi, argued that though the stamp duty collection would now be carried out electronically, it does not mean government should change the collector.

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[READ MORE: Buhari seeks amendment of new Finance Act)

Olorunfemi had stated that“The action of the minister is unfortunate, inimical to the ideals preached by this administration and if not checked, is capable of causing inter-agency disunity or unhealthy rivalry even now when all hands must be on deck to uplift the nation.”

Despite the plea of Adewusi, the Chairman of the Senate Committee on Communications, Senator Oluremi Tinubu, told Adewusi to think out of the box in order to mitigate the challenges even though NIPOST said the decision is against the global practice, as NIPOST has the right to produce and sell stamp for both postage and duty purposes.

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Why the rancour about stamp duty? If the FIRS takes over the collection of stamp duty, it will likely affect the revenue of NIPOST, as they will not be able to meet their target. Stamp duty collection was expected to contribute significantly to the revenue of NIPOST.

On the other hand, the stamp duty collection will add to the already saturated collectable revenue being administered by FIRS. This will help to further boost the revenue profile of the Nigerian tax administrator.

Olalekan is a certified media practitioner from the Nigerian Institute of Journalism (NIJ). In the era of media convergence, Olalekan is a valuable asset, with ability to curate and broadcast news. His zeal to write was developed out of passion to shape people’s thought and opinion; serving as a guideline for their daily lives. Contact for tips: [email protected]

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Coronavirus

COVID-19 Update in Nigeria

On the 29th of November 2020, 82 new confirmed cases were recorded in Nigeria

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The spread of novel Corona Virus Disease (COVID-19) in Nigeria continues to record significant increases as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 67,412 confirmed cases.

On the 29th of November 2020, 82 new confirmed cases were recorded in Nigeria, having carried out a total daily test of 7,101 samples across the country.

To date, 67,412 cases have been confirmed, 63,055 cases have been discharged and 1,173 deaths have been recorded in 36 states and the Federal Capital Territory. A total of 756,237 tests have been carried out as of November 29th, 2020 compared to 749,136 tests a day earlier.

COVID-19 Case Updates- 29th November 2020,

  • Total Number of Cases – 67,412
  • Total Number Discharged – 63,055
  • Total Deaths – 1,173
  • Total Tests Carried out – 756,237

According to the NCDC, the 82 new cases were reported from 11 states- Lagos (48), Rivers (8), Kwara (6), Yobe(6), Katsina (5), FCT(3), Nasarawa(2), Plateau (1), Ogun (1), Kano (1) and Osun(1)

Meanwhile, the latest numbers bring Lagos state total confirmed cases to 23,238, followed by Abuja (6,770), Plateau (3,858), Oyo (3,721), Kaduna (3,064), Rivers (2,985), Edo (2,696), Ogun (2,223), Delta (1,824), Kano (1,795), Ondo (1,728), Enugu (1,332),  Kwara (1,102), Ebonyi (1,055), Katsina (1,030), Osun (946), Gombe (938). Abia (926), Bauchi (770), and Borno (745).

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Imo State has recorded 662 cases, Benue (496), Nasarawa (493), Bayelsa (445),  Ekiti (365), Akwa Ibom (339), Jigawa (331), Niger (298), Anambra (285), Adamawa (261), Sokoto (165), Taraba (159), Yobe (100), Kebbi (93), Cross River (90), Zamfara (79), while Kogi state has recorded 5 cases only.

READ ALSO: COVID-19: Western diplomats warn of disease explosion, poor handling by government

Lock Down and Curfew

In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.

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The movement restriction, which was extended by another two weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, Nigeria’s President, Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.

On Monday, 29th June 2020 the federal government extended the second phase of the eased lockdown by 4 weeks and approved interstate movement outside curfew hours with effect from July 1, 2020. Also, on Monday 27th July 2020, the federal government extended the second phase of eased lockdown by an additional one week.

On Thursday, 6th August 2020 the federal government through the secretary to the Government of the Federation (SGF) and Chairman of the Presidential Task Force (PTF) on COVID-19 announced the extension of the second phase of eased lockdown by another four (4) weeks.

READ ALSO: Bill Gates says Trump’s WHO funding suspension is dangerous

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Energy

Transmission company of Nigeria gives reason for nationwide blackout

Following the current nationwide blackout, TCN has stated that it has started the process of restoration to the national grid.

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The Transmission Company of Nigeria (TCN) has on Sunday announced that the current power blackout in the country was due to multiple trippings.

According to a report by Vanguard, General Manager, Public Affairs, TCN, Ndidi Mbah, who made the announcement through a statement said the company had started the process of restoration to the national grid.

Mbah pointed out that the places that power is yet to be restored were Calabar, Makurdi, Jos, Gombe, Yola, Ugwuaji and Maiduguri axis.

She stated, “The Transmission Company of Nigeria (TCN) regrets to inform electricity consumers nationwide that at 11:25 am today, the nation’s electricity grid experienced multiple trippings, which led to the collapse of the system.’’

“TCN has since commenced grid restoration; power has been successfully restored to every part of the country, except Calabar, Ugwuaji, Markurdi, Jos, Gombe, Yola, and Maiduguri axes. The effort is however ongoing to ensure full restoration nationwide.”

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“We regret the inconvenience this has caused electricity consumers. Investigations would be conducted to establish the immediate and remote cause(s) of the multiple trippings as soon as the grid is fully restored, considering that the grid had been relatively stable in the last couple of months.”

What  you should know

At around 11:25 pm on Sunday, November 29, electricity supply to most parts of the country was disrupted as the national electricity grid experienced multiple trippings.

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Energy

FG to start the installation of 5 million solar power across the country next week

FG will next week commence the process of installation of 5 million solar-home systems in under-served and off-grid communities across the country.

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Solar, FG to slash import duties on tractors, buses, others in 2020 Finance Bill, Nigeria will not issue Eurobonds, says Vice President Yemi Osinbajo, FG guarantees mortgage loan to low income buyers at low interest rate, FG inaugurates gold refinery project in a landmark event

The Federal Government has announced that it will commence the process of the installation of 5 million solar-home systems in under-served and off-grid communities across the country from next week.

This move is in continuation of coordinated implementation of the Economic Sustainability Plan (ESP) which is being coordinated by a committee headed by Vice President Yemi Osinbajo, across the country.

READ: FG says 174,574 successfully register for N75 billion MSME survival fund in 48 hours

This disclosure is contained in a series of tweet posts by the Presidency on Sunday, November 28, 2020, through their official Twitter handle.

It stated that the programme will include the assembly and manufacturing of components of off-grid solutions to facilitate the growth of the local manufacturing industry, while there will be incentives for use of local content. The first set of installation will be done nationwide in December 2020.

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READ: FG disburses MSMEs Survival Fund in Lagos, Kano, FCT and 9 other states

The tweet post from the Presidency stated, ‘’In continuation of a coordinated implementation of the Economic Sustainability Plan (ESP) across the country, the Buhari administration will next week commence the process of installation of 5 million solar-home systems in under-served and off-grid communities across the country.’’

According to the statement, the Central Bank of Nigeria will make available funds to the private companies in the solar power sector involved in the manufacture, assembling installation, servicing of the solar systems, at rates ranging between 5 to 10%.

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READ: FG guarantees mortgage loan to low income buyers at low interest rate

It also states that apart from providing access to affordable energy, the objective of the plan is to improve social, economic and environmental welfare of 25 million Nigerians while generating jobs, increasing revenues and import substitution.

READ: FG goes after AMCON’s N5trillion debtors, sets up task force on funds recovery

Explore Data on the Nairametrics Research Website

What you should know

The NESP, which was approved by the Federal Executive Council on June 24, 2020 and developed by the Economic Sustainability Committee, chaired by Vice President Yemi Osibanjo, is to develop a plan that responds robustly and appropriately to the challenges posed by the Covid-19 pandemic amongst other terms of reference.

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A major part of the plan is the installation of solar home systems that targets 5 million households, serving about 25 million individual Nigerians who are currently not connected to the National Grid. The solar manufacturers will be required to set up production facilities in Nigeria and provide the materials required.

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READ: Covid-19: Nigerian government explains how it will fund proposed N2.3 trillion stimulus

 

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