The Nigerian Investment Promotion Commission (NIPC) is expected to generate N1.46 billion from fees through its activities next year. Ms Yewande Sadiku the...

LCCI, CBN, Cashless policy, World Bank’s $2.5bn loan will hurt Nigeria’s economy - LCCI , LCCI to produce data on Nigeria’s economy , LCCI urges FG to create favourable economic policies to drive growth , LCCI wants taxes scrapped on solar equipment, says its alternative source to power

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LCCI urges FG to create favourable economic policies to drive growth

by Joseph Olaoluwa

November 2, 2019

Babatunde Ruwase has urged the government to create the right economic policies that will boost investors' confidence in the country.

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

FG seeks partnership with National Council of Registered Insurance Brokers, here’s why

by Chidinma Nwagbara

November 2, 2019

In order to tackle the risks associated with investments in the insurance sector, VP, Yemi Osinbajo is seeking support from...

Business News

Ajaokuta’s completion to kick off as Russia provides funds

by Chidinma Nwagbara

November 2, 2019

The completion of the long-abandoned Ajaokuta Steel Complex will be funded by the Russian government.

Mele Kyari, NNPC, NNPC spends estimated N33.60/litre on petrol subsidy, NNPC vows to be transparent, set to publish details of petroleum product supplies , OML 119: NNPC record 14 bids for development of oil well, This NNPC initiative aims to solve the problem of tanker explosions , Fluctuations of oil price threatening Nigerian content development — NNPC , Lagos pipeline leak contains water, not petrol- NNPC, NNPC gives condition for relocation of tank farms and depots from residential areas , NNPC to cultivate 2,675 hectares of cassava for Ethanol production, Key performance highlights of NNPC for 2019 FY

Business News

OML 119: NNPC records 14 bids for development of oil well

by Joseph Olaoluwa

November 2, 2019

A total of 14 companies have made an opening bid for the development and financing of Oil Mining Lease 119...

FG approves N6.28 billion for 24-month repair works on Third Mainland Bridge

Business News

Fashola divulges FG’s plans to build affordable homes

by Joseph Olaoluwa

November 1, 2019

Babatunde Fashola has disclosed the Federal Government plans to build more low-cost houses in 34 states of the country.

Zainab Ahmed, N24.9 trillion debt, FG to borrow N1.7 trillion to finance 2020 budget – Finance Minister , VAT Increment: Afrinvest exposes sharing formula of N479.7b expected revenue , Nigeria’s VAT Increase: Penny-Wise, Pound Foolish, Nigeria spends N1.11 trillion to service debt in half year 2019 , Nigeria needs $100 billion annually to fix infrastructural deficit – Finance Minister , Oil: Nigeria makes N5.4 trillion in 1 year , FG secures World Bank’s approval to borrow $3 billion , debt, FG to develop new economic development plan Vision 2040 , Nigeria’s infrastructure gap: Too little too late? , Again, Finance Minister argues that Nigeria is not in debt distress , FG defends $22.7 billion new loans from World Bank, others , Finance Minister wants investors to curb Nigeria’s medical tourism through health investment

Business News

FG to develop new economic development plan Vision 2040

by Titobioluwa Okunade

November 1, 2019

The FG on Thursday disclosed that there would be a new economic development plan to succeed the vision 20:2020 plan

Dangote Flour Mills Plc, Massive shakeup occurs on Dangote Flour Mills Board as key members resign

Appointments

Massive shakeup in Dangote Flour as key Board members resign, appoints new ones

by Joseph Olaoluwa

November 1, 2019

Key members on the board of Dangote Flour Mills PLC have announced their resignation from their previous positions.

Business News

Ghanaian government clashes with Ghana’s traders’ union over attack on Nigerian businesses

by Fakoyejo Olalekan

November 1, 2019

Ghanaian Government has condemned the shutdown of Nigerian shops by Ghana Union of Traders Association (GUTA) in Kumasi.

Business News

MTN halts plans to sell $300 million stake in Botswana firm

by Joseph Olaoluwa

November 1, 2019

MTN Group has dropped its plan to sell 53% of its equity stake in Mascom Wireless Botswana.

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FRSC set to roll out digital driver’s licences in Nigeria

CPPE calls for urgent review of Nigeria’s presidential pardon list

UK clean energy to create 400,000 jobs for plumbers, carpenters, others by 2030

Lagos gives condition for compensating owners of demolished properties on right of way

Business News

Business and economic news from Nigeria and around the world.

NIPC to generate N1.46 billion from its activities in 2020

LCCI urges FG to create favourable economic policies to drive growth

FG seeks partnership with National Council of Registered Insurance Brokers, here’s why

Ajaokuta’s completion to kick off as Russia provides funds

OML 119: NNPC records 14 bids for development of oil well

Fashola divulges FG’s plans to build affordable homes

FG to develop new economic development plan Vision 2040

Massive shakeup in Dangote Flour as key Board members resign, appoints new ones

Ghanaian government clashes with Ghana’s traders’ union over attack on Nigerian businesses

MTN halts plans to sell $300 million stake in Botswana firm

Recent News

Recent News

Nigeria Fintech firms seek national committee to bridge regulatory gaps

Legend Internet declares 6 kobo final dividend for 2025, sets payment date

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