Business
Lagos Targets Churches, Mosques In 2012 Tax Drivea
Churches and mosques in Lagos State may now have to “give unto Caeser, what is Caeser’s and render to God, what is God’s,” as the 2012 fiscal regime will now include activities in those religious houses under the state’s tax net.
Besides, tenants will, from January, deduct five per cent of rents payable as withholding tax and remit same into the government’s treasury.
Speaking at the third Lagos State Taxation Stakeholders Conference, held recently in Ikeja, Governor Babatunde Raji Fashola, explained that the new tax regime was scripted to enhance the state’s revenue base and promote effectiveness of governance.
Fashola explained that churches and mosques, who owned buildings used for business purposes, were not exempted from paying taxes to the government because they earn income from such businesses.
He said: “On the churches and the mosque, let us remember that whether it was a church or a mosque, it was first a building. And therefore, it is built with the same building materials that were used to build other private facilities.
“Nobody knows the difference at that time. And therefore, it cannot escape the regulatory law of the state in making building safe, it must comply. It is only when those, who are ordained dedicate the building to the propagation of religion that it becomes a church.
“In the same way, churches own facilities. Churches that run businesses should give something back to the government. Render unto Caesar what is Caesar’s and render unto God what is God’s.”
The governor also said tax should be paid on gifts received by individuals and urged Lagos residents to pay their taxes promptly so that government would have the money to carry out developmental projects.
He, however, appealed to the people to be more tax compliant. “If more people voluntarily pay the right amount of income taxes, the government will find enough money it needs to transform the state,’’ he stated.
On the five per cent withholding tax, Fashola said everybody, who pays rent, is collecting agents for the tax. “Everybody, who pays money to a doctor, lawyer for the services they rendered to him, is our collecting agent for that withholding tax.
“And we expect that they fairly collect, issue receipt and account for them. Once we have all of those documents and records, it should be easy for us at the end of the tax accounting year to set off all of these,” he said.
Fashola said collection of withholding tax would be part of government revenue drive in the New Year. He promised to enforce the payment of the tax. He said withholding tax would be collected on rent, dividend, contract, among others, stressing that in the case of rent, the tenants would serve as the collecting agents of withholding tax from the landlords for the services rendered.
He explained that the only way to make life as good as they are in the other jurisdictions such as Europe was for the people to provide the government with more resources to do so.
“We have the idea, we have signed on to work and really, whether you think we can do it or not, I think our experience and our record in the past four years show clearly that even if you disbelieve what we say, the evidence before you today makes it difficult for you to disbelieve what we have done and it speaks of what we can do if you give us the chance,” he added
Fashola said the role of tax consultants in the internal revenue drive of the state is to track and monitor revenues, payment that you make. “They don’t collect. The bills are still done by public servants now under the Internal Revenue Service.
“But at that time, our government did not know how many accounts it had and it did not know what was paid in. So, the money was there, depending on the benevolence of a bank that decided to be honest. But today, at the close of every business day, Lagos State government can tell you how much it has collected and in which bank it is. That is the energy the consultants have brought,” he said.
Noting that organisations that provided services deserved to be paid, the governor declared, “they have provided service, they have invested in ICT. It is only fair that they be paid. The only issue that can arise is whether or not we are getting a fair deal for the service that they render. But the idea that somebody who rendered service in a free economy should not be paid is alien to me.”
Corporate organisations presented with tax compliance awards included Nigerian LNG, Julius Berger, Coca Cola, Citi Bank Nigeria Limited and Standard Chartered Bank, among others, while private individuals included Chairman of Elizade Motors, Chief Michael Ade Ojo, former Chairman of Punch Nigeria Limited, Chief Ajibola Ogunshola, former Secretary-General of the Commonwealth, Chief Emeka Anyaoku, among others.
The Nigerian Communications Satellite Limited (NIGCOMSAT), the country’s satellite operator, has called for immediate promolgation of policy action that will enable the country to harness the potentials of Artificial Intelligence (AI).
NIGCOMSAT, also warned that Nigeria risks missing out on Africa’s projected $1.2trillion share of the global AI economy by 2030.
Managing Director of NIGCOMSAT, Nkechi Egerton-Idehen, disclosed this in a statement issued at the weekend following her participation in the Meeting of the National Council for Communications, Innovation, and Digital Economy.
“Artificial intelligence is reshaping industries, economies, and societies worldwide, with projections that it will contribute up to $15.7trillion to the global economy by 2030. Africa stands to gain $1.2trillion of this if the right policies and innovations are in place”, Idehen said, citing a PricewaterhouseCoopers report.
The NIGCOMSAT MD underscored the transformative potential of AI in agriculture, highlighting its applicability in Benue State, widely regarded as Nigeria’s “food basket.”
According to her, machine learning tools could revolutionize agricultural practices by improving pest detection and optimizing planting schedules using satellite imagery.
“AI offers us the chance to not only flourish economically but also to achieve food security. However, we must ask ourselves if we are prepared to manage this technology responsibly”, she added.
Idehen also noted that internet access remains a significant barrier to AI adoption in Nigeria.
“For AI tools to be effective, basic digital infrastructure is essential. Addressing this gap must be a priority.
“AI is happening. We have the opportunity to manage this technology revolution responsibly, both in Africa and globally, through innovation and governance”, she said.
In August 2024, the Federal Ministry of Communications, Innovation, and Digital Economy released a draft National Artificial Intelligence Strategy, aiming to position Nigeria as a global leader in AI.
Corlins Walter
The Chairman of Emohua Local Government Council, Chief David Omereji, has said the council has so far spent over N1 billion for the electrification of communities in the area.
Omereji said this while addressing staff of the council at the council headquarters recently.
He said the move was part of his administration’s resolve to ensure peace and development of the LGA.
According to him, the Council spent about N29 million on monthly basis for the maintenance of the Emohua Local Vigilante group known as OSPAC, with each member being paid a stipend of N100, 000 monthly.
He diaclosed that 11 out of the 14 wards are currently enjoying electricity, while efforts are on to light-up the remaining ones.
“I also want to use this opportunity to inform the political class for purposes of records and for the understanding of the people that the Council under my watch have done more than enough”, he said .
The Emolga boss explained that all that have been achieved were through the personal effort of the Council, without support from anybody as rumoured in some quarters.
Omereji further reaveled that a number of other projects, including roads, fencing of schools, hospitals, courts premises, and reconstruction of some abandoned buildings at the Council Headquarters are being undertaken by his administration.
He enjoined the people of the area to support his administration’s drive to bring purposeful development to the LGA.
The Emohua Council boss, who reiterated his hatred for noise making, stated that his works would speak for him, and solicited the support of staff of the council and the entire people of the area.
He noted the fact that some people may not be happy with his achievements, saying that he would remain focused, while advising critics of his government to do so constructively with facts and figures.
King Onunwor
The Movement for the Survival of the Ogoni People (MOSOP) has raised some ethical questions over a Financial and Technical Services Agreement (FTSA) between Sahara Energy and West African Gas Limited (WAGL), an affiliate of the Nigerian National Petroleum Company (NNPC).
MOSOP said the agreement was not done in good faith, not in the interest of the Nigerian people, and did not follow due process.
Foremost Ogoni born activist and MOSOP leader, Fegalo Nsuke, who made this known in Abuja, weekend, described the Sahara-WAGL deal as fraudulent, deceptive and an insult on the intelligence and integrity of the Nigerian nation.
Nsuke called on President Bola Ahmed Tinubu to cancel that FTSA between Sahara Energy and WAGL, noting that the agreement is fraught with irregularities and deceptive.
“What Sahara and the NNPC did in the FTSA between Sahara and WAGL is shameful and depicts high level corruption in public service of our country.
“WAGL is an affiliate of Sahara and the NNPC. How then can Sahara go into an agreement with its own affiliate? It’s as good as going into an agreement with itself. This is deceptive and fraudulent”, Nsuke said.
He continued that “Sahara Energy is certainly not a company the Ogoni people want on their soil and we are calling on Mr. President, Bola Ahmed Tinubu, to terminate any deal between the NNPC and Sahara Energy over OML 11, and to allow for an inclusive arrangement that considers a fair treatment of the Ogoni people in the distribution of revenues from natural resource extraction on Ogoni soil.
“The last Ogoni Congress has been unequivocal on the Ogoni demand for justice and has given a clear path to resolve the three decade old conflict between all critical parties.
“It will be good to explore this path to peace and development for Ogoni and for our country”.
Nsuke accused Sahara Energy and the NNPC of frustrating the progress made by MOSOP to achieve a permanent solution to the Ogoni problem.
He urged a presidential intervention with deep consideration for a fair treatment of the Ogoni people in order to permanently address the problem.
He noted that Sahara Energy should give up on the Ogoni area to allow for an engagement in the interest of the country and the people.
Recall that MOSOP and Sagara Energy have recently been engaged in a row in what MOSOP describes as an unholy relationship between Sahara Energy and the NNPC over OML 11.
MOSOP expressly rejected Sahara Energy and called for a fair treatment of the Ogoni people in natural resource extraction in Ogoni.
It noted that Ogoni people, led by MOSOP, paid the sacrifice to take the oil from Shell, hence “the position of MOSOP must be taken into consideration in decisions relating to resumption of oil production in Ogoni”.
