The Federal Government, in the new 2020 Finance Bill which was approved by the Federal Executive Council, has proposed a tax relief to companies that donated to the COVID-19 relief fund under the private sector coalition, CACOVID.
This follows the effort of government to provide more incentives and reduce the tax burden on Nigerian businesses and individuals in the face of a harsh economic environment caused by the devastating impact of the coronavirus pandemic.
This was contained in a statement from the presidency at the end of the virtual National Economic Council (NEC) meeting which was presided by the Vice President, Professor Yemi Osinbajo, at the Presidential Villa in Abuja.
The approved Finance Bill 2020 which was presented to the state governors at the NEC meeting has some of the following highlights in the bill which is being sent to the National Assembly for passage;
- Reduction in duties on tractors from 35 to 10 per cent
- Reduction in duties on motor vehicles for the transportation of goods from 35 to 10 per cent
- Reduction of levy on motor vehicles for the transportation of persons (cars) from 35 per cent to 5 per cent
- Exemption of small companies from payment of education tax under the Tertiary Education Trust fund (TETFUND)-companies with less than N25m turnover are eligible
- 50 per cent reduction in minimum tax; from 0.5 per cent to 0.25 per cent for gross turnover for financial years ending between January 1, 2020, and December 31, 2021
- Granting of tax relief to companies that donated to the COVID-19 relief fund under the private sector coalition (CACOVID)
- Clarification that only compensation for loss of office up to N10million would be tax-exempt. (Clarification that it is the employer’s obligation to account for tax on payments relating to compensation for loss of office.)
- Introduction of software acquisition as qualifying capital expenditure to improve the ease of doing business
It should be noted that before the Finance Act 2019, compensation paid to an employee for loss of office over and above N10, 000 was subject to capital gains tax.
It was also pointed out that part of the decision which was reached at the meeting, was the setting up of a committee chaired by the Vice President to engage with youths and other critical stakeholders in addressing the deeper roots of the #EndSARs protests.
Other members of the committee are governors drawn from the 6 geopolitical zones across the country. They include Aminu Waziri Tambuwal, Sokoto State Governor representing northwest; Prof. Babagana Umara Zulum, Borno State Governor representing northeast; Abubakar Sani Bello, Niger State Governor representing northcentral; Rotimi Akeredolu, Ondo State Governor representing southwest; Engr. Dave Umahi, Ebonyi State Governor representing southeast; and Dr Ifeanyi Okowa, Delta State Governor representing south-south.
The Committee has the mandate to engage the youth, religious organization, civil society, security agencies regarding the issues and recommend effective solutions towards strengthening national unity among others.
The Coalition Against COVID-19 (CACOVID), which was launched on March 26, 2020, is a private sector-led organization in Nigeria established to assist the government in the fight against the coronavirus disease across the country.
This follows the announcement made by the Governor of the Central Bank of Nigeria, Godwin Emefiele. The purpose of the relief fund is to “support the efforts of the Federal government in containing the COVID-19 pandemic in Nigeria, ensure patients get the care they need and frontline workers get essential supplies and equipment and accelerate efforts to provide tests and treatments.
Following approval by the Federal Executive Council, the #FinanceBill2020 that seeks to provide more tax incentives for Nigerian businesses & individuals was yesterday formally presented to State governors at a National Economic Council Meeting presided over by VP @ProfOsinbajo.
— Presidency Nigeria (@NGRPresident) November 20, 2020
AFEX Commodities Exchange announces the listing of cashew on its trading platform
AFEX’s addition of cashew is to diversify investment options available on its exchange.
AFEX Commodities Exchange Limited has announced the listing of Cashew on its platform, in a bid to diversify available investment options and create more wealth.
This is according to a disclosure issued by AFEX today and seen by Nairametrics.
According to the notice, the addition will help to expand the list of existing commodities available at the exchange which include;
- Paddy Rice
In addition, the Exchange notified the investing public that the new commodity will be made available on the exchange’s trading platform, ComX.
Why it matters
AFEX Commodities Exchange in the recent disclosure rationalized the need to list cashew on its platform. It hinged this on the lucrative nature of the commodity, noting that it has a lot of untapped potentials.
According to the disclosure, cashew exports in Nigeria are highly profitable, with a yearly export volume of over $167 million, and untapped yearly potential of over $115.8 million. Therefore, listing the commodity on the AFEX Exchange provides opportunities for investors to gain exposure to the commodity and maximize their returns on investment.
What you should know
- AFEX Commodities Exchange had earlier announced the issuance of its debut Warehouse Receipt Backed Commercial Paper- The first of its kind in Africa.
- AFEX Commodities Exchange is Nigeria’s first licensed private commodities exchange established in 2014. It provides a final resting place for commodities using a three pronged approach of production region, logistics differential and final commodity price.
- ComX is the proprietary trading platform of AFEX. It serves as a market for investors, financiers as well as other market participants.
- AFEX Commodities Exchange posted a turnover of N11.46 billion for Q4 2020, indicating an increase of 5,228.4% QoQ.
Osinbajo reveals what Nigerians in diaspora asked for to make more investments in the country
Osinbajo has disclosed that the Nigerians in diaspora seek an enabling business environment in order to make more investments.
Nigeria’s Vice President, Yemi Osinbajo, has revealed that the Nigerians in diaspora asked for improvement in the enabling business environment in order to make more investments into Nigeria in specific engagements with investment opportunities.
This follows the conduct of a study by the Federal Government with stakeholders, which found out that many Nigerians have a keen interested in investing in the country.
This disclosure was made by Osinbajo while speaking at a webinar organized by Fidelity Bank Plc, entitled, ‘The New FX Policy, Implications and Positive Impact on Diaspora Investments’
Osinbajo, who was represented by the Executive Secretary/Chief Executive Officer of Nigerian Investment Promotion Commission (NIPC), Yewande Sadiku, commended the new CBN FX policy, ‘Naira 4 Dollar Scheme,’ an initiative aimed at incentivising senders and recipients of international money transfers, saying it would aid more investment from Nigerians living abroad.
What Nigeria’s Vice President is saying
Osinbajo pointed out that for several years, the remittances from Nigerians in diaspora exceeded Nigeria’s oil revenue, adding that the country is interested in finding out how to translate this potential to investments.
He said, “Nigerians in diaspora represent an indomitable force, they are flag bearers of Nigeria’s image, Nigeria entrepreneurial energy and Nigeria’s incredible can-do attitude. In business, politics, education, sports, entertainment, science, medicine, and arts, Nigerians have demonstrated across the world what Nigerians represent in Nigeria. We realise the role of the diaspora and the potential that they represent.
“For several years, the remittances from Nigerians in diaspora exceeded Nigeria’s oil revenues, which translated sometimes as high as six per cent of GDP. We are interested in understanding exactly how to translate this potential to investments.
“So, the office of the VP working with stakeholders, including NIPC, worked on a study and we found that many Nigerians, particularly first-generation males, have a keen interest in investing in their country.”
Going further, Osinbajo added, “We noticed that 70 per cent of remittances go into family support and only 30 per cent of the inflows go into investments and in that 30 per cent, a bulk of it goes into real-estate.
“But what Nigerians in the diaspora indicated would be useful for them is to undertake more investments into Nigeria in specific engagements that promote investment opportunities led by the private sector. From government, what they asked for was improvement in the enabling business environment.
“The effort of government in recent years has been on improving the business environment and initiatives, such as this, driven by the private sector, to attract investment from the diaspora is one of the key things they asked for,’’ he said.
The Vice President expressed delight with the new CBN policy that makes it easier for Nigerians in diaspora not just to transfer funds to Nigeria but to have greater control over the funds they transfer to Nigeria.
He said that he is confident that when statistics would be released, there would be a material impact on the diaspora remittances from Nigerians to Nigeria.
What you should know
- It can be recalled that the CBN in an earlier circular dated March 5, 2021, stated its new forex policy initiative that all recipients of diaspora remittances through the apex bank’s licensed IMTOs shall henceforth be paid N5 for every $1 received as remittance inflow as an incentive.
- This means for instance if an individual sends you $10,000, you will get an additional special credit alert of N50,000.
- The new policy initiative which is with effect from Monday, March 8 and end on Saturday, May 8, 2021, states that this incentive is to be paid to recipients whether they choose to collect the US dollar as cash across the counter in a bank or transfer same into their domiciliary account. In effect, a typical recipient of diaspora remittances will at the point of collection, receive not only the USD sent from abroad but also the additional N5 per USD received.”
Nairametrics | Company Earnings
Access our Live Feed portal for the latest company earnings as they drop.
- 2020 FY Results: Champion Breweries Plc reports a revenue growth of 1.80% in 2020
- Seplat falls into a loss in FY 2020
- 2020 FY Results: Cornerstone Insurance Plc reports a 61.1% decline in profit
- Ellah Lakes increases operating expenses by 33.36% in HY 2020
- 2020 FY Results: Nigerian Breweries reports a 54.3% decline in profits in 2020