“The Guarantees and Assurances stipulate that NLNG will enjoy a pioneer status for some time. By this, NLNG would be excluded from paying taxes for years. The idea was applauded by the NLNG shareholders namely the Nigerian National Petroleum Corporation (NNPC), Shell Petroleum Development Company (SPDC), Total Upstream Nigeria Limited and Nigeria Agip Oil Company. NLNG was not paying taxes until 2011, when the pioneer status granted it was removed by the Federal Government……This implies that the pioneer status given to the NLNG has changed coupled with the fact that a sizeable portion of the firm’s revenue would now be devoted to taxes. Though the responsibility to make and change the laws of a nation lies with the government, the government needs to take into considerations sensitive roles played by some sectors of the economy.
The former Managing Director of the Nigerian Liquefied Natural Gas Limited (NLNF), Mr. Godswill Ihetu has weighted in on the controversial Pioneer Tax incentives available to corporates in Nigeria. According to him, the removal of the tax incentives for NLNG resulted in them paying about $4.1 billion in taxes that they should have spent on investments.
Several controversies have trailed the Pioneer Status since its inception, one of it being the possible loss of revenue to the Federal Government especially as it seemed that the most successful companies were the ones getting the privilege. The Nigerian Liquefied and Natural Gas (NLNG) Limited was one of the initial beneficiaries of the arrangement for being the first to start processing gas for domestic and export markets, but was later stripped of it in 2011.
According to NLNG, between then and 2017, the company has paid about $4.1 billion in taxes to the Federal Government. The annual breakdown of the figures are as follows.
2011- $65.080 million
2012- $107.037 million
2013- $118.5 million
2014- $1.4 billion
2015- $2.1 billion
2016- $323.2 million
These figures were reeled out by former Managing Director, Mr. Godswill Ihetu, in an interview with The Nation.
Hyundai and Kia to set up an assembly plants in Ghana by 2022
The automobile giants will join Toyota-Suzuki, Nissan, Kantanka, Volkswagen, and Sinotruck who already have plants in Ghana.
Few weeks after Twitter announced its plans to open its first African office in Ghana, Hyundai and Kia have also concluded plans to set up an assembly plants in Ghana by 2022. The automobile giants will join Toyota-Suzuki, Nissan, Kantanka, Volkswagen, and Sinotruck who already have plants.
Ghana’s Minister for Trade and Industry, Alan Kyerematen announced this on Twitter.
Pleased to announce that Hyundai & KIA are set to establish assembly plants in Ghana by the end of 2022 to join Toyota-Suzuki, Nissan, Kantanka, Volkswagen & Sinotruck. The Ghana Auto Development programme = 3,600 assembly & 6,600 manufacturing parts jobs in Ghana. #InvestforJobs pic.twitter.com/JMHAmlM5VI
— Alan John Kyerematen (@AlanKyerematen) April 22, 2021
“Pleased to announce that Hyundai & KIA are set to establish assembly plants in Ghana by the end of 2022 to join Toyota-Suzuki, Nissan, Kantanka, Volkswagen & Sinotruck. The Ghana Auto Development program = 3,600 assemblies & 6,600 manufacturing parts jobs in Ghana.
“The local assembly of vehicles, 3,600 direct and indirect jobs would be created in Ghana, and the addition of components and parts manufacturing will also add about 6,600 direct and indirect jobs.”
Why this matters
More foreign companies are shunning Nigeria in favour of Ghana. Recently, Nairametrics reported that Amazon is set to situate its African Headquarters in South Africa, a multi-billion dollar investment that is projected to create over 20,000 jobs both directly and indirectly.
Following its move to Ghana, Twitter CEO, Jack Dorsey cited a number of human rights-related reasons for the choice of Ghana over Nigeria. Added to this are rising insecurity, stifling government regulations and the gapping infrastructural deficit bedevilling Nigeria. Consequently, our nation is steadily losing opportunities to attract foreign companies that could be very instrumental in bridging its unemployment gap which is currently over 30%.
Passports: Backlog of undelievered passports to be fixed before May 31st – Minister
The government also announced the launch of a new passport application system, which would be aided by fast track services nationwide.
The Federal Government disclosed that all backlogs of undelivered passport requests would be fixed before May 31st, and announced the launch of a new passport application system, which would be aided by fast track services nationwide.
This was disclosed by Minister of Interior, Rauf Aregbesola, in a press briefing with newsmen on Thursday.
What the Minister said
“On or before May 31st, all backlogs of undelivered requests for passports will be totally met, unless such applications have a problem,” he said.
“But before the deadline, the problematic application would be contacted, so that we know what’s wrong with the applications. Assuming there would be no problem, every successful application for a passport would be given a passport on or before May 31st,” he added.
The new passport process
The Minister disclosed that the FG will launch a new passport application process which would come into effect soon.
“When you finish your application process, there would be a waiting period of six weeks to collect your passport, however, if you want an express service, there would be fast track centres nationwide, to meet requests for express passport users,” he said.
What you should know
- Recall Nairametrics reported last month that the Federal Government inaugurated the Nigeria Immigration Service Passport Express Centre, which is a partnership with the private sector to enable the government offer passport services to Nigerians and make passports available in a maximum of 72 hours of a successful application.
- The FG also launched the Electronic Temporary Passport to cater for Nigerians desirous of returning home but whose national passport is not available.
Nairametrics | Company Earnings
Access our Live Feed portal for the latest company earnings as they drop.
- FCMB approves FY 2020 dividend pay-out of N2.97 billion to shareholders.
- Africa Prudential Plc posts profit after tax of N381.35 million in Q1 2021.
- Sovereign Trust Insurance Plc notifies stakeholders of 26th Annual General Meeting.
- Dangote Cement Plc to hold AGM on May 26th
- Linkage Assurance Plc proposes N500million as final dividend for 2020, and a bonus issue on its existing shares.