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Cyber security levy will impoverish more Nigerians – Peter Obi

Harrison EDEH
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Cyber security levy will impoverish more Nigerians – Peter Obi

THE Labour Party (LP) presidential candidate in the 2023 general election, Peter Obi, has described the Bola Tinubu Administration’s newly introduced cyber security levy as “too many taxes aimed at milking a dying economy and impoverishing more Nigerians.”

Obi said that instead of nurturing the economy’s recovery and growth, the government, through its multiple taxes, is more interested in heaping more burdens on the people who are already suffering severe economic stress.

The Central Bank of Nigeria  (CBN) had, on Monday, May 6, directed banks and other financial institutions to implement a 0.5 per cent cybersecurity levy on electronic transfers.

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The CBN said the policy would take effect in two weeks, adding that the charges would be remitted to the National Cyber Security Fund, which would be administered by the Office of the National Security Adviser.

The analysis of the charge showed that ₦5 will be charged on every ₦1,000 transferred; ₦50 on ₦10,000; ₦500 on ₦100,000; ₦5,000 on ₦1,000,000; ₦50,000 on ₦10,000,000; and ₦500,000 on ₦100,000,000.

Commenting on his official X handle @PeterObi on Wednesday morning, Obi said that “the introduction of yet another tax, in the form of cybersecurity levy, on Nigerians who are already suffering severe economic distress is further proof that the government is more interested in milking a dying economy instead of nurturing it to recovery and growth.

“This does not only amount to multiple taxation on banking transactions, which are already subject to various other taxes including stamp duties, but negates the government’s avowed commitment to reduce the number of taxes and streamline the tax system, “he said.

Obi noted that the imposition of a cybersecurity levy on bank transactions was particularly sad given that the tax is on the trading capital of businesses and not on their profit; hence, it will further erode whatever is left of their remaining capital after the impact of the naira devaluation and high inflation rate.

“it is inconceivable to expect the suffering citizens of Nigeria to separately fund all government activities. Policies such as this not only impoverish the citizens but make the country’s economic environment less competitive,” he further said.

“At a time when the government should be reducing taxes to curb inflation, the government is instead introducing new taxes. And when did the office of the NSA become a revenue-collecting centre?

“And why should that purely national security office receive returns on a specific tax as stated in the new cybersecurity law? ”he queried.

 

Demolition: All Ibeju-Lekki building records lost to ENDSARS protests – official

Bankole ABE  and  Ehime ALEX
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Demolition: All Ibeju-Lekki building records lost to ENDSARS protests – official

THE Ibeju – Lekki Local Government Area (LGA) of Lagos State, where the government plans to demolish 80 per cent of buildings, said it lost all its building records to ENDSARS protests in 2020.

The LGA disclosed this to The ICIR through its public affairs officer, Maryam Hamsat.

The ICIR reporter asked the official to respond to questions regarding the Lagos State government’s planned demolition of buildings in the LGA.

In her response, Hamsat told The ICIR that the LGA had lost the records of buildings in Ibeju-Lekki.

She said all the documents at the council were destroyed during the End-SARS protests.

“I have tried to do what you requested, but unfortunately, we don’t have the data because of the End-SARS saga. We don’t have any of such documents now; the council was burnt down then, and we are now trying to compile new documents,” Hamsat said.

When contacted, the Council Chairman, Abdullahi Olowa, did not pick up his calls and had yet to respond to the WhatsApp message sent to him when the reporter filed the report.

The ICIR reports that during the oversight function of the Lagos State House of Assembly on Local Government and Community Affairs at the local government in March 2021, the management of the Ibeju-Lekki claimed it lost N770 million to the destruction of its council area following the End-SARS protest.

“We have lost almost N770 million to the End SARS aftermath destruction. Our building was totally burnt down. After looting everything we had in the office, they now set fire on it,” the Vice-Chairman, Odofin Abduljelili, was quoted to have said.

Due to a lack of government approval, the Lagos State government has marked about 80 per cent of the buildings in the Ibeju—Lekki axis for demolition.

The Lagos State Commissioner for Physical Planning and Urban Development (PPUD), Oluyinka Olumide, disclosed this on Monday, May 6.

Olumide told journalists that 80 per cent of buildings in the LGA did not have government approval.

The commissioner said the buildings involved had been marked for demolition, pointing out that the Ibeju-Lekki corridor was zoned as agricultural land. 

According to him, the first step in the procedure is to get the planning information on what the area is zoned out for.

He said that developers or builders could then secure a fence permit, a layout permit and other building regulation requirements.

“Just last week, Thursday and Friday, the team and I were on the Ibeju Lekki and Epe axis, and you would agree with me that anybody passing through that corridor would see a lot of estates marked. We went there, and I can tell you that from what we saw, over 80 per cent of them do not have approval,” Olumide said.

While he revealed the percentage of buildings without approvals, the commissioner did not disclose the number of buildings affected or the total number of buildings in the Ibeju-Lekki corridor.

The Lagos State government’s revelation that 80 per cent of buildings in Ibeju-Lekki had no approval has raised concerns about the government’s effective monitoring of various estates and constructions despite the state’s large number of ministries and agencies saddled with the responsibilities.

It also raised concerns about government officials’ negligence in monitoring and enforcing building regulations in the state.

Ibeju-Lekki LGA is home to the Lekki Free Trade Zone, the Dangote refinery, and a beacon for real estate investors seeking promising opportunities.

In October 2020, young Nigerians organised large-scale demonstrations against police brutality in Nigeria. 

The campaign tagged #ENDSARS demanded the dissolution of the Special Anti-Robbery Squad (SARS), an infamous Nigerian Police squad with a history of mistreating Nigerian residents.  

The protest lasted for weeks and almost grounded affairs in every sector of the country.

 

 

Concerns as Lagos marks 80% buildings for demolition in Ibeju-Lekki

Ehime ALEX
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Concerns as Lagos marks 80% buildings for demolition in Ibeju-Lekki

THE recent disclosure by the Lagos State government that 80 per cent of buildings in Ibeju-Lekki had no approval raises concerns about the government’s effective monitoring of various estates and constructions despite the state’s large number of ministries and agencies saddled with the responsibilities.

It also raises concerns about government officials’ negligence in monitoring and enforcing building regulations in the state.

Ibeju-Lekki, a local government area (LGA) is home to the Lekki Free Trade Zone, the Dangote refinery, and a beacon for real estate investors seeking promising opportunities.

On Monday, May 6, the Lagos State Commissioner for Physical Planning and Urban Development (PPUD), Oluyinka Olumide, told journalists that 80 per cent of buildings in the LGA did not have government approval.

Olumide said the buildings involved had been marked for demolition, pointing out that the Ibeju-Lekki corridor was zoned as agricultural land. 

According to him, the first step in the procedure is to get the planning information on what the area is zoned out for.

He said that developers or builders could then secure a fence permit, a layout permit and other building regulation requirements.

“Just last week, Thursday and Friday, the team and I were on the Ibeju Lekki and Epe axis, and you would agree with me that anybody passing through that corridor would see a lot of estates marked. We went there, and I can tell you that from what we saw, over 80 per cent of them do not have approval,” Olumide said.

While he revealed the percentage of buildings without approvals, the commissioner did not disclose the number of buildings affected or the total number of buildings in the Ibeju-Lekki corridor.

This also raises the question of whether the commissioner spoke from the point of available data with the state authorities.

The Ibeju-Lekki revelation is among the various estates and construction sites in Lagos State, where sharp practices have led to the demolition of buildings worth billions of naira.

From the most recent demolition at Mende estate in Maryland, there have been alarming rates of building demolition in other parts of the state, which include Festac, Okota, Lagos Island, Ifako-Ijaiye, Alimosho, Yaba, Ebute Metta, Surulere, Agege, and Oworonshoki.

These destructions result in the loss of assets to estate developers, subscribers, and house owners, who are mostly at the receiving end.

Real estate developers, agents, financiers, realtors, marketers, and other practitioners in the building business have at various times expressed their displeasure.

The ICIR, in one of its publications in November 2023, reported the worries of these actors in the building business, including the negligence and fraudulent activities of some government officials.

Other concerns were the rigorous processes for acquiring building permits, the bureaucratic bottlenecks associated with many regulatory authorities—state ministries, agencies, and parastatals related to the building business—and the lack of a central digital system for verifying the genuineness of landed properties.

Negligence of state officials

While the Lagos state tries to enforce the law, a real estate expert and facility manager, Stephen Jagun, expressed concern that the government appeared to be using the developers and subscribers as scapegoats.

He said, “some of them used their entire life savings, and now they have nowhere to go, and they will be thrown into nothing. In a good clan, everybody involved is supposed to face the wrath of the law.”

Jagun noted that there were several stages and steps to be taken, and developers were supposed to get approval at every stage, wondering why the authorities would see some wrong construction of buildings and look away.

“Now, they (the government) want to destroy those buildings. Why didn’t they stop the buildings at that time?

“Some officials were negligent in their duties, and the government is not saying anything about them. It takes two to tangle. Some people played games on them (developers and subscribers), giving them the impression that they could go away with the wrong things,” he pointed out.

He urged the government to speak boldly, accept its faults, and sanction officials who compromised their position to abuse the system.

He added, “We claim we are developing wealth, but those houses they are destroying cannot be brought back. Those may be the assets of individuals, but they are also society’s assets.

“So, some people should be meant to face the penalties of the law. Buildings don’t just spring up in 24 hours. There is no way some of those buildings would not have taken two to three months to build. But somebody looked away.

“Unfortunately, some of the people now whose houses are being pulled down are retired people. I do not support disobeying the law, but somebody in the government allowed them to do so.”

No official documentation of buildings – Ibeju-Lekki LGA

The ICIR gathered that there is currently no official data on the number of buildings at Ibeju-Lekki LGA.

When contacted, the Council Chairman, Abdullahi Olowa, did not pick up his calls and had yet to respond to the WhatsApp message sent to him when the reporter filed the report.

However, the council public affairs officer, Maryam Hamsat, told The ICIR that the LGA had lost the record of the number of buildings in Ibeju-Lekki.

She said all the documents at the council were destroyed during the End-SARS protests in 2020.

“I have tried to do what you requested, but unfortunately, we don’t have the data because of the End-SARS saga. We don’t have any of such documents now; the council was burnt down then, and we are now trying to compile new documents,” Hamsat said.

Also, the public affairs officer at the PPUD, Mukaila Sanusi, did not pick up calls to his phone line and had yet to respond to text and WhatsApp messages when filing this report.

The ICIR reporter had asked the PPUD official to respond to the number of construction sites currently in Lagos state, what it takes to monitor those sites, and why the plans to partner with the private sector in the building regulatory process have yet to materialise.

The Lagos state government has planned to partner with the private sector in building regulatory processes since 2021 through the office of the PPUD and the Lagos State Building Control Agency (LASBCA). The initiative has yet to come to fruition.

The partnership, to be christened ‘Accredited Certifiers Programme,’ aims to achieve zero tolerance for building collapses in the state through effective monitoring and inspection of all ongoing constructions, as the government said it could not do it alone.

Must-have documents for building approval process in Lagos

A property developer or owner must have documents for every stage of the building approval process. These include: 

  1. Proof of ownership—certified true copy of title, C of O, Governor’s consent, deed of stamp duties on land or purchase receipt, and deed of conveyance.
  2. Survey plan/beacon sheet
  3. Five sets of working drawings—architectural, structural, mechanical, and electrical—with supporting documents like COREN (Council for the Regulation of Engineering in Nigeria), a letter of supervision or soil tests, and a calculation sheet, as applicable.
  4. Photocopy of payment receipts for statutory fees: processing fees, stage certification, penal fees, and IDC (infrastructure development charges) as applicable.
  5. Clearances from relevant MDAs: Land Use and Allocation Committee (LUAC), New Towns Development Authority (NTDA), Lagos State Urban Renewal Agency (LASURA), Ministry of the Environment (MOE)—Drainage/ Lagos State Environmental Protection Agency (LASEPA), Ministry of Transport—Traffic Impact Assessment (TIA)/Metro line), Fire Service and Police report as applicable.
  6. Planning technical reports, i.e. Land Use Planning and Analysis Report (LUPAR) and Physical Planning Technical Report PPTR (where applicable)
  7. Evidence of tax payment to an individual.
  8. Certificate of incorporation for corporate organisation.

Despite 16 exemptions, Nigerians demand review of cybersecurity levy

Harrison EDEH
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Despite 16 exemptions, Nigerians demand review of cybersecurity levy

DESPITE 16 payment exemptions listed by the Central Bank of Nigeria (CBN) on the new cybersecurity levy, some Nigerians are seeking a review of the directive amid growing economic hardship in the nation.

On Monday, May 6, the CBN directed banks and other financial institutions to implement a 0.5 per cent cybersecurity levy on all electronic transfers.

The CBN said the policy would take effect in two weeks, adding that the charges would be remitted to the National Cyber Security Fund, which would be administered by the Office of the National Security Adviser.

The analysis of the charge showed that  ₦5 will be charged on every ₦1,000 transferred; ₦50 on ₦10,000; ₦500 on ₦100,000; ₦5,000 on ₦1,000,000; ₦50,000 on ₦10,000,000; and  ₦500,000 on ₦100,000,000.

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Some citizens who spoke with The ICIR urged the National Assembly to conduct a public hearing before the enforcement since Nigerians are already overburdened by various forms of taxes.

“It is not about exempting some transactions; it is about the principle of tax. Nigerians are already overburdened; why burden them again? There is income tax, value-added tax, education tax, and even police tax. There are all manner of bank deductions and surcharges. Most Nigerians even pay for local security guards in the street because of insecurity. Why the cyber security levy again?” A development economist, Henry Ademola Adigun, told The ICIR.

Expressing similar concerns, former Director-General of Abuja Chamber of Commerce and Industry (LCCI) Muda Yusuf told The ICIR that businesses and citizens in general are yet to recover from the shocks of current reforms.

According to him, inflationary pressures have not abated, the high cost of living is still a major worry, and operating and production costs for businesses remain elevated amidst weak consumer purchasing power.

“This is not a good time to impose an additional levy on businesses and citizens. The magnitude of the levy is even of a bigger concern,” he said.

“The expectations of citizens and corporate organisations are that taxes and levies are being rationalised and streamlined for better business environment.”

Commenting further on various forms of taxes in the country, he noted that businesses were already saddled with the following federal taxes: company tax, tertiary education tax, stamp duties, NITDA levy, value added tax, NASENI levy, police trust fund levy, among others.

According to Yusuf, the cybercrime levy is even more troubling because it is a tax on electronic transactions, not on profit.

“It has no regard to whether the business is healthy or not. Even loss-making companies are liable. The poorer segments of society are not exempted either. This raises serious issues of equity. There is also the issue of proportionality. That is relating the project objective to the amount of revenue being mobilised.

“By the account of the Nigeria Interbank Settlement System [NIBSS], electronic payments on its platform in 2023 was N600 trillion. 0.5 per cent of this is N3 trillion, “he added.

He pointed out that the industry data for electronic payments in 2022, according to the CBN website, was N1,550 trillion. and 0.5 per cent of this would give N7.75 trillion.

“Even if we discount these numbers for the exemptions provided in the law, what will be left would still be staggering.”

Notably, the apex bank said the cybersecurity levy would be deducted at the point of electronic transfer origination and reflected in customers’ accounts.

Meanwhile, the CBN listed 16 banking transactions exempted from the levy.

They include:

  • Loan disbursements and repayments
  • Salary payments
  • Intra-account transfers within the same bank or between different banks for the same customer
  • Intra-bank transfers between customers of the same bank
  • Other Financial Institutions instructions to their correspondent banks
  • Interbank placements
  • Banks’ transfers to CBN and vice-versa
  • Inter-branch transfers within a bank
  • Cheque clearing and settlements
  • Letters of credits
  • Banks’ recapitalisation-related funding – only bulk funds movement from collection accounts
  • Savings and deposits, including transactions involving long-term investments such as treasury bills, bonds, and commercial papers
  • Government social welfare programmes transactions e.g. pension payments
  • Non-profit and charitable transactions, including donations to registered non-profit organizations or charities
  • Educational institutions’ transactions, including tuition payments and other transactions involving schools, universities, or other educational institutions
  • Transactions involving the bank’s internal accounts such as suspense accounts, clearing accounts, profit and loss accounts, inter-branch accounts, reserve accounts, nostro and vostro accounts, and escrow accounts.

 

 

Ekiti university expels students over bullying

Itoro ETUKUDO
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Ekiti university expels students over bullying

THE management of Bamidele Olumilua University of Education Science and Technology Ikere-Ekiti (BOUESTI) has expelled two female students for bullying another student.

In a video clip which circulated and caused outrage by Nigerians on X, on Monday, May 6, a student of the institution was seen flogging another student while other people were present without attempting to intervene.
Responding to the issue, the authorities of the institution released a statement stating that the perpetrator, Opemiposi Precious Bolaji, an 18-year-old student of the Department of Mass Communication, had been expelled. Another student, Genesis Osaro, was also expelled for providing the stick with which the victim, Gloria Ajayi, was beaten.

“Miss Opemiposi Precious Bolaji, with matriculation No. 10232, a 100L Mass Communication student who was beating her colleague with a stick and threatening to inflict bodily harm on her for allegedly destroying her 3-year-old love affair with her boyfriend, was found guilty of misconduct and flagrant breach of her matriculation oath and consequently expelled with immediate effect,

“Miss Genesis Osaro, a 100L Mass Communication student with Matriculation No. 10257, who provided the stick with which Gloria Ajayi was beaten, was found guilty of misconduct (as an accomplice) and flagrant breach of her Matriculation oath and consequently expelled with immediate effect,” the statement read in part.

Read also:

Lead British School Abuja shuts for 3 days after outrage over student bully

Outrage over allegations of bullying at Lead British School Abuja

Varsity students expelled over physical bullying of their mate

While the victim, Gloria Ajayi, was exonerated, the authority warned and advised the students, Mistura Eniola Adejuwon and Precious Oluwapelumi Olanrewaju, who recorded and posted the videos on social media to always report such incidents to the Directorate of Students’ Affairs and the Security Unit of the university rather than escalating it on social media.

Meanwhile, the Ekiti State Police Command Commissioner, Akinwale Adeniran, has ordered an investigation into the incident and added that necessary action would be taken to bring the perpetrators to justice.

CBN orders banks to suspend cash deposit charges till September

Mustapha USMAN
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CBN orders banks to suspend cash deposit charges till September

THE Central Bank of Nigeria (CBN) has directed banks to defer imposing cash deposit charges until September 30 this year.

This information was conveyed through a circular dated May 6, signed by Adetona Adedeji, the Director of Banking Supervision at the apex bank.

The banks reintroduced fees for deposits exceeding N500,000 for individuals and corporate account holders on May 1. 

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The development came more than four months after the apex bank suspended the processing fees on cash deposits above N500,000 until April 30, 2024.

Following the banks’ decision, individuals were set to incur a two per cent charge on deposits exceeding N500,000, while corporate account holders faced the same levy on deposits surpassing N3 million.

However, according to the latest circular to financial and non-financial institutions, CBN said the processing fees had been suspended.

The circular read, “Please refer to our letter dated December 11, 2023, referenced BSD/DIR/PUB/LAB/016/023 on the above subject, suspending processing charges imposed on cash deposits above N500,000 for Individuals and N3,000,000 for corporates as contained in the ‘Guide to Charges by Banks, Other Financial Institutions and Non-Bank Financial Institutions’ issued on December 20, 2019,” CBN said.

“The Central Bank of Nigeria hereby extends the suspension of the processing fees of two per cent and three per cent previously charged on all cash deposits above these thresholds until September 30, 2024.”

The CBN further directed financial institutions to continue to accept cash deposits from the public without charges until the end of the third quarter.

CBN clarifies issues on 50% crude oil proceeds repatriation

Ehime ALEX
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THE Central Bank of Nigeria (CBN) has clarified earlier directives to banks regarding foreign exchange “cash pooling” requirements on behalf of international oil companies (IOCs) in the country.

In a circular on Tuesday, May 7, the CBN said the clarification was a response to the queries raised by banks and other stakeholders.

The ICIR reports cash pooling is the consolidation of a company’s various bank accounts into a single account or “pool,” which is used to manage the company’s overall cash position.

In a circular dated February 14, the CBN disclosed that IOCs had been repatriating 100 per cent of crude oil export proceeds offshore to their parent companies.

It said the action directly impacted liquidity in the domestic foreign exchange market and directed all authorised dealer banks to follow specific guidelines. 

The guideline is for the banks to pool 50 per cent of the repatriated proceeds immediately or when needed for the IOCs, and the balance of 50 per cent can be repatriated 90 days after the export proceeds’ inflow date.

In the new circular issued on Tuesday, CBN stated, “The initial 50 per cent of the repatriated proceeds can be pooled immediately or as when required. Banks may submit the request for cash pooling ahead of the expected date of receipt, supported by the required documentation, for approval by the Central Bank of Nigeria.

The apex bank said the 50 per cent balance of the repatriated export proceeds could be allocated to meet financial obligations within Nigeria, as and when required, within the stipulated 90-day period.

It listed the expenses as petroleum profit tax, royalty, domestic contractor invoices, cash calls, domestic loan and interest payments, transaction tax, education tax, and forex sales in the Nigerian foreign exchange market.

The ICIR reports that the apex bank has initiated various measures to address the illiquidity in the country’s foreign exchange market. However, much remains to be done to achieve the apex bank’s pursuit of price stability.

Rivers crisis: APC calls on pro-Wike lawmakers to impeach Fubara

Bankole ABE
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Rivers crisis: APC calls on pro-Wike lawmakers to impeach Fubara

THE All Progressives Congress (APC) leadership in Rivers State has called on the 27 State House of Assembly members loyal to the Minister of the Federal Capital Territory, Nyesom Wike, to immediately commence an impeachment process against the state Governor Siminalayi Fubara.

The State APC Caretaker Committee Chairman, Tony Okocha, made the call at a news briefing in Port Harcourt on Tuesday, May 7.

According to Okocha, the governor has continued to disrespect President Bola Tinubu by refusing to implement the eight-point peace agreement reached in Abuja regarding the political crisis in the state, which Fubara signed.

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Okocha said a state as crucial as Rivers State could not accept a governor like Fubara. 

“Our charge to the Assembly is to immediately commence an impeachment process against the governor.

“And if they don’t do that, there is what they call party discipline. We shall invoke the relevant section of the Constitution,” Okocha vowed.

The APC’s call for  Fubara’s impeachment came barely 24 hours after the governor said the House of Assembly, led by the Speaker, Martin Amaewhule, did not exist.

Fubara also said that some of his commissioners were working against him.

The governor decried how the state House of Assembly had been working at variance with his government.

He threatened that the House members could cease to exist as state lawmakers if he so wished.

Fubara said these when he received a group of Bayelsa State political and traditional leaders who were in Port Harcourt, the state capital, to seek a resolution to the political unrest in the state and better ties between the two states.

Fubara told the delegation, led by the former Governor of Bayelsa State and senator representing Bayelsa West, Henry Seriake Dickson, that he had shown restraint since the crisis escalated in the state.

He acknowledged the roles some political figures, particularly his predecessor and Minister of the Federal Capital Territory (FCT), Nyesom Wike, played in his ascent to the governorship but stated that such efforts wouldn’t cause him to idolise a man.

In addition, the governor bemoaned the way some of his commissioners were working against him.

The ICIR reports that many of Fubara’s commissioners, whom he claimed were working against him, are Wike’s loyalists. Some of them served in the former governor’s administration.

Wike and Fubara have been at loggerheads over who controls the state’s PDP structure and other issues.

Though a PDP member, Wike currently serves in the APC government.

Following the hostility between the two leaders, 26 members of the River State House of Assembly members decamped from the PDP to APC in 2023, shortly after assuming office.

The feud had degenerated into nearly physical combat between their loyalists, and the possible chaos was so palpable in the state that President Tinubu had to intervene twice before tempers were calmed.

However, the camps of both leaders have continued to threaten a showdown less than a year after the leaders were gamboling in the same political space.

 

Benue to build brewery as residents consume beer worth N850m monthly

Bankole ABE
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Benue to build brewery as residents consume beer worth N850m monthly

THE Benue State Government is set to build a brewery to stop capital flights to other states after discovering that its residents consume beer worth N850 million monthly.

The Managing Director of Benue Investment and Property Company (BIPC), Raymond Asemakaha, unveiled this to journalists on Tuesday, May 7, in Makurdi, the state capital.

He said the brand’s name would be revealed during its launch in December.

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Asemakaha led reporters on a tour of the planned water, bakery, and brewery plants in Makurdi and explained that the idea to establish a brewery was spurred by recent research indicating that a significant sum of money is spent on beer each month in the north-central state.

He stated that the company’s goal was to provide Nigerians and Benue residents with a premium beer produced locally in the state, which utilises local ingredients.

He declared that BIPC would stop at nothing to ensure that customers could drink a unique beer because it was not in competition with any other brewery.

He said that when he came on board, he discovered that the rate of alcohol consumption in the state was about N850 million per month.

“We understand that the people selling these beers have taken this money out of Benue State.

“So, we discovered and said no. All we need to do is float a new company so that we can observe and retain the cash flow within the system. That is why we are embarking on beer production.

“This N850 to N870 million is a monthly sale of beers in the state, and within the month of December, they have made one billion naira in sales. So, one of the things we are doing is to help retain the cash flow within the system,” Asemakaha stated.

He added that the estimated production capacity was 180,000 bottles daily, and the fermentation period would be 15 days.

He promised to crash the price of beer in the state.

“We want to retain the cash within us. It is our own thing. So, the people here, our brothers and sisters, should be able to key in and take our products,” he added.

He said the factory would reach full production by the first week of December 2024.

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The managing director promised that the funds would be secured and estimated that the brewery project would cost between ₦700 and ₦800 million.

The ICIR Hyacinth Iormem Alia, a Nigerian Catholic cleric and politician, is currently the governor of Benue State.

The state has been the hotbed of insecurity in recent years.

Cement price hike: Reps issue Dangote, BUA, others 14-day ultimatum

Mustapha USMAN
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Cement price hike: Reps issue Dangote, BUA, others 14-day ultimatum

THE House of Representatives has given a 14-day ultimatum to Dangote Cement, BUA, IBETO, and other stakeholders to appear before its Joint Committee regarding the increase in cement prices in the country.

This ultimatum was issued after the companies refused to attend the lawmakers’ investigative hearing on Tuesday, May 7.

The joint committee, consisting of the House committees on solid minerals, Commerce, Industry, and Special Duties, was tasked with investigating’ the arbitrary increase in the price of cement in Nigeria by cement manufacturers’.

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This was as the House summoned the Minister of Solid Minerals Development, Dele Alake.

The committee had earlier invited the minister to appear before the committee. He also failed to appear on Tuesday.

The minister was directed to appear on Tuesday, May 21, while Dangote, BUA, IBETO, and others were instructed to appear on Monday, May 20.

The ICIR reports that the Federal Government and cement manufacturers, on February 13, resolved to regulate prices between N7,000 and N8,000 for a 50kg bag of cement.

Similarly, in April, the Senate resolved to probe the hike in the prices of cement and other building products in the country.

Speaking on the prices, the chairman of the joint committee, also the chairman of the committee on Solid Minerals, Jonathan Gaza Gefwi, expressed concern over the huge gap in cement prices between Nigeria and other African countries, 

He noted that the companies’ actions were a pointer to their insensitivity to the plight of Nigerians.

According to him, an investigation into the surge in cement prices in the country has shown that cement prices in other countries like Kenya, India and Zambia for 2021 alone showed that Nigeria had the highest price of cement using the official exchange rates for each country.

He said, “Nigeria’s price of cement doubles that of India at a difference of 69 per cent. Similarly, the price is 29 per cent higher than that in Kenya and 39 per cent higher in Zambia. Hence, the need for us to come together and find out why in order to bring succour to our citizens while protecting investors alike.

“Our concern is for all legitimate businesses, especially cement production companies in Nigeria, to thrive and deliver their objective and services to the people in such a manner that can foster development”.

The chairman of the joint committee reiterated the significance of the public hearing and the need to counteract the notion that parliamentary committees had no powers to invite private outfits.

He added, “It is on record that there is no Order of the Courts presented restraining the committee from exercising its functions under section 88(2)(b) of the 1999 Constitution as Amended.

On his part, the chairman of the House Commerce Committee, Ahmed Munir, stated that any entity invited that fails to appear before the joint committee would validate claims that the cement price hike was arbitrary.

The ICIR reports that a 50-kilogram bag of cement has surged to over N10,000, up from N5,000 within six months.

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