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Business News

FIRS boss, Nami discloses why FIRS failed to meet revenue target under Fowler 

The reasons the FIRS failed to attain its tax revenue projections under former Executive Chairman, Babatunde Fowler, have been disclosed by his successor.

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FIRS generates N490 billion tax revenue in July, collects 89% from non-oil sector,7.5% VAT: Implementation to begin Feb 1 – FG, FIRS redeploys 50 directors in massive shakeup ,FIRS moves to stop tax evasion with newly launched intelligence system , FIRS boss, Nami discloses why FIRS failed to meet revenue target under Fowler, FIRS to scale up tax compliance with new policies , FIRS tighten noose on deduction of stamp duty, CIT, others , Nigerians will now pay N50 stamp duty on electronic receipts – FIRS, Tax debt payments extended to August 31- FIRS

The reasons Federal Inland Revenue Service (FIRS) failed to attain its tax revenue projections under former Executive Chairman, Babatunde Fowler, has been disclosed.

On the factors that caused the shortfall during a senate interactive session with revenue-generating agencies, the present Executive Chairman, Muhammad Nami said, “Nigeria loses a lot of revenue through tax waivers granted to big companies which otherwise would have been taxed to buoy up government revenue.

“Also, illicit financial flow is a major cause of revenue loss to Nigeria. Coupled with this is the operational cost of the FIRS which is also high compared to the statutory provisions for the running of the organization.”

Nairametrics had reported that failure to meet tax projections for four years could have informed President Muhammadu Buhari’s decision not to retain Fowler for a second term.

What caused a shortfall in revenue? Non-discretionary tax waiver grants, illicit financial flows abroad and high overhead costs have been attributed as the factors that prevented the FIRS from achieving its revenue projections under Fowler, who led the tax administrator from 2015 to 2019.

Findings disclosed that Fowler failed to meet his collection target in 2015, 2016, 2017, 2018. For instance, in 2015, it set N4.7 trillion target but was only able to make N3.7 trillion in the actual collection. In 2016, 2017 and 2018, the target collections were N4.2 trillion, N4.8 trillion and N6.7 trillion but the actual collections were N3.3 trillion, N4 trillion and N5.3 trillion, respectively.

This led to the Federal Government issuing a query to Fowler although the shortfall had been on before Fowler’s appointment. The FIRS recorded a revenue shortfall of N4.88 trillion within a 10-year period, from 2010 to 2019.

[READ MORE: FIRS moves to stop tax evasion with newly launched intelligence system)

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Nairametrics had reported that under Fowler, findings of the National Audit Report disclosed the following:

  • 545 companies had not remitted their Company Income Tax (CIT) to the FIRS valued at a total of N26 billion.
  • Companies, Federal and State MDAs, Local Government Councils and State Government within the Southwest Zone were yet to remit about N8 billion being their Value Added Tax.
  • Withholding tax from companies, government agencies and local government councils valued at about N5 billion were also yet to be remitted to the FIRS.
  • About 318 companies were said not to have remitted their Education, tax which is 2% on profits of Companies valued at N697 million.
  • Two companies are yet to remit N99 million, being their Capital Gain Tax of 10% from the disposal of these companies’ assets. All these unreconciled taxes were said to have been communicated to the FIRS chairman.
  • Out of 28,237 duly registered Companies, 11,221 failed to submit their annual returns to various tax offices. These contradict the provision of the Company Income Tax Act, which requires a company to render an account of its operations within six months of its accounting year-end.
  • This number of companies who failed to render its returns represents 39% of duly registered companies with the FIRS.

It was also revealed that, under Fowler, the tax agency failed to collect taxes worth about N41 billion in Lagos.

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Olalekan is a certified media practitioner from the Nigerian Institute of Journalism (NIJ). In the era of media convergence, Olalekan is a valuable asset, with ability to curate and broadcast news. His zeal to write was developed out of passion to shape people’s thought and opinion; serving as a guideline for their daily lives. Contact for tips: [email protected]

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    Business News

    BUA Group, French company announce progress in 200,000 bpd refinery project

    This is coming about 6 months after both firms signed an agreement for the supply of process technologies and the design of the facility.

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    The BUA Group and Axens, a French-based petroleum technology company, have both signed a progress acknowledgement statement for the proposed BUA multi-billion-dollar integrated 200,000 barrels per day refinery in Akwa Ibom State.

    This is coming about 6 months after both firms signed an agreement for the supply of process technologies and the design of the facility.

    BUA, while making the disclosure in a statement on Wednesday, April 14, 2021, said that the French President, Emmanuel Macron, commended its Chairman, Abdul Samad Rabiu, for his commitment to developing lasting relationships between French and Nigerian businesses.

    READ: What the $1.5 billion Port Harcourt refinery deal means to us – Maire Tecnimont

    The statement said that this came as the French Minister for Foreign Trade and Economic Attractiveness, Franck Riester, paid a visit to the BUA Group Headquarters in Lagos where he handed over a personal invitation from Macron to Rabiu to attend the Choose France Summit in June in Paris representing business leaders from Nigeria and Africa.

    The French minister also witnessed the signing of a progress acknowledgement statement between BUA Group and Axens of France for the proposed refinery project, according to the statement.

    The statement also said that during the visit, it was announced that the BUA chairman had been appointed Chairman of the France Nigeria Investment Club.

    READ: FG reacts to reports of revoking 32 refinery licenses

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    While thanking the minister and Macron for their unwavering support in bringing BUA and French businesses together, Rabiu said BUA had so far initiated partnerships and had developed personal relationships with a few French businesses, including Axens.

    He expressed confidence in the quality of expertise and technical know-how of the French companies BUA had partnered with.

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    Rabiu pointed out that the BUA refinery would reduce the huge cost of transporting Nigerian crude offshore, refining it and bringing it back into the country when fully operational.

    READ: Abdulsamad Rabiu’s stake in BUA Cement has increased by N1.2 trillion in value since listing in 2020

    He said that the choice of Akwa Ibom for the refinery was due to the huge availability of raw materials and its proximity to export petroleum products to regional countries.

    Stanbic 728 x 90

    The President of Axens, Jean Sentenac, in his statement, said he was pleased that the project was advancing on schedule and expressed delight for the very good cooperation between all the involved parties, reiterating the commitment of Axens in delivering the BUA Refinery Project on time and with the highest standards.

    READ: FG to open LPG distribution channels in all local governments

    Bottom line

    The completion and take-off of the refinery owned by the BUA Group would come as a huge boost for the Federal Government’s effort to stop the importation of refined petroleum products, ensuring that the country becomes a net exporter of these products.

    This will also help to conserve the scarce foreign exchange as the completion and take-off of the Dangote refinery and other similar refinery projects will help ensure self-sufficiency in the country.

    The BUA Group, just a few days ago, was listed as one of the companies with an active refinery license from the Department of Petroleum Resources (DPR).

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    Coronavirus

    Covid-19: Nigeria records over 1 million vaccinations

    The NPHCDA has stated that it has vaccinated 1,043,737 persons, which is 51.9% of the targeted total proportion.

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    Covid-19: First world nations oppose waiving intellectual rights for vaccine development

    The National Primary Health Care Development Agency has disclosed that Nigeria, as of April 14th, 2021, had vaccinated 1,043,737 persons, which is 51.9% of the targeted total proportion.

    The NPHCDA revealed this in a statement on Wednesday evening.

    Kwara State leads in the vaccination percentage of target reached, at 110% with 30,708 vaccinations.

    READ: Only 10 countries have administered 75% of all vaccinations – UN Secretary-General

    Meanwhile, Lagos State has conducted the most vaccinations so far at 192,061 representing 75.7% of its percentage target reached so far.

    The Federal Capital has vaccinated 40.1% of its target so far at 44,098 and Kogi State has conducted the least number of vaccinations at 5,568.

    READ: Covid-19: Pope Francis set to get vaccinated, says its ethical

    In case you missed it

    Nairametrics reported earlier that the Nigerian government aimed to get 70 million Johnson and Johnson single-shot COVID-19 vaccines after the African Union recently announced a deal with the drugmaker for 400 million vaccine doses.

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