Business

Adeosun: FG revenue drive will not burden Nigerians

Published

9 years ago

July 14, 2016

—we will make every naira countMinister of Finance, Mrs. Kemi Adeosun yesterday in Kano said that the federal government has identified over 1,000 dormant revenue lines, assuring however, that such huge dormant revenue opportunities will be maximised. The minister assured Nigerians that the Federal Government’s drive for enhanced revenue generation would not be a burden to Nigerians. The Minister, who spoke at the opening of the two-day National Revenue Retreat 2016 in Kano, said the administration of President Mohammadu Buhari is firmly committed to turning the economy around by mobilising capital for investment in the essential infrastructure which will drive the nation’s economic growth.

The retreat titled “Enhancing Revenue Generation for Sustainable National Development”; according to the Minister was a very important gathering, which came up at a pivotal period in the nation’s economic history.

The Minister said the revenue focus will not burden Nigerians but will ensure that all revenue due to Nigeria’s government, irrespective of the source, is collected with a high degree of efficiency, fully receipted and properly accounted for.

Kano State Governor, Alhaji Abdullahi Umar Ganduje, had in his speech disclosed that the state government has identified about 106 dormant revenue lines which it was working assiduously to activate. However, Adeosun, in her remarks, said the Federal Government has also identified over 1,000 dormant revenue lines, assuring however, that such huge dormant revenue opportunities will be maximised.

Mrs. Adeosun also expressed the determination of the Federal Government to work with the private sector where required in order to maximise the nation’s revenue potentials.

She said the days when revenue generating agencies acted as autonomous entities outside of the budget cannot be allowed to continue, saying whether the funds are from fees and fines, from taxes or from projects, the law is clear that every naira must be paid into the Consolidated Revenue Fund.

She said “The administration has started the process of maximising our revenues with a number of initiatives. The most important change introduced is a reorientation in the thinking about public money. Discipline and accountability in the spending of public money is a trademark of the President Buhari led administration. Making every naira count is a commitment and a policy focus and not a slogan. Citizens will not willingly pay revenues if the funds are seen to be leaking or being wasted.

“All spending must start with revenue and therefore we have commenced the work of plugging the leakages of government revenues. Such leakages can arise from a number of factors including inefficient collection systems, evasion of payments due, collusion and other malpractices, as well as obsolete tariffs.

“The first step required is the preparation of a detailed revenue map which identifies the specific lines of revenue and understands how such revenues are generated. Disaggregating revenue into line items is an important first step. The triggers in our various processes that result in a revenue transaction must be clearly understood and well documented. To maximise revenue collection, the task of plugging these leakages must be undertaken. It is also important to understand the costs of collection. That is the essential equipment, technology and resources that are required to support revenue. The administration is committed to ensuring budgetary provision for these costs.

“We currently hold daily bilateral revenue meetings with revenue generating agencies to define targets and agree strategies,” the minister stated.

She disclosed that the Federal Government has commenced the review and revision of the cost profiles of revenue generating agencies to ensure that maximum operating surpluses are declared and remitted in compliance with the Fiscal Responsibility Act. She said, “In this regard, we have recently commenced a number of audits of a range of agencies that will give us improved visibility into the revenue and cost profiles. This will enable us to generate an indicative cost profile that can be used to establish reasonable budget targets going forward.”

Revenue Mobilisation to complement borrowing for Investment in infrastructure

The Minister stated that need for investment in infrastructure is well documented as are the potential benefits from so doing. Given our low debt to GDP ratio, “we could have succumbed to the temptation to fund our needs purely by raising debt. However our approach to debt is a prudent one and we are firm believers in the critical role that revenue plays in mobilising funds. Thus the importance of today’s gathering in planning and developing attainable strategies for revenue mobilisation.”

She explained that revenue mobilisation provides a sustainable and predictable flow of funds that is not as vulnerable to external shocks as we have seen with the oil price. She added that the Ministry of Finance has committed itself to a Total Revenue focus, which will reengineer revenue collection, explaining that the focus of the event will be around preparing for the enhanced government revenue opportunities that will arise as Nigeria begins to recover.

Revenue generation and accountability are patriotic responsibilities of every public servant.

The Minister said the responsibility for revenue generation must be vested at the highest level within every organisation. Revenue is not the responsibility of the Finance Team, it is a collective and indeed a patriotic responsibility of every public servant. “The accounting officer must see themselves as the Chief Revenue Officers of the organisation. As we begin to streamline our public finances, we expect those organisations with high Revenue Generating Capacity to fulfil their responsibilities. We have observed that in other countries some agencies like Passport Offices and Vehicle Licencing Centres, Airport Authorities and Ports are cash cows whereas in Nigeria their historical contribution has been sub optimal. This is going to change,’ the Minister stated.

According to her, “The focus of this conference is on non-oil revenue generation. The role of most of us, represented here, in oil revenue generation is minimal. Oil represents only 13% of GDP but contributes over 70% of government revenue. This cannot continue and as we move toward exploiting our solid minerals and agricultural endowments we must build robust revenue platforms to ensure that we take full advantage of the value opportunities.

“We must begin to see revenue maximisation as ‘The Business of Government’ that is government operating commercially where required and this will require a new mind-set. Optimisation of revenue generation requires targets, incentives and penalties as part of the performance management framework. Thus in some cases partnership and risk sharing with private sector operators must and will be considered.”

“The ease of doing business has been cited as one of the key drivers of economic growth and Nigeria has already set targets for improvement in this regard. Accordingly in our drive for revenue we must look for opportunities for co operations and synergy through the three tiers of government. Single collection of multiple levies must be pursued where possible to maximise the convenience and efficiency of our collections. The responsibility for collection of revenue must reflect the fact that there is ‘one Nigeria’ and there are no Federal, State or Local Government Nigerians. There are just Nigerians and therefore we must have a collaborative approach rather than a confrontational approach. Where there is a need to review and update obsolete laws, this must be embraced by our Legislators.

“Nigeria can and must improve its revenue collection efforts. Our revenue to GDP ratio is far lower than that of our peers. Nigeria’s Tax to GDP is only 6% versus 26% in South Africa and 21% in Tunisia. This is actually good news as it reflects the opportunity for growth.”

The Minister charged participants “to take away concrete actions that you will begin to implement from Monday as part of the rebuilding of our public finances. Irrespective of your area of core responsibility, you must take full ownership of the need to maximise the revenue potential in your organisations, Treat government business as an enterprise to be operated with best practice and with the type of results that Nigeria needs and deserves at this critical time.”

Business

FG earned N2.78trn from Company Income Tax in second quarter 2025—NBS

Published

1 week ago

November 28, 2025

Business News Report

National Bureau of Statistics has said that Nigeria’s Company Income Tax rose sharply in the second quarter of 2025, hitting N2.78 trillion.

The figure represents a significant 40.27 per cent increase compared to the N1.98 trillion recorded in the first quarter of the year, reflecting both improved tax compliance and stronger corporate performance across key economic sectors.

The NBS report said that domestic company income tax payments accounted for the bulk of the revenue, contributing N2.31 trillion, while offshore collections stood at N469.36 billion during the period under review.

According to the NBS, the financial and insurance sector recorded the highest quarter-on-quarter growth, rising by an astonishing 772.29 per cent, driven by improved profitability among banks, fintechs, and insurance firms following robust half-year earnings.

This, according to NBS, was followed by wholesale and retail trade, as well as motor vehicle repair activities, which grew by 538.38%.

Activities of households as employers also surged by 526.79%, although their overall contribution to total company income tax remained negligible.

On the flip side, some sectors experienced sharp declines in company income tax remittances.

Activities of extraterritorial organizations and bodies dropped by –45.01%, while education, public administration, defence, and compulsory social security recorded declines of –26.61% and –18.17% respectively.

The contraction in these sectors, particularly education and public administration, highlights persistent structural and fiscal challenges confronting government-funded institutions.

In terms of contribution to total tax revenue, financial and insurance activities led with a dominant 44.13%, reflecting the sector’s continuing expansion and strong capital flows.

Manufacturing followed with 15.57%, bolstered by increased production output and improved supply chain activity.

Mining and quarrying ranked third, contributing 9.18%, supported by higher commodity prices and renewed interest in solid mineral development.

At the bottom of the contribution chart were activities of households as employers, which accounted for just 0.01%, as well as activities of extraterritorial organizations and bodies, and water supply, sewerage, waste management, and remediation services, each contributing 0.04%. Despite economic headwinds, year-on-year company income tax collection still rose by 12.66% when compared to Q2 2024, underscoring moderate but steady improvement in government revenue mobilisation.

Company income tax collection in the same period of 2024 rose by 150.83 per cent N2.47 trillion. In the first three months of the year, company income tax collection stood at N984.61 billion. According to the report, local payments in the period under review amounted to N1.35 trillion, while foreign CIT payments contributed N1.12 trillion. On a quarter-on-quarter basis, the agriculture, forestry, and fishing sectors exhibited the highest growth rate at 474.50%, followed by financial and insurance activities at 429.76%, and manufacturing at 414.15%.

Business

Lagos govt promises MSMEs continued visibility, market access

Published

3 weeks ago

November 16, 2025

Business News Report

Lagos State government has reaffirmed its unwavering commitment to supporting micro, small, and medium enterprises (MSMEs) across the state through visibility, capacity building, and market access. Commissioner for Commerce, Cooperatives, Trade, and Investment, Folashade Ambrose-Medebem, made the pledge on Sunday at the closing ceremony of the 2025 Lagos International Trade Fair (LITF). The 38th edition of the event, organised by the Lagos Chamber of Commerce and Industry (LCCI), had its theme as “Connecting Business, Creating Value.”

Ms Ambrose-Medebem said every entrepreneur, regardless of scale, deserves an enabling environment to thrive and contribute meaningfully to the state’s economic prosperity. She said the state, through strategic investments in infrastructure, institutional reforms, and continuous engagement with the private sector, was building a Lagos that worked for business. The commissioner added that the state would continue to foster innovation, competitiveness, and sustainability.

“As a government, we remain steadfast in our commitment to making Lagos the preferred destination for commerce and enterprise. This fair has once again demonstrated the power of connection: connection between producers and consumers, investors and innovators, the government and the private sector, and local entrepreneurs and global brands. Every handshake, every conversation, every business card exchanged here is a building block toward the future we are creating, a future of prosperity that leaves no one behind,” she said.

The commissioner urged businesses to continue to connect, collaborate, and create value, saying, “In Lagos, we do not just trade goods; we trade ideas, build futures, and transform lives. “Together, let us continue to make Lagos not just a place of commerce, but a symbol of progress, innovation, and endless opportunity.” Gabriel Idahosa, president of LCCI, urged governments at all levels to continue addressing the issues of creating an enabling environment in the country.Mr Idahosa said focus should be on infrastructure, security, and implementing the right policies to address the key drivers of high inflation.

This, he said, was needed to fully harness the vast enterprising resources of domestic and foreign investors for the diversification of our economy and the welfare of our people. He pledged the commitment of the organised private sector to stand solidly behind the state in its quest to actualise its innovative initiatives on all fronts. NAN

Business

Jumia posts $17.7m pre-tax loss in Q3, down 1% in 12 Months

Published

3 weeks ago

November 12, 2025

Business News Report

Jumia Technologies AG posts a $17.7 million loss before income tax in the third quarter of 2025, down 1% year-on-year from $17.8 million in the third quarter of 2024. The road to profitability has remained long as ecommerce continues to face uncertainties, including widening competition with rivals in the same industry. The e-commerce company revenue came in at $45.6 million compared to $36.4 million in the third quarter of 2024, representing a 25% year-over-year surge in the period. The company reported gross merchandise value of $197.2 million compared to $162.9 million in the third quarter of 2024, up 21% year-over-year. Excluding South Africa and Tunisia, physical goods GMV grew 26% year-over-year, Jumia revealed in the unaudited financials.

Jumia said in its report that the GMV growth was driven by supply and strong marketing execution, partially offset by lower corporate sales in Egypt. Excluding corporate sales, GMV in reported currency grew 37% year-over-year. Nigeria’s momentum accelerated, with order growth up 30% and GMV up 43% year-over-year, Jumia said. The e-commerce giant’s operating loss reduced by 13% year-over-year to $17.4 million compared to $20.1 million in the third quarter of 2024. The company’s adjusted earnings before interest tax depreciation and amortisation loss dropped by 17% to $14.0 million compared to $17.0 million in the third quarter of 2024.

Jumia reported a loss before income tax of $17.7 million, a slight reduction of 1% compared to $17.8 million in the third quarter of 2024. Liquidity printed at $82.5 million, a decrease of $15.8 million in the third quarter of 2025, compared to an increase of $71.8 million in the third quarter of 2024, which included the net proceeds from the August 2024 At-the-Market (ATM) offering, and a decrease of $12.4 million in the second quarter of 2025.

Its net cash flow used in operating activities settled at $12.4 million compared to net cash flow used in operating activities of $26.8 million in the third quarter of 2024 and $12.7 million used in the second quarter of 2025. The result includes a positive working capital contribution of $0.4 million.

Jumia reported that customers’ orders grew 34% year-over-year, driven by strong execution, enhanced product assortment, and healthy consumer demand across key categories. It said quarterly active customers ordering physical goods grew by 23% year-over-year, highlighting continued engagement and customer loyalty. As of September 30, 2025, the Company’s liquidity position was $82.5 million, comprised of $81.5 million in cash and cash equivalents and $1.0 million in term deposits and other financial assets, it said in the report Jumia’s liquidity position decreased by $15.8 million in the third quarter of 2025, compared to an increase of $71.8 million in the third quarter of 2024, which included net proceeds from the August 2024 At-the-Market (ATM) offering, and a decrease of $12.4 million in the second quarter of 2025.

Net cash used in operating activities was $12.4 million in the third quarter of 2025, compared to a net cash used of $26.8 million in the third quarter of 2024 and $12.7 million used in the second quarter of 2025. The result includes a positive working capital contribution of $0.4 million in the third quarter of 2025, compared to a negative working capital contribution of $9.1 million in the third quarter of 2024, primarily reflecting improvements in operating performance.

In addition, the Company reported $1.4 million in capital expenditures in the third quarter of 2025, compared to $0.9 million in the third quarter of 2024, primarily reflecting investments in infrastructure and facility enhancements to support business growth. “This quarter marks a significant acceleration in customer demand and order growth, driven by strong execution across our markets and growing consumer trust in the Jumia brand. We believe Jumia has reached an inflection point as our compelling value proposition, and improved operational discipline position us for sustainable, profitable growth.

“We continue to strengthen our cost structure and sharpen operational discipline, reinforcing our path toward profitability. Our focus remains on execution and customer engagement as we build a more efficient business.
“We believe that we are on track to reach breakeven on a Loss before Income tax basis in Q4 2026 and achieve full-year profitability in 2027, positioning Jumia for long-term growth and value creation.”