Nairametrics
  • Home
  • Exclusives
    • Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Ranking & Reviews
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • General News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
  • Home
  • Exclusives
    • Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Ranking & Reviews
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • General News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
Nairametrics
No Result
View All Result
Home General News Business News

FIRS approval before purchasing assets of N500k and above serves no useful purpose – Taiwo Oyedele

Ubah Jeremiah Ifeanyi by Ubah Jeremiah Ifeanyi
May 11, 2022
in Business News
VAT: Federal Government giving more to states than they collect- Taiwo Oyedele
Share on FacebookShare on TwitterShare on Linkedin

Taiwo Oyedele, Fiscal Policy Partner and Africa Tax Leader at PwC, said the FIRS requirement that corporations obtain government approval before purchasing assets for N500,000 or more serves no meaningful purpose.

Oyedele disclosed this via a Twitter post where he explained why the law is redundant.

He brought attention to the depreciation of the Nigerian exchange rate from its strong position during Nigeria’s early years where, according to him, assets worth N20k per Industrial Inspectorate Act when enacted in 1970 was equivalent to over $30k (N12million+).

What Oyedele is saying

Mr Oyedele raised concerns about the application of the regulation given the massive depreciation of the exchange rate.

He said, “Naira was stronger than US$ up to 1985. Assets worth N20k per Industrial Inspectorate Act when enacted in 1970 was equivalent to over $30k (N12m+). Asking companies to seek approvals from govt to buy assets of N500k or more today serves no useful purpose.”

Another Twitter user, Adémúlèyá Stephen commented on the post saying “N500k isn’t even up to the price of an average laptop or a phone”

What you should know

  • The Nigerian exchange rate was 55kobo to $1 in 1980, during the height of the oil boom, and 89kobo to $1 in 1985. The exchange rate had plunged from N2 to $1 by 1986, and the currency had never recovered.
  • Today, the exchange rate between the naira and the US dollar closed at N419/$1 at the official Investors and Exporters (I&E) window. The Naira is also trading against the US dollar at N600.5/$1 at the peer-to-peer market.
  • Recently, FIRS had asked all companies that received capital allowances on Qualifying Capital Expenditure (QCE) of N500,000 or more between the years of assessment 2016 and 2021 to submit the Certificate(s) of Acceptance issued by the Federal Ministry of Industries, Trade and Investment’s Industrial Inspectorate Division.
  • The Regulators said that Companies who received capital allowances on QCE of N500,000.00 or more between 2016 and 2021 years of assessment by October 31st will be affected. In addition, any company that fails to submit the relevant Certificate of Acceptance will have its capital allowances for the period withdrawn by the FIRS.
  • Capital allowances, which are similar to tax deductions, are provided for qualified capital expenditures incurred on the provision of certain assets used in a trade or rental operation. They essentially allow a taxpayer to depreciate the cost of an asset over time.
  • However, seeking government approval before purchasing assets worth N500,000 and above, which is equivalent to $833 using the parrel market rate would add to the bureaucratic bottlenecks and adversely affect the ease of doing business in Nigeria

Related

Tags: firsPwCTaiwo Oyedele

Comments 1

  1. Haruna Hassan says:
    May 13, 2022 at 12:41 pm

    Anyin min approved yausati uku nayikomai Amma haryanzu ba alert

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Eco Bank
Access Bank
Bankers Committee
First bank


Flowmono

Bfpeer
Mega Millions
FCMB
Ikeja Electrics
Zenith CEX
Kwakol Markets




    Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

    Recent News

    • Exchange rate falls at I&E window as FX supply drops
    • Oil prices down over 1% on concerns over recession and China’s COVID restrictions
    • Nigerian Stocks: List of Dividends announced in 2022

    Follow us on social media:

    Recent News

    Exchange rate depreciates at NAFEX window as forex liquidity drops further by 57%, Central Bank Continues intervention in Forex market to stabilize Naira, Naira to depreciate slightly over $1.52 billion maturing contracts expires, Naira hits N388.84 to $1 at the currency spot market, Investors and Exporters (I&E) window, Naira weakens against the dollar by 1.14% amidst uncertainty, Naira gains against the dollar at I&E window, forex liquidity up by 242%  

    Exchange rate falls at I&E window as FX supply drops

    May 24, 2022
    Oil prices retreat as traders digest the extent of sanctions against Russia

    Oil prices down over 1% on concerns over recession and China’s COVID restrictions

    May 24, 2022
    • ABOUT US
    • CONTACT US
    • PRODUCTS
    • ANDROID APP
    • iOS APP
    • DISCLAIMER
    • CAREERS
    • PRIVACY POLICY

    © 2022 Nairametrics

    No Result
    View All Result
    • Home
    • Exclusives
      • Analysis
      • Corporate Stories
      • Interviews
      • Investigations
      • Ranking & Reviews
    • Markets
      • Cryptos
      • Commodities
      • Equities
        • Dividends
        • Stock Market
      • Fixed Income
      • Market Views
      • Securities
    • Industries
      • Company News
      • Consumer Goods
      • Content Partners
      • Corporate deals
      • Corporate Press Releases
      • Energy
      • Entertainment
      • Financial Services
      • Hospitality & Travel
      • Manufacturing
      • Real Estate and Construction
      • Tech News
    • Economy
      • Get Data
      • Macro-Economic News
      • Research Analysis
    • General News
    • Financial Literacy
      • Career tips
      • Personal Finance
    • Lifestyle
      • Billionaire Watch
      • Profiles
    • Opinions
      • Blurb
      • Op-Eds

    © 2022 Nairametrics

    Social Media Auto Publish Powered By : XYZScripts.com