Senate: Moving on to Economic Issue

Though the institution is on recess due to the suspension of its plenary on June 25 for about a month,  the
Senate has however lived up to the promise made by its President, Dr. Abubakar Bukola Saraki, that the members will continue to carry out different assignments and that plenary  will resume anytime there is an urgent issue of national importance.
SARAKI'S FIRST PLENARY SESSION: Senate President Bukola Saraki (M) going in for his first plenary session as President of Senate yesterday. Behind him is Deputy Senate President, Ike Ekweremadu. Photo: NAN.

SARAKI’S FIRST PLENARY SESSION: Senate President Bukola Saraki (M) going in for his first plenary session as President of Senate yesterday. Behind him is Deputy Senate President, Ike Ekweremadu. Photo: NAN.

In the last one week or so, the Senate has focused on gathering necessary facts and figures aimed at preparing members to deal with issues bordering on how to revive the nation’s ailing economy. In groups of 15 to 20 members, Senator Saraki had gathered his colleagues to sit down with managers of the economy and the leadership of one of the anti-corruption agency to review the situation of the nation’s economy, present efforts being made to save the country from the external and internal forces which struggle to keep the economy prostrate and discussing areas of possible legislative intervention to further solidify the plans.

First to brief the Senators last week on July 2 was the Federal Inland Revenue Service (FIRS), an agency assigned the responsibility of collecting taxes, duties and levies on behalf of the Federal Government. Led by its chairman, Mr. Samuel Odugbesan, the agency congratulated Saraki on his success at the general election and his subsequent emergence as Primus inter pares in the Senate. Odugbesan further said that the price of oil which is the nation’s main income earner has been on the downward slide.



He said: “Oil and gas which is key to the economy has not been doing too well and this is as a result of many factors which are completely out of our control. The price of oil in the international market we all know has continued on the downward slide. Although in the last three months, it started gathering some momentum. As at today, I think it is average $59 and $62 but the average we have computed is about $59 and that is what is obtainable today.”



According to him, what is within the purview of the Agency is to intervene to shore up the receipts from the non-oil sector. “As at the end of June, we have not actually got the total figures for June yet. It just ended yesterday and JP Morgan that is assisting the Federal Government to collect foreign components of our collection will still be giving us a report even a week after the closure of the month. But so far, we will say that Petroleum Profit Tax has given us N697.07bn for the first six months, that could go up a little bit. For the non-oil component, you have conflicting contracts which has brought in N778bn between January and June and Valued Added Tax N376billion”, Odugbesan said.

The essence of the briefing by the FIRS chief is to provide the Senate a detailed explanation on why the revenue receipts into the federation account is falling. Again, the Senate had the opportunity to cross-fertilise ideas with the agency and decide on what the legislature need to do in support of efforts to block the loophole and shore up the revenue.



Saraki in his address advocated for greater focus on tax collection to boost the nation’s revenue in view of the dwindling receipt from oil. He added that an efficient tax collection system in the country is sine qua non to the much needed economic revival at this time. The Senate President said an effective tax regime will not only help revive the economy but will help the government to fund its various development programmes and redistribute wealth among the various strata of the society.

The Senate President said the FIRS should come up with proposed laws and recommendations that would help to boost their operation in the area of adequate and efficient tax collection.



“The FIRS is one of the agencies that have requested to interact with the Senate and to show the importance that the 8th Senate places on performance. We decided to meet you as quickly as possible because we know that our country’s dependence on oil as a large source of revenue is very fragile and it cannot be a way forward for a country like us. You have seen it even by your own presentation. The way forward for our country is really to look at the area of our taxes, because it is more stable, reliable and not dependent on other issues outside the country.



The Senate President said the National Assembly would henceforth carry out stringent oversight on the tax agency aside from partnering with the FIRS to deliver on increased revenue. He said: “For us in the 8th Senate, this is an agency we want to work very closely with and we want to be very stringent on our oversights because honestly if we do not get it right in the area of taxation, I don’t believe we are going to get it right going forward. If you look at all the challenges before us, if the price of oil is good, we can execute our development policies and programmes but the fluctuation in the prices does not allow us to plan. Our non-oil revenue has to be stable enough to be able to address those issues and I think that is the area we need to work”.

The next agency to be received by the Senate leadership was the Independent Corrupt Practices Commission (ICPC). The sequence of the visits suggested that after being briefed by a revenue collection agency, the Senate in its determination to also block leakages that seem to drain the revenue and prevent it from being channelled into projects, policies and programmes that will improve the standard of living of the general populace shifted attention to the anti-graft agency.

ICPC boss, Mr. Ekpo Nta in his submission to the Senate President and the other Senators said  tackling corruption requires that the  substructures that support corruption in the system be addressed before going after   the “symptoms of corruption.”

He  said the Eighth Senate which he is leading was totally committed to the zero tolerance for corruption position of the Buhari administration and that he and his colleagues would do everything to make the job of the anti-graft agencies easy and successful.

The Senate President also said most of the present problems confronting the country were a direct fall-out of the monumental corruption in the system.  He added that corruption in the land has almost reached a crisis point hence the need for better  collaboration  by all national institutions to reduce it to the barest minimum, if not totally eradicate it.



“It is important for us to meet with you, to let you appreciate where we stand   on the issue of corruption and to also listen to you for us to know some of the issues that are challenging to you because the ICPC, EFCC and Code of Conduct Bureau remain the most vital institutions in the fight that we are waging against corruption today.  We want to make the anti-graft war a priority for the Senate because we believe that it has got to a stage where it is truly endangering the entire system and some of the symptoms that we are seeing in the areas where it is affecting our national development is becoming more and more clearer to all of us.



“For the 8th  Senate, making corruption a priority is a must and we are committed to that and our goal is to work with you, the EFCC and the Code of Conduct Tribunal to reduce significantly the level of corruption in our system. When  a government gets to a stage that it cannot meet its obligations, then we know we are getting into a crisis and that crisis also requires drastic actions. If we are pussy-footing before, it is now time for us to be serious”, he said



Then the Central Bank of Nigeria (CBN) took its turn with the Upper Chamber of the legislative house. Its Governor, Mr. Godwin  Emefiele told the Senate that the CBN has continued to initiate measures  to strengthen the economy and reposition the country for the next phase of growth and development. While outlining the measures taken so far, he said  notwithstanding the shocks the global economy has witnessed, the nation’s economic fundamentals remain strong. “Let me reiterate that with inflation at single digit, exchange rate relatively stable and our reserves gradually rising from blocked leakages, our economic fundamentals remain strong.  Going forward, the CBN will continue to be vigilant in the market to ensure that there is zero tolerance for speculators and rent seekers.

Saraki in his response directed the Central Bank of Nigeria (CBN) to ensure the urgent recovery of the N30billion which was the cost of waivers illegally granted to some category of      importers, particularly those who trade in  rice, chicken, palm oil, palm kernel, vegetable oil, poultry products, fish, tomatoes and textiles.

To create a political cushion for the fast drive of the Senate to settle down and deal with serious economic issues, the Senate President also   found time to receive the Northern Re-awakening Forum led by Hon. Muhammed Kumalia to which he preached national unity, while also soliciting the support of the National Assembly Commission led by the Clerk of the National Assembly, Alhaji Salisu Maikasuwa, in the Senate’ s plan to effect positive change in the lives of the people. The Senate President had last Friday, received Chairmen of the state chapters of his party, the All Progressives Congress ( APC) from across country who came to show solidarity with him

The signal therefore from the Senate and Its leader, Saraki, is that there will be no quiet moment. No time to relax. There is so much to be done and the earlier the senior legislators settle down to the onerous task for which they are elected, the better for our country.