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Economy

Ndume Faults VAT Increase, Advocates Property, Communications Tax

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By Mathew Dadiya, Abuja

Senator Ali Ndume has called for enactment of a property and communications tax to shovel revenue for government rather than increasing the Value Added Tax (VAT).

The former senate leader appealed to the Federal Government not to add to the suffering of the poor citizens with the proposed increase on VAT from five percent to 7.

5 percent.

Senator Ndume spoke on Thursday with State House correspondents after meeting behind closed door with Vice President Yemi Osinbajo at the Presidential Villa, Abuja.

The visit to the Villa was the first after he contested for the position of Senate President in June against the Senate President, Ahmad Lawan, who was the adopted candidate of the ruling -All Progressives Congress, APC.

 

Ndume, who represents Borno South Senatorial District in the National Assembly, argued that the proposed VAT increase would affect the poor. 

He also kicked against the proposed return of toll gates on the federal highways without putting the roads in good shape. 

 On the proposed return of toll gates, he said, “You see, the state of our infrastructure is of concern; there is virtually collapse in our infrastructure; if the purpose for which the toll gates will be placed will serve the objective of keeping the roads not only motorable but effective and safe, it is a welcome development. 

“Like the Abuja-Kaduna road for example, where there is toll gate, you will be able to place security there and if you place these people there, you have to pay them and the resources is not readily available 

“I am sure every Nigerian travelling for example, say from Lagos to Ibadan,  if you say he is going to pay N100  at each point in four places, you should ensure that number one, the road is good; number two, he will be safe; he can drive without expecting anybody to come and close the road and kidnap or rob anybody. 

“Then, it will make sense to me but for the toll gate to be placed just for the purpose of it, I don’t think that is what the government wants to do; Besides, I heard the minister say that they are bringing private partnership into it;  and that is also good.”

Also commenting on the proposed VAT increment, Senator Ndume said,”I think that increase in VAT is going to have a spiral effect; and it is going to affect the poor more.

“It is true the government is not expanding the revenue base or the tax net that is why I am thinking that anybody that is using telephone here would want to just talk and pay for it of course, but right now, no one will say this is what he is paying for telephone. 

“If the network provider says it is one minute remaining, you start looking for any recharge card but if you are taxed on that, you won’t say you won’t talk again because you are taxed.

“But if you add tax now, the effect will be on everybody and every commodity. Even transportation from one point to another will increase and who is going to pay or who is going to feel it more; it is the poor. 

“So that is why I am saying that we should introduce Communications Service Tax and people will pay for it sometimes even not knowing and government will be able to generate more from that angle; you know the money the service providers are making out of communications.

“So, that is why I sponsored that Bill last time but it didn’t see the light of the day because of time and of course service providers opposed that.

“Let me add one thing. Yes, we have a government; the tax should be paid by those who can; who should or who can afford that tax. Like in Abuja, you see so much property; if you value them, property tax is not being paid and I am not paying too simply because nobody is paying; nobody asked me to pay.

“In Nigeria, for example, the resources is in the hands of few people; why not tax these few people instead of going to tax the poor man that is trying to survive.

“So, this is my position and I think this Communications Service Tax is part of it; ask those that can afford telephone, 60 million of them; why do you tax 200 million people? Tax the 60 million people that can afford it and you get what you want.” 

Senator Ndume said that he was working on a bill to be presented to the senate known as,” Property Tax Bill”. 

According to him, “I am going to do that; I am working on it; I am working on property tax bill. Not only that,  I am working on another bill…maybe it will not see the light of the day; people are having what they can’t explain if they should be asked. The burden of proof should be on that person. 

“If I have a mansion and my income as a senator is not commensurate with that, if you want to fight corruption, you put the burden on me to prove where I got that money.

“In Britain nowadays, it is called Unexplained Wealth Order(UWO), I am working that too; that if you own a car, you explain how you got it;  because of that if you don’t know where to go with what you steal that doesn’t belong to you, you don’t even start.” 

On why he was at the State House, he said, ” I am here to see the Vice President. I come from time to time; I have a relationship, very personal with the Vice President; just like the President too.

“More especially, I come to brief him from time to time on the humanitarian crisis that we are facing because the Vice President is personally passionate about it. You know what he did for us; he has an orphanage that is running very effectively in my area; accommodating over 2000 orphans.

“So, I normally come to discuss with him; he is always very curious about what is going on; so I came to adequately brief him; and of course, you know, in the course of that kind of discussion, you discuss other things which are private and personal.” 

Economy

CBN Takes Steps to Strengthen Banking Sector, Issues Routine Transitional Guidance

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The Central Bank of Nigeria (CBN), has introduced time-bound measures for some banks still completing their transition from the temporary regulatory support provided in response to the economic impact of the COVID-19 pandemic.

According to a statement issued by Mrs Hakama Sidi-Ali, , CBN’s Acting Director, Corporate Communications Department , this is part of its ongoing efforts to strengthen the banking system.

Sidi-Ali said that the step was part of the CBN’s broader, sequenced strategy to implement the
recapitalisation programme announced in 2023.

She said that the programme, designed to align
with Nigeria’s long-term growth ambitions, had already led to significant capital inflows and balance sheet strengthening across the sector.

“Most banks have either completed or are on track to meet the new capital requirements well before the final implementation deadline of March 31, 2026.

“The measures apply only to a limited number of banks. These include temporary restrictions on capital distributions, such as dividends and bonuses to support retention of internally generated funds and bolster capital adequacy.

“All affected banks have been formally notified and remain under close supervisory engagement ” she said.

She said that to support a smooth transition, the CBN had allowed limited, time-bound flexibility
within the capital framework, consistent with international regulatory norms.

“Nigeria generally maintains Risk-Based Capital requirements that are significantly more stringent than the global Basel III minimums.

“These adjustments reflect a well-established supervisory process consistent with global norms. Regulators in the U.S., Europe, and other major markets have implemented similar transitional measures as part of post-crisis reform efforts.

“The CBN remains fully committed to continuous engagement with stakeholders throughout this period via the Bankers’ Committee, the Body of Bank CEOs, and other industry forums,” she said.

She said that the goal to ensure a transparent, Nigeria’s banking sector remained fundamentally strong.

According to her, these measures are neither
unusual nor cause for concern.

She said that they were a continuation of the orderly and deliberate implementation of reforms already underway.

She said that the CBN would continue to take all
necessary actions to safeguard the sector’s stability and ensure a robust, resilient financial ecosystem that supports sustainable economic growth. (NAN)

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Economy

Cybercrime: First Bank Invests N15bn to Protect Systems From hackers in 5 months –CEO

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First Bank HoldCo Plc says it has spent more than N15 billion to protect its systems against criminals between January and June.

Olusegun Alebiosu, the Chief Executive Officer (CEO), First Bank HoldCo Plc, said this in an interview in Abuja on Wednesday.

Alebiosu, who spoke on the sideline of a two-day National Seminar on Banking and Allied Matters for Judges, said the Bank had spent three N3 billion in June to protect its systems.

He said the bank had the best cyber security framework in the country, hence the investment.

The CEO who was speaking on the increasing number of attacks by cybercriminals, especially on banks’ systems, assured First Bank customers of the safety of their monies.

Alebiosu frowned at the rate at which some citizens were involved in cybercrimes, saying the country must move fast to curb their excesses.

”No customer would lose their money in First Bank unjustly.

”If their money is missing in First Bank, First Bank will pay back.

”Before I joined First Bank, I have an account with First Bank.

”One of the reasons why I had an account with First Bank was, I said to myself, if my money is missing, it is the only bank I know I will collect my money without any excuses, ” he said.

Reacting to some customers’ complaints on the delay by the bank to handle cases of fraudulent transactions, Alebiosu said the bank must conduct investigations involving different stakeholders.

The CEO said the delay was caused by the collaboration between the stakeholders involving security agencies and banks where the money was transferred to determine the realities about the cases.

He urged customers to tread carefully in handling and releasing their financial information.

”Customers themselves, most times, also compromise their own security details; I have seen a lot of people that give their cards to somebody to help them withdraw money from their ATM.

”They compromise their password so, when something happens and you say, my money disappeared, you forget the day you gave your card to someone else and they can use that to transfer your money.

”Some people compromise even their own ID on the system carelessly, some give their Bank Verification Number (BVN) and they use it against them.

”Now, why does it take time for the bank to react, everything you give to the bank, the bank has to investigate it.

”The money might have gone to other banks so, you start tracking from other banks but

Sometimes customers are impatient,” he said.

On frauds allegedly perpetrated by staff, he said the bank had internal employee fraud software, that monitors activities of employees on the system.

According to him, if you know how many of our staff we sack on a monthly basis, you won’t believe me.

”So if there are triggers, people will be involved. It is for us to run faster than them, and see how we can help to stop these kinds of things in our system but wherever we see it, we deal with it decisively, ” Alebiosu said.

He said that various stakeholders including the banks, law enforcement agencies and the judiciary had a role to play in curbing cybercrimes. (NAN)

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Economy

GTCO Begins Deduction of USSD Fee From Airtime Balance

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Guaranty Trust Holding Company (GTCO), says it will begin the deduction of Unstructured Supplementary Service Data (USSD fee from the airtime balance of its customers from June 18.

The bank in a message to its customers on Wednesday, said the N6.98 fee would no longer be deducted from customers’ bank account balance.

”Dear Customer, please be informed that effective June, 18, the N6.

98 USSD fee will be deducted from your airtime balance, no longer from your bank account”.

The Nigerian Communications Commission (NCC) had directed deposit money banks (DMBs) to stop deducting charges for USSD transactions directly from customers’ accounts. (NAN)

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