The Government of Uganda has tabled the National Budget Framework Paper totaling Shs49.9 trillion for the Financial Year 2023/2024.
The document, which paves way for the budget approval process by Parliament, was tabled during plenary sitting on Friday, 23 December 2022 by the Minister of Finance, Planning and Economic Development, Hon. Matia Kasaija.
Deputy Speaker Thomas Tayebwa who presided over the House referred the framework paper totaling Shs49.9 trillion to the committee on Budget and other relevant sectoral committees for consideration.
Minister of Finance, Planning and Economic Development, Hon. Matia Kasaija
According to the Public Finance Management Act, the Government should table the budget framework paper before Parliament by 31 December 2022, and by 01 February 2023, the House should have approved the budget framework paper.
The preliminary resource envelope for Financial Year 2023/2024 is projected at Shs 49.9 trillion, compared to Shs48.1 trillion for the Financial Year 2022/2023 reflecting an increase of Shs1.8 trillion.
MPs were, however, concerned that the framework had remained on soft and not hard copy which impacted on their perusal of the same.
Hon. Nathan Twesigye (NRM, Kashari North County) said that it is important for the finance ministry to provide members with hard copies of the budget framework for them to scrutinise the budget adequately.
“Last financial year, we fidgeted a lot with the fact that they uploaded it on our Ipads – but you cannot easily read it. I think it is important for members to have a copy each so that they can read what they can on different sectors like roads and water,” he asked.
The Leader of the Opposition in Parliament, Hon. Mathias Mpuuga, tasked the minister equally to provide a hard copy of the framework, stating that the last time the minister presented a framework with massive changes.
Tororo North County MP, Hon. Geofrey Ekanya, equally tasked the finance minister to present the frameworks with further attachments saying that in the previous sessions, the attachments to the budget have been brought later making the work of the committee difficult
Minister Kasaija said that what the member requested was genuine and he will make sure to provide the hard copies. He also tabled the Certificate of Compliance from the Equal Opportunities Commission
Hon. Tayebwa asked the committees to work according to the timelines for the budget.
“As chairpersons of sectoral committees, we have only one month to process and report to the House by 30 January. You can see our timelines – these are timelines that we cannot amend, and this is going to be our priority so that we give it justice,” Tayebwa said.
The Hoima East Division MP, Hon. Patrick Isingoma tasked the minister to explain the contents of an internal memo from the Chief Administrative Officer of Nakaseke district to civil servants in the district informing them that salaries for December 2022 would be paid in mid-January 2023.
Kasaija informed the House that salaries and wages have the first call on the budget, and if that money had not yet been sent to the district, then there must have been a procedural problem which he pledged to resolve.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry
As part of the execution of Cameroon’s 2021 finance law, one of the new flagship measures contained in the related circular, signed on December 30 by the Minister of Finance, Louis Paul Motaze, concerns securing the revenue of the ‘State.
Minister of Finance, Louis Paul Motaze
To this end, the Minister of Finance has prescribed the prohibition of the payment of taxes and duties in cash to the tax network and has thereby introduced computerised means of revenue collection, namely the payment by bank transfer or electronically. Also, the Mininstry of finance has established electronic payment as a method of compulsory payment of taxes and duties for large companies.
The text exceptionally authorizes the payment of taxes in cash only at bank counters. But not with the tax officials who have often been in the news in cases of embezzlement of public revenues.
In addition, the circular enshrines the issuance and notification of receipts by electronic means, with the consequence of eliminating manual receipts which are sources of “various fraud”. Thus, the previously issued manual receipts are purely and simply replaced by electronic receipts. “The modalities of implementation of this reform will be defined by a specific text of the Minister of Finance”, indicates the circular.
Indeed, in 2017, the Minister of Finance had to sanction no less than 137 agents of his administration. The charges against these employees revolved essentially around the production of false receipts and the embezzlement of revenue. These agents, usually deployed in public revenue collection stations, fabricated false documents attesting to the payment of collected revenue into state coffers, although these funds did not appear anywhere in the treasury books.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions. He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance. He is also an award-winning writer
Good news for promoters who have launched their projects under the ANSEJ (National Agency for Youth Employment Support) in Algeria. The country’s Minister of Finance, Aymane Benabderrahmane, has announced a series of facilitation measures in their favor.
Minister of Finance, Aymane Benabderrahmane
“After a series of marathon meetings with all the officials concerned, we managed …to come up with solutions to the financial and tax problems that were blocking the microenterprises of Ansej,” said the minister.
Here Is What You Need To Know
Under the new regime, there would be rescheduling of debts in favor of companies in activity and which have difficulty in repaying their bank loans. This will also include “simplified procedures, such as erasure of late penalties and reducing interest rates by 100%” the Minister said.
With regard to companies that have been shut down but which remain indebted to banks, it was agreed, according to the minister, that the banks be compensated by ANSEJ’s guarantee fund.
“This is the best way to allow banks to recover their due,” said Aymane Benaderrahmane.
In addition, the Minister announced that government has also decided to increase to five, instead of three years, the duration of payment of tax credits by these companies. This provision will be included in the 2021 finance law, said the minister.
The minister also assured that decision had already been taken to accelerate the process of financial disputes involving promoters of companies under ANSEJ, and consequently to release the promoters from liabilities.
To that effect, all criminal proceedings against promoters in litigation with the banks or with the Public Treasury have, consequently, been lifted and withdrawn.
For the minister, all these measures are intended to breathe new life into the ANSEJ system, which has created hundreds of jobs.
Algeria’s National Agency for Youth Employment Support ( Ansej ) is the country’s organization responsible for managing a credit fund for the creation of businesses. She participates in the public employment service .
Ansej is in charge of implementing a support system for business creation for people under 40 years of age. It manages a credit fund, granting loans at zero interest rate (0 rate loans), complementary to bank loans. Committees composed of representatives of banks and institutions grant the loans after examining the files of the promoters.
A bank guarantee fund supplements the financing instruments. Algeria ‘s Ansej advisors provide follow-up to promoters who have obtained a loan.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions. He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance. He is also an award-winning writer
Nearly four years after Nigeria ’s broadcast media code (6th edition) was published in 2016, the country’s National Broadcasting Commission (NBC), in charge of regulating and controlling its broadcast industry has released new amendments to the code. The newly introduced changes are sweeping in their ramifications. NBC says the new amendments were put together after intense deliberations with relevant stakeholders within the Nigerian broadcast media industry.
Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed
“The amendments of the Code make provisions for local content in the broadcast industry,’’ the code reads. “It also makes provisions for increased advertising revenue for local broadcast stations and content producers. It significantly creates restrictions for monopolistic and anti-competitive behaviour in the broadcast industry in Nigeria.’’
For investors and media startups within the Nigerian broadcast media space, this is a great call for concern. Recall that the country’s Minister of Finance, Zainab Ahmed, had also issued the Companies Income Tax (Significant Economic Presence) Order, 2020 in pursuance of her power to do so under an amendment to the country’s Finance Act 2019. By the terms of the order, a 7.5% VAT rate is imposed on a foreign entity which offers digital services and which has Significant Economic Presence in Nigeria.
According to the Nigerian Bureau of Statistics, Information and Technology, consisting of broadcasting; motion pictures; sound recording, and music production; publishing; telecommunication and information services; contributed 10.68 per cent to Nigeria’s GDP in 2019 alone. Broadcasting makes up about 80.4 % of this number, followed by motion pictures, music and sound recording and production at 11.9%. Against this background, it has become necessary to assess the implications of the new rules for investors and startups playing in that space.
Online Radio, TV and Streaming Services In Nigeria Now Need Licenses To Operate And Music Artistes Now Have More Of Their Rights Protected
License to operate
This is a sweeping amendment to the previous rules which were entirely silent on online broadcasting. The previous rules only regulated physical apparatus and premises used for broadcasting while the newest amendment to the rules includes all persons wishing to operate web/online broadcasting services within the Nigerian territory. The implication of this is that all online broadcasting or streaming services existing in Nigeria must not only be registered and licensed by the NBC, but must also comply with any programming standards issued by the NBS. Thus the commission, in totality, is bringing all forms of online broadcasting within its control. In the event of breach of the new rules, the online broadcast service shall be blocked, taken down or shutdown completely, the rules state.
New Rights For Musicians
Even though the Nigerian Copyrights Commission is already empowered to be responsible for all matters related to copyrights in music and sound recording in Nigeria, the new rules mandate all broadcast services, online or not, to obtain permission and clearance for use and properly compensate owners of musical works. Failure to comply with this may result in warning and then suspension of broadcast. It is important to note that while the violation of rights by the musical artiste under the Nigerian Copyrights Act could amount to both civil and criminal liabilities for the offender, especially where commercial use is made of the work, violation of the NBC code could lead to suspension of the broadcaster’s license to operate until rectification of the violation is made.
One obvious implication of the new rules is that, if implemented, the number of online broadcast services in Nigeria may drastically reduce; and a major streamlining of music catalogues by broadcast media to meet their budget may be also seen. This would most likely be a major blow to Nigeria-based online broadcast media startups. Currently, it takes between $26,000 to $52,000 to process a TV or radio license in Nigeria, a license which must also be renewed every 5 years. It is hoped however that these measures do not become counter-productive as to promote international media startups at the expense of local ones. Whether online broadcast media would be regulated or not has always been a matter of time, however it is only appropriate that new rules establish new licensing fee schedules and lower licensing fees for broadcast media of such nature. The new rules also failed to classify or define the range of online broadcast media contemplated — online radio, music or podcast streaming? Any other contrary position may most likely be misunderstood by Nigerians as an attempt to limit their freedom of speech.
Nigeria ‘s new broadcast media rules may make or mar its media and entertainment industryInformation and Technology contributed 10.68 per cent to Nigeria’s GDP in 2019 alone.
Deleting of The Rights of Exclusivity To Broadcast Contents—A Major Blow To Exclusive Content Owners And Creativity
The new amendment entirely deleted provisions on public broadcasting in Nigeria and replaced it with anti-competition rules. By the terms of the new rules, broadcast media in Nigeria are no longer allowed to enter into broadcasting rights acquisition either in Nigeria or anywhere in the world to acquire any broadcasting rights in such a manner as to exclude persons, broadcasters or licensees in Nigeria from sub-licensing the same.
“Any such agreement shall be void,” the rule stated.
The new rules proceeded to give the NBC large discretionary powers to determine whether an agreement restrains competition and creates monopoly, including but not limited to deciding whether the broadcaster has a large market share. The new rule then states that such broadcaster in a dominant position must cease, on being ordered by the NBC, from any conduct that threatens competition in the Nigerian broadcast space.
The implication of the above rules is reduced revenue for the broadcasters; and a possible severe strain on the resources of broadcast media startups which usually, by the nature of their business, require substantial workforce, pay tax to government and renew their licenses. This is also a major turn-off for investors looking to invest in the Nigerian broadcast media startup space. The new rules would also stifle creativity and innovation and encourage mediocre contents especially as there is no longer reward for hard work.
However, the commission may likely be overstepping its regulatory boundaries. Notwithstanding that the law by which it was established [the National Broadcasting Commission Act (1999 as amended)] authorises it to regulate and control the broadcast industry in Nigeria, and consequently establish and issue a national broadcasting code as well as set standards with regard to the contents and quality of materials for broadcast, the law does not however permit it to invade the market, and on its own discretion decide what market competition and monopoly entails. The newly created Federal Competition and Consumer Protection Commission, which also has a tribunal deciding on matters bordering on competition and consumer protection in Nigeria, the decisions of which are further appeal-able at the country’s court of appeal, is specifically mandated to treat issues related to trade competition in the country. Furthermore, the right to grant exclusive or non-exclusive licenses to copyright in broadcast materials are protected rights under the Nigerian Copyrights Act, and also inherently protected under the Nigerian Constitution. It only could be hoped that the commission has not under the guise of regulation arrogated to itself the power to make laws.
Nollywood is one of the strong players in Nigeria ‘s broadcast media space the new rules may entirely change their course.
Broadcast Media Startups Must Now Allocate 20% Of Their Weekly Broadcast Hours To Public Service And Must Maintain 75% Local Content On Character
This is the most significant change introduced by the new rules. Going forward, all broadcast media in Nigeria must ensure that they allot a minimum of 20% of their weekly broadcast hours to public service programmes on emergencies, current trends and issues.
“Such programmes shall be given prominence during family times and shall not be less than 120 minutes per transmission day,” the rule reads, in part.
With this, the rules may be making reference to numerous radio and television stations targeting specific audience, or trying to avoid discussing some of Nigeria’s controversial public trends in a country that ranks 115 out of 180 countries on the World Press Freedom Index.
Also curious is the fact that public broadcast media have been completely excluded in some parts of the new rules. But this is not the first time this is happening. For instance, while private/commercial broadcast media licenses go for between $26,000 to $52,000, licenses for broadcast media stations owned by government go for between $2,500 to $13,000.
Under the new rules, broadcast media must also ensure that at least 75% of their production workforce are Nigerians.
Most importantly, the new rules further state that subscription-based services shall ensure that a minimum of 15% of their channel acquisition budget is spent on channels on local content.
Premium Sports and News Content Now On Wholesale
Instead of granting broadcast rights to premium sports and news content exclusively to select Pay TV platforms of their choice, the commission has now mandated all such rights to be placed on wholesale, buy-able by any Pay TV platforms (broadcaster) provided a request in writing to that effect has been made and on non-exclusive basis. Failure to do so will result in the payment of a fine of ₦10,000,000 ($26,000). While this may encourage more players in the industry, especially innovative startups, big players may likely cut down on their investment in the Nigerian market if their earnings are substantially affected, especially as most of the premium sports and news broadcasters in Nigeria are headquartered outside the country.
Another significant introduction in this regard is the new requirement that no prime foreign sports content shall be transmitted in the Nigerian territory unless the owner of such content has also acquired prime local sports content of the same category with a minimum of 30% of the cost of acquiring the prime foreign sports content. Simply put DSTV, a leading prime foreign sports broadcaster in Nigeria for instance, will not be allowed to show the English Premier League unless it acquires rights to and broadcasts 30% equivalent of the Nigerian Professional Football League.
Bottom Line:
If allowed to stand, this may be a major disruption in the Nigerian broadcast media industry where government-owned broadcast media are generally seen as out of touch with modern trends and technologies and foreign media outlets are accepted as more credible, trustworthy and contemporary. On their own, underfunded startups are still finding it difficult to stick out of a sector that occupied more than 10% of Nigeria’s gross domestic product in 2019 alone. Perhaps, Nigeria needs to encourage more innovations in its broadcast media space rather than its current protectionist policies. This it can do by setting minimal rules that will support its nascent startup ecosystem (that houses some of its more than 55.4 percent of unemployed youth population) to thrive.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions. He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance. He is also an award-winning writer.
