Economy
FIRS targets N8trn, records N5.3trn in 2018
The Federal Inland Revenue Service, FIRS, said it recorded N5.320 trillion collected in taxes, in 2018 beating the 2012 record of N5.07 trillion. Tunde Fowler, Executive Chairman, FIRS said this in Lagos. He said “Parliamentary Support for Effective Taxation of the Digital Economy” is targeting N8 trillion for 2019. FIRS’ generation of N5.3 trillion is significant as it was at a period when oil prices averaged $70 per barrel. Oil price was at an average of $100 to $120 per barrel between 2010 and 2013. Non-Oil component of the N5.320 trillion is N2.467 trillion (53.62 per cent), while oil element of the collection is N2.852 trillion (46.38 per cent. From audit alone, FIRS collected N212,792 billion from 2278 cases with a huge reduction in audit circle.
According to him “While we have been steadily increasing revenue collection over the years, our cost of collection has actually been going down. In 2016 we collected N3,307 trillion, in 2017 we collected N4,027 trillion and in 2018 we collected N5,320 trillion. Meanwhile, the cost of collection as a percentage of actual taxes collected has been reducing; in 2016 it was 2.6%, in 2017 it was 2.49% while in 2018 it was 2.14%”, said Fowler The Service has been making tremendous efforts in also increasing the amount of non-oil revenue it collects. Non-oil collection contributed 64.99% in 2016, in 2017 it contributed 62.25% and in 2018 it contributed 53.62%. This represents the government’s focus on increasing non-oil sources of revenue and the diversification of the Nigerian economy.
Fowler said that only companies that made a profit are obliged to pay taxes. According to him, if a company is situated in Nigeria it is only fair that it pays its fair share of tax for the benefit of all Nigerians. The Executive Chairman also stated that various initiatives were implemented by FIRS to enhance tax administration and make taxation as easy as possible. FIRS deployed ICT initiatives that enable a taxpayer to pay taxes from anywhere in the world, at any time. With the e-payment channel one can pay taxes with the click of a button and one can also download their receipts. Other e-Services are the e-Registration, e-Filing, -Stamp Duty and e-Tax Clearance Certificate.
“Taxpayers can now also choose the tax office where they would like to conduct their tax transactions. Before now, if one was registered with a particular tax office, one had to conduct all of their tax transactions in that office. However, to make it more convenient for the taxpayer, they can now choose which ever office they wish to conduct their transactions with.
He noted that Nigerian taxpayers are embracing the modern way of tax collection, introduced by the FIRS through the 6-e Solutions.
Fowler said “We are automating the collection of Value Added Tax, VAT in key sectors which will facilitate reduction in compliance cost in the long term. We are doing System to system integration between banks and FIRS. And I am happy to announce to you that we had a 31% increase year on year in VAT collection in the banks that have gone live between Jan 2017- Dec 2018 and collected N25 billion so far Amongst others, there is also the Government Information Financial Management Information System (GIFMIS), which links FIRS to the Office of the Accountant General of the Federation OAGF for real-time exchange of information and data. We are also automating the payment of VAT by states through the State Offices of Accountant General Platform (SAG). This will ensure that we automate and deduct at source and remittance of VAT and WHT from State governments contract payments directly to FIRS’s account and so far, collected 13bn”.
He said that taxpayers that requested for and processed their Tax Clearance Certificate, TCC through tcc.firs.gov.ng, from the comfort of their homes. “Tax clearance on the platform grew from 9,574 – 59,350 within a year of introducing the platform. Auto VAT collection in key sectors has also facilitated in reducing the cost of compliance. Between January, 2017 and December, 2018 VAT collection increased by 31% which translates to a collection of N25 billion. Overall, in 2019 VAT crossed the N1 trillion mark. Indeed, VAT is the fastest growing tax type in the world and even rich countries that did not depend on taxation have now introduced VAT, like the United Arab Emirates.
“In 2016 FIRS initiated a tax amnesty programme which attracted over 3000 applications for waiver of interest and penalties. The programme resulted in payment of over N68 billion out of about N96.2 billion liability established by the exercise. The Voluntary Assets and Income Declaration Scheme (VAIDS) was initiated by the Federal Ministry of Finance and the FIRS received over 5122 applications under the Scheme. The Scheme resulted in voluntary declarations of over N92 billion, with over N54 billion paid so far by companies. Fowler also explained how FIRS ascertained whether those companies with banking turnover of N1 billion are tax compliant or not.
He said, “FIRS wrote to all commercial banks in May 2018, requesting for a list of companies, partnerships and enterprises with a banking turnover of N1 billion and above. This activity was aimed at ascertaining those companies that are compliant with the tax laws and those that are not compliant. So far, non-compliant organisations have paid about N21.75 billion. “Companies that had a Tax Identification Number (TIN) and were paying were 45261, those that had a TIN but were not paying were 40611 and those without a TIN and who were not paying were 34504.”
Economy
Bayelsa bans illegal mining activities
Bayelsa State government has placed an outright ban on all unauthorized and illegal mining of mineral resources in communities across the state.
It also issued a stern warning to community leaders who had been reportedly signing memoranda of understanding with illegal miners in their domains to stop forthwith or face sanctions, declaring such agreements already entered into as null and void and of no effect.
Governor Douye Diri made the declarations, on Monday, during a town hall meeting with community leaders, top government officials and other critical stakeholders from Southern Ijaw, Brass and Ekeremor Local Government Areas of the state in Yenagoa.
Diri, who was represented by his Deputy, Senator Lawrence Ewhrudjakpo, described the illegal mining of “black sand” also known as silicon at Foropa, Agge, Die-ama, and other coastal communities in the state by miners from outside as a dangerous threat to the safety of the Bayelsa environment and health of the people.
While directing the immediate suspension of all such mining activities in all parts of the state, the governor pronounced an embargo on communities from signing memoranda of understanding (MoUs) with companies, without consulting with government, to mine minerals in their areas.
His words, “The state has recently witnessed a dimension we are not comfortable with. There is a developing issue in Ekeremor, Brass and Southern Ijaw LGAs. People from outside the state are illegally mining silicon or black sand in our community, without the authorization of government, and that has to stop forthwith.
“It is both dangerous to the safety of our environment and health. Unchecked Illegal mining activities in the north contributed to the banditry that has engulfed several states in the north. We won’t allow that here.
“We learn some communities have gone ahead to sign MoUs with these illegal miners. Government is angry with those communities for signing agreements with miners without consulting the relevant government institutions and agencies.
“Government is, therefore, directing the immediate suspension of all such illegal silicon or black sand mining activities across the state.
“An embargo is hereby placed on MoUs between communities and companies from within or outside the state. And every MoU already signed without government approval is hereby declared invalid and of no effect.”
He pointed out that while his administration is creating the enabling environment to attract both foreign and local investors, it would not tolerate any business to undermine the security and safety of the people and their environment.
He warned that paramount leaders and other community leaders who violate the order would be arrested and prosecuted in line with relevant laws of the state, stressing that illegal mining does not only violate environmental impact assessment laws, but also poses a serious security threat and robs the state of legitimate revenues.
In his submission, the Commissioner for Environment, Hon. Ebi Ben-Ololo, stressed the need for communities to obey an extant law passed by the Bayelsa State House of Assembly, which regulates and outlines the procedure for carrying out mining activities with necessary government authorization.
Economy
Miners kick against northern governors’ proposed ban on mining activities
The Miners Association of Nigeria says banning mining activities in the country is not the solution to the country’s security challenges.
The association said this in a statement jointly signed by its national president, Dele Ayankale, and its national secretary, Sulaiman Liman, on Monday. The Northern States Governors’ Forum recently called for the suspension of mining activities for six months following the abduction of school children and killings in some states.
They identified illegal mining as a key driver of insecurity and stated that the suspension would allow for a comprehensive audit and revalidation of all mining licences in consultation with state governments. Nonetheless, MAN said that only illegal mining had been linked to fueling terrorism and other security challenges, not legal operations, and decried that the ban would hurt legal miners while giving room to illegal operations.
Mr Ayankale argued that previous bans on mining, as a strategy to curb insecurity, had not yielded positive outcomes, as seen in the 2019 ban on mining activities in Zamfara, saying the negatives outweigh the positives. He said, instead, banditry, kidnappings, and terrorism escalated in the state and extended to neighbouring states of Katsina, Kaduna, Niger, and Kebbi, among others.
“It is the disorderly, illegal mining that is conducted without licences and government regulations and control that practices money laundering and fuels insecurity. A clear distinction must be made between legal and illegal mining. Therefore, stigmatising mining as the cause of insecurity is a misnomer,“ he explained.
He stressed that the ban would be unjust and a serious disservice to legal miners and their employees, leading to mass unemployment, worsening multidimensional poverty, and insecurity. The victims of such bans, he said, were usually legitimate stakeholders, as illegal miners mostly linked with terrorists would still have access to mineral resources due to the government`s poor logistics and personnel to enforce compliance.
“Unfettered access of illegal miners to the mineral resources in a banned mining location offers incentives and empowerment to criminals as they exchange the minerals for arms and ammunition to improve their heinous activities, “ he said. The ban, he further explained, would undermine the Federal Government’s progress in attracting investment to the solid minerals sector, especially its initiatives aimed at removing bottlenecks and enhancing the sector’s visibility in global markets.
Mr Ayankale said that his members work in synergy with security agencies to maintain safety in their areas of operation, and that their activities follow standard procedures for responsible, environmentally friendly mining.
According to him, MAN’s members, through the implementation of the statutory Community Development Agreement, contribute significantly to infrastructure development in rural areas and to boosting the economy.
“Therefore, the call by our northern governors and elders to ban mining activities, at a time when the nation has started welcoming pockets of investments, is not only unfortunate, but highly unpatriotic,“ Mr Ayankale added.
He said the governors should use part of their security votes or create special funds to strengthen the operations of the Mining Marshals and other legal initiatives to address illegal mining.
According to him, the call for revalidation of mining licenses is akin to an agitation for resource control. Mr Ayankale added that it was fundamentally against the letter and spirit of the Constitution, which places the control and management of mineral resources on the Exclusive Legislative List. He urged the president to consider that the ban could create more recruits for terrorist activities. NAN
Economy
Nigeria champions African-Arab trade to boost agribusiness, industrial growth
The Arab Africa Trade Bridges (AATB) Program and the Federal Republic of Nigeria formalized a partnership with the signing of the AATB Membership Agreement, officially welcoming Nigeria as the Program’s newest member country. The signing ceremony took place in Abuja on the sidelines of the 5th AATB Board of Governors Meeting, hosted by the Federal Government of Nigeria.
The Membership Agreement was signed by Eng. Adeeb Y. Al Aama, the CEO of the International Islamic Trade Finance Corporation (ITFC) and AATB Program Secretary General, and H.E. Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, Federal Republic of Nigeria. The Agreement will provide a strategic and operational framework to support Nigeria’s efforts in trade competitiveness, promote export diversification, strengthen priority value chains, and advance capacity-building efforts in line with national development priorities. Areas of collaboration will include trade promotion, agribusiness modernization, SME development, businessmen missions, trade facilitation, logistics efficiency, and digital trade readiness.
The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, called for deeper trade collaboration between African and Arab nations, stressing the importance of value-added Agribusiness and industrial partnerships for regional growth. Speaking in Abuja at the Agribusiness Matchmaking Forum ahead of the AATB Board of Governors Meeting, the Minister said the shifting global economy makes it essential for African and Arab nations to rely more on regional cooperation, investment and shared markets.
He highlighted projections showing Arab-Africa trade could grow by more than US$37 billion in the next three years and urged partners to prioritize value addition rather than raw commodity exports. He noted that Nigeria’s growing industrial base and upcoming National Single Window reforms will support efficiency, investment and private-sector expansion.
“This is a moment to turn opportunity into action”, he said. “By working together, we can build stronger value chains, create jobs and support prosperity across our regions”, Edun emphasized. “As African and Arab nations embark on this journey of deeper trade collaboration, the potential for growth and development is vast. With a shared vision and commitment to value-added partnerships, we can unlock new opportunities, drive economic growth, and create a brighter future for our people.”
Speaking during the event, Eng. Adeeb Y. Al Aama, Chief Executive Officer of ITFC and Secretary General of the AATB Program, stated: “We are pleased to welcome Nigeria to be part of the AATB Program. Nigeria stands as one of Africa’s most dynamic and resilient economies in Africa, with a rapidly expanding private sector and strong potential across agribusiness, energy, manufacturing, and digital industries. Through this Membership Agreement, we look forward to collaborating closely with Nigerian institutions to strengthen value chains, expand regional market access, enhance trade finance and investment opportunities, and support the country’s development priorities.”
The signing of this Agreement underscores AATB’s continued engagement with African countries and its evolving portfolio of programs supporting trade and investment. In recent years, AATB has worked on initiatives across agribusiness, textiles, logistics, digital trade, export readiness under the AfCFTA framework, and other regional initiatives such as the Common African Agro-Parks (CAAPs) Programme.
With Nigeria’s accession, the AATB Program extends it’s presence in the region and adds a key partner working toward advancing trade-led development and fostering inclusive economic growth.
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