Tag Archives: communications

Reps reject ministry of communications budget.

Posted on by
26

The house of representatives committee on telecommunications has rejected the ministry of communications 2017 budget of N6.97 billion.

The rejection followed the ministry’s failure to provide satisfactory details of the 2016 budget expenditure.

The ministry proposed to spend N5.96 billion for capital projects, N742.88 million for personnel, while N216.88 million was proposed for overhead cost.

Saheed Fijabi, chairman of the committee, asked Adebayo Shittu, the minister, to provide documents on projects, project locations, third party contracts, and receipt vouchers for conferences, training and nominal roll for the ministry.

The committee said it would not consider the 2017 budget estimates of the ministry until it embarked on an on-the-spot assessment of the projects contained in the budget.

The minister, who appeared before the committee, refused to explain the details of the budget.

He explained that Sunday Echono, the permanent secretary, who is the accounting officer of the ministry, was in the best position to respond to the specifics of the document.

In his presentation, the minister said contrary to what was on record, the ministry only received N3.96 billion as against the N4.91 billion that was budgeted and recorded for the ministry on Government Integrated Financial Management System (GIFMIS).

The breakdown showed that out of the 48 new projects penciled down for execution, only one was on-going.

According to Echono, the ministry recorded 100 per cent performance on the N3.095 billion released for the ministry.

For the year under review, N216. 79 million was appropriated for overhead, while N138.90 million was released leaving a balance of N77.9 million.

While N600.240 million was also appropriated for personnel cost, out of which N695. 88 million was released.

The lawmakers, who were shocked about the finances of the ministry, requested for explanations why money released for personnel was higher than money appropriated.

The committee also asked why N8 million was spent on presentation at federal executive council (FEC) meeting, while seeking explanation on the procurement of computers for N12 million.

In addition, the committee expressed doubt over the capital expenditure item whereby N4. 9 million was spent on supervision of the unspecified work.

The construction of Information and Communications Technology (ICT) centres in some parts of the country was also queried as the ministry failed to execute any of the projects, claiming lack of funds.

The committee also frowned at why projects that would benefit Nigerians directly were not prosecuted by the ministry.

“With the document before us, there is a need for this committee to oversight these projects because Nigerians have been blaming the legislature for not doing its job well,” Fijabi said.

“Going forward, we have to look at the procurement process and on-the-spot assessment of these projects has become inevitable.

“In addition, the ministry should furnish the committee with its nominal roll, indicating old and new workers. The provision of the details requested will determine how soon we will embark on the oversight visit and the consideration of the ministry’s 2017 budget estimates.”

Fed Govt Propose Bill For Nigerians To Pay 9% Tax On Calls, Sms, Mms, Data, Others

Posted on by
1

Minister of Communication, Bayo Shittu, yesterday disclosed that the Federal government is proposing to introduce a bill called the Communication Service Tax CST bill which seeks to levy 9% on telecommunication subscribers for users of various communication services such as voice call, SMS, MMS, Data usage from telecommunication service providers, internet service providers and Pay TV Stations.

Speaking at a function organized by the Lagos Chambers of Commerce and Industry, LCCI yesterday, Shittu said the introduction of the new taxes without harmonising existing ones would put pressure on the country’s tax system thereby making it unattractive to investors.

According to him, the outcome of deliberations on the bill would form the basis of his advice to the President.

“This may also be counter-productive in the long run for our targets on broadband penetration. Our ICT Roadmap gives fresh impetus for implementing existing policies and reviewing any that is inimical to the growth of the sector. My focus on any tax regime will be to align any process that will stimulate the economy and also ensure that the tax system is efficient by widening the tax net. It is also to create an effective framework for tax compliance to protect the poor and vulnerable in the society who nonetheless have to use telecoms services for social inclusion and financial services.” According to Shittu, the bill is being considered as a way to help increase the revenue generation of the Federal government.

image

“I have been reliably informed that the projected earnings from this effort is over N20 billion every month, which is an attraction to the government for funding our budget deficits. I must be quick to say that this government has a human face twined around its decisions”he said The minister added that the government would provide an enabling environment for the ICT and telecommunication sector to thrive through the enactment of relevant legislation.

Mike Adenuga Offers $600m To Buy Off Ivorian Mobile Phone Company

Posted on by
4

Globacom, a Nigerian mobile telecoms operator owned by Adenuga, is lodging a $600 million takeover bid for Comium Cote d’Ivoire, a company that has been grappling with debt and cash flow problems.

If the deal goes through, Globacom will have succeeded in extending its brand presence in West Africa. Already, the mobile telecoms operator has operations in Nigeria, Ghana and Benin Republic. Globacom, which already owns an international carrier services licence in Cote d’Ivoire, reportedly plans to invest over $1 billion in upgrading Comium-CI’s network over three years.

Comium CI has more than 900,000 mobile subscribers according to L’Autorite de Regulation des

Telecommunications. It is a subsidiary of Comium Group, a Lebanon-based telecommunications
company owned by Lebanese businessman Nizar Dalloul. The group operates as a multi-service provider on four continents, specializing in Wireless Data Networks, GSM communications, Internet service provision and VoIP. Comium CI is heavily enmeshed in debt to the tune of more than $25 million and has been given until 15 May to pay off its debts or risk being placed into receivership.

Mike Adenuga, 63, is the 2nd richest man in Nigeria with a fortune estimated at $4.7 billion according to FORBES’ World Billionaires ranking. He owes his fortune to his ownership of Nigerian mobile telecoms outfit Globacom, and Conoil Producing, a Nigerian oil exploration firm that operates 6 oil blocks in the Niger Delta.