Manufacturers receive N459.69 billion from banks, thanks to CBN’s lending policy

Between May and October this year, Nigerian manufacturers collectively received a total of N459.69 billion from the deposit money banks.

UBA, LCCI partner to create value for SMEs at 2019 Lagos Int’ Trade Fair

Milk Import: Experts advise CBN on FX restriction

by Damilare Famuyiwa

September 26, 2019

Industry experts have advised the CBN to consider consulting stakeholders before effecting the ban on access to forex for milk ...

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

AfCFTA: Nigeria’s financial footprints to be extended across Africa – Osinbajo

by Damilare Famuyiwa

September 25, 2019

Nigeria can now extend her banking and financial services across Africa, following the signing of the AfCFTA.

MAN reacts to Buhari’s new Economic Advisory Council

Manufacturers react to Buhari’s new Economic Advisory Council

by Chidinma Nwagbara

September 17, 2019

Manufacturers Association of Nigeria (MAN) has reacted to President Muhammadu Buhari’s list of Economic Advisory Council.

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 ...

Government Urged to Deliberately Subsidize Manufacturing in Nigeria for Economic Growth

Manufacturers spent over N246 billion fuelling generators

by Damilare Famuyiwa

February 1, 2019

No fewer than N246 billion has been spent by manufacturers fuelling their generators alone in the last 2 years. This ...

FG New Minimum Wage, Egypt megaproject, German Chancellor Angela Merkel, President Buhari and Angela Merkel meeting, President Buhari to sign deal with Siemens, Siemens

Again, MAN warns FG against signing of AfCFTA

by Damilare Famuyiwa

January 31, 2019

Mansur Ahmed, the President of Manufacturers Association of Nigeria (MAN), has urged the Federal Government not to sign the African Continental Free ...

Why MAN wants the hike in alcohol and tobacco excise duty reversed

by Emmanuel Abara Benson

March 22, 2018

The Federal Government has been advised by the Manufacturers Association of Nigeria (MAN) not to go ahead with the proposed excise ...

Fashola Says No Going Back On Hike In Electricity Tariff

Ikeja Disco on alert as Geogrid signs power deal with MAN

by Onome Ohwovoriole

November 23, 2017

Manufacturers in the Ikeja axis could start experiencing steady power sometime in the future as the Manufacturers Association of Nigeria ...

Tag: Manufacturers Association of Nigeria