Development Bank of Nigeria (DBN)…

DBN (Development Bank of Nigeria)

Development Bank of Nigeria (DBN) was conceived by the Federal Government of Nigeria in collaboration with the World Bank, African Development Bank, German Development Bank (KfW), French Agency for Development and European Investment Bank to address.

DBN was established to bridge the gaps created by Bank of Industry (BOI) and the commercial banks that could not satisfy the funding needs of the MSME ( Micro, Small, Medium Enterprise). DBN introduction is meant to enhance Private Investment activities.

The Ministry of Finance stated that about 20,000 beneficiaries will be given loan during it’s first year of operations

Development Bank of Nigeria exists to alleviate financing constraints faced by Micro, Small and Medium Scale Enterprises (MSMEs) and small corporate in Nigeria through providing financing, partial credit guarantees and technical assistance to eligible financial intermediaries on a market-conforming and fully financially sustainable basis.

The Development Bank of Nigeria (DBN) was set up as a wholesale development finance institution (DFI) to provide sustainable financing through eligible Participating Financial Institutions (PFIs), who would in turn, lend to end-borrowers – Micro, Small and Medium Enterprises (MSMEs) for the development of that segment….

Who qualifies for the DBN loan?

All MSMEs (start up or existing) involved in productive enterprises are eligible for the loan. However, they must be customers of eligible financial institutions.

Loan Repayments and interest rate

DBN loan repayment tenure is flexible (up to 10 years with a moratorium period of up to 18 months) and the interest rates are on a market-conforming and fully financially sustainable basis. (should you have any issues with your PFI, kindly send feedback to the email ID at the end of this piece).

How to get a DBN Loan

DBN loans can be accessed through PFIs, which include Commercial Banks, Microfinance Banks, Development Finance Institutions (DFIs) and other Financial Institutions.

To access the loan:

1. Visit your bank:

Commercial Bank, Microfinance Bank, Development Finance Institution (DFI) and other Financial Institutions and indicate you want to apply for a DBN Loan.

2. The Bank appraises the business and loan purpose, and if its assessment is favourable, the Bank applies to DBN on your behalf for funding.

3. If DBN approves the loan, DBN will disburse to the Bank for on-lending to end borrowers.

You can access the DBN loan through any of these PFIs by contacting any of the banks listed below:

DiamondBank Olc

Ayodele Olojede – aolojede@diamondbank.com

Ecobank Nigeria Bank Plc

Nelson Paseda – NPASEDA@ecobank.com

LAWAL Theresa – TOLAWAL@ecobank.

Fidelity Bank Plc

Osaigbovo Omorogbe – osaigbovo.omorogbe@fidelitybank.ng

FCMB Ltd

Oluwaseun Adetiba – Oluwaseun.Adetiba@fcmb.com

Oluremi Agboola – Oluremi.Agboola@fcmb.com

UBA Plc

Adegoke Bayo – bayo.adegoke@ubagroup.com

Wema Bank Plc

Dotun Ifebogun – dotun.ifebogun@wemabank.com

AB Microfinance Bank Nigeria Ltd

Nnadozie Joseph – nnadozie.ohaji@ab-mfbnigeria.com

Addosser Microfinance Bank

Olusola Howells – howells.olusola@addosser.com

Baobab Microfinance Bank

Achenyo Oyibo – aoyibo@baobab.bz

Bosak Microfinance Bank

Toyin Peters – toyinpeters@bosakmfb.com

Infinity Microfinance Bank Ltd

Oludotun Adewunmi – g.adewunmi@infinitymfb.com

LAPO Microfinance Bank Ltd

Efosa Aigbe – efosa.aigbe@lapo-nigeria.org

Microcred Microfinance Bank Nigeria Ltd

Omar Niaz – oniaz@microcred.com

NPF Microfinance Bank Plc

Jude Ohanehi – jeco0072000@yahoo.co.uk

Quick Contact

Our support is available to you.

8am – 5pm, Monday – Friday

Head Office:

The Clan Place,

Plot 1386A Tigris Crescent, Maitama, Abuja, Nigeria

Lagos Office:

Plot 952/953 Idejo Street,

Victoria Island, Lagos, Nigeria

Call: +234-9-904-0000, +234-811-3841-699

Email: info@devbankng.com

FIRS Director nabbed and arrested over N5 million tax fraud

[plulz_social_like width="350" send="false" font="arial" action="like" layout="standard" faces="false" ]

Untitled-1

On January 29, 2016, The Economic and Financial Crimes Commission, EFCC, arrested Abumere Joseph Osagie, The Deputy Director, Regional Tax Office, Federal Inland Revenue Service, FIRS, in a case of abuse of office and bribery.

The suspect was picked following a complaint about his attempt to extort a university proprietor N5 million.

Osagie and Jamila Ojora had on January 27, 2016 allegedly approached Senator Ahmed Datti, the Chancellor of Baze University, Abuja and gave him a tax assessment of N20,029,496 through a letter of intent, which he paid.

However when he requested for the assessment certificate, they refused to oblige him. Instead they allegedly demanded for N5 million gratification.

All pleas by him fell on deaf ears. Consequently, the Chancellor of the University then petitioned the EFCC, and was advised to play along (Just like in Farouk Lawan and Femi Otedola case).

Consequently, a  bribed of N5 Million was arranged and marked (to serve a evidence) and was delivered to the director (Osagie) through Ojora in a sting operation (some of you will call this a set-up).

Ojora was arrested after she collected the N5m. His confession later led to the arrest of Osagie.

The houses of the suspects were searched by operatives of the EFCC, and documents were recovered.

MY OPINION

As a Tax Consultant, this menace has been in Tax Practice for long and I must commend the effort of the Chancellor for taking up this matter. I enjoin all Tax Payer to emulate him and join in the battle of fighting corruption. I keep-on educating Tax Payer that having additional Tax Liability as a result of Tax Audit or investigation conducted is not a crime and does not mean heaven will fall. There are laid down procedures to address excessive Tax Liabilities. Tax Liability given by tax officer who conduct Tax Audit is not FINAL and CONCLUSIVE. The process can be taken away from them and handled with another bodies for intervention (just like you have hierarchy of court, to further your case if not satisfied with decision of lower court).

But because TaxPayers in Nigeria does not know their right, overzealous Tax Officials, while sitting at his desk can use the Letter Head of his office and send out harrassment letters to Tax Payers with the sole aim of scaring them with tax issues and at the end of the story the case will be settled via bribe. This is gross abuse of office. No matter how you present documentations to defend your position, the corrupt tax officers will still use the MIGHT of their office to insist that their findings is FINAL and CONCLUSIVE. The experience in Lagos state is more of concern. Lagos state will go to the back-door to obtain Ex-Parte order to lock down your office with the intention to force you to come to their office and do a gentleman’s negotiation (Bribe).

Over the years, Tax Officers has been in total control of Tax Practice, you find them acting also as Tax Consultant and/or Tax Practitioners while still in the employment of FIRS. Some even act as Auditor by preparing Audited Account right in their office. They do this by picking a copy of Audited Accounts already filed with them by a Chartered Accountants and merely change the Name of the Company and other unwanted information. The consequence of this is that the Chartered Accountants are left with no jobs to do and if they have at all, they will be at the mercy of Tax Officers who controls every aspect of Tax Practice.

The former FIRS Chairperson, Mrs Ifueko Omogui-Okauru introduce some reforms to address this issue and equally increase the salaries of the Tax Officers and other work conditions. During her tenure, I as a Tax Consultant experience huge sanity in the system. Collection of TAX CLEARANCE CERTIFICATE was never an herculean task. The closest FIRS chairman that emulated Omogui philosophy was Samual Ogungbesan who merely acted in Acting capacity before handing over to the present FIRS Chairman Tunde Fowler.

My conclusion is that, all Tax Payers should stand up for their right, they should ensure they pay legitimate taxes and ready to to fight the CORRUPTION aspect of the system (just like the Chancellor did in the case above). Together, we can help the present administration in the fight against corruption by doing our part such as saying NO to paying bribes and accept to do the RIGHT THING at all times.

Tax system is never meant to be used as a weapon to oppress and enrich the few, it is meant to manage the income inequality and source of revenue to Government, therefore Tax System should wear HUMAN FACE. In this era of relying on taxes to fund Government’s budget amidst corrupt tax officers, Tax Payer should expect though times and be ready to do what the Chancellor has done per above in order to survive the corruption in the Tax System.

Thank you

 

 

Bank of Industry (BOI) Graduate Entrepreneurship Fund (GEF) 2015 Call for Entries

download (2)

Ajuwaya! If you could recall, on October 5, 2015, The Graduate Entrepreneurship Fund (GEF) was launched.

The Graduate Entrepreneurship Fund (GEF) is a special N2 billion empowerment programme for serving members of the National Youth Service Corps (NYSC). This novel schemes which is a joint initiative of the Bank of Industry (BOI) and the National Youth Service Corps (NYSC), was aimed at the following objectives:

To encourage graduates of tertiary institutions currently undergoing the compulsory one-year NYSC programme, to venture into business and become employers of labour rather than job seekers.

To address the entrepreneurship capacity gap o the NYSC members who are expected to produce bankable business plans after a three-day capacity building programme 

To deepen financial inclusion by de-risking the NYSC members and making them eligible for concessional loans ranging between N500,000 and N2 million to be provided by BOI

To ensure sustainability of the businesses of the eventual loan beneficiaries through effective monitoring by the NYSC Directorate and BOI

The GEF Programme comprises the following activities:

Online Business Plan Competition to select the most promising real sector business ideas,

Selection/screening of participants per above shall be done via the GEF online application portal.

Three days intensive entrepreneurship capacity building programme

Loan amount of up to N2 million to be provided to each successful participant with bankable business plans within BOI’s 35 SME clusters (list at BOI’s website: www.boi.ng) at an interest rate of 9% per annum, with tenors ranging from 3-5 years inclusive of 6 – 12 months moratorium period.

The capacity building programme is scheduled to hold simultaneously at the following venues:

 

S/N Geo-Political Zone NYSC Camp Location
1 South South Former Martins TIC, Issele-Uku, Aniocha North L.G.A, Delta State.
2 South East Umunna, Bende L.G.A, Abia State.
3 South West Aisu College Hospital Road, Ede, Osun State.
4 North East Government College, Jalingo, Taraba State.
5 North Central Mangu, Plateau State.
6 North West Main Road, Katsina, Katsina State.
7 Lagos Iyana Ipaja, Agege, Lagos State.

 

NOTE: The Entrepreneurship Capacity Building Programme will take place at the above stated centres between 18th – 20th November, 2015.

Interested serving NYSC members are hereby requested to apply online immediately through http://www.boi.ng/gef/

[plulz_social_like width="350" send="false" font="arial" action="like" layout="standard" faces="false" ]Application Closing Date

3rd November, 2015.

 

 

 

 

 

91 Companies Bid for NNPC Coastal, Bunkering Vessels Service Contract

download (1)

The Nigerian National Petroleum Corporation has begun the public opening of technical bids submitted by 91 companies to secure contract for the provision of Coastal and Bunkering Vessel Services. The coastal and bunkering services were for the operations of the Pipelines and Products Marketing Company, (PPMC), a subsidiary of the NNPC.

The Nigerian National Petroleum Corporation, NNPC on Thursday 22nd of October, 2015 embarked on the public harvesting of technical bids submitted by a total of 91 companies consisting largely of indigenous vessel owners vying to secure contract for the provision of Coastal and Bunkering Vessel Services for the operations of the Pipelines and Products Marketing Company, PPMC, a subsidiary of the NNPC.

The bid exercise, according to the corporation, seeks to engage the services of reputable organisations with essentially three ranges of deadweight tonnage – 5,000 to 8,000DWT; 10,000 to 20,000DWT; and 25,000 to 50,000DWT.

The exercise which was conducted at the Corporate Headquarters of the NNPC in Abuja in the full glare of representatives of the bidding companies also had officials of the Bureau of Public Procurement, BPP and the Nigerian Extractive Industry Transparency Initiative, NEITI as independent assessors.

The coastal vessel was designed to evacuate petroleum products from NNPC coastal refineries to various discharge ports in Nigeria or outside Nigeria as may be designated by PPMC and undertake the delivery of petroleum products to water fed depots with restricted draft jetties of 6 to 11 metres. The vessels would also conduct ship-to-ship transfer of cargo from import tankers and discharge same at waters depots among other functions.

The desired bunkering vessel services would also entail the loading of Automated Gas Oil Ago and low Pour Fuel Oil (LPFO) from water-fed refineries for bunkering purposes. The vessel would also supply bunkers to NNPC owned and chartered vessels as required on a monthly basis.

Other responsibilities of the vessel included the keeping of accurate accounts for AGO and LPFO loaded and supplied to NNPC Vessels as well as forwarding records of the bunkering activities to marine transport department of the PPMC on a monthly basis[plulz_social_like width="350" send="false" font="arial" action="like" layout="standard" faces="false" ]

Nigeria plans $25bn investment fund to stave off recession and the underlying opportunities to Nigerians.

images images2

CBN’s EARLIER WARNING ON IMPENDING RECESSION IN 2016

The Central Bank of Nigeria (CBN) on September 22, 2015 at a Monetary Policy Committee (MPC) meeting in Abuja present a warning on the economy: with “two consecutive quarters of slow growth, the economy could slip into recession in 2016 if proactive steps are not taken to revive growth in key sectors of the economy.”

In the face of the prevailing circumstances, the MPC advocated that a “synergy between monetary and fiscal policies remains the most potent option to sustainable growth.”

FEDERAL GOVERNMENT RECENT REACTION TO THE CBN’S WARNING

The federal government is planning to create a $25 billion fund through public and private sector financing with the aim of tackling infrastructure decay and to avoiding a recession. The special fund will be an intervention fund to fall back on during economic recession

“We think that the way out of this, what some have described as an impending recession, is actually to spend rather than to cut back in any way,”  – VP Yemi Osibajo In an interview with Bloomberg on Tuesday 20 October, 2015.

The investment fund will be targeted toward improving power supply, roads, rail and agriculture.

Osinbajo said that the federal government plans to create jobs and conserve foreign exchange by making Nigeria self-sufficient in rice production in 24 months.

“A lot of those projects will be bankable projects, because we’re looking at projects that will interest private sector investors as well, but they are strategic for us,” Osinbajo said

Osinbajo said he understands that portfolio investors aren’t pleased about the trading restrictions on the currency, which have led to a slowdown in capital market inflows and on the other side, the government is “mindful that we maintain foreign-exchange reserves so at least that we are able to keep investor confidence high, especially direct investment,” he said.

OPPORTUNITIES FROM THE PLAN $25b  SPECIAL FUND

Clearly from the federal government reaction to the CBN warning per above, the federal government rejected the SYNERGY call between the fiscal and monetary policy as the Federal Government is set to spend heavily rather than cutting back. The projection therefore is that in the coming year 2016, Adesanya & Partners (Chartered Accountants) expect business boom in the following areas:

  1. Agriculture (second GDP generator to the foreign reserve)
  2. Construction business vis-à-vis Railway construction and improvement
  3. Power supply
  4. Suppliers of raw materials and inputs to the 3 above businesses.

Therefore entrepreneur are expected to commence preparation of their budget towards such opportunities

[plulz_social_like width="350" send="false" font="arial" action="like" layout="standard" faces="false" ]

Kuforiji-Olubi Bags Jail Term In London …Jailed Son On The Run

[plulz_social_like width="350" send="false" font="arial" action="like" layout="standard" faces="false" ]

There is a powerful Yoruba mantra that says “May our old age be more auspicious than our beginnings”. This aphorism would definitely apply to the mess that our revered Chief of Ijebu and Egba descent, Chief Mrs. Bola Kuforiji-Olubi, has now enmeshed herself in. This Amazon is, without doubt, the most successful and accomplished woman that Nigeria has ever produced. She is a chief of Ijebuland and Egba Kingdom. She was President of the Institute of Chartered Accountants of Nigeria (ICAN), Chairman of the second largest bank in Nigeria, the United Bank for Africa (UBA Plc), Chairman of British Engineering Company, BEWAC, Chairman of French building materials supply conglomerate, EQUIP, Nigeria’s federal Minister of Commerce and Industry and many other accolades. She is very well blessed and successful in her travails through life.

She had studied Accountancy in England and got to know many Lagosians and Nigerians including Grammarians, Chief Ernest Shonekan, Nigeria’s former Head of State, Dr. Yemisi Kuforiji, past Chairman of Yoruba Tennis Club, Mr. S. Babashola Joseph, leading legal practitioner, octogenarian, member of the Yoruba Tennis Club and father of Mr. Babaseyi Joseph, current Chairman of the Yoruba Tennis Club. She passed her accountancy exams in the UK with flying colours and met other great Nigerian Chartered Accountants to be like Prince of Ijebu- Ode, Supo Adetona, Chief Tunde Anjous, Aremo Fola Awobo-Pearse and others. She also met a cousin of octogenarian, Dr. Yemisi Kuforiji, Soji Kuforiji whom she married and bore three children for.

 

As life is not always a bed of roses, she had separated from the father of her children who is late, but she kept the Kuforiji name in the interest of her children and as, indeed, she is legally entitled to so do. She later met dashing and youthful-looking Chief Daniel Adeyanju Olubi who was an administrative manager in one of the companies she held sway in, married him and, in her most popular and successful days, became known as Chief Mrs. Bola Kuforiji-Olubi. Her husband, Yanju, a good friend of late Chairman of the Yoruba Tennis Club and leading architect of his time, Kingsonian, Arc. John Seyton Macgregor (AKA JSK) of the iconic and dynastic Lagos Macgregor family who took immensely to him and enhanced Olubi’s initiation into the Yoruba Tennis Club.

 

Mrs Bola Kuforiji-Olubi later separated from Chief Olubi and has been living a happy retired life caring for her children, Tokunbo and Joke and their children in her massive riverside mansion on Marine Road Apapa while surrendering the management of her real estate holdings to her children and taking occasional vacations and health check travels to her London millionaires row residence on Philimore Gardens, Willesden near the Nigerian Ports Authority (NPA) houses, the Asemotas dwelling on Manor House Drive, the Mike Adenuga, the Dangote and Fola Ogunlesi residences on Willesden Lane, NW London.

 

It has therefore come not only as a surprise but also as a thundering shock to hear that this lady of such high integrity is now languishing in the notorious Holloway women’s prison in London, England. This social media site was absolutely incredulous and gob smacked to learn that this dignified woman would in her approach to octogenarianism be now irked in such a maelstrom of depravity.

 

In a nutshell: She was involved in a business venture with three international companies in Nigeria. A business disagreement occurred between her, the two oil and gas companies and another international oil company (IOC). The original business agreement provided for arbitration on any disagreement to be settled in City of London, under English law, especially as Mrs Olubi, the Chairman of the company and her son, Olutokunbo Afolabi Kuforiji, a Director of the company, are British citizens. The matter was taken before an English judge who ruled that a sum of USD19m in dispute should be paid by the IOC to the British company and a letter directing the IOC to so do be effected by Mrs. Olubi’s company.

 

Mrs. Olubi reverted to a Nigerian court, which failed to give a ruling on the matter (typical of procrastination and prevarication by Nigerian courts) even though the IOC offered to pay the amount in dispute to the court pending final judgment.

English court disagreed with intervention by Nigerian court as the agreement provided for arbitration in London and ordered Mrs. Olubi to direct the writing of the English court ordered directive.

Mrs. Olubi resorted to another Nigerian court and attempted to obtain another ruling. The English court ordered Mrs. Olubi to appear in court and comply with its ruling or face contempt of court.

 

Mrs. Olubi appeared in court and attempted to recuse herself from proceedings averring that she had resigned as Chairman of the defendant company as she had handed over the baton to her son, Tokunbo. The Judge, Justice Burton of the Commercial Division of the High Court of Justice Queens Branch Division, again admonished her and gave her a final warning that he was cognizant and considerate of her stature and age and thus gave her a last chance for her and her son to comply with the court ruling and purge herself of the seeming contempt.

Mrs. Olubi subsequently departed the shores of the UK and could not be found in her London residence.

Quite a few months later, when the Judge learnt of her presence in London, he issued a warrant for her arrest.

 

Mrs. Olubi refused to attend court stressing that she was very ill, on a wheelchair and only able to leave her house for medical appointments. The applicant in the case utilised the ploy usually associated with tracking of social security cheats who pretend to be disabled and are photographed the next day playing football. They set up a team to monitor Mrs Olubi’s movement and photographed her a few days later shopping gaily on London most famous Oxford Street.

When this photographic evidence was produced as evidence to the English Judge, he ordered the immediate arrest of the Madam. The Judge consequently sent her to the infamous Holloway Women Prison in North London where she is serving a one-month sentence for contempt of court.

Holloway Prison is reputed to be mostly occupied by Nigerian women fraud convicts (many called Alhaja Holloway) and the prison is irreputable for vice, vile, prostitution, molestation and Lesbianism.

 

The Judge also convicted and sentenced Mrs. Bola Kuforiji-Olubi’s son, Mr Olutokunbo Kuforiji, to four months imprisonment, albeit in absentia. He is likely to join ex-Governor James Ibori in SW London Brixton Prison where porridge is the most common and savoury item on the menu.

Tokunbo Kuforiji is on the run and has been declared wanted while his mother, Chief Mrs. Bola Kuforiji-Olubi languishes in the roach-infested Holloway Women Prison at the pleasure of Her Majesty, the Queen of England.

What is unknown is whether failure to comply with the court ruling may warrant a continuous sentencing and whether the amount of £300, 000 costs awarded against her may lead to the sale by auction of her London property.

 

How the mighty are falling! How can this happen to such an eminent personality? In the UK, the law is no respecter of persons but we think the Nigerian High Commission, on behalf of the government of Nigeria, should have taken diplomatic steps to sort out this matter. We hasten to add that it is strongly believed that Mrs. Olubi had utilized the Nigerian Immigration Services to deport the complainant in the matter from Nigeria although an equally reputable and powerful Nigerian oil and gas conglomerate is standing firmly behind that foreign company and that the expatriate deportees are back in the country transacting business in the oil and gas industry.

download

EFFECT OF THE AMMENDED PENSION REFORM ACT 2014 (PRA 2014) AND IT’S EFFECT ON EMPOYER AND EMPLOYEES.

On July 1, 2014, President Goodluck Jonathan signed into law the New Pension Reform Act 2014 (PRA 2014) after 10 years performance of the old Pension Reform Act of 2004. The new law repeals the 2004 Pension Reform Act No. 2 and prescribes a 10-year jail term for pension thieves.

The Act does not specify a commencement date, however, Section 2 of the Interpretation Act CAP I23 of LFN 2010 stipulates that, where no date of commencement is contained in an Act, the commencement day shall be the day the Act was passed or signed into law. Therefore, the commencement date of the new Pension Act is 1st July, 2014.

The changes in the old pension Reform Act 2004, was aim to streamline the savings of funds towards retirement and the provision of funds after retirement, including availability of funds for the surviving beneficiaries of deceased employees whilst in service and retirees under the pension scheme within the guaranteed period.

  • The key highlights and salient point of the new Pension Act are detailed below:Minimum number of staff requirement for employer to take part in pension scheme has been increased to 15 from 5 employees as stipulated under the 2004 Act.
  • Section 8(1) of the New Act exclude/exempt employees that is 3 years or less to retirement from participating in the pension      scheme.
  • Minimum contribution from employer has been increased from 7.5% to 10%. The minimum level of contribution from employee was also increased from 7.5% to 8%. This means the two rate is no longer equal. TNew-Pension-Reform-Act-2014he greatest impact is the base upon which the monthly contribution is to be calculated. The definition of ‘monthly emoluments’ has been expanded to mean the total emolument as defined in the employee’s contract of employment provided it is not less than the total of the employee’s basic salary, housing and transport allowance.
  •  Group life policy’s benefit is now allowed to be paid to a name beneficiary of employee upon his death. In the Old Act (Act 2004), Group life policy’s benefits are paid into a deceased employee’s Retirement Savings Account (RSA) which makes it difficult for beneficiaries to access. Consequently, employers are required to ensure that their employees avail the insurer with the list of their beneficiaries to receive the proceeds of their company’s Group Life Policy under which insurance has been taken out for their lives whilst in service.
  •  Voluntary contributions that is withdrawn within five years are taxable in the hands of the employee
  •  The 2014 Act also empowers PenCom, subject to the fiat of the Attorney General of the Federation, to institute criminal proceedings against employers who persistently fail to deduct and/or remit pension contributions of their employees within the stipulated time.
  •  In the event of loss of jobs (where an employee disengages from employment or is disengaged), the new Act reduces the waiting period for accessing benefits from six months to four.
  •  The Pension Reform Act 2014 makes provision that would compel an employer to open a Temporary Retirement Savings Account, TRSA, on behalf of an employee that failed to open an RSA within three months of assumption of duty.
  •  The Act also allows an employer to pay additional payments benefits to employee upon retirement OR can elect to take full responsibility of the contribution (that is, bears the total pension contributions of its employees). In that case, the Contribution shall not be less than 20% of the employee’s monthly emolument.

 OTHER AREAS MAINTAINED BY THE NEW ACT 2014 AS CONTAINED IN THE OLD ACT 2004

  • Employers are required to take up Group Life Insurance policy on behalf of their employees for a minimum of three times the annual total emolument of the employee.
  • Employee is free to utilize the amount on their RSA for either programmed withdrawal or to purchase an annuity from an insurance company.
  • The ACT still allows employer with less than the minimum staff requirement (prescriptive 3 employees) and self-employed persons to participate in the pension scheme under separate guidelines issued by PenCom. However, the Act is silent on the applicability of the Scheme to private organizations with more than 3 but less than 15 employees.
[plulz_social_like width="350" send="false" font="arial" action="like" layout="standard" faces="false" ]

Court stops FRCN from regulating Private Companies

The Federal High Court (“FHC”)  in Lagos on Friday, 21 March 2014 ruled in a case between Eko Hotels Limited and the Financial Reporting Council of Nigeria (“FRCN”) and held that the Financial Reporting Council of Nigeria (FRCN) lacked the statutory powers to regulate the activities of private firms in Nigeria. The FHC decided that under the FRCN Act, the FRCN cannot enlarge its regulatory powers to regulate private companies.

The main issues raised by Eko Hotels for determination by the FHC were:

  • Whether Eko Hotels is required to register with the FRCN under the FRCN Act 2011
  • Whether Eko Hotels is liable to pay the statutory and renewable annual dues to the FRCN for 2011 and 2012.
  • Whether Eko Hotels is required to furnish the FRCN with evidence of its statutory filing with the Corporate Affairs Commission and the Federal Inland Revenue Service.
  • Whether the FRCN could penalise it for failure to submit the annual returns and statements.

Eko Hotels sought a declaration from the court that the FRCN’s demand for registration was unlawful on the basis that Eko Hotels is not a public company or a public interest entity. It further sought the FHC to declare that the FRCN lacked the statutory power to demand for annual returns and financial statements of a private limited liability company among others.

Position of the FRCN: 

FRCN’s position was that Eko Hotels was expected to routinely file returns not only with the CAC or the FIRS but also with the Tourism Development Corporation (being the regulatory body responsible for the registration, classification and grading of all hospitality and tourism enterprises in Nigeria). The FRCN Act defines a public interest entity to include ‘unquoted’ entities which file returns with regulators other than the FIRS and the CAC. The FRCN also stated that one of the requirements for Eko Hotels to file its routine returns with the CAC was evidence of payment of its annual dues to FRCN.

Justice Okon Abang, who handed down the verdict, equally ruled that the FRCN lacked the legal backing to impose statutory renewal dues on private companies in Nigeria.

Justice Abang arrived at the conclusions while delivering judgment in a suit filed by Eko Hotels Limited, challenging the legality of an attempt by the FRCN to regulate its financial activities.

FRCN had written a letter to Eko Hotels Limited requesting registration and payment of statutory renewal dues. The FRCN had also requested the plaintiff (Eko Hotels Limited) to furnish it with evidence of statutory filings of annual report, financial report and statements at the Corporate Affairs Commission (CAC) and the Federal Inland Revenue Service (FIRS).

But in his judgment, Justice Abang held that from the careful interpretation of the Financial Reporting Council of Nigeria Act, there was no provision that empowers the agency to exercise disciplinary control over a private company.

“The section relied upon by the defendant (FRCN) relates only to an employee of the plaintiff and not the plaintiff as a corporate entity.
“The plaintiff is a private company and the shares are not quoted on the floor of the Nigerian Stock Exchange. By the clear provision of the FRCN Act, the plaintiff is exempted.

“The defendant (FRCN) can only regulate publicly-quoted companies and public interest entity. “Where a statute does not empower a statutory body to do certain things, such body cannot so act,” Justice Abang ruled.

The court thereafter nullified the letter written by FRCN to the plaintiff, and also awarded N40,000 as cost in favour of the plaintiff (EKO Hotel) against the defendant.

CONCLUSION THAT COULD BE DRAWN FROM THIS COURT JUDGEMENT

This decision reiterates the scope of the FRCN’s authority in regulating companies in general in line with the provision of the enabling statute being the FRCN Act 2011. Based on the judgment, the FRCN does not have oversight functions over private companies. Attempts by the FRCN to bring a wider range of companies under its scrutiny and guidance are therefore open to challenge by any affected company on the basis of this decision.

The judgment suggests that the rules imposed in some industries requiring players in the industry to submit certain documentation or to pay certain registration fees does not translate to “filing of returns” as contemplated by the Act. Furthermore the mere fact that a company is popularly known to the public due to the nature of its services does not automatically make it a public interest entity.

On the basis of this judgment, private companies who only file returns routinely with the CAC and FIRS can carry on their business activities without the additional administrative burden of registration or payment of fees to the FRCN.

However, the Financial Reporting Council of Nigeria (FRC) has appealed  the verdict of the Lagos Federal High Court which restrained its powers to register and regulate companies in the country. The FRC also contended that the judgment did not take cognisance of the provisions of Section 77 of the FRC Act which defines a public interest entity as Governments, government organisations, quoted and unquoted companies and all other organisations which are required by law to file returns with regulatory authorities and this excludes private companies that routinely file returns only with the Corporate Affairs Commission and the Federal Inland Revenue Service.”

I shall keep you posted on the APPEAL DECISION.

Registration,forgery scandal rocks the Corporate Affairs Commision (CAC)

The Corporate Affairs Commission (CAC) is enmeshed in a directorship registration and forgery scandal involving Gateway Estates Limited, a multi-billion naira firm. Two siblings, Mrs. Eunice Odirri and Mr. Sunny Esiso, children of the owner of the firm, the late Chief E.A. Esiso, and a lawyer, Mr. Wilfred Okoli, were allegedly arrested last week by the Special Fraud Unit (SFU) of the police in connection with the case.

The suspects were, however, said to have been released on bail while the SFU was alleged to be on the trail of their suspected collaborators in CAC. SFU sources said the suspects may be arraigned before a Magistrate Court in Warri, Delta State, this week on charges of fraud and forgery.

Founded by the late Esiso, Gateway Estates Limited has substantial real estate holdings across the country, particularly in Warri. The deceased and his wife, Mrs Iketiti Esiso, were registered as co-directors.

Esiso’s death in 2011, according to a petition by his first son, Y. Esiso, and upon which the SFU is acting, left the firm with one director. This threw up the need to appoint at least one more director to the company’s board.

The family, in the petition to the Commissioner of Police, SFU, Milverton Road, Ikoyi, dated February 15, 2014 headed to a Delta State High Court, sitting in Effurun, which granted Esiso’s first son and the eldest daughter as interim administrators of his estate.

The duo then approached the CAC to request that they be allowed to appoint new directors to the board of their father’s firm. This, the petition claimed, became necessary because the passing of their father had left the company with only one director, in contravention of the legal requirement of a minimum of two directors.

“The CAC rejected their request on the grounds that an order from a state court does not suffice to command the compliance of CAC. “CAC insisted that the duo must go to yet another court, this time the Federal High Court to get an order for an extraordinary general meeting.

“The strident objection of Barrister Ama Etuwewe, acting for the court appointed administrators to the illegality of this peremptory command, did not sway CAC from her flagrant contempt of an order of court,” the petition said.

This notwithstanding, the interim administrators reportedly instructed their counsel to approach the Federal High Court for the further order as insisted upon by the CAC.

“In January 2013, the Federal High Court, sitting in Abuja, granted the said order subsequent upon which an extra ordinary general meeting was summoned by the administrators at which resolutions were passed and adopted and a list of new board members nominated and forwarded to CAC,” the petition stated.

CAC was said to have made a U-turn and rejected the administrators’ list of directors mandated by the Federal High Court order. The petition alleged: “When pressed, they refused to give reasons for their second, more egregious contempt of court but a quick perusal of the files of CAC revealed that while CAC was sending the administrators on a wild goose chase for more court orders, they had proceeded with the acceptance of a list of directors from one Barrister Wilfred Okoli of C84, Banex Plaza, Wuse 11, acting for the duo of Mrs. Eunice Oddiri and Mr. Sunny Esiso, siblings and the fifth and sixth children of the late Chief Esiso.

“Ostensibly, CAC accepted the list from the duo on the basis of a form purported to be signed by the sole surviving director, Mrs. Iketiti Esiso and one Mr. Anthony Chikwendu, who had acted as Company Secretary at the time of formation of Gate Way Estates Ltd. in March 1973, 41 years ago.”

‘What the parties did not know is that the interim administrators had made spirited efforts to locate Mr. Anthony Chikwendu many years prior and had established the fact that he had been deceased for over a decade and had consequently proceeded to the court option for the summoning of an extraordinary general meeting’

A family source said: “When the name of Mr. Anthony Chikwendu was appended to the April 2013 form and when, on examination, it was discovered that the name was incorrectly spelt and the affixed signature suspected to be forgery, the case was reported to the Special Fraud Unit of the police.”

 

FIRS gets N4.21trn revenue target for 2014

The Federal Government has given the Federal Inland Revenue Service (FIRS) a N4.21 trillion revenue target for 2014.

Alhaji Kabir Mashi, the Acting Executive Chairman of the Service, stated this on Monday in Abuja at the 2014 Corporate Plan Retreat and Enlarged Management Meeting of the Service.

He said that the Service was expected to collect :

N1.79 trillion from Petroleum Profit Tax (PPT),

N1.03 trillion from Companies Income Tax (CIT) and

N96 billion from gas component of CIT.

N861 billion from Value Added Tax (VAT),

N10.21 billion from Capital Gains Tax,

N8.46 billion from Stamp Duties.

N156 billion, from Education Tax

N59 billion from Personal Income Tax

N10.6 billion from Technology Levy.

 

He said that FIRS surpassed its 2013 revenue target by N337 billion or 7.56 per cent, adding that it collected N4.805 trillion as against the targeted N4.468 trillion.

He, however, stated that the actual collection from non-oil revenue in 2013 fell short of government’s target of N2.188 trillion by three per cent, but assured that it would be improved on in 2014.

“One proactive step that has been taken in respect of growing non-oil revenue tax is the take-off of the Capacity Enhancement Programme (CEP) towards delivering additional non-oil revenue in the current year.

“We have every intention of sustaining and hopefully improving upon the standards that the service has come to be known with in terms of delivering results in recent time,’’ he said.

Mashi said that the retreat was aimed at further addressing FIRS management’s desire to grow tax revenue for development, particularly non-oil revenue which held significant potential.

Earlier in her welcome address, Mrs Queen Seghosime, FIRS’ Coordinating Director, Direct Report Group, said that the meeting was an annual forum where important strategic decisions of the Service were taken.

Seghosime added that the retreat would provide the management team the opportunity to brainstorm on the organisation’s corporate plan to meet its revenue forecast and corporate aspirations. [plulz_social_like width="350" send="false" font="arial" action="like" layout="standard" faces="false" ]