President Muhammadu Buhari has justified Nigeria’s rising debt profile to fund infrastructure, saying loan for infrastructure will make Nigeria an attractive place for foreign investors.
Senior Special Assistant to the President, Garba Shehu disclosed that the President made this statement at a virtual meeting with members of the Presidential Economic Advisory Council (PEAC) at the State House, in Abuja on Wednesday.
“We have so many challenges with infrastructure. We just have to take loans to do roads, rail and power, so that investors will find us attractive and come here to put their money,’’ the President said.
The President added that Nigeria must comply with its oil production quota from OPEC as the pandemic due to the “collapse of the oil market”.
“We have to accept that decision; otherwise they (Middle-East producers) can flood the market and make the product unviable. So, we have cooperated with what we get. With oil, we are in a difficult situation. The politics of oil is that the less you produce, the more you earn,” he said.
He explained that Agriculture is necessary for Nigeria to bounce back from the economic losses and called for Nigerians to venture into the sector.
“For us to bounce back to productivity, especially in agriculture, the unemployed with many of them uneducated had to be persuaded to go into agriculture.
‘‘If we hadn’t gone back to the lands we would have been in trouble by now. That is why we virtually stopped the importation of food thereby saving jobs and foreign exchange.
‘‘We are lucky we went back to the land. We eat what we produce. We are doing our best to secure the country and provide infrastructure for investment to be viable in the country,” he added.
The Presidential Economic Advisory Council (PEAC) explained that recent reforms introduced by the government would impact the economy.
Some of the reforms are the Companies and Allied Matters Act (CAMA) 2020 recently signed into law, the reforms in the energy sector, bringing electricity and fuel prices in line with the market, and the decision of the Central Bank of Nigeria to merge the exchange rate of the naira versus other foreign currencies.
Self-Certification Forms: FG says directive does not apply to everyone
The Federal Government has made new clarifications concerning earlier announced Self-Certification Forms.
The Nigerian government has backtracked on its earlier issued guidelines on the new banking Self-Certification Forms, saying the notice does not apply to everyone.
On Thursday, the Nigerian government ordered all persons holding accounts across financial institutions and insurance firms, to complete and submit self-certification forms.
It stated, “This is to notify the general public that all account holders in Financial Institutions (Banks, Insurance Companies, etc.) are required to obtain, complete, and submit Self – Certification Forms to their respective Financial Institutions. Persons holding accounts in different financial institutions are required to complete & submit the form to each one of the institutions. The forms are required by the relevant financial institutions to carry out due diligence procedures, in line with the Income Tax Regulations 2019.”
However, on Friday morning, after receiving expected backlash on social media, the FG said
“We apologize for the misleading tweets (now deleted) that went up yesterday, regarding the completion of self-certification forms by Reportable Persons,” and that, “the FIRS will clarify Nigerians on the objectives of the directive.”
The FIRS earlier today made a statement, that the guidelines are only for non-residents, and people paying tax in more than one country.
and other persons who have residence for tax purposes in more than one jurisdiction or Country. Financial Institutions are expected to administer the Self Certification form on such account holders when information at its disposal indicates that the Account holder is a person
— FIRS Nigeria (@firsNigeria) September 18, 2020
“The Self Certification Form is basically to be administered on Reportable persons, holding accounts in Financial institutions, that are regarded as “Reportable Financial Institutions” under the CRS. Reportable persons are often non-residents and other persons, who have residence for tax purposes in more than one jurisdiction or Country.”
“The information that indicates an account holder is a resident for tax purposes in more than one jurisdiction, is expected to be available to Financial Institutions during account opening processes, for the KYC and AML purpose.” the statement read.
This is a copy of the Self-Certification form govt. wants targeted account holders to fill.
The FIRS posted a copy of the self-certification form on its website.
The Nigerian government on Thursday tweeted an order to all persons holding accounts across financial institutions and insurance firms to complete and submit Self-certification forms.
This was announced by the Federal Government in a social media statement on Thursday. The FG warned that failure to comply may include a monetary penalty or inability to operate the account.
The Government also urged Nigerians to comply with the requirements and execute all forms needs, if not sanctions may be introduced in the forms of monetary penalty or inability to operate the account.
The government however deleted the tweet on Friday, explaining that it does not apply to everybody, contrary to what it had earlier tweeted. The FIRS claims those affected are non-residents.
Nairametrics has seen a copy of the “Self-Certification Forms” detailing the information that account holders are meant to share. See below;
NB: This article has been updated to reflect new information regarding who the accounts holders (reportable persons) are.
FIRS generates N490 billion tax revenue in July, collects 89% from non-oil sector
The agency has announced a significantly huge amount it collected as tax for the month of July.
The Federal Inland Revenue Service (FIRS) has announced that it generated a total sum of N490 billion in tax receipts in the month of July.
While making the disclosure in a statement on Thursday, September 17, 2020, the revenue agency disclosed that N438 billion out of that amount was generated from non-oil receipts, which represents 89% of the total figure, while N52 billion is from oil receipts, which represents 11% of the total collection.
Explore the Nairametrics Research Website for Economic and Financial Data
The FIRS stated that the significant drop in oil revenue could be attributable to the global shock caused by the coronavirus pandemic which led to a crash in crude oil prices and huge output cuts by oil-producing countries.
The statement also quoted the Executive Chairman of FIRS, Muhammad Nami, as attributing the increase in the non-oil receipt to the various reform measures that have been introduced by the board and management of the service, as well as the dedication of the staff. He said that it was gratifying to note that their collective effort as stakeholders was paying off.
The FIRS boss revealed that the FIRS continued to record a significant increase in tax revenue from non-oil sources, despite the national and global economic crises caused by COVID-19. He said that non-oil tax receipts had consistently contributed 75-90% of the total tax receipt in recent months.
Non-oil tax receipts have consistently contributed 75-90 per cent of total tax revenue in recent months. Out of N490 billion collected by the Service in July, N52 billion, representing 11% came from Oil sources while N438billion, representing 89% came from Non-oil receipts.
— FIRS Nigeria (@firsNigeria) September 17, 2020