Things I Will Tell Pres. BUHARI If I Ever Meet Him

•Financial & Management Consultant, OSIFO SAMSON

Osifo Samson is a brilliant Accountant and a Financial Management expert. He is also a good communicator with strong persuasion and Negotiation Skills. Formerly the Financial Director of Osafure (Nig.) Limited and also a Senior Consultant with Emma Elliot & Associates where he specialised in Investigating Financial Statement and Debt Recovery, Osifa Samson is the founder of Fosam Institute where he lectures Financial Management, Taxation, Financial Reporting and Management Accounting. He was formerly the Account Officer of Amingo International Limited. Presently, he is the Principal Partner of Osifo Samson & Co., a Financial, Management and Tax Consulting Firm whose analysts and consultants specialize in Management Accounting, Corporate and Managerial Finance, Management Consultant, Operational Management, Financial Advisory, Facilitator of Bank Loans & Overdafts, Bank Charges Review and Reconciliation and Tax Management.

He had his First Degree (Bsc.) in Accounting from Olabisi Onabanjo, Ago-Iwoye after which he proceeded to the Lagos State University for Masters’ in Business Administration (M.BA Business Administration). He further went on to the University of Lagos for Masters’ of Science in Accounting (Msc. In Accounting). He’s also a holder of a Masters’ of Science (Msc. Finance) from the Covenant University, Ota, Ogun State and a PhD. in Credit Management from the International University of Panama. He equally obtained PhD. in Financial Economics from Leeds Bekitt University, former Leed Metropolitan University, London, UK, PhD in Corporate Finance (In-View), Covenant University and he belongs to various Professional bodies both in Nigeria and International Countries. Last week, he spoke to City People Publisher, SEYE KEHINDE about his views on the Economy. Below are excerpts.

What is your assessment of the Economy and what do we need to do to make it work again?

Firstly, my view with regards to the economic situation which is on the downturn is, due to the security challenges in the country. However, this is not an excuse not to grow the economy. The economic policy presently used in terms of fiscal and monetary policy are not effectively working in the types of economic system Nigeria adopted. Our level of borrowing is too high and this calls for caution due to the perpetual increase of the local and foreign debt by Nigeria economy today, while the fiscal and monetary policy are not correlating for economic growth and development.

The following are the assumptions for the economy to grow, (1) FG should cut all spending on members of the executives and legislators. (2)  FG should remove fuel subsidies in order to encourage economic activities and deregulate the PMS sector (3) Tax holidays and incentives to all SME and industrialists. (4) Creation of accessibility of credit facility to all business owners and individuals to encourage economic activities.

(5)  Free export mechanism to control the power of the domestic currency. (6) Establishment of intervention funds for selected companies and industries to create economic activities. (7) Establishment of industries in six (6) geopolitical zones of the country to create economic growth and development. (8) Establishment of manpower training to each community to engage the youth from idleness.

Based on the above assumption, the country presently needs  competent individuals to manage and implement our monetary and fiscal policy to achieve the above assumptions

How do you see our Tax policies both at the Federal and State level?

Taxes and levies are imposed on individuals and businesses by government. Today in Nigeria, people are not encouraged to pay Taxes because of the neglect by the government to support SME and business owners. SME and business owners should first be encouraged and trained to register a business name e.g enterprise or venture.

These are companies that are regarded by law not to pay taxes due to their respective names and the nature of their registration as a business name, while over the years if such companies grow, they can now be changed to LTD liability company.

These imply that government is in support of business and the growth of businesses. In Nigeria, the reverse is the case, government goes after individuals and business owners to pay taxes. Nigeria tax policy can be improved through the implementation of the following.

(1) Effective utilization of finances Act 2020  by the federal government. (2) Establishment of decisions and training of individuals as it regards international taxation, due to the gap in the study of international taxation, where the foreign companies are taking advantage of the Nigeria and Nigeria can generate more taxes revenue in this regard. (3)  Indexed analysis and study to investigate more stamp duties paid without remittance to government ( federal and state). (4)  More studies and findings should be done in the areas of withholding tax for the government (federal and state) in order to bring all withholding taxpayers into tax net.

(5) Value added tax should be reduced.  it should be reversed back to 5% against the present  7% because this has increased inflation and also in general increase the cost of goods and services which further burden on individuals and business owners in Nigeria.

In my view, the government should consider individuals and businesses due to the economic activities in the country presently before increasing any tax because this will lead to further economic problems.

Are you comfortable with the role of the banks in the running of the economy?

My view on the role of the banks in running the economy presently is totally unacceptable and unfortunate. Today, banks look like the olden esusu where some group of people decided to gang up and take advantage of the system. Today, Nigeria banking system lacks qualified and professional banking personnel (chartered bankers), what we have today in Nigeria banking industry is bank workers, meaning people that are just trained on the job without proper and qualified broad skills in banking. Generally, the financial system creates an economic system, this implies that without a financial system, the economic system is dead. It is simply put, when you have money in your pocket which is finance and such money is budgeted and spent (economic activities). This shows that without a strong financial system the economic system is dead. Today’s banking industry are not creating enough economic activities in the system rather their primary concerns is to make money at all cost in expensed of businesses and individuals that exist in Nigeria. Nigeria banks today have succeeded in closing up a lot of businesses in respective of the impactful vision of the business to the society or country due to lack of professional manpower in the banking industry.

The following is what I think: (1)  Compulsory implementation of all banking policy according to BOFIA Act. (2)  Banking transactions must be handled by professional bankers in order to create economic activities through a strong financial system.

(3)  Banking supervision act according to BOFIA 33 must be effectively carried out by the apex bank in order to supervise and control the activities of the present-day deposit money bank.

(4)  Banks should encourage individuals and businesses to grow rather than killing such business in terms of liquidating such business through a court order and judgement while professional consultants are to be engaged when businesses or companies were unable to pay banks their indebtedness instead of taking off the company which will lead to unemployment on the part of the staffs and litigation issues on the part of the bank and the obligor.

(5)  Professionals in the field of banking should be allowed to manage most companies that are liquidating due to their vast experience and also appointed as receiver managers in order to revive such companies back into the system.

Finally, my opinion in the above view is to engage more professional bankers into the banking system in order to have financial optimality in rendering banking services to the public while banks should stop liquidating company due to their inability to pay their present outstanding, instead engage professionals that will revive back the company and also pay back bank outstanding without liquidating the company due to further economic implication to the country.

If you have the opportunity of sitting down with Pres. Buhari what are the 5 things you will want him to do, to move Nigeria forward?

President Muhammed Buhari, you are not the problem of Nigeria. This is based on my views and opinions to the fact any responsible father will not want his house scattered, destroyed and brought down by unnecessary elements. The present situation in the country calls for concern while I believe strongly that you are putting all measures that things are put in place properly, looking at your past antecedent before you were elected as the president of the country. My sincere opinion to you Sir, is that you trust and entrust people in carrying out most activities as it represents our country, while most of these individuals are not carrying out instructions as directed by you Sir.

Generally, an elected President in a democratic setting is an administrative head. This connotes that the president supervises and coordinates the activities of the country in terms of appointing professional and competent hands in the affair of the country, where these competent hands failed there is a call for concern.

The following are my observation.

(1)  The CBN policy formulation is not properly managed and supervised by a competent hand in moving the country forward in this present situation the country has found itself.

(2)  The finance minister must work hand in hand with CBN Governor to really implement and coordinate the economy effectively through their fiscal and monetary policy implementation while debt financing project will keep taking the country down through debt servicing, the country should look inward through taxes elimination and stoppage of payment of fuel subsidy in the country. This implies deregulation of PMS products and cutting off executive and legislative allowance.

(3)  Effective supervision of all the ministries and monthly stock card of performance shall be presented on a monthly basis for assessment to evaluate each performance of directors and ministries in each ministry.

(4)  All the security chiefs should further be trained and collaborate with world power in order to stop the present security challenges in the country. The security chiefs are to be selected for their competency in respective of their tribe or religion.

(5)  Presently, the government is doing well in terms of creating economic value through the ministry of transportation, ministry of petroleum and work and housing ministry, more effort should be put in order ministry to complement the effort of the government.

Finally, the above opinion suggested that the president is not in any way to destroy or bring down the country neither I believe it is a political attempt to discredit his government and destroy APC  in general in the forthcoming 2023 election.

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