NNPC GMD says AKK pipeline, Nigeria’s biggest gas project is 15% complete

NNPC says energy transition is a gateway to energy security and Africa needs global partnerships for investments

Kyari has revealed that the ongoing construction of AKK Gas Pipeline project is at 15% completion currently.

$1.2 billion routed through StanChart and 3 other banks – NBS Report

by Johnson Uche

December 15, 2020

A capital inflow of the sum of $1.46 billion was received by Nigeria in the third quarter of 2020.

FG records N6 trillion loss across sectors due to Lagos gridlock

Haulage cost increases by more than 50% in a week as Apapa gridlock bites harder

by Omokolade Ajayi

December 15, 2020

Gridlock in Nigerian Port continues to bite harder as haulage cost increases by more than 50% in a week

7 out of 10 bank loans given to Lagosians

by Analysts Nairametrics

December 15, 2020

77% of banking loans went to Lagos State Beneficiaries.

We need to de-risk mining sector to attract investment, Lekan Adegbite

FG to launch policy to prevent smuggling of mineral resources

by William Ukpe

December 15, 2020

The FG is working on a Downstream Policy aimed at ensuring the beneficiation of solid minerals before being exported from ...

Africa’s energy transition will cost an estimated $100 billion annually between 2020 and 2040 – AfDB

AfDB, others, launch first Fashionomics Africa contest for sustainable and circular fashion

by Adeyemi Adebayo

December 15, 2020

The AfDB’s Fashionomics Africa initiative is launching a competition to support designers of sustainable and circular fashion.

Katsina abduction: Kidnappers have made contact – Presidency

by William Ukpe

December 15, 2020

Katsina Governor has admitted that there has been a meeting with the bandits to secure the release of the children.

Nigeria attracts more FDI than FPI for the first time in 4 years

by Nairametrics

December 15, 2020

FDI in Q3 prints $414s, a 100% jump year on year in Nigeria.

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

FG needs to review regulation of small and medium businesses – Osinbajo

by William Ukpe

December 15, 2020

Osinbajo has stated that the government will improve the business environment for MSMEs in Nigeria by proper regulation.

Naira, dollar, CBN, Exchange rate falls across forex markets despite improved dollar supply

Naira stabilizes across forex markets despite drop in dollar supply

by Chike Olisah

December 15, 2020

The Naira’s exchange rate at the NAFEX window remained stable against the dollar to close at N394/$1.

Tag: Nigeria News