The Minister of Aviation, Senator Hadi Sirika, has called for the establishment of Aviation Development Fund so that the sector can be in consonance with international standards and best practises.
Sirika, who spoke at the public hearing on the six Aviation Executive Bills at the National Assembly on Tuesday, stated that the Aviation Development Fund being proposed with friendly interest rate would help the sector address its enormous financial challenges.
Some of the bills being considered are “A Bill for an Act to repeal the Civil Aviation Act, 2006 and to Enact the Civil Aviation Act for the Regulation of Civil Aviation in Nigeria and for Other Related Matters; “A Bill for an Act to repeal the Nigerian College of Aviation Technology Act and to Enact the Nigerian Aviation Technology Act to provide for its organisation, control and operation and for related Matters.
Also included is a Bill for an Act to repeal the Nigerian Airspace Management Agency Act for the purpose of providing effective Air Navigation.”
The Aviation Minister while responding to concern over inadequate safety equipment at the nation’s airport, passenger comfort and the perceived indifference of the regulatory agency, the Nigeria Civil Aviation Authority, has however reiterated that the strategic sector was battling with paucity of fund.
Sirika said:” In the wisdom of the Ministry, we saw that we need huge fund to deal with capital intensive projects, including what Nigerian Airspace Management Agency, NAMA, Federal Airport Authority of Nigeria, (FAAN) will require.
“We need huge amount to put them in place. Of course, we need adequate security around the airport to deal with intruders.
“If we are able to find this money and deal with these items, what we will be addressing is the sustainability of the items.
“We need Aviation Development Fund, where these money can be kept, where we are cocksure that these fund with little interest can be tapped. All we would then need is to boost our Internally Generated Revenue, (IGR).
“This Fund will help us with passenger comfort, safety around the airport. This volume of capital can be deployed to ensure that every aviation equipment are available at our airports. ”
The Aviation Minister who re-echoed his concern over the failure of airline operators under the aegis of Airlines Operators of Nigeria, (AON) to remit their service charge, has recommended for an automated payment system that would take care of cold war over default in remittance by members of the AON.
In his presentation, Director General of NAMA, Fola Akinkuotu who expressed delight over the proposed amendment of the Bill establishing NAMA, said that it would boost the much-needed improvement, efficiency to improve safety in our airspace.
Also in his presentation, Aviation Security Consultant and Secretary General of Aviation Security Round-table Initiative, Group Captain John Ojikutu (retd) who called for a review of the sharing formula of the remittance to the NCAA, which he insisted was skewed against other stakeholders in the sector, asked, “What is NCAA doing to be taking 58 per cent?”
FCCPC: Electricity Topped Consumers’ Complaints In 2020
The Federal Competition and Consumer Protection Commission (FCCPC) says it received the highest consumer related complaints from the electricity sector in 2020.
Speaking in Abuja on Sunday, Babatunde Irukera (pictured), chief executive officer of FCCPC, said the banking and telecommunication sectors ranked second and third respectively on the complaints chart.
He added that the aviation sector was ranked fourth.
“Our complaints resolution team is still a very small team of people and they are dealing with thousands of complaints,” Irukera said.
“We are looking at expanding capacity to have more hands handling the complaints but the real game changer in handling complaints better and faster is for companies to start doing it.
“The person who has the least open complaint in our resolution team has about 800 complaints across sectors and that is one person. If you multiply it by 12 to 15 persons, you will imagine the number of complaints.
“Being able to expand to a point where we are able to operate more efficiently, we will keep training, leveraging technology, the more we leverage technology, the more efficiently we can do our work.”
The commission was established by the 2018 Federal Competition and Consumer Protection Act (FCCPA) to promote fair, efficient and competitive markets in the Nigerian economy, facilitate access by all citizens to safe products, and protect the rights of all consumers in Nigeria.
FEC Approves CBN’s Request To Renovate National Theatre For N21b
Lai Mohammed, minister of information and culture, said on Wednesday that the Federal Executive Council (FEC) has approved a memorandum of understanding (MoU) between the Central Bank of Nigeria (CBN), and the ministry of information and culture for the renovation of the National Theatre in Iganmu, Lagos.
He spoke at the end the weekly FEC meeting in Abuja.
The federal government, on July 12, 2020, handed over the national theatre to CBN and the bankers’ committee to signify the kick-start of the renovation process.
“This is a landmark approval because, it has paved the way for investment in the creative industry as part of the resolve of this government to create at least one million jobs in the next three years in the creative industry,” Mohammed said.
“The CBN and banker’s committee are willing to invest N21.894 billion to renovate, refurbish and commercialization (run it profitably) of the national theatre complex. The MoU has a life span of 21 years after which it will revert back to government.”
The minister assured that no job will be lost after the national theatre is renovated, adding that the “brand new national theatre, an event centre” will instead create more jobs.
Asides from this, FEC approved about N9.43 billion to complete the digital switch over (DSO) in broadcasting; N8.98 billion for a new national ICT park in the federal capital territory (FCT) to coordinate public and private ICT hubs in Nigeria.
The council also approved a new national policy on aging which would take care of the needs of the aged people across Nigeria; approved the ministry of water resources memo to construct Damaturu water supply project in Yobe state worth N8.43 billion.
Adesina identifies Debt Service As Greatest Risk To Nigeria
The President of African Development Bank (AfDB), Dr. Akinwunmi Adesina, has warned that debt service is Nigeria’s greatest risk, even as he urged the federal government to take steps to increase tax revenue in the face of dwindling oil income.
The Director of Communications and Liaison of the Federal Inland Revenue Service (FIRS), Mr. Abdullahi Ahmad, stated that he spoke virtually at the recently held First Annual National Tax Dialogue .
Dr. Adesina was quoted as saying that due to the impact of the COVID-19 pandemic, Nigeria’s economy shrank “by 3% in 2020 on account of falling oil prices and the effects of the lockdowns on economic activities,” adding, “with shrinkage in oil revenues, debt service payments pose the greatest risk to Nigeria.”
He stressed further that for Nigeria to overcome the pandemic, “taxes must form a significant percentage of government revenue. Digitalization of tax collection and tax administration is critical to ensure greater transparency of the tax system, widening of the tax base, while mitigating compliance risks and encouraging voluntary tax compliance.”
Tax experts and stakeholders at the event called for the automation of tax collection by the FIRS through data and intelligence in order to ease tax collection, as well as, improve revenue.
Executive Secretary, African Tax Administration Forum (ATAF), Mr. Logan Wort, harped on the place of technology in generating revenue for the country in a post-Covid economy.
Mr. Wort, who joined the dialogue virtually from South Africa, stated, “Domestic Resource Mobilisation (DRM) is expected to contribute at least 75% to 90% on average per country” in the post-Covid era, adding that Nigeria and other African countries should note, “improved tax revenue will have to take prime position” in the scheme of things.
He urged Nigeria to pay serious attention to e-commerce and the digital economy sector where big, trans-national digital conglomerates like Google, Netflix and Uber operate and make huge, tax-free profits as a possible way of increasing tax revenue generation.
He said Nigeria should borrow a leaf from Ghana in e-commerce taxation, projected to fetch Ghana $450 million in annual tax revenue.
Ekiti State Governor, Dr. Kayode Fayemi, who was chairman of the Dialogue, was quoted as lauding the FIRS “for its performance in the 2020 fiscal year, despite operating in the most challenging period. The Service not only collected N4.9 trillion in taxes, achieving 98% of its target; only 30.6% of this was attributed to Petroleum Profits Tax, from what used to be over 50%”.
He urged participants to, “interrogate how Nigeria can further deepen the use of technology to improve tax compliance nationally and across sub-nationals.”