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South Africa President, Zuma signs 10 bills into law.
PRESIDENT Jacob Zuma of South Africa on Wednesday, 11 January 2017, signed the following ten (10) Bills into law.
Taxation Laws Amendment Act:
The main purpose of the Bill is to amend certain provisions of various Acts related to the Taxations Laws Amendment Act including, amongst others, Transfer Duty Act, 1949; Estate Duty Act, 1955; Customs and Excise Act, 1964; Value-Added Tax Act, 1991; Skills Development Levies Act, 1999, Unemployment Contributions Act, 2002; Securities Transfer Tax Act, 2007; Mineral and Petroleum Resources Royalty Act, 2008; Employment Tax Incentive Act, 2013 as well as Taxation Laws Amendment Acts, 2013, 2014 and 2015.
The Bill seeks to amend these laws in order to bring them in line with the new Taxation Laws Amendment Act.
Finance Act, 2016 :
The Finance Act, 2016 (Act No.7 of 2016) seeks to provide provisions for the approval of unauthorised expenditure, recovery of unauthorised expenditure and provide for matters connected therewith.
Rates and Monetary Amounts and Amendment of Revenue Laws (Administration) Act, 2016:
The Act aims to provide for administrative matters in respect of additional relief under the voluntary disclosure programme and to provide for matters connected therewith.
Rates and Monetary Amounts and Amendment of Revenue Laws Act, 2016:
The Act aims to fix the rates of normal tax; to amend the Transfer Duty Act, 1949, so as to amend the rates of transfer duty and monetary threshold; to amend the Income Tax Act, 1962, so to amend rates of tax and monetary amounts as well as to amend Customs and Excise Act, 1964, so as to amend rates of duty in Schedule 1 to that Act.
The Act further seeks to provide for additional relief under the voluntary disclosure programme and to provide for matters connected therewith.
Tax Administration Laws Amendment Act, 2016:
The main purpose of the Bill is to amend Income Tax Act, 1962, to provide for delegation of power to disclose certain information and to remove an obligation to submit a return for a dividend derived from a tax free investment, amongst others. The Bill further seeks to amend Customs and Excise Act, 1964, so as to narrow the scope of provisions relating to Special Economic Zones and to align terminology with terminology used in the Special Economic Zones Act, 2014.
The Bill also seeks to amend certain provisions of Value-Added Tax Act, 1991; Mineral and Petroleum Resources Royalty (Administration) Act, 2008 as well as Tax Administration Act, 2011.
Adjustments Appropriation Act, 2016:
The Bill seeks to effect adjustments to the appropriation of money from the National Revenue Fund for the requirements if the State in respect of the 2016/17 financial year and to provide for matters incidental thereto.
Unemployment Insurance Amendment Act, 2016:
The main purpose of the Bill is to amend the Unemployment Insurance Act, 2001, so as to provide for the extension of the unemployment insurance benefits to learners who are undergoing learnership training and civil servants and also, amongst other things, to adjust the accrual rate of contributor’s entitlement to unemployment insurance benefits and to provide for the process of application for maternity benefits.
The Bill further seek to empower the Unemployment Insurance Board to provide its constitution for the functions of regional appeals committees and to amend Scheduled 2 to the Unemployment Insurance Act, 2001, so as to provide for adjustment of the Income Replacement Rate and to provide matters connected therewith.
Children’s Amendment Act, 2016:
The Bill seek to amend the Children’s Act, 2005, so as to insert certain definitions and to provide, amongst other things, that a person convicted of certain offences be deemed unsuitable to work with children and to afford a child offender an opportunity to make representations as to why a finding of unsuitability to work with children should not be made.
Children’s Second Amendment Act, 2016:
The Bill seek to amend the Children’s Act, 2005, so as to insert certain definitions and to provide, amongst other things, that the removal of a child temporary safe care without a court order be placed before the children’s court for review before the expiry date of the next court day. The Bill further seek to provide that an application for a child to remain in alternative care beyond the age of 18 years, must be submitted before end if the year in which the relevant child reaches the age of 18 years and to provide for matters connected therewith.
Performing Animals Protection Amendment Act, 2016:
The Bill seek to amend the Performing Animals Protection Act, 1935 and to provide for a procedure for the application for a license to exhibit and train performing animals or use of animals for safeguarding as well as to provide for the issuance of license and for an appeals process and to provide for matters connected therewith.
President Zuma is confident that these new amended laws will enhance government service delivery programmes and also improve the good work that has been done by departments and institutions who are custodians of these laws.
… Assures Prompt Salary Payment
The Sole Administrator of Rivers State, Ibok-Ete Ibas, has announced the release of withheld local government allocations, assuring that necessary steps would be taken to ensure the prompt payment of workers’ salaries.
Ibas disclosed this on Thursday during a meeting with Heads of Local Government Administrators in Port Harcourt, describing the engagement as a crucial step towards restoring stability and progress in the state.
He lamented the economic hardship in the Niger Delta, noting that despite the region’s wealth of natural resources, many of its people continued to suffer.
“This is unacceptable,” he said, stressing the need for transformation and financial accountability.
The administrator expressed concern over the delay in salary payments across local government areas, acknowledging the struggles of affected workers.
“I feel the pain of the workers,” he stated, assuring them that the withheld allocations had been released and that his administration would ensure prompt payment of salaries.
However, he warned that financial discipline would be strictly enforced, directing all local government areas to submit their wage bills with supporting documents through the office of the Head of Service.
Ibas, a retired Vice Admiral and former Chief of Naval Staff, vowed to scrutinise public funds and take decisive action against mismanagement.
“Good governance is not just a slogan; it is a commitment to changing the negative narrative within the next six months,” he added.
He also emphasised the need for collaboration with traditional rulers and security agencies to enhance grassroots security.
“You must take the lead in ensuring security within your domains,” he charged local government administrators.
Reacting, the President of the Nigeria Union of Local Government Employees (NULGE) and Administrator of Port Harcourt Local Government Area, Clifford Paul, commended the Federal Government for appointing Ibas, attributing the decision to his leadership competence.
He urged the administrator to prioritise workers’ welfare, stating that local government workers were currently owed two months’ salaries.
“With the release of the withheld allocations, we are hopeful that workers will receive their entitlements soon,” he said.
Paul further called on stakeholders to seize the opportunity to rebuild trust and foster unity in the state.
President Bola Tinubu has sworn in Vice Admiral Ibok-ete Ibas (rtd.) as the Sole Administrator of Rivers State, following a brief meeting at the Presidential Villa on Wednesday afternoon.
Ibas’ appointment comes a day after Tinubu, in a nationwide broadcast, declared a state of emergency in Rivers State and suspended Governor Siminalayi Fubara, Deputy Governor Ngozi Odu, and all members of the Rivers State House of Assembly.
The President cited Section 305 of the 1999 Constitution as the legal basis for his action, stating that he could no longer stand by as the political crisis in the state escalated.
However, the suspension of Fubara and other elected officials has sparked widespread condemnation. Former Vice President Atiku Abubakar, Labour Party’s Peter Obi, senior lawyer Femi Falana (SAN), the Peoples Democratic Party (PDP), the Nigerian Bar Association (NBA), and several civil society groups have rejected the move, describing it as unconstitutional and undemocratic.
In contrast, the pro-Nyesom Wike faction of the Rivers State Assembly, led by Martins Amaewhule, has praised Tinubu’s decision, accusing Fubara of disregarding a Supreme Court ruling related to the state’s political crisis.
Vice Admiral Ibas, a retired naval officer, previously served as Chief of Naval Staff from 2015 to 2021 under President Muhammadu Buhari. Born in Cross River State, he attended the Nigerian Defence Academy in 1979 and went on to have a distinguished military career, rising to the highest ranks in the Navy.
He is a member of the Nigerian Institute of International Affairs (NIIA) and the Nigerian Institute of Management. In 2022, Buhari conferred upon him the national honour of Commander of the Federal Republic (CFR) in recognition of his service.
Ibas now assumes leadership of Rivers State amid a deeply divided political landscape, with tensions running high over the legality and implications of the emergency rule.
The Federation Accounts Allocation Committee (FAAC) disbursements to the federal, state, and local governments surged by 43 per cent in 2024, reflecting a major boost in government revenue inflows.
According to the latest FAAC Quarterly Review released in Abuja on Tuesday, the Nigerian Extractive Industry Transparency Initiative (NEITI) disclosed that a total of N15.26 trillion was allocated to the three tiers of government within the year under review.
NEITI’s Acting Director, Communication & Stakeholders Management, Obiageli Onuorah, described the disbursements as a historic high, noting that the allocations surpassed previous years by a remarkable margin.
Key Drivers of Revenue Growth
The report attributed the surge in FAAC disbursements to sustained fiscal reforms by the Federal Government, particularly the removal of fuel subsidies and foreign exchange rate adjustments. These policies have significantly boosted oil revenue remittances and overall government earnings.
Speaking at the official release of the report in Abuja, NEITI’s Executive Secretary, Dr Orji Ogbonnaya Orji, highlighted the impact of these reforms on national and subnational finances. He noted that the withdrawal of fuel subsidies in mid-2023 reshaped revenue distribution and affected debt repayment deductions from state allocations.
Dr Orji stated that the objective of the report was to assess the sustainability of government borrowing, the fiscal implications of resource dependence, and the economic realities confronting states benefitting from the 13% derivation revenue from oil, gas, and solid minerals.
“The analysis focused on crude oil revenue derivation states, as solid minerals continue to underperform despite their significant potential,” he added.
Breakdown of FAAC Allocations
According to the NEITI report, FAAC disbursements in 2024 were as follows:
Federal Government: N4.95 trillion
State Governments: N5.81 trillion
Local Governments: N3.77 trillion
Total FAAC Disbursement (Including Derivation Revenue): N15.26 trillion
State governments recorded the highest percentage increase in allocations, jumping by 62% from N3.58 trillion in 2023 to N5.81 trillion in 2024. Local government councils saw a 47% increase, while the federal government’s share rose by 24% from N3.99 trillion in 2023.
The report highlighted that FAAC allocations grew by 66.2% over three years, rising from N9.18 trillion in 2022 to N10.9 trillion in 2023 and N15.26 trillion in 2024, with the most significant leap occurring between 2023 and 2024.
Economic Risks and Challenges
Despite the revenue boost, NEITI cautioned that economic risks associated with fiscal reforms must be managed effectively. Key risks identified include:
Inflationary pressures
Possible rise in debt servicing costs
Fiscal uncertainty for oil-dependent states
The agency urged governments at all levels to adopt innovative measures to cushion the impact of these economic challenges.
State-by-State Allocation Analysis
Lagos received the highest FAAC allocation in 2024, with N531.1 billion, followed by:
Delta State: N450.4 billion
Rivers State: N349.9 billion
Conversely, the least allocations went to:
Nasarawa State: N108.3 billion
Ebonyi State: N110 billion
Ekiti State: N111.9 billion
The report also showed that six states—Lagos, Rivers, Bayelsa, Akwa Ibom, Delta, and Kano—each received over N200 billion, collectively accounting for 33% of total state allocations. Meanwhile, the six lowest-receiving states—Yobe, Gombe, Kwara, Ekiti, Ebonyi, and Nasarawa—received only 11.5% of total allocations.
Debt Deductions Raise Fiscal Concerns
A total of N800 billion was deducted from states’ allocations for foreign debt servicing and contractual obligations, representing 12.3% of total state allocations.
Lagos State had the highest debt deduction, with N164.7 billion, followed by:
Kaduna State: N51.2 billion
Rivers State: N38.6 billion
Bauchi State: N37.2 billion
NEITI warned that many states with high debt burdens were among the lower FAAC recipients, raising concerns about debt sustainability and overall fiscal health.
With the federal and state governments increasingly reliant on oil revenue, the report emphasized the need for economic diversification, stronger financial management, and sustainable debt practices to ensure long-term fiscal stability.
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