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Home Companies Corporate Updates

AI will play a bigger role in our justice delivery system – Osinbajo

NM Partners by NM Partners
August 17, 2020
in Corporate Updates
FG foreign reserves Nigeria Yemi-Osinbajo, FG negotiates with Governors on bail-out fund, as NEC approves 100 billion for NLTP, bail-out fund States Governors, FG earns N28.6 trillion from VAT, others , Ease of doing Business: States must partner with Federal Government – Osinbajo , AfCFTA: Nigeria’s financial footprints to be extended across Africa – Osinbajo , FG seeks partnership with National Council of Registered Insurance Brokers, here’s why , Osinbajo says FG’s investment to take advantage of Africa’s $200bn tourism potential is massive, Pres. Buhari’s plan to tax US tech companies might provoke US trade war https://www.yemiosinbajo.ng/vps-lecture-at-the-national-defence-college-course-28-lecture-event/ https://punchng.com/digital-firms-to-pay-tax-under-new-finance-act-osinbajo-2/ https://www.nytimes.com/2020/01/31/business/economy/digital-tax-oecd.html Nigeria at risk of trade war with United States as the Nigerian Government says it will impose taxes on technology companies like Facebook, Google, and other digital companies that have been escaping tax payment in Nigeria due to their lack of presence within the country. The US has threatened tariffs on imports from countries that impose such digital taxes. The tech companies with heavy revenue footprint in Nigeria now have their backs against the wall because President Muhammadu Buhari-led administration want to tax them to grow Nigeria’s revenue; which has led to the development of the Finance Act. The Finance Act is the solution of President Buhari to the revenue problem which the Finance Minister, Ahmad Zainab, said Nigeria has. The Nigerian government is looking to grow its revenue through taxes, and one of such is the digital tax which Vice President, Yemi Osinbajo, said will commence despite the threat of the US which is aimed at protecting the silicon companies. No more back door operation: Facebook, Google, Amazon, YouTube and many more digital businesses have a sizeable market in Nigeria, but don’t have a physical structure for their operations; this has cost Nigeria tax revenue. These companies are known to prefer situating their companies in tax havens where taxes are low compared to other African and European countries. Ireland and Bermuda are some of the tax havens for these multinational companies. But according to Osinbajo, the period of making gains from their operation in Nigeria without paying tax is over. Osinbajo, while speaking at The National Defence College, Course 28 Lecture Event, said that, “Let me also briefly mention the new provisions on Taxation of Digital Economy and Non-Resident Companies. This is a very important aspect of our taxation policy. Before the Finance Act, only companies that had a physical presence or a fixed base in Nigeria could be taxed. “So, most digital companies, I mean any of the big technology companies, or multi-national digital companies, that did not have physical offices in Nigeria, made significant income from Nigeria from online activities, such as advertising, movie streaming, online gaming and e-commerce from subscribers in Nigeria, but paid no taxes whatsoever because they did not have a physical base in Nigeria. So now we are no longer relying on the fixed base or physical address criterion.” He added that, “Under the Finance Act, once you have a Significant Economic Presence (SEP) in Nigeria, you are liable to tax. Whether you are a resident here or you are not resident as a company, as long as your economic presence is significant, you are liable to tax. If you are streaming online, advertising using Google adverts, whether you are resident here or not, you are now subject to tax. “So, non-residents who previously had no fixed base and no Nigerian tax liability will now be liable to tax based on the SEP criterion. The Minister of Finance is empowered to issue a regulation defining what Significant Economic Presence means. So, she just defines the scope of what we will be looking out for in terms of Significant Economic Presence.” Osinbajo explained. Nigeria is not alone in this crusade: Nigeria is not the only country trying to tax these technology companies. The European Union have also been coming after them for taxes. The EU is also stating that if the technology companies are making economic gains through their operation despite the lack of physical presence in several European countries, then the tech conglomerates should be taxed. This has led to review of tax laws by the EU. According to a report by New York Times, new rules to tax these multinational companies are being discussed by about 130 countries through the Organization for Economic Cooperation and Development. The review has become necessary as digital economy begins to open new revenue sources. Should Nigeria tread carefully? The United States has threated to hit any country imposing taxes on the technology companies - which are mostly American – with tariffs on import. This put Nigeria at a rather impossible position, as the country is not economically strong enough to enter a trade war or go on a tit for tat battle with the US. According to Q3 report, the US is the fifth biggest export destination for Nigeria, having imported N322.2 billion (6.28%) goods from Nigeria, with crude oil constituting N329.8 billion. Although, the US is behind Ghana, India, Netherlands and Spain, it doesn’t change the significance of the US market to the Nigerian economy. Meanwhile, Nigeria’s top import sources include the U.S, accounting for N747 billion in H1 2019. Franch had moved to tax the online businesses but have now delayed the plan this year after a meeting with the US; the US has also paused its tariff threat against France. Britain is also one of the digital tax drivers. With such threat hanging over the digital tax, it’s unlikely Nigeria will go ahead taxing these technology companies, as US feels such tax is discriminatory against US firms, and have suggested these companies be allowed to decide if they want to operate with the new tax standards., FG will provide succor for daily wage earners as lockdown continues – Osinbajo

Vice President, Yemi-Osinbajo

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Artificial intelligence will play a bigger role in the Nigerian justice delivery system, Vice-President, Yemi Osinbajo (SAN) has said.

Osinbajo said this while delivering the keynote address at the legal-tech virtual conference themed, “A new paradigm in justice delivery”, jointly organised by LawPavilion Business Solutions Limited and TELNET Nigeria Limited.

“Technology and its innovations have defined a new way of life, taking technology away from the realms of luxury into the arena of everyday endeavours. Yet there is more to do,” the vice president said.

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Osinbajo commended the LawPavilion Business Solutions for their innovations over the year towards making the justice delivery system easier and assured that the federal government is dedicated to supporting tech companies.

READ MORE: CJN directs Chief Judges to decongest prisons due to covid-19

He noted that years ago, not many took LawPavilion services seriously, as it seemed impossible that a day would arrive when virtual hearing of court cases would be adopted.

“Artificial Intelligence will play a bigger role in our court systems in the coming years, and so the lawyer of this age must become a multi-disciplinary and multi-tasking,” he said.

He observed that there is already an AI-enabled speech to text systems available for judges so that they no longer have to rely on stenographers to transcribe the rulings.

Outgoing president of the Nigerian Bar Association (NBA), Paul Usoro (SAN), noted in his remarks that the world was already gravitating towards technology, with various professionals seeking ways to incorporate technology into their roles.

READ MORE: This billionaire wants to reduce the number of hours people work

With the recent challenges, the need for technology had become even more imminent.

The link between innovations and the justice system

CEO, Paradigm Initiative, Olugbenga Sesan stated in his remarks that the level of innovation in any country is directly connected to the innovations across the countries as innovations cannot thrive in a nation where justice is assured.

“If citizens cannot be assured of a speedy delivery of justice, then people cannot feel encouraged to innovate or implement ideas,” he said.

The purpose of the Legaltech conference, Sesan said, is to accentuate the use and application of technology in all levels and stages of Nigeria’s judicial system, and promote the human dignity since the judiciary is seen as the last hope of the common man.

Citizens have to know their rights so that they can be empowered to pursue the rule of law, and this is what the LawPavilion seeks to achieve with its innovations.

In his address, Folorunsho Aliu, GMD Telnet Nigeria said that Telnet Nigeria is out to ensure effective and efficient justice delivery system, by delivering real value to the customers.

“We must move from judgement delivery to timely and adequate justice,” he said.

The panel session was coordinated by Attorney–General and Commissioner for Justice, Ekiti State Olawale Fapohunda, and among the panellists were Honourable Justice Olukayode Ariwoola, Dr Babatunde Ajibade (SAN), Mr Folorunsho Aliu, GMD Telnet Nigeria, and the Executive Director of Enough is Enough, Yemi Adamolekun.

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About the virtual conference, MD of LawPavilion Business Solutions Limited, Mr Ope Olugasa said the conference presents an excellent opportunity to have the conversations that can help the industry to move forward very quickly, “as the world gradually starts to recover from the pandemic and its impact on global economy.”

Other featured guests at the conference include the Chief Justice of Nigeria, Tanko Mohammed CFR, the Chief Judges of Borno and Ondo states, Justices Kashim Zannah and Olutoyin Akeredolu, respectively; as well as Judge (Dr) Ayodele Akenroye of Immigration and Refugee Board of Canada.


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Tags: LawPavilion Business Solutions LimitedNigeria NewsParadigm InitiativePaul Usoro
NM Partners

NM Partners

"NM Partners" encompasses a diverse range of articles and content published on behalf of various organizations, including corporate entities, government and non-governmental institutions, academic bodies, and key stakeholders in the economic sphere. This content spectrum covers press releases, formal announcements, specialized content, product promotions, and a variety of corporate communications tailored to engage our readership. Notably, a portion of these articles are sponsored content. At Nairametrics, while we provide a platform for these diverse voices, it is important to clarify that our relationship with the content under "NM Partners" does not imply endorsement or affiliation. The responsibility for the content accuracy and viewpoints expressed rests solely with the respective contributors. Nairametrics maintains a firm commitment to editorial independence and integrity. Consequently, we do not assume responsibility for any of the content published under "NM Partners." For any inquiries, comments, or feedback regarding the content featured in this section, we encourage open communication and can be reached at info@nairametrics.com. Additionally, we invite our readers and contributors to familiarize themselves with our Paid Post Guidelines, which outline the standards and processes governing paid content on our platform.

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  1. Soji Omole says:
    August 17, 2020 at 9:45 am

    Our prayers here is that will enable and empower you. But stand strong.

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