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Governors Sue Nigerian Govt Over Stamp Duties

Governors sue Nigerian govt

Governors sue Nigerian govt over stamp duties, demand remittance of N176bn collected in five years

The governors of the 36 states in Nigeria have dragged the Federal Government to the Supreme Court over alleged non-remittance of funds generated as stamp duties from the states.

In the suit marked SC/CV/690/2021 filed on August 24 by their attorneys-general, the states argued they have the sole authority to collect stamp duties and not the federal government.

They asked the court to mandate the federal government to pay N176 billion as the backlog of stamp duties collected from 2015 to 2020.

The Attorney-General of the Federation and Minister of Justice, Abubakar Malami, was listed as a respondent in the suit.

The Rivers and Lagos State governments had recently initiated the processes for the collection of Value Added Tax (VAT) in their domains.

The states asked the apex court to determine among others; “Whether or not having regard to the mandatory provisions of Section 4(2) of the Stamp Duties Act Cap. S8 Laws of the Federation of Nigeria (LFN), the plaintiffs (all the state attorneys) are not the sole authority to administer and collect stamp duties on all transactions involving individuals/persons within their respective states?

“Whether having regard to the provisions of Section 4(2) of the Stamp Duties Act Cap. S8 of the Laws of the Federation of Nigeria read in conjunction with the provisions of Section 163, items 58 and 59 of the Second Schedule part I and items 7 (a) and (b) of the second Schedule part II and other provisions of the Constitution of the federal republic of Nigeria, 1999 (as amended), the defendant (Malami) could claim, retain, distribute, or in any other manner deal with the monies or sums collected as stamp duties on individual persons transactions within the respective states of the plaintiffs without reference to, the concurrence of, input, or agreement of the plaintiffs?

“Whether or not they are entitled to 85% of all stamp duties collected on electronic money transfer levy, on electronic receipts or electronic transfer for money deposited in deposit money banks and financial institutions, on any type of account to be accounted for and expressed to be received by the person to whom the transfer or deposit is made in the plaintiffs’ respective states.”

No date has been fixed for hearing of the suit.

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FCCPC Tasks DisCos on Band Migration, Metering

•…Orders Ikeja, Eko DisCos to halt Unistar Meter Installation

The Federal Competition and Consumer Protection Commission (FCCPC) on Tuesday urged electric distribution companies (DISCOs) to carry energy consumers along before classifying them into bands and also adhere strictly to industry regulations on billing unmetered consumers.

The call was made by FCCPC’s Executive Vice Chairman and Chief Executive Officer, Mr. Tunji Bello, at a stakeholders’ meeting held at the FCCPC headquarters in Abuja which was attended by representatives from the Nigerian Electricity Regulatory Commission (NERC), the Nigerian Electricity Management Services Agency (NEMSA), various electricity distribution companies (DISCOs) and Unistar Hitech Systems Limited to address pressing metering issues impacting Nigerian consumers.

Citing noncompliance with NERC’s order, FCCPC directed Ikeja Electricity Distribution Company (IKEDC) and Eko Electricity Distribution Company (EKEDP) to immediately halt their replacement of Unistar prepaid meters.

During the meeting, Mr. Bello highlighted significant issues facing electricity consumers, from billing inaccuracies to inadequate customer care. Mr. Bello noted that systemic inefficiencies and a culture of impunity among some service providers have intensified these issues, leading to the routine exploitation of consumers. He expressed concern over practices that require consumers to pay upfront for meters without reimbursement, a direct violation of the NERC Meter Asset Provider and National Mass Metering Regulations 2021. He also noted that DisCos frequently place consumers with faulty meters on estimated billing, which is prohibited under NERC’s regulations.

Mr. Bello cited an example of a complaint received by FCCPC from an Ikeja Electric customer, who had expressed frustration at being asked to replace a functioning meter at a significant personal cost.

To prevent potential exploitation, FCCPC has directed that all meter replacement processes be conducted transparently, with costs borne by the DisCos and not passed on to consumers. Mr. Bello stressed that FCCPC will enforce strict compliance with these regulatory requirements to protect consumers from arbitrary charges and estimated billing.

The FCCPC also committed to enhancing consumer education on metering and billing practices to guard against potential exploitation by service providers. Mr. Bello concluded by expressing appreciation for the collaborative efforts of NERC and NEMSA in building a transparent, accountable, and consumer-centered electricity sector. He reaffirmed FCCPC’s dedication to enforcing all relevant consumer protection laws within the electricity industry to uphold consumer rights and promote fair market practices.

The FCCPC’s directive to discontinue the replacement process stems from the DisCos’ non-compliance with NERC’s “Order on Structured Replacement of Faulty and Obsolete End-user Customer Meters in the Nigerian Electricity Supply Industry.” Both NERC and NEMSA endorsed the FCCPC’s stance on the issue.

The NERC’s Order mandates that DisCos must prioritise metering for unmetered customers under the National Mass Metering Programme (NMMP) and follow strict guidelines for replacing faulty or obsolete meters. These guidelines require DisCos to inspect faulty meters and provide detailed information in the replacement notice, including the inspection date, the inspecting officer’s credentials, the identified fault, and the scheduled replacement date. Furthermore, DisCos are prohibited from placing customers on estimated billing due to delays in meter replacement, as new meters must be installed immediately upon removing any faulty or obsolete unit.

The meeting addressed a recent announcement by one of the DisCos regarding the phase-out of the Unistar prepaid meter model, effective November 14, 2024, which has caused considerable anxiety among consumers.

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NNPCL dismisses demand for Kyari’s resignation over fuel price hike

The Nigerian National Petroleum Company Limited (NNPCL) has stated that its Group Chief Executive Officer (GCEO), Mallam Mele Kyari, is not responsible for the hike in the prices of the Premium Motor Spirit (PMS) popularly known as petrol.

Recall that some protesters had earlier stormed the headquarters of the oil company in Abuja, with the demand that Kyari be forced to resign over the increase in the prices of petrol nationwide.

Reacting to the development, spokesman for the NNPCL, Olufemi Soneye, said that the protesters were not well informed about the true state of things in Nigeria’s fuel supply chain.

Soneye, in his reaction said, “Unfortunately, the protesters lack understanding of the sector. If they were informed, they would know that the GCEO is not responsible for the fuel price increase; in fact, he ensured Nigerians had access to fuel at N620 per liter for over a year, even when the landing cost was above N1,100. NNPC Ltd. does not import adulterated fuel. If anyone has evidence to the contrary, they should bring forward samples of any such fuel imported by NNPC.”

He affirmed further that no group or individuals motivated by selfish interests would deter or distract the NNPCL from achieving the goal of implementing President Bola Ahmed Tinubu’s roadmap for the sector to accomplish its goal and to ensure energy security for the nation.

“I won’t waste time engaging with individuals motivated by selfish interests. We have more pressing projects to accomplish to ensure energy security for our nation rather than focusing on inconsequential groups. We are committed to implementing President Bola Ahmed Tinubu’s roadmap for the sector, and no group will deter or distract us from achieving this goal,” he concluded.

Recall that the protesters, led by some civil society organisations, called for the sack of Kyari, citing skyrocketing fuel prices.

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NNPC hasn’t authorised sale of petrol to marketers – Dangote refinery replies IPMAN

The Dangote Petroleum Refinery has stated that it has not received any payments from the Independent Petroleum Marketers Association of Nigeria (IPMAN) for refined petroleum products, clarifying its position amidst ongoing concerns from oil marketers regarding petrol supplies.

According to a statement on Thursday, October 31, by Anthony Chiejina, the group’s chief branding and communications officer, the refinery has no business dealings with IPMAN and cannot be held accountable for any payments made to the Nigerian National Petroleum Corporation (NNPC).

This comes after Aliko Dangote, founder of Dangote Industries Limited (DIL), noted that the refinery holds over 500 million liters of petrol, yet oil marketers are reportedly not purchasing the product. IPMAN, however, countered by claiming its members have struggled to load petrol from the refinery, despite having paid N40 billion to NNPC.

Chiejina confirmed that while discussions with IPMAN are ongoing, there are no direct business arrangements between the two. He emphasized, “It is misleading to suggest that they (IPMAN members) are experiencing difficulties loading refined products from our Petroleum Refinery, as we currently have no direct business dealings with them. Consequently, we cannot be held responsible for any payments made to other entities.”

The Dangote Refinery reiterated its capacity to meet national demand for various petroleum products, including petrol, diesel, and aviation fuel, capable of loading 2,900 trucks daily and transporting products by sea. The refinery also advised IPMAN to register and make direct payments for access, assuring, “There is more than enough petroleum product to satisfy the needs of their members.”

Chiejina urged stakeholders to avoid unsubstantiated media statements, warning that such actions could impede economic progress under President Bola Ahmed Tinubu’s administration. The statement called for collaboration among stakeholders, aligning with Tinubu’s economic re-engineering initiatives.

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