The Federal Inland Revenue Service (FIRS) generated the sum of N4.012 trillion between January and September 2019. This was disclosed by the Executive Chairman, FIRS, Tunde Fowler, on Thursday.
While speaking to the Senate Committee on Appropriations, the FIRS Chairman disclosed that the revenue generated by the agency within the period rose by N77.89 billion, when compared to the N3.94 trillion generated in the corresponding period of 2018.
According to Fowler, the revenue generated so far in the year represents 61% of FIRS’ N8.8 trillion target for 2019.
Fowler said, “Our budget for 2019 was raised by N2.02 trillion, representing 30.4% increase over the 2018 budget i.e. N6.747 trillion in 2018 to N8.8 trillion in 2019.
“Our total tax collection to date represents 78.2% achievement of the corresponding budget of 2018. Based on the collection, we expect the total collection to equal N5.4 trillion by the end of 2019.
“Non-oil revenue collection for January to September 2019 stands at N2.423 trillion, representing 72% achievement of the non-oil target for the period.
“Oil revenue collection of N1.588 trillion represents 49% achievement to target for the period.
“The total collection contribution in 2019 shows a percentage ratio of 61 per cent for non-oil revenue to 39% for oil revenue.
“Non-oil collection for January to September 2019 grew by 13% over the non-oil collection for the corresponding period in 2018.”
Improving Non-oil revenue: Fowler further disclosed that the drive of the agency to develop more sustainable sources of tax revenue by shifting the focus from oil revenue to non-oil was yielding positive results.
According to the FIRS Chairman, strategies being implemented include Information and Communication Technology (ICT) initiatives, compliance and enforcement initiatives, international tax initiatives, tax amnesty programme and expansion of taxpayer database and other Initiatives.
Fowler, however, pleaded with lawmakers to pass legislation that would send tax evaders to jail. According to him, passing such legislation into law would make over 40,000 tax-evasive individuals and businesses whose turnovers are between N100 million and N1 billion to pay taxes.
Fowler statement reads: “Just a little over 3,000 of the taxpayers who have a lien on their accounts have paid N103 billion. In Nigeria, if you dare to pass laws that will send tax defaulters to jail, the 40,000 tax defaulters will pay.
“In terms of whether revenues cannot be generated by enforcement, we have gone over various programmes to bring people into the tax net.
“In 2016, there was a tax amnesty in which 5000 companies came through and paid N92 billion within 45 days. Voluntary Assets and Income Declaration Scheme (VAIDS) was also N90 billion.
“These are businesses or individuals that have income but had refused to pay taxes. Currently, we have close to 40, 000 of those accounts under lien for which they have not paid any taxes.
“I believe that this is a crime and I think we are at that point now where we have no choice than to enforce payment. I did highlight earlier that 3,000 of those accounts paid N102 billion.”
Fowler had earlier disclosed that Nigeria loses the sum of $15 billion to tax evasion annually. He made the statement at an event organized by the West Africa Tax Administration Forum (WATAF) which held in Abuja.
According to him, the challenge to curb tax evasion was quite overwhelming. He noted that several information leaks released in the past years had helped in unveiling the depth and breadth of the challenge.
Just in: Fuel scarcity looms as NUPENG directs Tanker drivers to withdraw services in Lagos
This was disclosed in a press statement by NUPENG on Friday, August 7, 2020.
The scarcity of petroleum products appears to be looming in Lagos as the leadership of Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) has directed its members to withdraw its services in Lagos with effect from Monday, August 10, 2020.
This is due to the failure of government authorities to address the various issues that have been causing serious pains and harrowing experience on the petroleum tanker drivers in the state for several months now.
This was disclosed in a press statement by NUPENG on Friday, August 7, 2020.
NUPENG LEADERSHIP DIRECTS WITHDRAWAL OF SERVICES BY PETROLEUM TANKER DRIVERS IN LAGOS STATE WITH EFFECT FROM MONDAY, AUGUST 10, 2020
Read more:https://t.co/TV5sFoBOcO@followlasg#Lagos pic.twitter.com/tAuOpsMc3a
— NIGERIA UNION OF PETROLEUM AND NATURAL GAS WORKERS (@officialNUPENG9) August 7, 2020
President Buhari signs amended Companies Allied Matters bill
The President’s action on the document repealed and replaced the extant Companies and Allied Matters Act, 1990.
President Muhammadu Buhari has assented to the Companies and Allied Matters Bill 2020, which was recently passed by the National Assembly.
This was disclosed in a statement signed by a media aide of President Buhari, Femi Adesina and shared by the Personal Assistant to the President, Bashir Ahmad, via his Twitter handle.
According to the statement, the President’s action on the document repealed and replaced the extant Companies and Allied Matters Act, 1990, and introduced several corporate legal innovations geared toward enhancing ease of doing business in the country.
— Bashir Ahmad (@BashirAhmaad) August 7, 2020
Key innovations in the new Act:
* Filing fee reductions and other reforms to make it easier and cheaper for small and medium-sized enterprises to register and reform their businesses in Nigeria;
* Allowing corporate promoters of companies to establish private companies with a single member or shareholder, and creating limited liability partnerships and limited partnerships to give investors and business people alternative forms of carrying out their business in an efficient and flexible way;
* Innovating processes and procedures to ease the operations of companies, such as introducing Statements of Compliance; replacing “authorised share capital” with minimum share capital to reduce costs of incorporating companies; and providing for electronic filing, electronic share transfers, e-meetings as well as remote general meetings for private companies in response to the disruptions to close contact physical meetings due to the COVID-19 pandemic;
* Requiring the disclosure of persons with significant control of companies in a register of beneficial owners to enhance corporate accountability and transparency; and
* Enhancing the minority shareholder protection and engagement; introducing enhanced business rescue reforms for insolvent companies; and permitting the merger of Incorporated Trustees for associations that share similar aims and objectives.
NNPC signs agreement with CNOOC, SAPETRO to end OML 130 disputes
The agreement is expected to help resolve disputes stemming from Oil Mining Lease (OML).
The Nigerian National Petroleum Corporation (NNPC), said it has signed a Head of terms (HoT) agreement with China National Offshore Oil Corporation(CNOOC) and an indigenous oil production firm —South Atlantic Petroleum (SAPETRO).
A statement that was issued by the state-owned oil company via Twitter, yesterday, noted that this is part of the efforts that have been undertaken towards resolving all the disputes stemming from Oil Mining Lease (OML) 130 Production Sharing Contract.
Today,@NNPCgroup signed a Head of Terms (HoT)with its partners CNOOC & SAPETRO,signifying a major milestone towards the resolution of all disputes related to Oil Mining Lease (OML)130 Production Sharing Contract.OML 130 consists of producing fields such as Akpo & Egina pic.twitter.com/VnLga9qmm9
— NNPC Group (@NNPCgroup) August 6, 2020
Nairametrics understands that the agreement, which is temporary, could also be instrumental towards resolving similar disputes between the NNPC and other oil companies. The NNPC had previously accused some of these oil firms of under-declaring crude exports for three years between 2011 and 2013.
Specifically, the NNPC alleged that the likes of Shell, Total, Chevron, and Eni under-reported crude oil exports in their oil fields to the tune of 57 million barrels. The NNPC even sought repayments valued at $12.7 billion from the oil companies, according to a suit filed before the Federal High Court in Lagos. The companies denied the accusations.
The new agreement is now expected to help resolve such disputes. Even the NNPC’s Group Managing Director, Mele Kyari. was quoted to have said the agreement is “a major milestone toward the resolution of all disputes.”