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Business

FG’s abandoned properties valued at N230 billion – Nigerian Institute of Builders

Nigerian Institute of Builders has projected that about N230 billion is tied up in Federal Government’s abandoned properties.

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The Nigerian Institute of Builders has projected the value of the Federal Government’s abandoned properties at about N230 billion.

This disclosure was made at the recent PwC Nigeria’s executive roundtable on the Finance Act 2020 and Economic Outlook for 2021.

According to the Press release by PWC Nigeria,

  • Nigeria holds as much as US$900 billion worth of dead capital in residential real estate and agricultural land. The value of the Federal Government’s abandoned properties alone, according to the Nigerian Institute of Builders, is projected to be about N230 billion.
  • “And about a half of Nigeria’s population live in cities, of which almost 80% of them are living in substandard conditions. Finding the political will to act and unlock Nigeria’s dead real estate assets will have a transformative impact on the lives of Nigerians.
  • “Out of the 10 themes, another important theme to consider was Nigeria’s Gross Fixed Capital Formation, which in 2019, stood at less than 20%. And PwC estimates that Nigeria would need an investment rate of at least 26% – 28% of GDP to achieve 7% growth.”

READ: Finance Act 2020: FG can borrow from unclaimed dividends and dormant account balances

The virtual event attracted the CEOs, C-Suite executives and MSMEs, and focused on the impact of changes to existing laws by the Finance Act 2020 and other significant government policies, to businesses and taxpayers in Nigeria.

According to Uyi Akpata, Country Senior Partner PwC Nigeria,

  • ”Considering the impact the pandemic was having on Nigeria’s economy, it was important for businesses to understand the forces shaping Nigeria’s economy in 2021.
  • “’That this knowledge will help them minimize potential risks and take advantage of the fiscal policies the government had enacted to stimulate the recovery of the Nigerian economy”.

READ: Finance Act dwindling NIPOST revenue as Post Master General plead for review

According to the Honourable Minister of Finance, Budget & National Planning, Mrs. Zainab Shamsuna Ahmed,

  • “The Finance Act 2020 is aimed at supporting vulnerable households and businesses while improving fiscal discipline and procurement efficiency, enhancing economic competitiveness, encouraging domestic investors and enhancing macroeconomic stability amid the challenges posed by the COVID19 pandemic”.

According to, Andrew S. Nevin (Ph.D.), Partner and Chief Economist PwC Nigeria noted the 10 themes that policymakers and businesses need to consider in 2021 and stated,

Nigeria must as a priority find its development path. Achieving this will include finding innovative ways to act on the following:

  • Unlocking Nigeria’s vast dead assets to stimulate growth
  •  Harnessing the Power of the Diaspora
  •  Driving export growth through services
  •  The need for growth to be spread across the country, and not just in a few urban centres
  •  Improving on the country’s low investment and gross capital formation
  •  Moving its thriving informal sector to the formal sector
  •  Improving on the business environment, and ease of doing business
  •  Addressing Nigeria’s big 3 distortions (exchange rate, power, and subsidies)
  •  Shifting its focus from the Gross Domestic Product (GDP) lens to Sustainable Development Goals
  •  And finally, prioritizing climate change “

READ: Nigeria Joins Canada, Thailand and others in taxing digital companies

Taiwo Oyedele, Fiscal Policy Partner and West Africa Tax Leader, PwC Nigeria noted that there were no easy choices or a silver bullet given the limited fiscal space for incentives and to deliver on counter-cyclical measures and commended the policy direction of the government not to introduce new taxes or increase the rate of existing taxes.

He expressly commended the federal government for the reduction in minimum tax rate, but advocated for a permanent removal of the tax which often tax companies that are vulnerable especially when they are loss-making.

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READ: FG says slash on import duties for tractors, vehicles to start next week

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What you should know

  • The survey was conducted by PWC to provide insights on people’s reactions to the changes in the Finance Act
  • There was an overwhelming 92% public support for Nigeria’s Finance Act 2020.
  •  The majority of respondents were most excited about the reduction of minimum tax from 0.5% to 0.25% of turnover. 
  • Over half (59.7%) said they did not agree with the idea of transferring unclaimed dividends and dormant account balances to a Trust Fund.
  • 2% do not agree with the plan to introduce excise duty on Telecommunications services followed closely by 30.3% who do not agree with the deployment of Technology by FIRS to plug into taxpayers systems.
  • On how to support the government to fund the budget deficit and cater for the various tax reliefs, the respondents were asked to indicate which 3 initiatives they would support the government to fund the budget deficit and cater for the various tax reliefs.
  • 8% voted for the use of technology to catch tax evaders and aggressive tax avoiders.
  • 2% of respondents will support public procurement efficiency and fiscal responsibility by Ministries, Departments and Agencies of government while 46.3% of respondents said they would support the taxation of foreign companies under the Significant Economic Presence and new VAT rules.
  • Only 36.9% of respondents agree that the Act addresses their business challenges

 

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Johnson is a risk management professional and banker with unbridled passion for research and writing. He graduated top of the class with B.sc Statistics from the University of Nigeria and an MBA degree with specialization in Finance from Ambrose Alli University Ekpoma, with fellowships from the Association of Enterprise Risk management Professionals(FERP) and Institute of Credit and Collections management of Nigeria (FICCM). He is currently pursuing his PhD in Risk management in one of the top-rated universities in the UK.

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Business

Bandits kidnap students at Girls Secondary School in Zamfara State

Armed bandits have attacked and abducted students of a secondary school in Zamfara State.

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Armed bandits have kidnapped an unspecified number of students at the Girls Secondary School, Talata Mafara Local Government Area of Zamfara State.

This was disclosed by the state media agency, NTA in a statement on Friday morning.

“Armed bandits kidnapped an unspecified number of Students at Government Girls Secondary School, Jangebe in Talata Mafara Local Government Area of Zamfara State,” they said.

More details shortly…

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Business

Border trade: Onion marketers commence land exports to West Africa

Nigerian onion marketers have commenced documented exports to West Africa.

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The Onion Producers and Marketers Association of Nigeria (OPMAN) has inaugurated the launch of documented onion exports to West Africa through the Illela land border in Sokoto State.

This was launched by Mr Abdulrahameed Ma’aji, the Area Controller of Nigerian Customs Service (NCS), for Sokoto and Zamfara states on Thursday, as he urged the onion traders to maximize the opportunity for enhanced production and trade with the continent.

He added that the Customs Service had implemented laws and guidelines to improve Nigerian trade and encourage businesses to export to Africa.

“Despite COVID-19 Pandemic, NCS provided proactive solutions to the public that will aid continued reliable and quality service delivery for sustenance of global trade,” Ma’aji said.

READ: FG approves $3.1 billion for automation of Customs, targets $176 billion revenue

National President of OPMAN, Aliyu Maitasamu, stated that the union was working with sister agencies to develop a recovery plan to boost production by 20% each year until 2026.

“In line with the Federal Government’s plan to diversify the economy and create jobs, the union in conjunction with sister bodies in West and Central Africa, developed an onion recovery plan which will target an average steady growth of 20 per cent each year, from 2020 to 2026,” he said.

“Nigeria is among the 10 top onion exporting countries in the world, and with competitive advantage of production, the largest onion producing country in sub-Saharan Africa, with annual 1.4 million metric tonnes in output.

“With the present arrangement, Nigeria will continuously export onions to Niger Republic, Ghana, Burkina Faso, Benin Republic, Mali, Cote D’ Ivoire, and others, with more expanding opportunities,” Maitasamu added.

In case you missed: Nairametrics reported on December 16, 2020 that President Muhammadu Buhari had ordered the immediate reopening of four of Nigeria’s land borders, over a year after they were all shut.

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