FG proposes Switzerland-based Nigeria infrastructure fund

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.”]]>