NEXT LEVEL AGENDA !! Minimum wage: FG mulls 50 percent hike in VAT, others

The Federal Government, Tuesday, said it was considering 50% increase in Value Added Tax (VAT) to be able to pay the new national minimum wage currently being processed by the National Assembly.

Minister of Budget and National Planning, Senator Udoma Udo Udoma, and Chairman of the Federal Inland Revenue Service, Mr. Babatunde Fowler, disclosed this when they appeared before the Senate Committee on Finance.

In his statement, Fowler said that the proposed payable VAT by Nigerians based on the increment would be between 35 per cent (6.75%) and 50 per cent (7.25%). But government is currently charging five per cent VAT on all products in the country.

Also, the two public officers came with other heads of the Federal Government revenue generating agencies, who were in the Senate to explain details of the 2019-2021 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).

It was gathered that the documents are to act as a guide as well as the benchmark for the 2019 estimates, which is being worked on for passage by the National Assembly.

Fowler said that the goal of the FIRS was to achieve an N8trn revenue generation target this year, pointing out that the 50 per cent increment would affect the Company Income Tax and the Petroleum Profit Tax.

His words: “by the end of this year, we should be ready for an increase in the VAT. A lot of Nigerians travel to Ghana and other West African countries and they can see that theirs is much higher. They pay when they go for those trips. We should be ready for an increase on VAT.

“I can certainly see an increase in VAT of at least 35 per cent to 50 per cent this year based on our enforcement activities. There certainly will be an increase in Company Income Tax and also on Petroleum Profit Tax.”

He further affirmed that the agency had collated details of 34 million Nigerians that were captured in the BVN network with a view to assessing their compliance to the tax laws.

It was also hinted that FIRS raked in N3.1trn in 2016, N4.03 in 2017 and N5.32tn in 2018, expressing optimism that it would surpass these past records in 2019.

But Fowler noted that the agency had increased VAT collection by 25 per cent in the last three years and, lamented that many of the firms that are collecting VAT were not remitting it.

“Nigerians should be ready for an increase in the VAT with at least by 35 to 50 per cent this year. Nigerians travel to other countries and they pay more on tax”, he said.

In his statement, the Minister of National Planning also told the Committee, headed by Senator John Owan-Enoh, that the Technical Advisory Committee on the minimum wage, would submit its report to President Muhammadu Buhari this week.

“It will be recalled that as a result of agitations from the unions that the President set up a tripartite committee to look at the Minimum Wage. Every five years, it is supposed to be reviewed. It has not been reviewed even though there is no doubt that for both the Federal Government and states; it is a tough time to review wages. But the N18, 000 is really too low and it is difficult for people to live on N18, 000.

“The President supported a revision but it is important that as we are revising (the Minimum Wage), we make sure that it can be funded that is why we set up the Bismark Rewane Technical Committee. We will be coming to you. There may be some changes maybe in VAT and other things. But we will be coming to you in order to make sure that we can fund the Minimum Wage.

“So it is something we are going to work closely with the Finance Committee on how best this Minimum Wage will be addressed, both from the Federal Government and the states to ensure that the whole government apparatus is not just paying salaries and nothing else.

“It is important that we are able to pay the Minimum Wage and still have enough resources to do infrastructure. The Committee has virtually completed its work”, Udoma stated.

He added that the Federal Government would intensify efforts in its assets recovery drive and would also challenge revenue generation agencies like the FIRS and the Nigeria Customs Service to boost their operations.

The Minister added that efforts were being made by the All Progressives Congress (APC)-led government to ensure that capital projects and other sectors of the economy were adequately funded.

He gave justification for the benchmark recommended by the executive in the MTEF and FSP documents, expressing confidence that necessary strategies were being put in place to make them achievable.

It would be recalled that the Federal Executive Council had in October last year, approved the MTEF/FSP as well as proposed N8.73 trillion for the 2019 budget, which is N400bn lower than N9.12 trillion being the 2018 budget.

The Federal Government in the fiscal document, proposed an oil price benchmark of $60; oil production of 2.3 million barrels per day; exchange rate of N305 per US dollars; and Gross Domestic Product growth rate of 3.01 per cent.

The Minister said that the expenditure component of the 2019 budget proposal in the MTEF/FSP was lower compared to the projection in the actual budget because of the hike in the police salaries that was later accommodated after the document had been submitted.

The Director General of the Budget Office, Ben Akabueze, while reviewing the performance of the 2018 budget, noted that it had achieved appreciable performance.

He, however, said that no specific revenue had been channeled to the Social Intervention Programme apart from the looted funds being recovered especially the popular ‘Abacha loot’.

According to him, provisions have been made in the 2019 budget to allocate adequate funds to the Bank of Industry, with a view to giving out loans to small scale industrialists especially in the agro-allied sector to boost their productivity.

The Chairman of the Senate Committee on Finance, Owan-Enoh, stated that details of the Senate version of the MTEF/FSP, based on the interactions with the officials, would soon be made public.

- DAILY POST

Ex-US ambassador describes Nigeria’s presidential poll as bad news for democracy

John Campbell, former US ambassador to Nigeria, says the 2019 presidential election in the country has been bad news for democracy.

Campbell, who also served as US Department of State foreign service officer from 1975 to 2007, said the election was “marred by historically low turnout and credible allegations of rigging”.

In his election post-mortem for the Council on Foreign Relations in Washington, DC, Campbell, who has co-authored a book on “Nigeria: What everyone needs to know,” also said Atiku Abubakar of the Peoples Democratic Party (PDP) is unlikely to win his electoral dispute in court.

“Buhari’s margin of victory—some four million votes—is so large that it is unlikely courts will overturn the result,” Campbell said.

He also suggested that the elections were a step back from the 2015 presidential election, quoting Situation Room’s report on the election.

THE FULL ARTICLE REPRODUCED BELOW

Nigeria’s latest presidential election cycle has been bad news for democracy in Africa’s most populous country and across the continent. Though President Muhammadu Buhari won the election, it was marred by historically low turnout and credible allegations of rigging.

The Old Guard

Buhari and his main challenger, former Vice President Atiku Abubakar, both Muslims from the Fulani ethnic group in the country’s north, are part of the political class that has dominated Nigeria since independence in 1960. Their contest meant there would be no generational leadership change in a country where the average age is eighteen and half of registered voters are under thirty-five. Buhari, who spent much of his last term abroad for medical treatment, hardly campaigned at all.

Buhari and Abubakar are the standard-bearers for two political parties descended from the military regime of General Ibrahim Babangida: the All Progressives Congress (APC) and the People’s Democratic Party (PDP), respectively. Both parties are undemocratic in spirit and function primarily to contest elections rather than to promote legislation or policy. During their campaigns, the candidates and their parties offered little that was new to address security breakdowns caused by Boko Haram in the country’s northeast; conflict over land use, ethnicity, and religion in the Middle Belt; and the division of oil revenue in the Delta. Moreover, they were mute on climate change, urbanization, and a population boom that is expected to push Nigeria past 450 million people by the middle of the century.

A Step in the Wrong Direction

The Situation Room, an umbrella organization of Nigerian civil society groups, wrote that [PDF] the vote marked “a step back from the 2015 general election and actions should be taken to identify what has gone wrong and what can be corrected.” Just hours before polls were set to open on February 16, the election commission delayed the vote by a week. This was particularly disruptive for the many Nigerians who had travelled from one part of the country to another to vote. When voting finally took place, there were numerous irregularities, and many polling stations opened several hours late. There is also evidence that the security services at some stations prevented voters from casting ballots, particularly in opposition strongholds, and intimidated election commission staff.

Of the more than eighty million Nigerians registered to vote this year, just thirty-five million actually voted. In the north, where Buhari is popular among the poor, turnout was around 50 percent. But in the predominantly Christian south and east, where Abubakar was favored, turnout stood around 20 percent, a continuation of a long decline in voter participation.

The Nigerian Example

Nigeria’s influence across sub-Saharan Africa is outsized. Its population and economy are Africa’s largest; its cultural influence, symbolized by the Nollywood film industry, is far-reaching; and its traditional diplomatic activism, through participation in peacekeeping missions and the regional economic bloc ECOWAS, is consequential. When Nigeria transitioned from military to civilian rule in 1999, the effects on West Africa were palpable: coups lost their legitimacy, and the region has pursued a positive democratic trajectory ever since. But the latest presidential election is far from an example for those African countries consolidating their democracies or emerging from quasi-authoritarian regimes to emulate.

A Broken System

Younger and aspiring politicians also ran for the Nigerian presidency: Oby Ezekwesili, leader of the #BringBackOurGirls campaign and cofounder of Transparency International; Donald Duke, a former governor of Cross River State known for his innovative business development initiatives; and Kingsley Moghalu, an economist and former UN official. But they were frozen out by a geriatric and unresponsive system whose patronage politics requires candidates to have vast sums of money and the ability to distribute them. These candidates failed to connect with voters, winning only a tiny percentage of the vote.

Abubakar says he will contest the election, but Buhari’s margin of victory—some four million votes—is so large that it is unlikely courts will overturn the result. Aside from some small pro-Abubakar demonstrations, Nigerians appear resigned to the outcome. The poor quality of this election cycle and the low and declining number of voters do not inspire confidence, and some Nigerians have begun to question whether democracy is right for their country.

This article was published by the Council on Foreign Relations, here.

- THECABLE

Alan Krueger, Obama’s economic adviser commits suicide

Alan Krueger, a prominent Princeton University economics professor who advised U.S. Presidents Bill Clinton and Barack Obama, took his own life over the weekend, his family said in a statement on Monday. He was 58.

The statement did not elaborate about the circumstances of Krueger’s death, nor did the university when confirming it earlier in the day.

Krueger served in the last two Democratic administrations – as chief economist for the U.S. Department of Labor during the Clinton era and as chair of the White House Council of Economic Advisers for Obama.

“It is with tremendous sadness we share that Professor Alan B. Krueger, beloved husband, father, son, brother, and Princeton professor of economics took his own life over the weekend,” his family said in the statement furnished by the university.

“The family requests the time and space to grieve and remember him.”

He had taught economics at Princeton since 1987. Last week, Krueger delivered a lecture at Stanford University in California on income distribution and labour market regulation titled “Why is Basic Universal Income So Controversial?”

“Alan was recognised as a true leader in his field, known and admired for both his research and teaching,” Princeton said in a statement.

An avid music fan, Krueger posted about Bruce Springsteen and other rock stars on Twitter and wove David Bowie into his lectures. He made this passion the subject of his latest research in his forthcoming book on economics and the music industry, due to be released in June.

Krueger received numerous awards, including the Kershaw Prize from the Association for Public Policy and Management in 1997 for distinguished contributions to public policy analysis by someone under the age of 40.

He is survived by his wife, Lisa, and two children.

- PM NEWS

Child dies, 30 missing as migrant boat sinks off Libyan coast

A child died and 30 people went missing when a migrant boat sank off the Libyan coast on Tuesday, the Libyan Navy said.

“The wooden boat sank after it crashed into rocks near the coast of the western Libyan city of Sabratha,’’ Libyan Navy spokesman Ayoub Qasim told dpa.

He said the residents of the city managed to rescue 16 migrants, 13 Africans and three South Asians and recovered the body of a child while 30 others were missing.

“The 30 people are likely to have survived as the boat was close to the beaches,’’ he said.

Earlier in the day, the International Organisation for Migration said 15 people had been picked up, however said the number of those who were on board was unclear.

Libya has descended into chaos since the overthrow of long-time autocrat Moamer Gaddafi in a 2011 armed revolt.

The North African country has become a major transit route for migrants, mostly Africans, trying to reach Europe by sea.

Thousands of migrants have been rescued or have died travelling to Europe.

- PM NEWS

Abramovich ready to sell Hazard to Real Madrid

Chelsea billionaire owner, Roman Abramovich, is resigned to losing Eden Hazard to Real Madrid this summer, AS reports.

Hazard has developed into one of the finest players in Europe, since he joined the Blues from Lille in 2012.

The Belgium captain has gone on to win two Premier League titles, the Europa League and the FA Cup with the Stamford Bridge.

Real have held interest in Hazard for a number of years and returning manager Zinedine Zidane is a huge admirer.

On Monday, it was reported that Chelsea had rejected an opening offer from Real Madrid to sign Hazard. But AS claims the Premier League club are preparing for Hazard’s departure, knowing they will be unable to resist Real’s approaches at the end of the season.

It is claimed owner Abramovich and transfer chief and Marina Granovskaia have both accepted Hazard is leaving Stamford Bridge for his dream club.

- DAILY POST

What Acting CJN told judges to do about barbaric customs, traditions

The Acting Chief Justice of Nigeria, CJN, Justice Tanko Muhammad, has asked judges across the federation to outlaw any custom or tradition found to be barbaric.

He gave the directive on Tuesday at the opening ceremony of the 2019 National Workshop for Area/Sharia/ Customary Court Judges, which held at the National Judicial Institute, NJI, in Abuja.

According to him,the directive would ensure the protection of basic human rights and freedom to which all human beings are entitled to, regardless of their gender.

He said: “Let me urge the participants to ensure the protection of human rights by finding and giving expression to the basic rights and freedoms to which all human beings are entitled.

“In this regard, customs which are repugnant to natural justice, equity and good conscience must be outlawed, as the judiciary is the only arm of government vested with such powers”.

Noting that the judiciary was the only arm of government vested with such powers, the Acting CJN enjoined Judges to deepen their knowledge in the customary laws of various communities so as to be able do justice on cases that are brought before them by litigants.

The Acting CJN further implored judges to dispense justice without fear or favour, noting however that the Nigerian judiciary is contending with over 250 language groups with different customs and cultures.

He also cautioned them against acts that are capable of tarnishing the image of the judiciary.

“Your action and inaction, within and outside the temple of justice, must always be in consonance with the dictates of the Code of Conduct for Judicial Officers, as this will further guarantee that justice is served to all manners of persons that visit your courts”, he added.

- DAILY POST

FG seize property worth N4.8b from Yar’adua Foundation, others

The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has moved to seize plots of land and buildings valued at N4.8 billion from the Shehu Yar’adua Foundation and 29 other firms.

ICPC spokesperson, Mrs Rasheedat Okoduwa disclosed this in a Press Statement in Abuja.

She said that the properties included 22.9 hectares of undeveloped land, one plaza, and a block of six two-bedroom flats located in Wuse, Zone 1, Abuja.

“These belong to Shehu Musa Yar’adua Foundation, Vibrant Issuance Brokers, Millard Fuller Foundation, Maibuhu Farm and Construction Limited, Gabcon Enterprises Limited and a host of others.

“In the course of investigations, the alleged owners of the property disclaimed ownership.

“The move to seize the property spread around Abuja, follows a petition to the ICPC by the Federal Inland Revenue Service (FIRS) accusing the companies of defaulting in tax payments to the tune of N288.2 million,” she said.

Okoduwa said that section 37 of the Corrupt Practices and Other Related Offences Act 2000 empowered the commission to seize assets alleged to be subject of an offence under the law, while Section 48 authorises it to apply to a High Court for an order of forfeiture within 12 months of the date of seizure.

- DAILY POST

US accuses Buhari govt, Army, Police, others of killing Nigerians

The United States has accused the Federal Government of Nigeria of murdering citizens.

US said the current administration and its agents were committing arbitrary and unlawful killings.

This was contained in a recent report entitled, “2018 Country Reports on Human Rights Practices” published on the Department of State website.

It said: “The national police, army, and other security services used lethal and excessive force to disperse protesters and apprehend criminals and suspects and committed other extrajudicial killings. Authorities generally did not hold police, military, or other security force personnel accountable for the use of excessive or deadly force or for the deaths of persons in custody. State and federal panels of inquiry investigating suspicious deaths generally did not make their findings public.

“In August 2017 the acting president convened a civilian-led presidential investigative panel to review compliance of the armed forces with human rights obligations and rules of engagement, and the panel submitted its findings in February. As of November no portions of the report had been made public.

“As of September, there were no reports of the federal government further investigating or holding individuals accountable for the 2015 killing and subsequent mass burial of members of the Shia group Islamic Movement of Nigeria (IMN) and other civilians by Nigerian Army (NA) forces in Zaria, Kaduna State.

“In 2016 the government of Kaduna made public the Kaduna State judicial commission’s nonbinding report, which found the NA used “excessive and disproportionate” force during the 2015 altercations in which 348 IMN members and one soldier died. The commission recommended the federal government conduct an independent investigation and prosecute anyone found to have acted unlawfully.

“It also called for the proscription of the IMN and the monitoring of its members and their activities. In 2016 the government of Kaduna State published a white paper that included acceptance of the commission’s recommendation to investigate and prosecute allegations of excessive and disproportionate use of force by the NA.

“As of September, however, there was no indication that authorities had held any members of the NA accountable for the events in Zaria. It also accepted the recommendation to hold IMN leader Sheikh Ibrahim Zakzaky responsible for all illegal acts committed by IMN members during the altercations and in the preceding 30 years.

“In 2016 a federal court declared the continued detention without charge of Zakzaky and his wife illegal and unconstitutional. The court ordered their release by January 2017. The federal government did not comply with this order, and Zakzaky, his spouse, and other IMN members remained in detention.

“In April the Kaduna State government charged Zakzaky in state court with multiple felonies stemming from the death of the soldier at Zaria. The charges include culpable homicide, which can carry the death penalty.

“As of December the case was pending. In July a Kaduna High Court dismissed charges of aiding and abetting culpable homicide against more than 80 IMN members. As of September the Kaduna State government had appealed the ruling. Approximately 100 additional IMN members remained in detention.

“In October security forces killed 45 IMN members that were participating in processions and protests, according to Amnesty International (AI).

“In January AI reported that the Nigerian Air Force used excessive force in responding to intercommunal violence in December 2017 in Numan local government area (LGA) in Adamawa State. According to the report, hundreds of herdsmen attacked eight villages in Adamawa in response to a massacre by farming communities of up to 51 herders, mostly children, in Kikan village the previous month.

“The Nigerian Air Force said it responded at the request of relevant security agencies for show of force flights to disperse the “hoodlums” engaged in ransacking and burning villages, and subsequently aimed to shoot in front of crowds to deter them from attacking Numan. AI reported that the Air Force response resulted in a fire and destruction in the town, and that Air Force rockets and bullets hit civilian buildings directly and resulted in multiple civilian deaths.

“The report also stated it was not possible to establish conclusively how much of the death and destruction was attributable to the Air Force’s actions and how much to the concurrent attack by herdsmen. The Air Force denied the claims in a statement but reportedly ordered an investigation. As of September it was unclear if the investigation had been concluded.

“In January 2017 the air force mistakenly bombed an informal internally displaced persons (IDP) settlement in Rann, Borno State, which resulted in the killing and injuring of more than 100 civilians and humanitarian workers. Army personnel also were injured. The government and military leaders publicly assumed responsibility for the strike and launched an investigation.

“The air force conducted its own internal investigation, but as of December the government had not made public its findings. No air force or army personnel were known to have been held accountable for their roles in the event. There were reports of arbitrary and unlawful killings related to internal conflicts in the Northeast and other areas.”

- DAILY POST

Many churches have become adulterous bride, cheating shamelessly on Christ – Daddy Freeze

Controversial on-air personality, Daddy Freeze has lamented that many churches in the country have become adulterous bride, cheating shamelessly on Christ.

Freeze, on his twitter page, said many churches were cheating on Christ through prostituting with Mammon and other lifeless idols.

He said the churches were making the worship of money their religion, while becoming slaves to those who own money.

Freeze quoted James 4:4 to bak up his assertion, which said “You adulterous people, don’t you know that friendship with the world means enmity against God?

He also quoted Ezekiel 23: 34 to support his points, which said “So you are the opposite of other prostitutes. You pay your lovers instead of their paying you!”

On divorce, Freeze attacked again, saying that “to all you so called Christians. hypocrites, who say divorce is a sin, you have become prisoners of the jail doctrines you have been preaching.”

- PM NEWS