FG proposes Switzerland-based Nigeria infrastructure fund | Nairalaw

The Attorney-General of the Federation and Minister of Justice,
Mr Abubakar Malami (SAN), on Tuesday announced the Federal
Government’s plan to bridge the nation’s infrastructure deficit
with the proceeds from a proposed Nigeria Infrastructure Fund to be
established in Switzerland.

Malami said the fund would be an investment facility with
“minimal” contribution from the Federal Government and contributory
investments from banks, prospective international investors, as
well as Nigerians with offshore assets and foreign-sourced
incomes.

He said this during the unveiling ceremony of the Voluntary
Offshore Assets Regularisation Scheme held in Abuja.

The scheme, which Malami jointly unveiled alongside the Minister
of Finance, Mrs Zainab Ahmed, was designed to provide a platform
for taxpayers to declare all their offshore assets and
foreign-sourced incomes relating to the preceding 30 years.

Under the VOAR Scheme, the person who makes the voluntary
declaration is to be exempted from possible criminal prosecution
for tax offences relating to undeclared offshore assets.

Malami said the VOARS was initiated by “the Swiss Consortium”
with a view to facilitating regularisation of offshore assets owned
by Nigerians.

He said following the agreement signed between the AGF office,
acting on behalf of the Federal Government, and the Swiss
Consortium, for the establishment of VOAR, “a Nigeria
Infrastructure Fund in Switzerland was proposed.”

The AGF said the investment in the NIF was “with a view to
increasing Nigeria’s tax base, bridging Nigeria infrastructure
deficit and inviting direct foreign investment for the development
of infrastructure in Nigeria.”

He explained that from the funds voluntarily declared, the
Federal Government would deduct 35 per cent, while two and a half
per cent would be charged as administrative fees, while the about
63 per cent remaining would be “registered in the system to become
taxable in Nigeria.”

According to him, apart from the minimal investments from the
Federal Government, banks, and matching investments from
international investors and interested Nigerians, the holders of
the 63 per cent registered in the system would be expected to
invest in the NIF.

He said, “The infrastructure fund will serve as a proposed
investment facility where the Federal Government of Nigeria will
have minimal investment, with the matching investments from banks
and prospective international investors as well as Nigerians,
holders of the 63 per cent who are expected to invest into this
fund with the view of financing Nigeria’s infrastructure and
attracting foreign direct direct investment.”

Malami explained that the Executive Order 8 on the Voluntary
Offshore Assets Regularisation Scheme signed by President Muhammadu
Buhari on October 8, 2018 provided the legal basis for “the Swiss
Consortium” to approach third party holders of the funds with the
view to accessing information of the owners.

The AGF, who likened the VOARS to the Federal Government’s
Voluntary Assets and Income Declaration Scheme, said, “It is
expected that those funds owned by Nigerians that are not in the
system will be voluntarily declared.”

On her part, the Minister of Finance, said the VOAR Scheme
provided “a one-year window commencing from October 8, 2018 for
affected taxpayers to declare all offshore assets and
foreign-sourced incomes without the threat of criminal prosecution
for tax offences relating to undeclared offshore assets.”

She said, “Through this scheme, it is our aim that the culture
of accountability and honesty in citizens to fully declare any
income and assets owned will begin to grow and will encourage more
citizens to readily come forward to declare without any threat of
interrogation and/or prosecution.”