Court orders staff member to forfeit properties acquired with stolen money to FIRS

EFCC investigations revealed that between 2017 and 2018, Garunbaba received the sum of N341, 971,960.00 as Duty Tour Allowance for journeys he never undertook Garunbaba also personally converted to his use the sum of N148, 079,450.00 EFCC operative said in 2018, Garunbaba purchased the four bedroom terrace maisonette from Barumark Investment and Development Company Ltd (Barumark) at the rate of N65,000,000.00 (sixty five million naira). The Federal High Court in Abuja on Thursday, ordered the final forfeiture of two property linked to a staff member of Federal Inland Revenue Services (FIRS), Aminu Garunbaba, to the Federal Government. The property include a four bedroom terrace maisonette with BQ at Barumark Groove Estate, Plot 667, Cadastral Zone, BO3, Wuye District, Abuja and bought by Garunbaba in the name of MYZ Venture. The second property, located at No. 5, Lodge Road, Kano in Kano State, was said to have been purchased also by Garunbaba. Justice Obiora Egwuatu, in a judgment, held that Garunbaba failed to show the instrument he used to purchase the property. Justice Egwuatu held that the respondent also failed to show any reasonable cause that the funds used in purchasing the property is from his legitimate earnings. “A person cannot be allowed to benefit from illegitimate acts,” he said. The judge earlier dismissed the preliminary objection filed by Garunbaba on the grounds that the objector did not discharge the burden to proof that the particular paragraphs in the EFCC’s application offended the Evidence Act. He  agreed with counsel to the Economic and Financial Crimes Commission (EFCC), Martha Babatunde, that a public officer can be investigated and prosecuted before an administrative disciplinary action is taken. The EFCC had, in the suit marked: FHC/ABJ/CS/876/2021 filed by Ekele Iheanacho, SAN, sued Aminu Sidi Garunbaba as sole respondent. In the motion on notice dated March 16, 2022 but filed on March 21, 2022, the anti-graft agency prayed for final order of the court “forfeiting the properties described in Schedule 1 which were found by the commission on the respondent as properties reasonably suspected to be proceeds of unlawful activities.” Giving four grounds, the commission  argued that the court had the statutory powers under the provision of Section 17 of the Advance Fee Fraud and Other Fraud Related Offences Act, 2006 to grant the reliefs being sought. It said: “The properties sought to be attached and forfeited are reasonably suspected to be proceeds of unlawful activities. “The interim order of this honourable court has been published in two national dailies namely: THISDAY and PUNCH Newspapers. “No cause or sufficient cause has been shown why the properties under the interim forfeiture should not be finally forfeited to the Federal Government of Nigeria.” In the affidavit in support of the motion deposed to by an operative of the EFCC, Apagu Wudah, the officer said several investigations were carried out regarding the assets. He said as an investigating officer with the Economic Governance Section of the agency, he was assigned to investigate an intelligence report bordering on criminal conspiracy, stealing, abuse of office and money laundering among some FIRS Wudah said the investigation revealed that between 2017 and 2018, Garunbaba and some of the staff of the FIRS conspired amongst themselves and obtained millions of Naira from the FIRS under the guise of Duty Tour Allowances (DTA) which they never travelled for. He said in the execution of the fraud, the staff involved applied for DTA in respect of a non-existing trip. According to him, upon being paid the DTA, the staff would deduct 10% to 15 per cent  of the amount paid as his/her share, while the rest amount was withdrawn and transmitted to other senior officials of the agency who in turn also retained some while passing the rest up to the former Director of Finance and the Coordinating Director. “The respondent (Garunbaba) not only directly applied and received DTA payment for none existing trips from FIRS, other staff who received these fraudulent payments also handed over to him part of their own money.” The investigator said between 2017 and 2018, Garunbaba received the sum of N341, 971,960.00 (three hundred and forty one million, nine hundred and seventy-one thousand, nine hundred and fifty naira) from the misappropriated DTA payments. He said Garunbaba also personally converted to his use the sum of N148, 079,450.00 (one hundred and forty eight million, seventy nine thousand, four hundred and fifty naira). “The respondent gave details of the various funds he received in the fraudulent scheme and how he utilised some of them in his extra l-judicial statements to the applicant,” he averred Wudah said Garunbaba, in explaining how he shared part of the entire funds, wrote in his extra-judicial statement made in the presence of his legal representative on May 23, 2019  some startling revelations. He said the respondent revealed that the total sum of N269, 335, 750 was giving as follows: Peter Hena, 145,000,000; Bello Auta, N95, 000,000; and Aminu Sidi, N29, 336,750. He said Garunbaba confessed that the money was giving in cash at the FIRS office.  The investigator said Garunbaba received part of the above diverted funds through his Stanbic IBTC Bank account number: 9301540597 while the rest were in cash from other staff. He said Garunbaba also converted most of these funds into US dollars through a Bureau De Change Operator — Mr. Wan Jafar Shehu. “According to Mr. Shehu, between 2017 and 2019, the respondent gave him a total sum of about N216, 000, 000 at different occasions for him to exchange into United States Dollars which he did” Wudah said. The EFCC operative said in 2018, Garunbaba purchased the four bedroom terrace maisonette from Barumark Investment and Development Company Ltd (Barumark) at the rate of N65,000,000.00 (sixty five million naira). He said the money was paid through his First Bank account number: 3040986059 to Barumark’s First Bank account. He said Garunbaba equally purchased the property situated at No.5 Lodge Road in Kano State at the sum of N39, 000,000.00 (thirty nine million naira)

FIRS gets plaudits from NASS for collecting N21.6trn in tax revenue

The amount collected is N2.2trillion higher than the N19.4trillion collection target the Federal Inland Revenue Service (FIRS) set for itself for 2024. The National Assembly has therefore, lauded the Executive Chairman of FIRS, Mr Zacch Adedeji, for exceeding the 2024 revenue collection target of N19.4 trillion. FIRS generated N21.6 trillion, surpassing the target by N2.2 trillion. The commendation came during a meeting on Wednesday in Abuja, where the FIRS chairman appeared before the joint committee on Finance to defend the service’s revenue projections for 2025. The committee proposed a N25 trillion revenue generation target for FIRS in the coming fiscal year. Deputy Chairman of the House of Representatives Committee on Finance, Saidu Abdullahi, was the first to commend Adedeji’s performance, calling it “unprecedented” and “worthy of commendation.” “The feat achieved by FIRS in revenue collection for 2024 was unprecedented and truly commendable. “Surpassing the target set for the agency in the 2024 Appropriation Act, from N19.4 trillion to N21.6 trillion, is both encouraging and impressive,” he said. READ ALSO: New tax bill will ease burden on workers – FG replies NLC He encouraged the FIRS to study the tax collection methods of South Africa, which generated higher tax revenue, and to focus on expanding the taxable base to include more informal sector workers. Sen. Joel Onowakpo emphasised that tax collection was a global norm, and advised the committee to raise FIRS’s projected 2025 revenue target to N30 trillion. Similarly, Sen. Binos Yeroe lauded Adedeji’s innovative approach in surpassing the 2024 target. “Your performance in 2024 was highly commendable, and I hope you continue to maintain this level of success,” he said. Rep. Etanabene Benedict suggested aiming for N60 trillion in 2025 to avoid borrowing. Committee chairmen also supported the proposed N25 trillion revenue goal for 2025; with Sen. Sani Musa stating that it was both “achievable and surpassable.”

Reps demand 2024 budget breakdown, audited accounts of TETFund

The House of Representatives has directed the Tertiary Education Trust Fund (TETFund) to provide a detailed breakdown of its 2024 allocations. The House also instructed TETFund to refrain from disbursing or authorising any funds until the detailed breakdown of its proposed 2025 budget has been scrutinised and approved by the House. It also urged TETFund to present the 2025 budget estimates to beneficiary institutions before further implementation. READ ALSO: 50 Apprehended manhole vandals shall be prosecuted – Wike Furthermore, the House mandated the FIRS to submit a list of Education Tax payers and the total yearly amounts collected from 2011 to date. This resolution followed the adoption of a motion by Rep. Sulaiman Gumi (PDP-Zamfara) on the floor of the House in Abuja on Tuesday. Presenting the motion, he noted that Section 1 of the TETFund Act, 2011, authorises the assessment and collection of the Education Tax from the assessable profits of all companies registered in Nigeria. He further stated that the tax is to be assessed and collected by the Federal Inland Revenue Service (FIRS) for remittance to TETFund. READ ALSO: Government raises alarm as Bello Turji’s attack escalate in Sokoto, Zamfara He added that TETFund, among other statutory responsibilities, is tasked with administering and disbursing the tax funds to eligible public tertiary institutions for the advancement of education, knowledge, and skills. The lawmaker expressed concern over reported cases of discrepancies in tax collections, accruals, remittances, transfers, and issues surrounding the judicious utilisation and equitable disbursement of the Education Tax Fund. He added that TETFund’s 2024 budget lacked the necessary breakdowns and details of its expenditures and approved guidelines required for legislative scrutiny, as stipulated by law. READ ALSO: Peter Obi and Tinubu’s, APC’s morbid line Adopting the motion, the House directed TETFund to submit reports of audited accounts of the fund, along with the receipts of beneficiary institutions, from 2018 to date. The Committee on TETFund and other relevant committees were tasked with implementing the resolutions and reporting back to the House within four weeks.

Tax Reforms Will Simplify System, Maintain Key Agencies – Presidency 

Further to ongoing debate on proposed tax reform bills, the Presidency said yesterday, that opposition to the legislation were sparked misinformation, with critics misinterpreting key aspects of the legislation.  Contrary to claims, the presidency has revealed that the bills do not propose dismantling agencies like NASENI, TETFUND, or NITDA. Instead, they aim to streamline the nation’s complex tax system, easing the burden on businesses while ensuring sustainable funding for these organizations.   The reforms focus on consolidating multiple taxes into a single levy, simplifying compliance for businesses and improving the overall economic environment.  This shift will allow government agencies to access funds through budgetary allocations and other sources, ensuring their continued operation.   The current tax structure, criticized for overburdening businesses and discouraging investment, has driven some companies to relocate.  The new approach seeks to address these challenges, fostering economic growth and ensuring equitable development across all regions.   President Tinubu has encouraged stakeholders to engage constructively through the National Assembly’s planned public hearings, emphasizing the importance of informed contributions to the reform process.

CBN Clarifies Status of Cybersecurity Levy

FG’s Fiscal Deficit To Further Decline In Q3, Q4 -MPC

The Central Bank of Nigeria (CBN) has denied reintroducing the cybersecurity levy which collection was recently suspended. The levy, initially mandated at 0.5 percent for banks to collect on behalf of the National Security Adviser, was put on hold following backlash from the public and a directive from the Federal Executive Council.   Despite ongoing rumors suggesting the levy’s reintroduction, the CBN firmly denied these claims in its recent Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for the 2024-2025 fiscal years.   In a circular issued on September 17, the CBN addressed misunderstandings surrounding its guidelines, stating that the document reflects prior policies up to December 31, 2023.   The CBN reiterated that the cybersecurity levy, suspended in May 2024, is no longer applicable, and stressed the importance of accurate reporting regarding its policies. The bank encouraged stakeholders to seek clarification before disseminating information.  

Again Nigeria’s inflation rate eases in August

Retain SSB Tax In 2024 Fiscal Policy, CSOs Tell FG

BREAKING! Again Nigeria’s inflation rate eases in Augus Nigeria’s annual inflation rate eased again in August after a persistent rise in nearly two years. Inflation rate eased further to 32.15 per cent in August 2024 relative to the July 2024 headline inflation rate of 33.40 per cent, the National Bureau of Statistics (NBS) announced Monday. Inflation indicators compare prices of goods and services in 12 months. A decline does not necessarily imply a reduction in prices; instead, it shows the rate of price increase had fallen compared to previous months. According to the NBS food inflation was 37.52 per cent in August 2024 as against 39. 53 per cent recorded in July.

CBN directs payment service providers to begin PoS transaction tracking

The Central Bank of Nigeria has directed all Payment Service Providers to route all transactions from PoS terminals at merchant and agent locations through an approved CBN Payment Terminal Service Aggregator. The Apex Bank explains that this directive is without prejudice to whether such transaction was physical or electronic. It also issued a 30-day deadline requiring service providers to comply with enhanced routing guidelines for Point of Sale transactions. This move aims to strengthen the monitoring of electronic transactions across Nigeria and decentralise PoS transaction routing, addressing concerns about the centralisation of such transactions under a single entity. The apex bank, in a circular signed by Oladimeji Yisa Taiwo on behalf of the CBN’s Payments System Management Department on Thursday, stated that all PoS transactions from merchant and agent locations must now be routed through any CBN-licensed PTSA. The circular read, “To achieve the objective of tracking electronic transactions in Nigeria, the Central Bank of Nigeria, in August 2011, granted a Payment Terminal Service Aggregator license to Nigeria Interbank Settlement System Plc. In furtherance of the above, the CBN hereby directs acquirers to route all transactions from PoS terminals at merchant and agent locations, whether on physical or electronic PoS terminals, through any CBN-licensed Payment Terminal Service Aggregator.” “PTSAs are required to send PoS transactions to only processors certified by the relevant Payment Scheme, nominated by the Acquirer, and licensed by the CBN.” This development follows the expiration of the 5th September deadline for PoS agents to formally register their businesses with the Corporate Affairs Commission. Although the directive was challenged in court, the CAC recently announced that it has commenced taking drastic actions, including shutting down PoS businesses that failed to register. The directive on PoS business registration comes against the backdrop of frequent fraud incidents involving PoS terminals and the Central Bank of Nigeria’s plans to prevent trading in cryptocurrency or virtual currency. According to a report by Nigeria Inter-Bank Settlement System Plc, PoS terminals accounted for 26.37% of fraud incidents in 2023

Tax Tribunal Orders MTN To Pay FIRS $72.6m

Tax Tribunal Orders MTN To Pay FIRS $72.6m

It was a win-win situation for both MTN Nigeria and the Federal Inland Revenue Service (FIRS) as the Tax Appeal Tribunal sitting in Lagos ordered the telecommunications giant to pay the sum $72,551,059 in unpaid tax but ruled that it is not liable to pay $21,039,807 as penalties and interest on the principal tax amount. The amount is said to be unpaid taxes between 2007 and2017. The verdict was delivered by a five-person panel led by Professor A. B. Hamed in response to an appeal (TAT/LZ/VAT/075) filed by MTN Nigeria against the FIRS’s request for payment of the outstanding tax. The case arose from a report issued by the Office of the Attorney General of the Federation in May 2018, which investigated MTN’s Forms A and M transactions covering the accounting years from 2007 to 2017. A revised report in August 2018 adjusted the alleged outstanding import duty and value-added tax (VAT) to N242.2 billion for Form M-visible transactions and $1.284 billion for Form A-invisible transactions. In July 2021, the FIRS issued a VAT assessment of $93,590,366 million to MTN Nigeria, comprising $72,551,059 million as the principal liability and $21,039,807 million for penalties and interest on the principal sum (first assessment). MTN Nigeria objected to the first assessment, leading to a further review by the FIRS. In a notice of assessment dated April 14, 2022, the FIRS issued a revised assessment of $135,697,755 million to MTN. While the principal tax liability in the revised assessment was lower than the first assessment at $47,776,210 million, the interest and penalty imposed by the FIRS in the revised assessment were higher at $87.9 million. MTN Nigeria lodged an objection to the revised assessment, which was refused by the FIRS in a letter dated June 16, 2022.  The Tax Appeal Tribunal, after considering all the submitted documents and citing legal authorities, ruled in favour of the FIRS on issues one to four and ordered MTN to settle the assessed tax liabilities. However, it ruled in favour of MTN on issue five, which concerned penalty and interest, and set aside the related penalties. MTN has been ordered to pay the assessed tax liability of $72,551,059 while being relieved of the associated penalties and interest.