Your Complete Guide to Nigeria’s latest proposed regulations and taxes

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The Nigerian regulatory landscape has largely given the impression that decisions are made in scattergun fashion. Last week, this was brought to the fore with the news that the Federal and Lagos State governments came up with new taxes and policies to guide certain sectors of the economy. They include the amendment of the Broadcasting Code, a new tax on the e-hailing sector, the capital base bill for betting operators, and content production.

5% Tax on Content Production

While unveiling a platform by the Performing Musicians Employers Association (PMAN) and LaFrique Promedia, secretary of the Lagos State Film and Video Censors Board (LSFVCB), Mr. Bamidele Balogun, issued a 30-day notice to all content producers in Nigeria to register their content with the body as the state introduced a 5% levy on visual and audio productions.

“Practitioners and stakeholders are also informed that henceforth, all audio and visual contents produced and sold within Lagos State shall attract the payment of 5% levy on each item. This exercise will, however, assist the Lagos State Government in policy formulation, with regard to planning and funding for the sector”.

What was the reaction? 

Most prominently, Sound Sultan, in an interview with Vanguard on Saturday expressed his displeasure.

“Looking at the timing, I feel it is very insensitive to come up with such a law, as the industry is not working right now. Most people in the industry earn from shows and right now, there are no shows”.

“Again, there has not been too much help coming from the government as regards the entertainment industry. By this, I mean not directly. Yes, they might say they have provided an enabling environment for us to explore our talents and do everything, but that is minute, considering what they stand to gain from the industry”.

20 million Capital Base for Operators of Betting, Pool, and Gaming.
Existing betting laws such as the Lagos State Lotteries (Amendment) Law 2008, the Lagos State Lotteries Law (2004), the Casino, Gaming Regulatory Authority Law (2007), Casino and Gaming Regulations (2007), Pools Betting Control Law (2003) and Pools Betting Tax Law (2003) could be repealed if a bill titled, Lagos State Lotteries and Gaming Authority Bill Arranging of Sections”, passes at the State’s House of Assembly becomes law.
The Bill has 109 sections and 3 regulations will be used to consolidate gaming and the virtual lottery will require operators of the pool, betting and Lottery within the state to own capital of 20million before issuing a license for operation.
Lagos Adjusts Ride-Hailing Regulations
Months after the ban of commercial motorcycles, the Lagos State Ministry of Transportation released a regulatory document for ride-hailing companies. The regulation which was scheduled to take effect on August 20th would commence on the 27th of August instead of following its amendment. In a document titled, ‘Guidelines for Online Hailing Business Operation of Taxi in Lagos State 2020’, issued by the Lagos State Ministry of Transportation, Bolt and Uber drivers are expected to have a Lagos State Drivers’ Institute (LASDRI) card and a driver badge issued by the Department of Public Transport and Commuter Services of the Lagos State Ministry of Transportation.
Also, e-hailing companies with less than 1,000 drivers are expected to pay a ₦10 million license fee, while those with more than 1,000 drivers are to pay ₦25 million. The annual fee was fixed at ₦10 million for those with more than 1,000 drivers and ₦5 million for those with less.
Taxi and App Operators with 50 cabs or less are expected to pay a ₦5 million license fee, while those with more than 50 cabs are to pay ₦10 million. The former will pay an annual renewal of ₦1.5 million while the latter will renew at ₦3 million.
What was the reaction? 
The government was roundly criticized leading to consultation between the companies and the government where a compromise was reached with the government cutting costs by 20%. That is, owners of more than 1,000 cars will now pay 20million while those with fewer, 8 million. Taxi and App operators with less than 50 units will pay 4million while those with 51 and above will pay 8million. The state government will also charge a flat fee of N20 on every trip made by these drivers.
Amendment of Broadcasting Code
Following the outburst of the deputy governor of the Central Bank of Nigeria (CBN), Obadiah Mailafia, of a Northern governor sponsoring activities of Boko Haram, the Federal Government increased the fine for hate speech from N500,000 to N5 million. This was announced by the Minister for Information and Culture, Alhaji Lai Mohammed, at the unveiling ceremony of the revised National Broadcasting Code by the National Broadcasting Commission (NBC) in Lagos on Tuesday.
Later in the week, the Department of State Services (DSS) called for the questioning of Hon. Ghali Umar Na’aba, a former speaker of the House of Representatives after an interview on Channels Television. His comment, documented below was regarded as derogatory to Buhari’s Government.
“Hardly can any sector of the country be said to be working as the government seems ineffectual, irresponsive and incompetent. Unemployment, particularly among our youths has reached and passed unprecedented levels, while the unnecessary loss of human lives due to insecurity has become a recurring decimal with scores of Nigerians being killed on a daily basis. Our indebtedness, both internal and external has reached alarming proportions. with the attendant virtual collapse of social and physical infrastructure leading to pervasive and grinding poverty. The way and manner governance is conducted suggests a high degree of irresponsibility at all levels”.
Nigeria Info 99.3FM was fined N5 million for “providing its platform to be used to promote unverifiable and inciting news that can incite crime, public disorder“. This came after its interview with Dr. Mailafia in one of its programs, Morning CrossFire.
What was the reaction? 
The amendment of the NBC code putting restrictions on speech against the government is anti-democratic and it has also been widely condemned.
In a statement released by former Vice President, Atiku Abubakar’s media office, he opined that the mass media has a role to play in ensuring that all possible shades of opinions are given access to the media platform.
“While there is no disputation over the fact that hate speech portends an existential threat to the enterprise of journalistic reporting and, in fact, inhibits the workings for a free society, it is absolutely repugnant that powers that be would instrumentalize the prevention of hate speech as a means of constricting free speech.
As a matter of fact, it seems somewhat contradictory that a country like ours, which is in the throes of national security skirmishes, would choose to shrink media access to critical information. It is not known if any society had won the war against terrorism by placing a restriction to access to information, in the way NBC had done.”
A letter dated 15th, August 2020 and signed by the deputy director of the Socio-Economic Rights and Accountability Project (SERAP), Kolawole Oluwadare has asked the President to withdraw the illegal Broadcast Code.
“Rather than pushing to enforce a culture to respect president, governors, lawmakers, elders, and other leaders, Mr. Muhammed and the NBC should use their entrusted public office and mandates to promote a culture of public debate, access to information, transparency and accountability in government.
Nothing can be more destructive to people’s exercise of basic human rights, and to democratic politics than the suppression of the media, and media freedom. The alleged ‘cultural codes’, which Mr. Muhammed and the NBC are now using to punish journalists, broadcast stations, and other Nigerians are patently contrary to the public interests.”
NBC Chairman, Alhaji Ikra Aliyu Bilbies, also reacted saying the act was an ‘illegality perpetrated’ by the Minister for Information. He went further to distance himself and the NBC from the code saying the Minister acted ‘alone’.