Buhari orders FIRS to remit levy to NASENI

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The Federal Government has taken a bold step to boost science
and engineering infrastructure development.

It has invoked the section of the Act establishing the National
Agency for Science and Engineering Infrastructure (NASENI)
prescribing how it should be funded.

The section, which has been observed in the breach for 29 years
– since the establishment of NASENI – will now become operational
following President Muhammadu Buhari’s directive.

The President has ordered the Federal Inland Revenue Service
(FIRS) to remit the levy turnover of commercial companies to the
agency.

The deduction of the levy affects commercial companies with
N100million turnover.

According to NASENI Establishment Act 2004, a quarter per cent
of the levy on turnover, collected by the FIRS, should be remitted
to the agency.

The letter to the FIRS followed a meeting of the Governing Board
of NASENI on January 26, presided over by President Buhari in his
capacity as the chairman of the agency’s board.

The meeting reviewed a December 30, 2020 presentation of its
Executive Vice Chairman (EVC), Prof. Mohammed Sani Haruna, on the
need for compliance with the establishment law of the agency.

Haruna requested the implementations of the Statutory funding of
the Agency as provided for in NASENI Act to finance its projects
and activities.

After the session, President Buhari directed Minister of Finance
Budget and National Planning, Mrs. Zainab Ahmed, and the FIRS to
release statutory funds due to NASENI to it forthwith.

In a follow up letter to FIRS dated February 8, the Presidency
demanded immediate compliance with the presidential directive.

The letter to the Executive Chairman of FIRS by Chief of Staff
to the President, Prof. Ibrahim A. Gambari, reads in part: “I write
to inform you that on 24th January 2021, Mr. President approved the
prayers of the Executive Vice Chairman (EVC) of the National Agency
for Science and Engineering Infrastructure (NASENI) on the funding
of NASENI activities.

“In accordance with the NASENI Establishment Act, one of the
prayers of the EVC relates to the funding of the agency via a levy
on income or turnover of commercial companies and firms with
turnover of N4million (later increased to N100million) by the
NASENI Governing Board) at the rate of a quarter per cent( 1/4 %)
of turnover.

“Accordingly, you are kindly requested to act on the
implementation of this provision of the NASENI Act as soon as
possible.”

A source in the Presidency said: “The President only took steps
to make history by enforcing what is in NASENI Establishment Act.
In the last 22 years, successive administrations have not complied
with the Act because of politics.

“The agency has been going cap-in-hand to the government for
funds to execute science and engineering infrastructure. You can
appreciate why we are lagging behind many nations in science and
technology.

“The Governing Board has been impressed with the innovations and
products of NASENI despite its lean resources. If the Act is fully
implemented, the agency will do better.”

NASENI was established by the National Assembly Establishment
ACT, 2004 CAP N3 Laws of the Federation (formerly Decree 1992
Decree of ex-President Ibrahim Babangida’s Military regime)

(2) The funding mechanism for the Agency is stipulated under
Financial Provisions; PART VI, Section 20 of the ACT. It states
thus:

(1) The Agency shall establish a fund from which shall be
defrayed all expenditure incurred by the Agency for the purpose of
this ACT.

(2) There shall be paid and credited to the fund:

(a) 1 per cent of the Federation Account in the first instance,
to be increased to 2 per cent by the year 2000.

(b) Levy on income or turn-over of commercial companies and
firms with turnover of N4 million and above, which shall be-

(i) At the rate of quarter per cent in the first instance:

(ii) Collected by the Federal Board of Inland Revenue or by any
other suitable means as may be specified by the Agency; and

(iii) Credited to the account of the Agency.

(d) Foreign aid and instance from bilateral and multilateral
agencies;

(e) Fees charged for services rendered by the Agency;

(f) All sums accruing to the agency by way of gifts, endowments,
bequest or other voluntary contributions by persons and
organizations.