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FG Set Up Ministerial Task Force On DSO

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Joel Ajayi

Federal Government , has inaugurated a 13-member ministerial task force to drive the Digital Switch Over DSO process in the broadcasting sector.

The Minister of Information and Culture, Lai Mohammed inaugurated the task force at a press briefing on Tuesday in Abuja.

The minister himself is chairing the task force.

He said, “With the payment approval by FEC, and with 31 states to cover, we have our work cut out for us

According to him, today marks the third year that we last launched the DSO in any state, and that was in Osun State on Feb. 23rd, 2018. You will recall that we launched the pilot program in Jos, Plateau State, on April 30th 2016, followed by Abuja on Dec. 22nd, 2016, then Ilorin, Kwara State, on Dec. 20th 2017; Kaduna two days later on Dec. 22nd 2017, Enugu on Feb. 12th 2018 and finally, as I said earlier, Osogbo on Feb. 23rd 2018.

“With the payment approval by FEC, and with 31 states to cover, we have our work cut out for us. We have no more excuses for not rapidly rolling out the DSO across the country, hence my decision to set up a 13-member Ministerial Task Force, which I will personally chair, to take charge of the rollout.

“Before I announce the composition of the Task Force, let me make some comments about the DSO process. At a stakeholders’ meeting here on Aug. 25th 2020, I said we will be pursuing a private-sector driven DSO, that there will be no more subsidies, either of Set-Top-Boxes or of Signal carriage, and that the process must be self-sustaining. I want to reiterate that point today.

“We have studied the trend and it is clear that we have to reduce government involvement in the DSO ecosystem and allow the private sector to take the lead, on purely commercial terms. With the devastating effects of Covid-19 and the fall in government revenues, the Federal Government can no longer afford to subsidize the program, especially the Set-Top-Boxes and the Signal carriage, which ordinarily can and should be highly-competitive commercial ventures. And in order to begin the commercialization of the DSO, we need to create a structure and an ecosystem that is self-sufficient, self-reliant, and able to generate revenue which will drive strategic growth in key areas. The details of that structure are for the Task Force to explore.

“We have no more excuses for not rapidly rolling out the DSO across the country, hence my decision to set up a 13-member Ministerial Task Force, which I will personally chair, to take charge of the rollout.”

He listed members of the task force and the organizations they represent as :  Prof. Armstrong Idachaba (National Broadcasting Commission);  Edward Amana (Digiteam); Tunde Adegbola (Digiteam); Sa’a Ibrahim (Broadcasting Organisations of Nigeria);  Sadeeq Musa (ITS); and Godfrey Ohuabunwa (Set-Top-Box Manufacturers); who is also standing in for the BON Chair.

Others are Lekan Fadolapo (APCON); Aisha  Omar ( Ministry of Finance, Budget and National Planning); J. O. Attah (Nigeria Customs Service);  Nnanna Ibom ( Ministry of Information and Culture); Olusegun Yakubu (Pinnacle Communications); and Joe Mutah ( Ministry of Information and Culture) who will serve as Secretary.

The Ministerial Task Force, saddled with the responsibility of driving the Federal Government’s Digital Switch Over project, is hereby inaugurated.

“Ladies and gentlemen, I thank you all for agreeing to serve on this Task Force.

The success of the Digital Switch Over process now rests on your shoulders. He charged.

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Tax Reform Bills: The Verdict of Nigerians

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Ismaila Ahmad Abdullahi Ph.D

The public hearings conducted recently by the two Chambers of the National Assembly have elicited positive responses from a broad spectrum of Nigerians, cutting across regional interest groups, government agencies, civil society groups, concerned individuals, the academia, and Labour Unions, among diverse others. Contrary to a few dissensions hitherto expressed in the media, almost all the stakeholders who spoke during the week-long sessions were unanimous in their declaration that the hallowed Chambers should pass the tax reform bills after a clean-up of the grey areas.

The public hearings were auspicious for all Nigerians desirous of economic growth and fiscal responsibility. They were also a watershed moment for the Federal Inland Revenue Service, which had been upbeat about the tax reforms. Indeed, the public hearings had rekindled hope in the tenets of democracy that guarantee freedom of expression and equitable space for cross-fertilisation of ideas. Without gainsaying the fact, the tax reform bills have been unarguably about the most thought-provoking issues in Nigeria today, drawing variegated perspectives and commentaries from even unlikely quarters such as the faith-based leaders, student bodies, and trade unions, which speaks much about the importance of the bills.

In the build-up to the public hearings, not many people believed that the bills would make it to the second reading, much less the public hearings. Even the Northern stakeholders who seemed unlikely to support the passage of the bills have softened their stance and have given valuable suggestions that would enrich the substance of the bills. The Arewa Consultative Forum came to the public hearings well-prepared with a printed booklet that addressed their concerns. It concluded with an advisory that the bills should be “Well planned, properly communicated, strategically implemented and ample dialogue and political consensus allowed for the reforms to be accepted.”

The concerns of ACF ranged from the composition of the proposed Nigeria Revenue Service Board as contained in Part 111, Section 7 of the bill, the unlimited Presidential power to exempt/wave tax payment as proposed in Section 75(1) of the bill, the family income or inheritance tax as contained in Part 1, Section 4(3) of the bill, to the issues around development levy and VAT. On the development levy, the ACF stated that unless the Federal Government is considering budgetary funding for TETFUND, NASENI and NITDA, it does not see the “wisdom behind the plan to replace (them) with NELFUND”.

The position of the North was equally reinforced by the Supreme Council for Shariah in Nigeria, Northern Elders Forum, Kano State Government, Professor Auwalu Yadudu, and the FCT Imams. Like the ACF, these stakeholders lent their respective voices to the Section on the Inheritance Tax in Part 1 of the bill and the use of the term ‘ecclesiastical’, which, in their views, undermines certain religious rights and beliefs. The Kano State Government, represented by Mahmud Sagagi, affirmed that “we support tax modernisation” but cautioned that “we must ensure that this process does not come at the expense of states’ constitutional rights and economic stability”. Professor Auwalu Yadudu, a constitutional law professor, drew attention to the use of the ‘supremacy clause’ and cautioned that the repeated use of “notwithstanding” in the bills would undermine the supremacy of the Nigerian constitution if passed as such.

Other stakeholders that made contributions at the sessions included the Nigeria Liquefied Natural Gas, Fiscal Responsibility Commission, Revenue Mobilisation Allocation and Fiscal Commission, Federal Ministry of Industry, Trade and Investment, Institute of Chartered Accountants of Nigeria, Chartered Institute of Taxation of Nigeria, Nigeria Customs Service, and a host of others. While most of their concerns bordered on technical issues requiring fine-tuning, they were unanimous in their support for the bills. They aligned with the position of the Executive Chairman of the Federal Inland Revenue Service, Zacch Adedeji, Ph.D. and the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr Taiwo Oyedele, which is that the extant tax laws and fiscal regulations are obsolete necessitating reforms aimed at creating a fair and equitable tax and fiscal space to grow Nigeria’s economy.

In one of the sessions, Dr Zaach Adedeji expounded on the criss-cross of trade activities in the Free Trade Zone whereby companies misuse tax waivers as exporters to sell their goods or services in the Customs Area at an amount usually less than the price the operators in the Customs Area who pay VAT and other taxes sell theirs thereby disrupting business transactions. This way, the operators in the Free Trade Zone shortchange the government in paying their due taxes by circumventing extant regulations, which are inimical to the economy’s growth.

Overall, the presentations were forthright, foresighted, and helpful in elucidating the issues contained in the bills. According to the statistics read out at the end of the hearings at the Senate, 75 stakeholders were invited, 65 made submissions, and 61 made presentations. At the House of Representatives 53 stakeholders made presentations. By all means, this is a fair representation. Given the presentations, it is evident that the National Assembly has gathered enough materials to guide its deliberations on the bills. As we look forward to the passage of the bills, we commend the leadership of the National Assembly for their unwavering commitment to making the bills see the light of the day.

Abdullahi is the Director of the Communications and Liaison Department, FIRS.

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