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

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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.

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

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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.
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Court stops FRCN from regulating Private Companies

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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)

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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

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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" ]

Opening Speech of President Goodluck Ebele jonathan at the Inauguration of the national Conference, Moday, 17th march, 2014.

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Remarks by His Excellency, President Goodluck Ebele Jonathan, GCFR  At the Inauguration of the National Conference  Monday, 17th March, 2014.

1.     I am delighted to welcome you all to the inauguration of this historic National Conference which promises to be another significant landmark in our efforts to strengthen national unity and consolidate democratic governance in our beloved country.

2.    I also believe that this National Conference is coming at a very appropriate time. Having just celebrated the first centenary of our country, the most compelling task before us, as we move ahead and contemplate what our nation will be at the end of its second century, is to lay a much stronger foundation for faster development.

3.   This we can achieve by building a more inclusive national consensus on the structure and guiding principles of state that will guarantee our emergence as a more united, progressive and prosperous nation.

4.    In our history as a political entity, we have experienced highs and lows but have always forged ahead. To my mind, the fact that we have weathered   all storms and continued with the mission of evolving a truly national identity signifies that we are going in the right direction.

5.   The strongest nations in the world today also went through their own formative stages; some for decades and others for centuries. We must learn from them that nationhood will not happen overnight, especially given the circumstances of our birth as a nation.

6.   History also teaches that nation-building is a journey of dedication, commitment, diligence, perseverance and patriotic vision. To be successful, nation-builders must continually strive to evolve better and more inclusive societies in which every citizen is a proud and committed stakeholder.

7.  It was with this objective in mind that we set up the Presidential Advisory Committee (PAC) on the National Conference in October last year and charged its members with the responsibility of designing the framework and modalities for a productive National Conference.

8.   The Committee which submitted its Report in December, 2013, was able to reach out to all Nigerians and various interest groups, socio-political groupings, regional and religious elements, professionals, civil society, the organised private sector, labour, youth, women and others to ascertain their views on the initiative.

9.   The Presidential Advisory Committee established that there was indeed, a national consensus for this Conference to be convened immediately, to meet the yearnings and aspirations of our people.

10.   The National Conference is therefore being convened to engage in intense introspection about the political and socio-economic challenges confronting our nation and to chart the best and most acceptable way for the resolution of such challenges in the collective interest of all the constituent parts of our fatherland.

11.  This coming together under one roof to confer and build a fresh national consensus for the amicable resolution of issues that still cause friction among our people must be seen as an essential part of the process of building a more united, stronger and progressive nation.

12.  We cannot continue to fold our arms and assume that things will straighten themselves out in due course, instead of taking practical steps to overcome impediments on our path to true nationhood, rapid development and national prosperity.

13.  For many years we have discussed and argued over various issues concerning our national existence and well-being. Much of this national discourse has been conducted through the mass media, both print and electronic. More recently, the advent of the age of ICT and social media has greatly enlarged the space for the discussion of our country’s future.

14.  Many more young and articulate  Nigerians who previously had little access to the traditional mass media have now joined the conversation, motivated by patriotic concern for good governance, peace, stability, justice, equity, fairness and the harmonious co-existence of the diverse groups that make up our great nation.

15.  Dear Compatriots, my administration is convening this National Conference today because we believe that we must assume responsibility for ensuring that the long-running national debate on the best way forward for our country is not in vain.

16.  It is our expectation that participants in this conference will patriotically articulate and synthesize our peoples’ thoughts, views and recommendations for a stronger, more united, peaceful and politically stable Nigeria, forge the broadest possible national consensus in support of those recommendations, and strive to ensure that they are given the legal and constitutional backing to shape the present and the future of our beloved fatherland.

17. In inaugurating this national conference today, we are not unmindful of the argument of those who say that we do not need such a conference since we already have an elected Parliament and an elected Government in place.

18.  As cogent as that argument may sound, I have chosen to act on the sincere conviction that in the truly democratic nation we are striving to build, we must never ignore the loudly expressed views of the majority of ordinary Nigerians.

19.  I have heard that majority say, that we need to rebuild trust by involving them in the process of developing a guiding document of our national political relationships which is more acceptable to all sections of the country. I have heard our people say that we need to openly and frankly discuss our problems and seek acceptable solutions instead of allowing them to fester and remain sources of perennial conflict.

20.  I have also heard them say that, as the elected representatives of our people, we must never arrogate to ourselves all knowledge and wisdom regarding the development of our country.

21. And I am in full agreement with our people. The power we hold is, without question, in trust for the people. Sovereignty belongs to the people. Their voices must be heard and factored into every decision we take on their behalf.

22. This National Conference is a very important avenue for the voices of our people to be heard. Our people have yearnings and desires that need to be discussed. Their representatives at this conference are neither usurping the role of the National Assembly nor the Executive. They are complementing us in our march towards a greater and stronger union.

23. Over the years, well-meaning Nigerians have drawn attention to inadequacies in our current constitution. Some have described it as a military-inspired document which does not take into full consideration the genuine desires and wishes of the people.

24.  The phrase in the preamble that says “we, the people,” has been variously criticised as being misleading because, according to the critics, the constitution was not written by the people.  There are also those who believe that the constitution is not our problem but the political will to faithfully implement it for the peace and progress of Nigeria.

25.  While opinions on the matter can be as diverse as rain showers, I believe that irrespective of our personal views on the issue, no one can deny the fact that every constitution is a living document that needs to be revised and improved upon from time to time. The United States, which is the model democracy in the eyes of many, has amended its constitution 27 times since it was first adopted in 1787.

26.  Some of our compatriots also believe that because we have held several conferences in the past, we do not need to hold another one. I do not share that view at all.

27.  A deeper look will reveal that the challenges we faced before each of the preceding national conferences were different. The challenges of 1956 are certainly not the challenges of 2014, and definitely not the challenges that the nation will face in years to come. It makes sense, therefore, that as the challenges before us evolve, we must be constant and proactive in our search for fresh solutions. We cannot continue to proffer yesterday’s solutions for today’s problems.

28.  This conference is open for us to table our thoughts and positions on issues, and make recommendations that will advance our togetherness. The issues range from form of government, structures of government, devolution of powers, revenue sharing, resource control, state and local government creation, boundary adjustment, state police and fiscal federalism, to local government elections, indigeneship, gender equality and children’s rights, amongst others.

29.   We must not approach these issues with suspicion and antagonism. Rather, we should be open-minded and work to achieve what is best for Nigeria. Even though you come to the Conference as nominees and representatives of different interest groups, I urge you all to make a more united, stronger, indivisible and prosperous Nigeria your preoccupation and reference point at this national gathering.  Whatever the pressures on you may be, I call upon you to put the best interest of Nigeria before all other sectional or group interests.

30.   Indeed, I am quite worried when I hear people say that some participants in this National Conversation are coming here to defend and promote ethnic or clannish agenda. It is very regrettable that there are persons who believe that we cannot undertake any collective task in our country without the hindrance of ethnic rivalry even after 100 years of nationhood.

31.   This conference gives us an opportunity to prove such persons wrong and I believe it will. As we start a new century of nationhood, we have an obligation to reshape and redirect our country for the benefit of our children. There should be no room for divisive cleavages and ethnic jingoism. There should be no room for selfish considerations that defeat the purpose of national progress. There should be room only for the national interest.

32.   In the 60s, our country was ranked along with some developing countries including India, Malaysia and South Korea. Today, those countries have moved far ahead of us in several areas. My expectation is that the outcome of this Conference will be a positive turning point for our country’s development. We must seize this opportunity to cement the cleavages and fault lines that tend to separate us.   We must re-launch our country.

33.   I know the task before you is onerous; but there must be only one winner, and there can only be one winner if we do everything right, and that winner must be Nigeria. I urge you therefore to focus strictly on the Nigerian Agenda.

34.   I expect that, as persons of integrity and honour, you will do nothing in this Conference that will undermine our efforts and desire to build a truly great nation.  I also expect that your discussions will be informed only by the noblest of instincts and persuasions.

35.   Our sole motivation for convening this conference is the patriotic desire for a better and greater nation. We are determined that things must be done in a way and manner that will positively advance that objective.

36.   While we recognise that groups and communities are the building blocks of our nation, we must also emphasise that we need one another to build the solid and prosperous country of our dreams.

37.   We cannot join hands together to build with a collective vision if we continue to harbour negative biases and prejudices against ourselves.

38.    Yesterday’s prejudices should die with yesterday. Today is a new day. This is the dawn of a new era. This is an opportunity to think anew. We must jettison the poisonous mind-sets of the past, which were built on unhealthy competition among our diverse groups and peoples.

39.   We need a new mind and a new spirit of oneness and national unity. The time has come to stop seeing Nigeria as a country of many groups and regions. We have been divinely brought together under one roof. We must begin to see ourselves as one community. We are joined together by similar hopes and dreams as well as similar problems and challenges. What affects one part of the community affects the other.

40.   An average Nigerian sees every part of the country as home. Let us seize the opportunity of this Conference to do more to further turn our diversity and plurality into unique national resources for strength and greatness.

41.   I have always affirmed that our ability to stay together despite our acknowledged differences, when other countries are finding it difficult to meet that challenge, is a powerful statement by Nigeria to the world on the virtues of tolerance and unity.

42.   It is a strong and compelling statement in a world much afflicted by strife and violence.  We must sustain it. We must not allow the antagonists of unity and togetherness to prevail. We must work ceaselessly to remain one nation bound in freedom, peace and unity, as our National Anthem says.

43.  Honourable Chairman and distinguished delegates, I urge you not to be under any illusions as you begin your assignment. The task that lies ahead of you is formidable. Over the coming weeks, you will be confronted with complex and emotive issues; strong views will be expressed by opposing sides and some disagreements will, in all likelihood, be intense.

44.  I sincerely believe, however, that we can overcome all obstacles to true national unity if we dig deep into the recesses of our national character and look up to God Almighty for wisdom, guidance and the generosity of spirit we need to ensure the success of this conference.

45. Once again, I wish to express my appreciation to the Nigerian people who have, without hesitation, accepted dialogue as a means of resolving all differences and tensions that may exist in the country, and therefore, given their unequivocal support for this National Conference.

46.  Let me at this point thank the National Assembly for introducing the provision for a referendum in the proposed amendment of the Constitution. This should be relevant for this Conference if at the end of the deliberations, the need for a referendum arises. I therefore urge the National Assembly and the State Houses of Assembly to speed up the Constitutional amendment process especially with regard to the subject of referendum.

47.  I thank the Chairman, Senator Femi Okurounmu and members of the Presidential Advisory Committee for the arduous work they undertook to prepare for the Conference.  I also thank the Chairman of this National Conference, Justice Idris Legbo Kutigi, the principal officers and all the distinguished patriots and representatives of our people who have taken time off their busy personal schedules to serve the cause of national unity and progress at this conference.

48.  I am confident that we are embarking on a landmark journey that will make us stronger as a nation if we undertake it with all sense of purpose and sincerity. Let us do that which is selfless, purposeful and patriotic so that history will remember us for having served our nation well.

49.  In conclusion, I urge all officials and participants in the national conference to work extra hard to ensure that their deliberations are completed on schedule, well ahead of the schedule of events for the next general elections already announced by the Independent National Electoral Commission (INEC).

50.  Let me again repeat what I have been saying that Goodluck Jonathan has no personal agenda in convening this national conference.

51.  Ladies and Gentlemen, I now have the honour and privilege of declaring the National Conference open, for the good of our Nation and to the glory of God Almighty who has brought us together.

52.   I thank you all.

 

Corruption costs EU $162 billion yearly, report says

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The European Commission on Monday in Brussels unveiled the first anti-corruption report of the European Union, EU, saying corruption costs the European economy $162 billion (about N25.9 trillion) annually.

According to the report, corruption is still a challenge which affects all EU member-states despite initiatives taken against it in recent years. The results of the initiatives, however, are uneven.

The report showed that public procurement was particularly prone to corruption in the member-states, owing to deficient control mechanisms and risk management. It said some sectors, including urban development and construction, healthcare and tax administration, also seemed particularly vulnerable to corruption.

The EU Commissioner for Home Affairs, Cecilia Malmstrom, said in her reaction that corruption undermined citizens’ confidence in democratic institutions and the rule of law.

“It hurts the European economy and deprives states from much-needed tax revenue,” she said.

The commissioner said member-states had done a lot in recent years to fight corruption, but lamented that the report shows that it was far from enough. Ms. Malmstrom therefore urged EU member-states to follow proposals on counter-corruption listed in the report.

A Eurobarometer survey on the attitude of Europeans towards corruption published on Monday showed that 76 per cent of Europeans think that corruption is widespread; 56 per cent think that the level of corruption in their country had increased over the past three years; and eight per cent said they had experienced or witnessed a case of corruption in the past year.

SOURCE OF REPORT: http://premiumtimesng.com/news/foreign/154508-corruption-costs-eu-162-billion-yearly-report-says.html

GTBank expands into East African market with acquisition of 70 per cent stake in Fina Bank Group

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The Guaranty Trust Bank, GTBank, on Wednesday announced the acquisition of 70 per cent stake in one of Africa’s financial conglomerates, the Fina Bank Group.

The bank said that the acquisition, which would extend its investment frontiers beyond Kenya, Rwanda, Uganda and Nigeria, followed its successful securing of the regulatory approvals in the East African countries and Nigeria.

GTBank stated that the acquisition of shares in Fina Bank Group was through a combination of capital injection and equity acquisition worth 8.6 billion Kenya Shillings, a development that would result in the fusion of two organisations with expertise in banking.

The GTBank Group has a vast business outlay in Africa and the United Kingdom, with combined staff strength of more than 12,000 workers in Nigeria, Cote d’Ivoire, Gambia, Ghana, Liberia, Sierra Leone and the U.K.

The bank’s managing director, Segun Agbaje, said that the acquisition was a strategic investment for customers and shareholders. He said with Fina Bank’s enviable banking record in East Africa, their combined strengths with GTBank would help build an attractive portfolio of leading products, services and marketing capabilities.

“We can now deepen existing and future customer relationships with differentiated capabilities to exceed customer expectations and grow market share,” Mr. Agbaje said, pointing out that the merger would also provide the partners with an attractive foothold in Kenya, Rwanda, and Uganda.

Mr. Agbaje also said that the bank would, over the coming months, integrate the operations of the Fina Bank Group into the GTBank system, while assuring the customers that the partnership would not affect its operations and level of service delivery to them.

The Chairman of Fina Bank Group, Dhanu Chandariam, said that the bank was delighted to partner with GTBank, noting that the business combination was consummated because they shared a common philosophy on integrity, governance, and transparency.

Stamp Duties Tax in Nigeria

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The Stamp Duties Act requires that all written instruments, including instances where any property or interest in property is or are transferred or leased to any person, must be stamped.

Generally, Stamp Duties is charged at the rate of 75 kobo for every N200 of the consideration of certain real estate transactions like mortgages, while for conveyances or the transfer or sale of real property, the stamp duties rate is 75kobo for every N50. The Stamp Duties rate for lease and rental agreements is 16kobo for every N200 of the consideration of the lease or rental agreement.

Any written document that is not stamped is not allowed to be received in any judicial proceeding in Nigeria until the stamp duty and the resulting penalty for the non-payment of the stamp duty is paid.

The complex nature of collecting stamp duties as it relates to contract notes was once confused in the stock market with stockbrokers claiming that they are being threatened by the Federal Inland Revenue Service (FIRS) and Nigerian Postal Service (NIPOST). However, the controversial issues had since been resolved. For the purpose of clarification, the provisions in the Stamp Duty Act which prescribe that stamp duties on certain categories of documents such as agreements, contract notes among others, could be denoted by adhesive stamps is a demonstration of government concern for cost efficiency achievable through lower compliance cost and minimal cost of administration. This arrangement of convenience does not in itself imply the ceding of FIRS stamp duties collection responsibility to any agency. The responsibility for stamp duty collection is solely vested on FIRS. With specific reference to the collection of duties on contract notes, FIRS is to collect all stamp duties payable through the Commissioner of Stamp Duties, while NIPOST engages in the supplies of adhesive stamps where the duty payer excises the option to do so.

There are fines and other penalties for any failure to pay stamp duties on any written instrument that is not exempted from the payment of stamp duty.

Again in Lagos State, the flat Stamp Duty rate of 2% of the consideration of the property transaction is charged when applying for Governor’s consent to the transfer of any interest in a landed property.

 

MINIMUM TAX AND DORMANT COMPANIES

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According to the Federal Inland Revenue Service, Minimum Tax is justifiable on the premise that every asset generates income. The Minimum Tax regulations is therefore a anti- tax avoidance measure which is charged whether or not the affected company declares a profit, or the company was dormant during the relevant year of tax assessment.

Where a company is dormant, Minimum Tax is usually charged on the company’s net asset or on its share capital, whichever is higher of the two.

Many companies have closed businesses without liquidation or winding up and there are also companies that were registered and have remained dormant without the owners been aware that the dormancy of their companies attracts minimum tax and minimum corporate affairs commission compliance requirements.

The Companies Income Tax Act (as amended) provides that where in a year of assessment, the ascertainable profits of a company, from all sources, results in a loss or where the company’s ascertainable profits results in no tax been liable for payment, or where the tax payable is less than the statutory minimum tax allowable, such a company shall be liable to be charged and to pay a statutory minimum tax, which amount will be dependent on whether the company has a annual turnover of less than N500,000, or more than N500,000.

A company with an annual turnover of N500,000 or less, that has been carrying on business for at least four (4) years, is liable to charge to a Minimum Tax of any of the higher of the following sums:

(i)     0.50 per cent of the company’s gross profit; or
(ii)    0.50 per cent of the company’s net assets; or
(iii)   0.25 per cent of the company’s paid up share capital; or
(iv)   0.25 per cent of the turnover of the company for the relevant year of tax assessment.

Where however, the turnover of the company is more than N500,000, the minimum corporation tax payable shall be the higher of the above rates that is charged for companies with an annual turnover of N500,000 or less, plus 0.125 (or fifty per cent) on the excess of the turnover that is above
N500,000 will be charged as Minimum Tax.

Exemption from Minimum Tax Regulations

Companies that are involved in agricultural production or businesses, with companies that have not carried on business during the first four years of their incorporation, or companies that have at least twenty-five per cent imported equity capital fully paid for by a foreign company, are among the
exempted corporations to whom the minimum tax provisions stated above do not apply.

Capital Allowances and Minimum Tax

For each year of tax assessment in which Minimum Tax is payable, the capital allowance for that year shall be computed together with any unabsorbed allowances brought forward from the previous years, and these shall be deducted as far as possible from the assessable profits for therelevant financial year, and carried forward to the next financial year.

Dormant Companies and Minimum Tax

The general perception that dormant companies are not liable to pay any tax at all as they are not engaged in any trade or business is not correct. As a tax-avoidance measure, Minimum Tax is charged on the higher amounts of such a dormant company’s gross profit, or on its net assets, or
on its paid-up share capital, or on its turnover, at the rates stated above. The only exemptions to this rule are as also stated above.

To avoid penalties for non-compliance, owners of companies that are dormant for any reason, or are not making any profits, will do well to contact their Tax Advisers for compliance in order to avoid tax penalties that could compound the financial obligation of the company.