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Nigeria Loses over N40 Trillion to Tax Incentives – CISLAC
Auwal Ibrahim Musa (Rafsanjani), executive director, Civil Society Legislative Advocacy Centre (CISLAC), on Monday, called for robust legislative instruments that will block leakages through tax incentives, which has led to the loss of over N40 trillion in revenue.
He gave the charge in Abuja, during the opening of a two-day sensitization and capacity-building workshop on “Identifying and strengthening legislative pathways for reforming tax expenditure governance in Nigeria” organized by CISLAC in collaboration with the National Institute of Legislative & Democratic Studies (NILDS).
“Nigeria is losing a lot of billion nairas to suspicious and dubious tax waivers, concessionaires, tax holidays, and what have you… But unfortunately, these resources are being diverted or stolen.
“Given that Nigeria is always going to borrow money, and even when we borrow it, it’s not being complied with based on our fiscal responsibility law.
“The projects that Nigeria always say they are borrowing money to do, we hardly see those projects being executed. So, we did not need to go and borrow money, when we had a lot of money that we should have utilized domestically. N40 trillion is a huge amount of money.
“Therefore, there’s no reason why Nigeria should continue to go and be borrowing money when we are losing a lot of money that we could have saved for development.
“The oil thefts have continued to happen in this country, the authorities are aware of that, but no serious action has been taken to block that.. therefore, money laundering and illicit financial flow are all part of what is crippling the economy.
“Currently, many factories have closed down because there’s no power and the environment which the business will also thrive is also marred with a lot of corruption. So, a lot of jobs are being lost on regular basis in this country, increasing the number of unemployed people, increasing the number of poverty in the country and therefore we believe that it is important as a responsible citizen, we should do everything possible to support the sincere efforts of government to block leakages,” he noted.
While noting that taxation remains the most viable and reliable fiscal policy tool for revenue mobilization towards sustainably financing development, he averred that Nigeria has “long explored a Tax expenditure regime to realize significant growth and development in pioneer industries, and foreign direct investment.
“In principle, tax waivers, concessions and exemptions are sound and ideal arrangements both as economic tools and from the viewpoint of competitive international trade. This is because local businesses/industries must be positioned to improve their fortunes and attain international competitiveness.
“However, the Nigerian case appears plagued with challenges, including abuses observable to the Nigerian public. According to the Global Tax Expenditure Database 2020 report, Nigeria had a Tax Expenditure of N5.84 trillion (3.8% of its GDP), just over 50% of its 2020 budget. Similarly, the Federal Government noted that the Tax Expenditures in 2021 amounted to N6.68 trillion, approximately 4 per cent of the GOP.
“Reports of indiscriminate waivers and concessionary approvals have all contributed to questioning this government initiative’s bearing and economic sustainability.
“The law regulating the granting of incentives places enormous discretionary powers to the Executive arm of government. The governance of the incentive regime is also, at best, opaque and lacks the scrutiny necessary to guarantee transparency and accountability in the process, leading to a situation where the supposed benefits are not optimized. The offer of these incentives, though put in place presumably to grow the economy, is not without associated costs.
“Recent studies have shown that investors do not see these incentives as key factors to attract inbound investments and tend to be injurious to the economies of implementing countries in the long run. This is as it is seen to reduce the propensity to generate needed resources for providing socio-economic services, encouraging local industrial revolution and gross domestic production, growth and national development.
While acknowledging that the 10th Assembly has reportedly launched over 50 probes into the alleged mismanagement of funds and other infractions by MDAs, including the recent House probe into the N14 trillion revenue loss to tax incentives, waiver abuses by public institutions and companies benefitting from such incentives, he lamented that these investigative hearings “are yet to yield any significant prosecutorial actions and/or outcomes as the National Assembly lacks the constitutional power to prosecute erring officials.”
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TEDxPAU 2024: Exploring New Possibilities and Shaping Tomorrow
TEDxPAU 2024 brought together some of the brightest minds and boldest voices on November 16th at the Honeywell Auditorium, Lagos Business School. With over 500 attendees eager to explore new possibilities, the event’s theme, ‘Shaping the Future,’ set the tone for a day filled with inspiration, reflection, and transformative ideas.
The day opened with a TED talk by TED founder Chris Anderson, followed by welcome remarks from the Vice-Chancellor of Pan-Atlantic University, Prof. Enase Okonedo. She encouraged the audience to embrace the theme, saying, “The future is now, and it is up to all of us to join hands to shape tomorrow.”
The sessions featured inspiring talks from visionaries like Akose Enebeli, who emphasized sustainable urban living by “building upwards instead of outwards,” and Goodnews Igwe, who stressed that creating value is key to success.
Temitope Runsewe championed Africa’s family values as a foundation for economic recovery, describing family businesses as “the future of Nigeria.” Prof. Fabian Ajogwu, SAN, advocated for affordable education to drive literacy and digital skills, while Michael Oluwagbemi sparked intrigue with his bold statement that “CNG is the new garri,” promoting energy innovation.
Ziad Maalouf shared leadership insights, underscoring personal growth as the key to scaling success.
Adesuwa Ifedi, Senior Vice President at Heifer International, spoke about the significance of scaling innovation from the inside out, urging organizations to embrace change-driven solutions. Dr. Peter Bamkole, Deputy Vice Chancellor of PAU, described entrepreneurship as “a catalyst for systemic change,” calling for the transformation of problems into solutions with far-reaching impact.
Dr. Cosmas Maduka, who shared his journey from adversity to global success, inspired the audience to embrace their gifts and believe in limitless possibilities.
The event ended with a fireside chat between TEDxPAU organizer Bella Victor and Dr. Maduka, who spoke about the importance of legacy and purpose. He encouraged attendees to see themselves as part of Nigeria’s solution and to embrace both the challenges and triumphs of the country’s journey.
Beyond the talks, TEDxPAU 2024 captivated attendees with musical performances, a spoken word piece, and a high-energy dance performance by different talents from the university.
The event also recognized its sponsors and volunteers, thanking them for their critical role in making the day a success.
In his closing remarks, Bella Victor expressed heartfelt gratitude, stating: “TEDxPAU was founded with the goal of giving back to this incredible school and creating a 360-degree impact—supporting our students, raising awareness for our school, and giving innovators a platform to reach a global audience. It’s inspiring to see how this event has grown and how each of you have played a part in that mission today. I thank our speakers, sponsors, volunteers, and every attendee who believed in this vision. Together, we are shaping the future.”
Attendees also enjoyed networking opportunities during breaks, sponsor exhibitions, and a private lunch for VIP ticket holders, who engaged in deeper conversations with the speakers about shaping tomorrow.
TEDxPAU 2024 once again reaffirmed its commitment to “ideas worth spreading” and left attendees inspired to take action. For recordings of the event and updates on future editions, stay tuned.
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Head of Civil Service Celebrates 100 Days in Office with the Launch of Galaxy Backbone’s “Govmail”
In a landmark moment for Nigeria’s public service, the Head of Civil Service of the Federation, Mrs. Didi Esther Walson-Jack, OON, MINI, today marked her 100 days in office and officially launched three digital services platforms for the Civil Service.
These include, Govmail, ServiceWise GPT and the Federal Civil Service Online Portal. These platforms, underscore President Bola Ahmed Tinubu’s administration’s commitment to enhancing digital governance and driving innovation across the nation’s Federal Civil Service.
Govmail, an email platform developed and powered by Galaxy Backbone (GBB) is an innovative solution set to enhance communication, boost efficiency, and accelerate Nigeria’s digital transformation journey within the public sector.
Speaking at a meeting where the Govmail Interface was first officially presented and demonstrated to her, the Head of Civil Service expressed her excitement about the platform, stating, “GBB’s Govmail is unbelievably WOW!
This is a game-changer for our nation’s civil service, streamlining communication and creating a secure path to other government digital services. With Govmail, we are truly embracing the future of digital governance.”
Govmail is a secure, Nigeria-centric email platform designed by a team from Galaxy Backbone, exclusively for public service professionals. It ensures that all official communication are seamlessly managed while safeguarding Nigeria’s data sovereignty. The initiative emerged as a key outcome of the Digitalisation War Room, established by Mrs. Walson- Jack, to drive the implementation of cutting-edge digital solutions in government.
Commenting on this milestone, Professor Ibrahim A. Adeyanju, Managing Director/CEO of Galaxy Backbone, shared, “We are immensely proud to have developed this revolutionary platform, ensuring that every Nigerian civil servant has access to a robust and secure communication channel.
Govmail is not just about email—it’s about enabling productivity, efficiency, and sovereignty in governance. Galaxy Backbone remains committed to driving the digital transformation of Nigeria’s public sector.”
The Permanent Secretary, Federal Ministry of Communications, Innovation & Digital Economy, Engr. Faruk Yusuf Yabo emphasized the strategic importance of the Govmail for the nation’s Civil Service stating that “Govmail significantly reduces the government’s reliance on foreign email platforms, cutting costs and addressing licensing challenges. This is a commendable achievement by the Head of Service and the leadership of Galaxy Backbone.”
Through GBB’s dedicated efforts, Govmail will rapidly roll out email accounts to over 70,000 Federal civil servants across Nigeria, ensuring every government professional is equipped with a secure communication platform in record time. This initiative aligns with Nigeria’s goal of leveraging technology to build a digitally driven and globally competitive public service.
News
Senate Approves New $2.2Bn External Borrowing for Nigeria
The Senate has approved the new external borrowing plan request of $2.2 billion presented for consideration by President Bola Tinubu.
The approval followed the adoption of the report of the Senate Committee on Local and Foreign Debts at the plenary session on Thursday.
The report was presented by the Sen. Aliyu Wammako, chairman of the Committee.
President Bola Tinubu had on Tuesday, Nov 19, in separate letters to both chambers of the National Assembly, requested approval of a $2.2 billion external borrowing plan to part fund the N9.7 trillion deficit in the 2024 budget .
Senate upon receipt of the request, mandated its committee on local and foreign debts to expeditiously ensure further legislative inputs on the request and report back within 24 hours.
Presenting the committee‘s report, Wammako said the presidential request was very necessary for approval.
He said the loan request would be utilised for execution of ongoing projects and programmes in the 2024 appropriation act , saying that the projects were critical for national growth and development.
“It will contribute to the implementation of the debt management strategy, which seeks to reduce the cost of borrowing.
” It will lengthen maturity of the public debt stock, free – up space in the domestic market for other borrowers, and help increase Nigeria’s external reserves .” Wammako said Nigeria could raise all or part of the 2.2billion dollars through the issuance of Eurobonds in the International Capital Market ( ICM) .
Wammako thereafter is recommended as follows:
“That the Senate do approve the implementation of the new external borrowing of 2.2 billion dollars at the budget exchange rate of one dollars to N800 in the 2024 appropriation act and that the amount should be raised from one or more sources.
“Namely, issuance of eurobonds in the ICM, issuance of debut sovereign Sukuk in the ICM, and bridge, syndicated loans, subject to market conditions.”
The report was thereafter unanimously approved via an affirmative voice vote.
In his remarks after the approval, Senator Jibrin Barau, deputy president of the Senate, who presided plenary, commended the Wammako led committee for a job well done.
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