Nigeria is in dire straits and lacks enough funds to meet its obligations, the Minister of Information and Culture, Alhaji Lai Mohammed, said wednesday.

The minister stated this in Abuja while explaining the decision of the federal government to increase the pump price of fuel, adding that the policy was not aimed at removing subsidy but to free funds to help the government meet its other financial obligations.

“The current problem is not really about subsidy removal. It is about that Nigeria is broke. Pure and simple!” Mohammed said.

The minister, who briefed State House correspondents after the Federal Executive Council (FEC) meeting presided over by President Muhammadu Buhari‎, called on Nigerians to bear with the government.

With him at the briefing were the Attorney General of the Federation (AGF) and Minister of Justice, Abubakar Malami; Minister of Power, Works and Housing‎, Babatunde Fashola (SAN); and Labour and Productivity Minister, Dr Chris Ngige.

He said Nigeria was “like somebody who has been earning N100,000 a month and he is faced with a situation where his employer says henceforth you will be earning N10,000 a month”.

“He would need to make some very painful decisions and some very painful adjustments. That is the situation with Nigeria today. A few months ago, we were earning as much as $100 for every barrel of crude. In the months of February and March, we were short, we no longer have the resources, the foreign exchange to bring in refined fuel products. And our economy is shrinking.

“We appreciate the fact that the decision is going to affect everybody. We appreciate what we are going through, but Nigerians should also know that the government has the responsibility at times to take very difficult decisions. So, it is not always about popularity,” Mohammed said.

Also speaking, Ngige said government was ready to discuss with all groups aggrieved by the new fuel price regime.

When asked why government was selective in its talks with labour groups, he replied: “We are trying to bring them under one roof on an issue that concerns all Nigerians. We wanted to speak to the sensitive sectors of the economy. That is why we brought them together.”

Ngige said that government had agreed to meet some of the demands by labour, one of which was the re-constitution of the board of the Petroleum Products Pricing Regulatory Agency (PPPRA).

He said that a 15-man committee had been set up by government to look into the demands of labour.

Ngige also said that the PPPRA board would be constituted in the next two weeks.

Fashola ‎said government was encouraging industrialists to invest in infrastructure and would in return be considered for tax breaks.

In line with this policy, the minister said that ‎a construction firm owned by Dangote Group had agreed to construct the Obajana-Kabba Road in Kogi State.

He said: “We presented a memo to council for consideration. The memo seeks to take benefits of the existing policy and regulation. It seeks to take benefits of tax policies, tax laws for the purpose of using them to drive infrastructure development renewal.

“So we presented a proposal by one of the subsidiary of Dangote group, a construction company, for the construction of a section of Lokoja-Obajana-Kabba-Ilorin, specifically the section between Obajana-Kabba road using cement as demonstrative of how perhaps we should continue to build going forward in order to reduce maintenance on the road and the company proposing to fund the construction of that section of the road in exchange for some tax remissions.”

Fashola pointed out that ‎ordinarily, companies ought to pay income tax‎, adding that “there are existing policies in our laws, which enable government to consider and give tax incentives”.

According to him, “Council considered and approved the proposal for Dangote Construction Company to build that section of the road because the tonnage of cement being produced from the factory has increased, and the traffic in that area has increased, there has been unfortunate accidents also.

“It is a total economic policy, which council considered and approved because it gives support to industry, it enables us to take benefit of our tax law to renew infrastructure at a time where we are really challenged for resources to finance all our routes.

“It also enables us to save lives by quickly and urgently rebuilding that road so that other commuters who also depend on that road for their livelihood would also benefit from the road.”

The minister said that the policy was not just about Dangote but “an existing tax policy that a corporate or individual that makes investment on the infrastructure of a public nature should be entitled to make claims for remission on its income tax obligation”.

‎According to him, even as an individual, anyone is entitled to make this claim if the infrastructure goes through this type of process and is approved by government.

Fashola said: “So the details are that about 30 per cent income tax obligation spread over time. It doesn’t mean they won’t pay tax. They will continue to pay their tax obligation but they will get remission for making this investment because ultimately the road doesn’t belong to them but to government and it is for the benefits of Nigerians. So it is like credit advance to government.”

The Malami said FEC approved his memo on ensuring uniformity in payment and settlement processes in the financial system in order to block leakages in ministries, departments and agencies (MDAs).

In this regard, he said his ministry would prepare a draft bill and forward it to the National Assembly to make it a law.

He also said he gave a report on the recent UN Habitat Conference in Abuja that was attended by ministers of environment from across Africa.

http://www.thisdaylive.com/index.php/2016/05/19/fg-nigeria-is-broke-looks-to-taxation-for-infrastructure-development/ lalasticlala, dominique, Mynd44

This Pharoah go tax us die be dat

Luxury tax should be the key, tax all private jet owners 500 million per year
All religious outfit revenue should be taxed 40%
Travelling abroad for wedding and party should be taxed 5000 dollars
Schooling abroad should be taxed 40% of tuition fee
Private university and secoundry schools should be taxed 40%
Any one who buys a car above 5 Million should be taxed 50%
Night Clubs should be taxed 50%
Legalise prostitution and tax it 50,000 per prostitute per year


My thoughts tho

Tinubu Lagos taxation model is baying to be copied nationally.

mrvitalis:
Luxury tax should be the key, tax all private jet owners 500 million per year
All religious outfit revenue should be taxed 40%
Travelling abroad for wedding and party should be taxed 5000 dollars
Schooling abroad should be taxed 40% of tuition fee
Private university and secoundry schools should be taxed 40%
Any one who buys a car above 5 Million should be taxed 50%
Night Clubs should be taxed 50%
Legalise prostitution and tax it 50,000 per prostitute per year


My thoughts tho

tax secondary schools?better shut the f*ck up

Infrastructure in places where the riches reside, places where the masses hardly get to abi. Use ur head when constructing anything u wanna construct.

Taxation from where? Who are you going to tax in an economy that is in recession?

Godgay:
tax secondary schools?better shut the f*ck up

Yes private ones.... Do u know much they pay

mrvitalis:

Yes private ones.... Do u know much they pay

you want them to go bankrupt abi,don't you know that the south thrives on private schools

Godgay:
you want them to go bankrupt abi,don't you know that the south thrives on private schools

The idea is the would increase there fees and the rich family will still pay and this will put pressure on government to restructure state owned schools

The money taxed from the private schools will be used to rebuild public schools, so in other words the rich training the poor kids

Wetin Nigeria no go do? That reminds me when construstions are financed with barrel crude oil.

mrvitalis:
Luxury tax should be the key, tax all private jet owners 500 million per year
All religious outfit revenue should be taxed 40%
Travelling abroad for wedding and party should be taxed 5000 dollars
Schooling abroad should be taxed 40% of tuition fee
Private university and secoundry schools should be taxed 40%
Any one who buys a car above 5 Million should be taxed 50%
Night Clubs should be taxed 50%
Legalise prostitution and tax it 50,000 per prostitute per year


My thoughts tho

Mr if that sh!t you wrote up there seriously came out of your head, then I fear that head has to be replaced!!

Legalise prostitution then charge them 50k yearly? Seriously FG don turn P!MP?

I'm very sure you are living under your parents or guardians cos if you work hard for money, you won't welcome that f**ked up tax policy you put up there.

Or maybe supporting Buhari rids some of you lot of Common Sense!!

The federal government is too big and too useless to be of any benefit to anyone.
They should all accept that the unitary,command and control state started by ironsi and doubled down upon has failed.
The only thing that should be run by the FG is a portion of foreign affairs and the relationship between regions or autonomous states.
Imagine, the Nigerian government still runs stadiums.
Dilapidated ones at that.
But oil money will not allow those at helms to think straight.
No amount of taxation will change this fact.

Godgay:
tax secondary schools?better shut the f*ck up

priivate private especially all thos dollar denominated ones

Please o! What has come of the China trips and many infrastructural developmental plans supposedly negotiated? Recovered loot nko? Have we stopped selling crude? Where is all the N50 tax per deposit? Taxes n revenue from FIRS, Customs, Immigration nko?

What plans are here to revive the economy especially agriculture n manufacturing that have hit an all time low in the past one year? Is it until they tax citizens to death before they can agree they have money? How about selling off some of the presidential jets and cutting down international travel?

freeze001:
Please o! What has come of the China trips and many infrastructural developmental plans supposedly negotiated? Recovered loot nko? Have we stopped selling crude? Where is all the N50 tax per deposit? Taxes n revenue from FIRS, Customs, Immigration nko?

What plans are here to revive the economy especially agriculture n manufacturing that have hit an all time low in the past one year? Is it until they tax citizens to death before they can agree they have money? How about selling off some of the presidential jets and cutting down international travel?

Bravo !
You couldn't have said it better.
I think i preferred listening to NOIs lies better, than the lies of Lai and Fashola...suddenly there's no more talk of China trip......What a scam !

This government is rather becoming clueless like the preceding administration.