The immediate past Minister of Communication, Adebayo Shittu, has expressed his disappointment over missing out of President Muhammadu Buhari’s ministerial list.

Presidency questions how many Nigerians have cars, generators, defends fuel price hike, Fraud, FG, Presidency denies building rail line from Nigeria to Niger Republic

Business News

FG to give new Executive Orders to tackle international fraud

by Chidinma Nwagbara

August 26, 2019

FG to give new Executive Orders to tackle international fraud

Payroll Support Program, President Buhari appoints 9 Chief Executives for government agencies, Nigerian British firm, Bail-Out Fund: FG deducts N122 billion from states’ account in 7-months [Full-List] , JUST IN: Buhari submits 2020 MTEF to Senate , FG to intervene in tech operation as lockdown causes chaos in tech market

Business News

British firm moves to seize Nigerian oil cargoes, others over $9 billion Court ruling

by Bamidele Samuel Adesoji

August 26, 2019

After almost two weeks that a British Court granted an Irish Firm, Process and Industrial Developments Ltd (P&ID) the right to seize $9 billion Nigerian assets over...

Business News

FG to sanction banks, oil companies, as employment opportunity becomes family affair

by Fakoyejo Olalekan

August 25, 2019

The Federal Government has warned Deposit Money Banks, other financial institutions and oil companies against unjust termination of workers' contracts.

Total loans in Nigeria's banking sector hits N15.35 trillion, Are PSBs key to Emefiele’s financial inclusion legacy?

Business News

Total loans in Nigeria’s banking sector hit N15.35 trillion

by Damilare Famuyiwa

August 25, 2019

The total loans in Nigeria's banking sector hit N15.35 trillion as at the end of March 2019. This is according...

FG foreign reserves Nigeria Yemi-Osinbajo, FG negotiates with Governors on bail-out fund, as NEC approves 100 billion for NLTP, bail-out fund States Governors, FG earns N28.6 trillion from VAT, others , Ease of doing Business: States must partner with Federal Government – Osinbajo , AfCFTA: Nigeria’s financial footprints to be extended across Africa – Osinbajo , FG seeks partnership with National Council of Registered Insurance Brokers, here’s why , Osinbajo says FG’s investment to take advantage of Africa’s $200bn tourism potential is massive, Pres. Buhari’s plan to tax US tech companies might provoke US trade war https://www.yemiosinbajo.ng/vps-lecture-at-the-national-defence-college-course-28-lecture-event/ https://punchng.com/digital-firms-to-pay-tax-under-new-finance-act-osinbajo-2/ https://www.nytimes.com/2020/01/31/business/economy/digital-tax-oecd.html Nigeria at risk of trade war with United States as the Nigerian Government says it will impose taxes on technology companies like Facebook, Google, and other digital companies that have been escaping tax payment in Nigeria due to their lack of presence within the country. The US has threatened tariffs on imports from countries that impose such digital taxes. The tech companies with heavy revenue footprint in Nigeria now have their backs against the wall because President Muhammadu Buhari-led administration want to tax them to grow Nigeria’s revenue; which has led to the development of the Finance Act. The Finance Act is the solution of President Buhari to the revenue problem which the Finance Minister, Ahmad Zainab, said Nigeria has. The Nigerian government is looking to grow its revenue through taxes, and one of such is the digital tax which Vice President, Yemi Osinbajo, said will commence despite the threat of the US which is aimed at protecting the silicon companies. No more back door operation: Facebook, Google, Amazon, YouTube and many more digital businesses have a sizeable market in Nigeria, but don’t have a physical structure for their operations; this has cost Nigeria tax revenue. These companies are known to prefer situating their companies in tax havens where taxes are low compared to other African and European countries. Ireland and Bermuda are some of the tax havens for these multinational companies. But according to Osinbajo, the period of making gains from their operation in Nigeria without paying tax is over. Osinbajo, while speaking at The National Defence College, Course 28 Lecture Event, said that, “Let me also briefly mention the new provisions on Taxation of Digital Economy and Non-Resident Companies. This is a very important aspect of our taxation policy. Before the Finance Act, only companies that had a physical presence or a fixed base in Nigeria could be taxed. “So, most digital companies, I mean any of the big technology companies, or multi-national digital companies, that did not have physical offices in Nigeria, made significant income from Nigeria from online activities, such as advertising, movie streaming, online gaming and e-commerce from subscribers in Nigeria, but paid no taxes whatsoever because they did not have a physical base in Nigeria. So now we are no longer relying on the fixed base or physical address criterion.” He added that, “Under the Finance Act, once you have a Significant Economic Presence (SEP) in Nigeria, you are liable to tax. Whether you are a resident here or you are not resident as a company, as long as your economic presence is significant, you are liable to tax. If you are streaming online, advertising using Google adverts, whether you are resident here or not, you are now subject to tax. “So, non-residents who previously had no fixed base and no Nigerian tax liability will now be liable to tax based on the SEP criterion. The Minister of Finance is empowered to issue a regulation defining what Significant Economic Presence means. So, she just defines the scope of what we will be looking out for in terms of Significant Economic Presence.” Osinbajo explained. Nigeria is not alone in this crusade: Nigeria is not the only country trying to tax these technology companies. The European Union have also been coming after them for taxes. The EU is also stating that if the technology companies are making economic gains through their operation despite the lack of physical presence in several European countries, then the tech conglomerates should be taxed. This has led to review of tax laws by the EU. According to a report by New York Times, new rules to tax these multinational companies are being discussed by about 130 countries through the Organization for Economic Cooperation and Development. The review has become necessary as digital economy begins to open new revenue sources. Should Nigeria tread carefully? The United States has threated to hit any country imposing taxes on the technology companies - which are mostly American – with tariffs on import. This put Nigeria at a rather impossible position, as the country is not economically strong enough to enter a trade war or go on a tit for tat battle with the US. According to Q3 report, the US is the fifth biggest export destination for Nigeria, having imported N322.2 billion (6.28%) goods from Nigeria, with crude oil constituting N329.8 billion. Although, the US is behind Ghana, India, Netherlands and Spain, it doesn’t change the significance of the US market to the Nigerian economy. Meanwhile, Nigeria’s top import sources include the U.S, accounting for N747 billion in H1 2019. Franch had moved to tax the online businesses but have now delayed the plan this year after a meeting with the US; the US has also paused its tariff threat against France. Britain is also one of the digital tax drivers. With such threat hanging over the digital tax, it’s unlikely Nigeria will go ahead taxing these technology companies, as US feels such tax is discriminatory against US firms, and have suggested these companies be allowed to decide if they want to operate with the new tax standards., FG will provide succor for daily wage earners as lockdown continues – Osinbajo

Business News

Nigeria’s foreign reserves to increase by $150 billion in 10 years – FG

by Bamidele Samuel Adesoji

August 25, 2019

The Federal Government of Nigeria (FGN) has disclosed that the country’s foreign reserve is expected to increase by $150 billion in the next 10 years through the...

CBN commences Forex ban on food importation, CBN’s Emefiele congratulates Dr Kingsley Obiora as he assumes office, indigenous oil firms

Business News

Forex ban on food import has commenced, says CBN

by Damilare Famuyiwa

August 25, 2019

The Central Bank of Nigeria (CBN) has made known that the policy to stop Forex for food importation, has since...

Business News

New electricity tariff: lifeline for the power sector amidst N100 billion non-performing loan

by Bamidele Samuel Adesoji

August 24, 2019

As concerns continue to grow over the implementation of the new electricity tariffs across the country, a report has shown...

Banks' stakeholders express 4 main concerns bothering the sector right now, CBN, MARKET UPDATE: CBN’s historic agriculture lending; Is it yielding the desired results?

Business News

MFBs, DMBs, others get new lending limit directive from CBN

by Fakoyejo Olalekan

August 24, 2019

The financial institutions in Nigeria have been informed to reduce their exposure to risk as regards lending to the public....

FG FBI, Jenna, FBI charges 2 Nigerians for $6.2 million wire fraud in a $25 million attempted scam

Business News

FBI clampdown: US firm, Dynamics Intelligence, shuts down operation in Nigeria over extortion

by Fakoyejo Olalekan

August 24, 2019

Jenna Bourgeois has shut down the company’s operations in Nigeria over mistrust and extortion by his Nigerian employees.

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NLC urges RMAFC to halt proposed salary hike for political office holders

INEC’s By-elections and lessons not learnt by Reuben Abati

Nigeria’s economic reforms: Governor insists President Tinubu is taking the right steps

Oyebanji dissolves Executive Council, spares key commissioners and two Special Advisers in Ekiti

Politics

General news on the economy and politics.

Ex-Minister of Communication, Adebayo Shittu, disappointed with the ministerial list

FG to give new Executive Orders to tackle international fraud

British firm moves to seize Nigerian oil cargoes, others over $9 billion Court ruling

FG to sanction banks, oil companies, as employment opportunity becomes family affair

Total loans in Nigeria’s banking sector hit N15.35 trillion

Nigeria’s foreign reserves to increase by $150 billion in 10 years – FG

Forex ban on food import has commenced, says CBN

New electricity tariff: lifeline for the power sector amidst N100 billion non-performing loan

MFBs, DMBs, others get new lending limit directive from CBN

FBI clampdown: US firm, Dynamics Intelligence, shuts down operation in Nigeria over extortion

Recent News

Recent News

Why many of the 43 licensed MVNOs in Nigeria may not survive – Stakeholders

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