Business
The economy may end up weaker if inflation rate is not controlled – CBN report
62.1% of respondents of a CBN survey have said that the economy may end up weaker if the inflation rate is not promptly addressed.
The Nigerian economy may end up weaker on the short term if the current inflation rate is not appropriately curbed.
This was disclosed in the Central Bank of Nigeria’s Inflation Attitudes Survey Report for the third quarter of 2020(Q3 2020).
The survey was conducted by the Statistics department of the Central Bank of Nigeria (CBN).
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Highlights of the survey report:
- 62.1% of the respondents strongly believe that the economy may end up weaker than it was at the beginning of the year, if the prevailing high inflation rate is not promptly addressed.
- A majority of the households had no idea on the direction of interest rates in the past 12 months. For example, those who believe that interest rates had risen in the last 12 months are 35.3%, 8.3% of the respondents believe that interest rates had fallen, and 43.4% had no idea of what happened in the last 12 months.
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- On the expectations about how the interest rates on bank loans and savings would behave over the next 12 months, 29.8% are of the opinion that the rates will rise, while 16.7% believe that the rates will fall, and 40.6% had no idea of what would happen.
- In deciding which one is better, more of the respondents still prefer higher interest rates than higher inflation. For example, 25.6% prefer interest rates to rise to keep inflation down, 43.3% opined that they prefer interest rates to rise faster, and 31.1%of the respondent had no clue at all.
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What you should know
- The Statistics department of the Central Bank of Nigeria, on quarterly basis, conducts surveys to articulate the views of households on changes in prices of goods and services, including interest rates in the last twelve months and their expectations of changes over the next twelve months
- The Q3 2020 Inflation Attitudes Survey was conducted between September 21 and 30th with a random sample size of 2,070 Households from 207 Enumeration Areas (EAs) across the country and had a response rate of 98.1%.
READ: Nigeria’s inflation rate hits 13.71% as food prices soar
- The opinions of the respondents are vital in appreciating the level of understanding of the general public regarding the country’s monetary policy framework and useful for effective monetary policy formulation.
- Recently, Nairametrics had reported that Nigeria’s inflation rate has risen to 14.23% in October 2020 as against 13.71% recorded in September 2020, according to NBS report.
Business
FIRS to commence recovery of all outstanding tax debts and penalties from January 1, 2021
The FIRS has stated that it shall recover all outstanding debt with penalties and interest from January 1, 2021.
The Federal Inland Revenue Service (FIRS) has disclosed that its waivers on penalties and interest on outstanding taxes arising from desk examinations, audit exercises, investigations, or all other forms of tax assessment will close on December 31, 2020.
Hence, effective from January 1, 2021 the Service shall recover all outstanding debt with penalties and interest, in accordance with the provisions of the extant tax laws.
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This disclosure was made by Abdullahi Ismaila Ahmad, the Director of Communications and Liaison Department, Federal Inland Revenue Service, in a press release issued on December 2, 2020.
Consequently, the Executive Chairman, FIRS, Mr. Muhammad Nami, in a notice urged taxpayers to use the advantage of the remaining days of this month to settle their tax obligations in order to enjoy all subsisting waivers offered thereof by the Service.
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The Executive Chairman in the reminder notice tagged “Public Notice on the Recovery of Outstanding Taxes from Taxpayers”, disclosed that FIRS in recent times, has issued a series of palliatives for the waivers of penalties and interest on outstanding taxes.
He explained that the Service had noticed that some taxpayers are yet to take advantage of the palliative windows opened to cushion the effect of the challenges of the economy on taxpayers.
READ: Taxes you should be aware of before starting a business in Nigeria
Mr. Nami, however, called the attention of taxpayers to the last window of opportunity for the waiver of outstanding penalties and interest on all taxes collectible by the Federal Inland Revenue Service, which will close on 31st December 2020.
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What they are saying
Mr. Muhammad Nami, in the reminder notice, said:
“The Service has observed that some taxpayers are yet to take advantage of the palliative windows opened to cushion the effect of the challenges of the economy on taxpayers.
READ: Nigeria’s records 6.1 percent tax to GDP as tax base for VAT rise to N23.7 trillion
“Furthermore, the Service wishes to put all taxpayers on notice that the last window of opportunity for the waiver of outstanding penalties and interest on all taxes collectible by the Federal Inland Revenue Service shall close on 31st December 2020.
“Consequently, all concerned taxpayers are hereby put on notice that after the expiration date of 31st December 2020, the Service shall recover all outstanding debt with penalties and interest, in accordance with the provisions of the extant tax laws such as ‘the power of substitution’ conferred on it by Section 31 of the Federal Inland Revenue Service (Establishment) Act 2007.”
Business
Ngozi Okonjo-Iweala bags Forbes African of the Year, 2020
Nigeria’s Okonjo-Iweala has emerged the first African woman to win Forbes’ African of the Year award.
Ngozi Okonjo-Iweala, Nigeria’s former minister of Finance and former Managing Director of the World Bank, has been named the Forbes African of the Year, 2020.
Forbes Africa announced on its official Twitter handle on Tuesday as it tweeted, “The 2020 #AfricanOftheYear Award honoree is…Congratulations to Dr. @NOlweala! Board Chair @Gavi; Board Chair @ARCapicity, gracing the cover of @forbesafrica,”
The honouree of the award would grace the cover of Forbes Africa magazine.
Last year’s edition of the award was also won by a Nigerian, Dr. Akinwunmi Adesina, the President of the African Development Bank (2013 and 2019). Other Nigerians that have won include Muhammad Sanusi II (2011), Aliko Dangote (2014), amongst others.
In response to the tweet by Forbes Africa on its official handle, the 66-year-old replied through her Twitter handle saying she was thrilled to win the award and also dedicated the award to Africans suffering from the impact of the pandemic.
“Thrilled to be named @forbesafrica-CNBC 2020 African of the Year following in the footsteps of my great Brothers @PaulKagame and @akin_adesina,This award is for fellow Africans suffering the health & economic impact of Covid19. The energy and resilience of Africans inspire me!,” she tweeted.
The award is coming weeks after Okonjo-Iweala emerged the overwhelming choice for the post of the Director-General of the World Trade Organisation after gaining the support of the majority of the 164 member-nations.
Business
N117 billion approved by FG for road rehabilitation
Babatunde Fashola has disclosed that the FG has approved the sum of over N117 billion for road rehabilitation across the country.
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FIRS to commence recovery of all outstanding tax debts and penalties from January 1, 2021
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DR Muhammad I Abdul-Qadir
November 21, 2020 at 10:30 am
I will prefer interest free loans to bust Agricultural production in our economy. The interest in Agricultural loans could be paid by the Government as a subsidy to the sector. This will increase food production and lower the prices of food. It will earn the Government a good Name; “A nation that is able to provide food for its citizens.