Business News
Read why FIRS sealed over 3,000 properties in Abuja
This was made known by the FIRS Chairman, Mr. Babatunde Fowler, at a one-day media sensitization workshop on Voluntary Assets & Income Declaration Scheme, VAIDS, in Abuja.
Mr. Fowler said the affected properties, which belong to individuals and corporate organisations, were sealed off since the VAIDS tax amnesty policy programme was launched last July.
The nation’s number one tax-collector said there were properties built and owned in the country under corporate names, without those organizations paying appropriate taxes to government. All those properties, including empty land or properties are currently being reviewed.
Fowler further explained that by law, if owners of such corporate organisations do not file revenue returns or pay corporate tax, the FIRS has adopted a policy of calculating tax returns on 20 per cent of the company’s annual turnover.
“We have waited for the owners of these properties to come forward and regularize their records. Very soon we would be going to court to seek permission to dispose of these properties. Whatever is realized would be to make up for the outstanding liabilities. If any change is left we give it to the owners,” Mr. Fowler said.
“For a company to own a property, there must be that money came from some source. For an individual, it also works the same way. An individual who earns N10 million annual salary, but owns property valued at N100 million will have to pay tax on the difference in amount, because the excess money must have come from somewhere,” the FIRS Chairman explained.
On the impact of the recent government policy to invite to privileged Nigerians to voluntarily regularize their tax statuses, Mr. Fowler said about N17 billion had been realized from five companies, with additional N6 billion expected to be paid before the end of December.
Mr Fowler further advised Nigerians to take advantage of the nine months amnesty window to regularize their tax status and avoid the fine that would follow after the March 2018 deadline.
Business News
Lagos State Government orders building owners to conduct structural stability tests
There will also be stricter enforcement of regulations and safety precautions to ensure that building owners and developers across Lagos metropolis comply with it, she reiterated.
In response to the partial collapse of a 3-storey building at Alagomegi-Yaba on Monday, the Lagos State Government has ordered owners of buildings in the state to immediately carry out structural stability tests on their properties. This is expedient, given the onset of the rainy seasons, and the presence of statistics to show that many buildings collapse during the season.
In a series of tweets that were posted last night on the Lagos State Government’s official Twitter handle, the state’s Building Control Agency (LASBCA), disclosed that the affected building at 6, Olonode Street, Alagomeji-Yaba, Lagos, collapsed in the early hours of Monday due to the heavy rainfall in the area over the night.
Kosegbe emphasised that with the raining season upon us, owners of old buildings in the State should ascertain the level of structural stability of their property to avert collapse, stressing that statistics have shown high incidence of building collapse during this period#LASG
— The Lagos State Govt (@followlasg) May 25, 2020
The General Manager of the agency, Engr. Biola Kosegbe, noted that the collapsed building had earlier been marked for demolition. In other words, all occupants of the building were evacuated by the Agency before the incident, thereby averting a disaster.
(READ MORE:Lagos increases health workers’ allowances, commissions local production of face masks)
Kosegbe went on to explain that statistics from previous years show that there is a higher incidence of building collapse during the rainy season, hence the need for building owners to ascertain the level of structural stability of their properties to avert collapse. She added that the Lagos State Government would not hesitate to remove illegal or distressed buildings, or any other structure that is not in conformity with the State’s building laws and standards.
There will also be stricter enforcement of regulations and safety precautions to ensure that building owners and developers across Lagos metropolis comply with it, she reiterated.
She maintained that the present administration will leave no stone unturned in sanitising the building construction industry removing all illegal or distressed buildings, that are not in conformity with the State building laws, regulations and standards#LASG #ForAGreaterLagos
— The Lagos State Govt (@followlasg) May 25, 2020
Why it matters
This type of pro-active government regulation will help prevent future catastrophes that could occur in the events of building collapse. Incidents of building collapses are not alien to Lagos, a city-state with more than 20 million estimated population, a significant number of whom live in squalid conditions due to extreme poverty and housing deficits.
Business News
Just In: Nigeria received $5.85 billion capital inflows in Q1 2020 –NBS
Nigeria received $5.85 billion capital importation (inflows) in the first quarter (Q1) of 2020, compared to $8.51 billion in Q1 2019.
Nigeria received $5.85 billion capital importation (inflows) in the first quarter (Q1) of 2020, as against $8.51 billion in Q1 2019. This is according to the latest capital importation report released by the National Bureau of Statistics (NBS).
According to the NBS, the $5.85 billion worth of capital importation in Q1 2020 represents an increase of 53.97% when compared to how much was received in Q4 2019.
However, when compared to the corresponding first quarter period of 2019, the figure indicates a 31.19% decline.
Capital Inflow by type
Portfolio investment ($4.31 billion) accounted for 73.61% of the total capital importation, followed by other investments ($1.33 billion), which accounted for 22.73%, and Foreign Direct Investment ($214.3 million), which accounted for 3.66% of total capital importation.
More details shortly…
Business News
Naira set for recovery as ABCON issues guideline to members on forex sales resumption
It is obvious that the CBN has come to realize that BDC operators can be the difference between naira recovery and depreciation during volatile times.
The Central Bank of Nigeria (CBN) and the Association of Bureau De Change Operators of Nigeria (ABCON) have finalized arrangements for the resumption of forex sales to Bureau De Change operators (BDCs).
Following this finalisation, the more than 5,000 BDCs spread across the country are now expected to help curb the downward spiral of the naira, thereby checking the activities of foreign currency speculators.
Recall that the naira has recently been facing major challenges, no thanks to the COVID-19 pandemic. Unfortunately, currency speculators took advantage of the situation by making spurious demand for dollars with the hopes of making good returns from the rising gaps between official and parallel market rates.
Meanwhile, Governor Godwin Emefiele of the CBN and ABCON President, Aminu Gwadabe, have repeatedly spoken against the illicit business of currency speculators and the dangers they pose to the economy and naira’s stability. They have also warned the speculators about the looming danger for their trade if they refuse to retrace their steps; they Could incur losses estimated at over N10 billion in the next few months, especially now that the CBN is enabling BDCs’ full return to the forex market after nearly six weeks of inactivity.
(READ MORE: Devaluation’s drum beats louder)
Governor Emefiele had also appealed to industrialists who patronize the parallel market to stop such practices in the interest of the economy and for the sustainability of their businesses. Failure to do this might result in them incurring the same huge losses as currency speculators.
Both Emefiele and Gwadabe have extensive experience in the market, enough to predict what follows after every major crisis. During the 2016 currency crisis, the market got a major relief after the BDCs began getting dollar allocations from the CBN. That same scenario will soon play out as the BDCs countdown to resumption.
In the meantime, it is obvious that the CBN has come to realize that BDC operators can be the difference between naira recovery and depreciation during volatile times. This is especially true now that the local currency has come under intense pressure, driven mainly by speculative demand for the dollar.
READ ALSO: CBN ends forex for fertilizer importation, raises concern over banks sharp practice
Note that the BDCs are essentially operators who help to get dollars across to the end-users, no matter where they are. The BDC operators have, for decades, proven their relevance in stabilizing the naira. While commenting on the recent moves by the apex bank to resume dollar sales to the BDCs, Gwadabe said:
“The CBN’s planned lifting of moratorium on dollar sales to BDCs, reopening of the airports for air travels as well as global ease on restriction of movement are positive indications that dollar flows to the economy will soon improve.
“The naira has been exchanging at N461 to a dollar at the parallel market but will be upbeat once dollar sales to BDCs commence. The return of over 5,000 BDCs to the forex market will add great strength to the Naira and lead to major capital losses for forex speculators. It happened in 2016 and it will happen again in 2020. The return of the BDCs will immediately boost naira’s recovery and put the enemies of the economy to shame. We are committed to the CBN’s exchange rate stability and will take all necessary steps within set rules and regulations to keep the naira stable.”
(READ MORE: Naira depreciates at I&E window, forex turnover up by over 117%)
Moving on, the CBN said it has taken steps to address the risks facing the naira. Asides other positive developments in the global economy (including oil price recovery thanks to OPEC+ output cuts and IMF’s $3.4 billion emergency funding to Nigeria), the CBN believes its measures will enable a rapid recovery for the local currency. Emefiele explained:
“CBN has also officially reviewed the naira exchange rate to N380 to a dollar. Aside devaluing the naira, the apex bank also adopted a unified exchange rate, and pushed the official rate of the naira to N376 to dollar for International Money Transfer Operators rate to banks; N377 to dollar for banks’ dollar sale to CBN and pegged CBN’s dollar sales to banks at N378, all aimed at attracting Foreign Portfolio Investment and strengthening the local currency. The BDC operators are expected to buy dollar from the CBN at N378 per dollar.”
For Gwadabe, the naira rate review and the CBN’s assurance to foreign investors on the easy repatriation of their funds from Nigeria, are positive indicators for naira’s continued recovery.
(READ MORE: Why the naira is falling)
He also noted that ABCON is reopening guidelines to all its members nationwide included on-boarding of the queuing crowd ticketing management application, known as ABCON 360°QSM portal, by all members. So far, over 80 percent of members registered nationwide.
He also disclosed that they updated all regulatory obligations during the lockdown, such as fumigation of members’ offices/markets, and distribution of second phase of face mask nationwide to our members. They also made provision for wash hand basins and sanitizers at distributions centres, even as members will explore school fees, mortgage, and subscription payments as part of their allowable scope post-COVID-19.
