DD
MM
YYYY

PAGES

DD
MM
YYYY

spot_img

PAGES

Home Blog Page 5580

The Economic and Financial Crimes Commission (EFCC) must be called to order

0

The prevalence of the members, privies and agents of the Economic and Financial Crimes Commission (EFCC) flaunting the law, breaking the instituted rule of law and not adhering to due process of the law is getting out of hand and they must hence be called to order and get their tail tamed for good or they risked being scrapped like their colleagues in the defunct State Anti Robbery Squad (SARS). The members of the Economic and Financial Crimes commission are currently undertaking the journey the members of the State Anti Robbery Squad undertook which turned them to not just a nightmare but torn in flesh of the people of Nigeria which led to them being scraped.


The Economic and Financial Crime Commission was created in 2004 by the Economic and Financial Crimes Commission (Establishment) Act of 2004 (herein after referred to as the EFCC Act) by the then President and Commander-in-Chief of the Armed Forces, President Olusegun Obasanjo which repealed the Financial Crimes Commission (Establishment) Act of 2002.

Since it creation, they have been charged to carry out the following functions as conspicuously provided in S.6 of the EFCC Act;


6(a) the enforcement and the due administration of the provisions of this Act;


(b) the investigation of all financial crimes including advance fee fraud, money laundering, counterfeiting, illegal charge transfers, futures market fraud, fraudulent encashment of negotiable instruments, computer credit card fraud, contract scam, etc.;


(c) the co-ordination and enforcement of all economic and financial crimes laws and enforcement functions conferred on any other person or authority;
(d) the adoption of measures to identify, trace, freeze, confiscate or seize proceeds derived from terrorist activities, economic and financial crimes related offences or the properties the value of which corresponds to such proceeds;


(e) the adoption of measures to eradicate the commission of economic and financial crimes;


(f) the adoption of measures which includes coordinated preventive and regulatory actions, introduction and maintenance of investigative and control techniques on the prevention of economic and financial related crimes;


(g) the facilitation of rapid exchange of scientific and technical information and the conduct of joint operations geared towards the eradication of economic and financial crimes;


(h) the examination and investigation of all reported cases of economic and financial crimes with a view to identifying individuals, corporate bodies or groups involved;


(i) the determination of the extent of financial loss and such other losses by government, private individuals or organizations;
(j) collaborating with government bodies both within and outside Nigeria carrying on functions wholly or in part analogous with those of the Commission concerning


(i) the identification, determination, of the whereabouts and activities of persons suspected of being involved in economic and financial crimes,


(ii) the movement of proceeds or properties derived from the commission of economic and financial and other related crimes;


(iii) the exchange of personnel or other experts;


(iv) the establishment and maintenance of a system for monitoring international economic and financial crimes in order to identify suspicious transactions and persons involved;


(v) maintaining data, statistics, records and reports on person, organizations, proceeds, properties, documents or other items or assets involved in economic and financial crimes;


(vi) undertaking research and similar works with a view to determining the manifestation, extent, magnitude, and effects of economic and financial crimes and advising government on appropriate intervention measures for combating same;


(k) dealing with matters connected with the extradition, deportation and mutual legal or other assistance between Nigeria and any other country involving Economic and Financial Crimes;


(l) The collection of all reports relating suspicious financial transactions, analyse and disseminate to all relevant Government agencies;


(m) taking charge of, supervising, controlling, coordinating all the responsibilities, functions and activities relating to the current investigation and prosecution of all offenses connected with or relating to economic and financial crimes;


(n) the coordination of all existing economic and financial crimes, investigating units in Nigeria;


(o) maintaining a liaison with office of the Attorney-General of the Federation, the Nigerian Customs Service, the Immigration and Prison Service Board, the Central Bank of Nigeria, the Nigeria Deposit Insurance Corporation, the National Drug Law Enforcement Agency, all government security and law enforcement agencies and such other financial supervisory institutions in the eradication of economic and financial crimes;


(p) carrying out and sustaining rigorous public and enlightenment campaign against economic and financial crimes within and outside Nigeria and;


(q) carrying out such other activities as are necessary or expedient for the full discharge of all or any of the functions conferred on it under this Act.


They are also mandated and granted with powers which enable them to carry out their functions and duties without hindrances and those such such powers was provided for in S.7 of the act;

7(1)(a) cause investigations to be conducted as to whether any person, corporate body or organization has committed any offence under this Act or other law relating to economic and financial crimes;


(b) cause investigations to be conducted into the properties of any person if it appears to the commission that the person’s lifestyle and extent of the properties are not justified by his source of income;


The Commission is charged with the responsibility of enforcing the provisions of –
(a) the Money Laundering Act 2004; 2003 No.7 1995 N0. 13


(b) the Advance Fee Fraud and Other Fraud Related Offences Act 1995;


(c) the Failed Banks (Recovery of Debts) and Financial Malpractices in Banks Act 1994, as amended;


(d) The Banks and other Financial Institutions Act 1991, as amended; and,


(e) Miscellaneous Offences Act


(f) Any other law or regulations relating to economic and financial crimes, including the Criminal code of penal code.

It is worthy of note the EFCC and it members has been exercising its functions and have been exhuming their statutory granted powers to the later but the big question which metamorphosed into this subtle critique is “if the EFCC, its agents, members and privies has been exercising this statutory granted powers judicially and judiciously”.

According to Lord Acton, a British historian, ‘power corrupts and absolute power corrupts absolutely’. This quote is not far from the truth taking a look on autocratic and authoritarian society and that the reason for the adoption of democratic and egalitarian society where will be checks and balances, separation of powers and regulations and regulatory machineries for those at the helm of powers.

For us to us to objectively and subjectively and the above raised question  ‘if the EFCC as an agency, its agents, members and privies has been exercising their statutory granted powers, and carrying out their law provided functions having recourse to the due process of law or obeying the regulations put in place in order for the not to become power drunk and abuse their powers? We can further break down the above question by further asking ourselves this question that is heavy on people’s mind right now which is ‘whether the agency or its agents and privies has such power and function to arrest, intimidate, search and harass law abiding members of the society without warrants at dead hours of the night?’

What does the law say in this circumstance?
According to the law, you can’t arrest, conduct search onindividuals, homes, private properties, places of business, hotels etc. without arrest/search warrant which must be issued by a judge, a magistrate or a justice of peace within the jurisdiction of where the suspect resides or where the suspect is to be searched or arrested.

According the law, the EFCC has the power to investigate, arrest and prosecute offenses relating to financial crimes which the cybercrime according to the cybercrime act of 2015 comes under the purview as provided by the EFCC but they must do this with recourse to law and regard to the due process of the rule of law. 
The question thy have been bugging people’s mind is ‘whether the Economic and Financial Crimes Commission (EFCC) has the power to search and arrest individuals, conduct search on private properties, homes, places of business etc. with search and arrest warrant’?. 

The answer to the above question is succinctly provided for in the regulatory laws of the Administration of the Criminal Justice Acts of 2015 (which has been adopted by various states of Nigeria, hence, Administration of Criminal Justice Laws) which are regulatory laws regulating the enforcement of laws and orders of law enforcement agencies and stipulating the due process law enforcement agents must follow while carrying out their statutory functions and powers of enforcement of laws and orders.

The Administration of the Criminal Justice Act, 2015 ubiquitously and conspicuously provided for a legal document called ‘warrant’. A warrant is a legal document or fiat issued by a judge or a magistrate to a law enforcement agent or an individual to arrest or conduct search on an individual or properties. This fiat or legal document called Fiat was first made mention by the Administration of the Criminal Justice Act of 2015 in part 3.

The law further provided in part 18 of the Acja, 2015 that a warrant must be issued by either a judge, a magistrate or a justice of peace and a law enforcement agent be it the highest ranking member of the agency or any other member of the agency has no such power whatsoever to issue a warrant of arrest, it must be issued by a judicial officer. 

Further in part 18 of the ACJA, specifically in S.148, it is the ambiguous provision of the law that when a law enforcement agent obtains a warrants or purportedly acting in accordance of the warrant the warrant must be executed during the day. 

The law enforcement agencies like the EFCC carrying out their statutory functions and exercising their statutory powers as provided in s. 6&7 of the EFCC act, 2004 and duties of the police as provided in s.4 of the Police act, recourse must be made to the part 3 and part 18 of the ACJA of 2015.

By this implication, the act of the agents of the EFCC as a commission or through its agents or privies busting and breaking into houses, private properties, hotels etc at dead hours of the night is tantamount to the commission and it members acting ultra vires. If the members of the commission are ignorant of these regulatory laws, then it will be an honour for us to educate them about the laws and bring to their attention that there’s a fiat or legal document known as a warrant which can either be an arrest warrant or a search warrant and the agent conducting the search or the arrest must be in possession of such document specifically issued against the person or property which the arrest or search is been a carried against and that arrest or search must be carried out during the day according to the provisions of S.148 of the Acja 2015. They should also take note that merely flipping out their Identity Cards to show their from the agency doesn’t amount to an arrest or search warrant, arrest must be done and search conducted with a Warrant which is properly issued by a member of the judiciary who has been empowered by law to issue such fiats within the jurisdiction such arrest or search is to be carried out. 


The rascality of the officers of the EFCC agents going about busting into houses, homes and hotels with heavy arms, creating scenes, scaring innocent individuals and chasing around law abiding citizens that are going about their businesses in the excuse of they suspected that there’s a financial criminal around the corner amount to the members of the commission acting ultra vires, abuse of power and power drunk.

There have been numerous cases of the members of the commission harassing, intimidating and breaking into houses and private properties heavily armed like common arm robbers whose intention is to rob, to kill and to destroy but we will mention some few.

Sometime in July 2021, the men of the EFCC broke into a renowned hotel in Lekki, Lagos and arrested the customers of the hotel after threatening and intimidating the hotel staffs to get out of their way. Also, in August 2021, a popular Big Brother Naija star came to the social media to philippic how the members of the commission broke into her apartment at the wee hours of the night heavily armed which caused the mother to have a panicattack in the guise that they suspected that there was a financial criminal that lives in the apartment. In the same August, 2021, a popular movie maker also shared on her Instagram where she narrated how the members of the agency broke into her hotel room at night after having a long day at a movie location, they broke into her room at midnight while she was stack naked and having a sound sleep, she woke up from her slumber to her amazement she found some men heavily armed staring at her while she was naked alone in her room, the men of the agency having recognized her to be a popular Movie star apologized and told her that they thought their are some ‘yahoo boys’ in her room. 


The most recent case is the one that happened on the 16thof September, 2021, the men of the EFCC broke into a popular hotel in Enugu which is state in the eastern part of Nigeria, harassing and intimidating the hoteliers to get out of their way and arresting and beating up the hotel customers who were in the hotel at the midnight. There are even foreign investors who came into the country the previous day and decided to check into the hotel and they experienced the ugly incident that night. 

All these are some of the numerous cases of how the members of the commission have been acting without recourse to the due process of law with so much impunity and rascality clearly acting above the powers accorded to them by the EFCC act of 2004 which is the establishment act and the regulatory laws of the Administration of the Criminal Justice Act of 2015 which they derive some of the powers from to make arrest. 

Be it as it may, the EFCC in no doubt has the power to investigate, arrest and prosecute offenses relating to financial crimes which the cybercrime according to the cybercrime act of 2015 comes under the purview but they must do this with recourse to law and regard to the due process of the rule of law which is ‘ search and arrest must be carried out by a warrant which was issued by a judge, a magistrate or a justice of peace within the jurisdiction the search or arrest is to be carried out’.

According to the law, taking into consideration of the Administration of the Criminal Justice Act of 2015 and the Administration of the Criminal Justice law of 2015 (hereinafter referred to as ACJA/ACJL) which are regulatory laws regulating the enforcement of laws and orders of law enforcement agencies and stipulating how the due process law enforcement agents must follow while carrying out their statutory functions of enforcement of laws and orders.

According to the ACJA of 2015 specifically part 3 of the act, there’s the provision for f a legal document called warrant. A warrant is a legal document or fiat issued by a judge or a magistrate to a law enforcement agent or an individual to arrest or conduct search on an individual or properties. 

Therefore, according to 142 of the ACJA, a warrant must be issued by either a judge, a magistrate or a justice of peace and a law enforcement agent be it the highest ranking member of the agency or any other member of the agency has no such power whatsoever to issue a warrant of arrest, it must be issued by a judicial officer. 

Moreover, according to 148 of the ACJA, when a law enforcement agent obtains a warrants or purportedly acting in accordance of the warrant the warrant must be executed during the day. 

By this implication, the act of the agents of the EFCC busting into houses at dear hours of the night is tantamount to the commission and it members acting ultra vires. 
If the members of the commission are ignorant of these regulatory laws, then let’s bring to their attention that there’s a fiat or legal document known as a warrant which can either be an arrest warrant or a search warrant and the agent conducting the search or the arrest must be in possession of such document specifically issued against the person or property which the arrest or search is been a carried against and that arrest or search must be carried out during the day according to the provisions of S.148 of the ACJA. 


It should be also be noted that merely flipping out their ID to show their from the agency doesn’t amount to an arrest or search warrant, arrest must be done and search conducted with a Warrant which is properly issued by a member of the judiciary who has been empowers by law to issue such fiats within the jurisdiction such arrest or search is to be carried out. 

The members of the commission must be called to order, the senior officers must give the filed officers proper orientations and educate them to follow the due process so flaw while carrying out their functions which the EFCC act has empowered them to in order not to bring the commission to disrepute and ridicule the good works which the commission has painstakingly done and are still doing which is visible to the blind and audible to the deaf in fight against corruption, cybercrime, embezzlement of public funds by those occupying public offices, money laundering, racketeering etc, and the commission shall speedily weed out the black sheep’s amongst them that want spoil them good name which the agency is built over the years and renew the faith which the members of the public have on them.

With E-Naira, I Expect Nigeria To Double VAT Receipts By 2024

3

I have read many documents on the Central Bank of Nigeria’s e-Naira including the presentation which the apex bank made to financial institutions. Yet, there is one thing many are not discussing: efficient tax collection through the visibility e-Naira will give the central bank and the tax agency. Yes, I expect the tax revenue in Nigeria to improve by 17-24% by 2023 if this new currency is adopted at scale. The government has made it clear that companies must accept the new currency. Why not if I may ask? In the next coming quarters, expect digital platform classification and how transactions therein could be taxed, automatically.

Nigeria’s digital currency, eNaira, is a legal tender just like the naira that must be accepted by all merchants and business outlets as a form of payment in the country, Musa Jimoh, Central Bank of Nigeria (CBN) director of payment system management, has said.

The CBN official disclosed this during an interview on Channels TV’s ‘Business Morning’ show on Monday.

“Today, anywhere you present naira to pay, compulsorily it must be accepted because that is our fiat currency. So, the same way naira is accepted that you can’t reject it, is the same way e-naira must be accepted,” Mr Jimoh said.

The CBN on August 30 announced plans to launch its own digital currency on October 1 after instructing banks to close crypto-related accounts in February.

The CBN governor, Godwin Emefiele, said the e-Naira would operate as a wallet against which customers can hold existing funds in their bank account, and that the currency would accelerate financial inclusion which will enable cheaper and faster remittance inflows.

This national playbook will track the nation’s plan to boost ecommerce from the current market value of $13bn to about $75bn by 2025: “The Federal Government has said that it is targeting an increase in e-commerce trading, from the current market value of $13bn to about $75bn by 2025. The Permanent Secretary, Ministry of Industry, Trade and Investment, Dr Evelyn Ngige, who disclosed this on Tuesday in Abuja at the second National E-commerce Roundtable organised by the ministry noted that e-commerce had grown from 14 percent in 2019 to 17 percent in 2020.” If you can efficiently collect VAT of 7.5% on that number, you get $5.6 billion which is ahead of the $5.5 billion total VAT, across all sectors, planned for 2022.

Nigeria is ahead planning that it would rake in N2.26 trillion from VAT despite the agitation of some states like Rivers and Lagos states. Yet, the key data there is that Nigeria will be spending about 13 trillion in the plan: “Based on the key parameters driving the fiscal framework, the net amounts accruable to the Main Pool and VAT Pool Federation Account are projected at N10.52 trillion and N2.26 trillion respectively in 2022. The share of oil revenue is about 51.1% of total Federation Account receipts.”

If e-Naira is well executed, Nigeria can double its VAT tax receipts by 2024. My thesis remains that Nigeria is innovating on tax collection but not doing enough on growth initiatives. The biggest impact of e-naira in the short-term for the government would be an efficient tax regime especially on digital platforms.

All Together

Simply, if you have a national strategy to boost ecommerce and digital platforms trade and business, with e-naira which will make transactions more visible to the apex bank, you have a higher chance of collecting VAT. Why? I can say, any payment leaving any e-Naira wallet to Jumia (an ecommerce platform) must be assessed 7.5% (VAT rate) at source with no need of even asking Jumia to do that. Yes, CBN can help FIRS do that automatically.

Registration Continues for Tekedia Mini-MBA Continues

0

The 6th edition of Tekedia Mini-MBA (Sept 13 – Dec 6, 2021) has since started for the self-paced program. But registration continues till next week. Yes, you can still join our academic excursion into the mechanics of business systems. Begin here and join us.

 

The political cum judicial ruse and fuse for Nigeria’s VAT collection; an eye opener for the masses

0
FIRS signpost

Value Added Tax (VAT) is the tax levied by government on consumer goods and products. It was introduced into Nigeria in the year 1993 via decree 102 of 1993 by the then military government to replace the Sales tax in the states introduced in 1987. The then formula for the distribution when it was first introduced was 50% to FGN; 35% to the States; and 15% to LGAs. The formula was later adjusted to 15% for the FG, 50% for the states and 35% for the LGAs and area councils of the FCT. (source; pwc Nigeria).

The VAT collection ruse and fuse between the FG and states all started when some states that generates more VAT for the FG began to feel cheated and shortchanged by the federal government. They raised an alarm that the FG can’t be robbing and ripping them off in the guise of maintaining one Nigeria but the good news is that the VAT squabble will be an eye opener. It will open the eyes of Nigerians and the eyes of indigenes of the individual states to see and know the kind of persons they elected to occupy the highest political seats in the states or being more ‘unpolitically’ correct, to see the kind of person that rigged his way in and is occupying the highest political seat in the state.

Every sane and reasonable political leader who has the interest of masses at heart should back and support the push for the VAT collection by the states or the regional government as against the collection by the federal government as this will definitely lead to economic boast in individual states and pave way for the restructuring the country called Nigeria so much need at this moment.

The background; 

The Federal Inland Revenue Service (FIRS) has been collecting consumer tax in all states of the federation for the Federal Government since 1993. The Rivers State Government decided that it is enough and dragged the FIRS to court where the state challenged the FIRS of their power to collect VAT in states of the federation including the Rivers state. The Federal High court sitting in Portharcourt gave the judgment which was delivered by Justice Stephen Pam that the VAT should be collected by the state governments and not the federal government through the FIRS and that the FG lack the constitutional power to collect VAT whether by themselves or through their privies called FIRS. This judge should be highly commended for his courage and deep sense of reason for despite being a federal judge was not biased and maintained the canon of the impartiality of the judiciary unlike other judges for the fear of displeasing their pay masters and the employers which is the FG may be tempted to hold otherwise.

The FIRS was displeased with the decision of the Federal High court and went on appeal and appealed against this decision of the Federal High Court. The court of appeal ordered all parties in the suit to maintain status quo till finally decision is reached. This implies that the FG through FIRS should continue with the VAT collection till when the court arrives at the final judgment.

My argument; 

This is a golden ticket for state governors and political stake holders of the state to develop their individual states’ economy but some political e-thugs who has turned to paupers of the FG thereby throwing away the sense of reason on a platter of food are criticizing the states that are fighting that the VAT should be collected by them.  They have closed their minds to the fact that if states start collecting VAT they will come up with ideologies, policies, plans and initiative on how to increase the economic activities of the states thereby boasting the economy, creating jobs and leading to long term development so that they will have more VAT generated in the state.

The smart and proactive governors who are initiative will definitely embrace and support the states collection of VAT as against the collection by the FG as this will lead to the economic development at state/regional level thereby boasting the collective economy; investors will be attracted when there’s an enabling environment to invest, more industries will be established in states, more jobs will be created, policies that support small and medium scale enterprises will be initiated etc.

Despite the economic advantages of states collecting VATs thy we have averted our minds to, there are also other numerous political advantages which one of the resounding advantage is that this will definitely lead to the restructuring that Nigerians have been yearning for from time immemorial. This will pave way to the reality that the states/the region can stand and flourish on their own, with or without the interference of the central government.

Do you wish to have state/ regional security? This is time to go for it, through the VATs generated in your state you can be able to funds it.

Do you have policies and projects you wish to execute and haven’t been able to execute them due to the long wait for approvals and release of funds by the FG then support the VAT collection by the states.

Do you wish to have more money to loot in your state without unnecessary censorship from the FG then this is your time to shine.

These and many more are some of the political and economic advantages and reason why state governments should collect VATs instead of the federal government and for the political stake holders of the state who are selfish and are only occupying political offices for selfish interests; can’t you see that you will be able to loot and embezzle more funds without much scrutiny when VATs are collected by the state because you are the political overlord of the state and the rest are your minions who’d rather keep eating the crumbs you through at them than calling you out.

The truth is if you generate more VAT in the state you will definitely want to collect and control the VAT so generated in your state despite party affiliation because it is the sane and reasonable thing to do if you really want the good of your state. For instance, Lagos state is not an opposition party like the Rivers state but they are also pushing for the collection of VATs by the states, no wonder the state is economically ahead because the political stake holders of the state want the right thing to be done despite the political party affiliations.

My conclusion;

It is a pity that when you call for good governance and cry out for the right thing to be done in government you are either tagged opposition or it is said that you have been bought and sponsored by the enemies of the country that want to destabilize the government and hit up the polity.

Ask yourselves, would you rather keep begging for fish and keep waiting for the fish to be given to you when you can catch your own fishes by yourself and have control over what you want and can do with your fishes?

Some state political stakeholders will answer in affirmative but it won’t be surprising as they would rather be dummies and throw away sense of reason than displease their political god fathers or go against their political parties.

No wonder some state governors like Dave Umahi of Ebonyi state is championing for the FG that the VAT should be collected by the FG. If Dave Umahi is a governor of a state like Lagos or Rivers State will he still maintain the same position? I will leave that to him to think and answer.

His state is backwards economically and he should see this an opportunity develop economy of the state and boast more economic activities is the state in order to generate more VATs from the state for the state.

This is not a political witch-hunt neither is it a sponsored turfs by the opposition against the ruling party, rather it is a great opportunity for the development of the state/regional governments of Nigeria and thereby in turn, the economic development of the country Nigeria in general. Therefore, all and sundry must embrace this move initiated by some states who has been bold enough to embrace what’s right despite party affiliations.

The Lesson from Huawei’s Meng Wanzhou Release And Power of Nations

4

Nations matter and people are nations. The passport you hold could open and close many futures. A few years ago, I was in Moscow to keynote an important event. The Mayor of Moscow and the Minister of Economy had both invited me (see one of the invitation letters below). I had just written a book which received the IGI Global Book of the Year Award.

I went to Russia, they put me in the best hotel in Moscow. Then, when I was coming back, at the airport, their special agent stopped me, and wanted to know how Russia could have bestowed all these niceties to a Nigerian. The problem was not my capabilities but my passport. Needless to note that I made it back to the US, and the next day went for a US passport.

That takes me to the story of Meng Wanzhou, Huawei’s CFO who was detained in Canada for the US Government. The US  Department of Justice closed a deal with her and she has been released. Meng has been detained in Vancouver since 2018 on accusation that she worked to evade U.S. sanctions against Iran. 

The case against Huawei’s chief financial officer — one that triggered diplomatic tensions between the U.S., China and Canada — is finally coming to an end. The Department of Justice reached a deal with Meng Wanzhou in which she admitted “some wrongdoing” in the multiple charges of fraud against her, The New York Times reports, a move that will allow her to leave Canada (though her charges will not be dropped until December 2022). The Chinese tech giant’s CFO, who has been detained in Vancouver since 2018, was accused of conspiring to evade U.S. sanctions against Iran.

People, if Meng had not been travelling with a Chinese passport, her case would have been concluded and she would be in jail now. But because she is Chinese, she got to walk. It is a lesson for everyone: nations matter and economic power raises a nation. And to show that, the Chinese government has also released Canadians it locked up after Canada held the lady. Yes, it is all tit for tit and tat for tat.

In the past, Nigerians used to fly from Lagos to watch Liverpool games. Right in England, they could decide to check the Yankees in New York. The airlines will issue the US visa right in the flight. Why? Nigerians were coming home after their studies because we had a real great economy. In my village, finishing a secondary school education was celebrated with egbe nkponala (a special gun) because the next day, opportunities would come. We need the past, economically, in Nigeria.