Covid-19: Nigeria risks supply chain bottleneck, loss of N2.27 trillion in trade

Covid-19, Conditional cash transfer: FG gives reason for disengagement of 2 Payment Service Providers, President Buhari asks the Chief Justice to release prisoners due to coronavirus

Nigeria's access to raw materials and manufactured goods from other regions could become greatly hampered in the coming weeks.

Foreign Stock markets,Zenith Bank Plc. announces notice of board meeting, closed period, Nigeria’s Stock Market, Investors cash in with N1.2 trillion at Nigeria’s stock market for the month of May.

Many Nigerians are trooping into foreign stock markets

by Olumide Adesina

April 12, 2020

The bearish trend that is being witnessed in the Nigerian Equity market is a reflection of Nigeria's current economic woes, ...

investors, Bulls gain momentum, as stimulus package lifts global financial markets, Bulls boost global financial market, gold hits 7 years high, Dangote, Tier-1 banks lead the bulls to close Nigerian stock market green

Bulls boost global financial markets as gold hits 7-year high

by Olumide Adesina

April 11, 2020

At the currency exchange rate under the investors and exporters (I&E) window, the naira dropped slightly to close at 386.8.

Nigeria’s foreign debt has breached a 15-year trigger

by Nairametrics

April 11, 2020

Nigeria’s external debt hits a 16 year high of $27 billion in December 2019 just higher than the $20.8 billion ...

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 to provide relief for daily wage earners as lockdown continues – Osinbajo

by Ruth Okwumbu-Imafidon

April 11, 2020

The Federal Government of Nigeria has expressed concern over the plight of daily wage workers due to the lockdown, and ...

10 fantastic things Aliko Dangote has done in the last 10 years

by Ruth Okwumbu-Imafidon

April 10, 2020

This article x-rays 10 fantastic things Nigerian billionaire, Alhaji Aliko Dangote has done in the last ten years, as he ...

NDDC, Cash transfer, President Buhari, non-oil Exports, oil revenue, export revenue, FG Waives import duties for medical supplies, Orders Customs to expedite clearing, Presidency faults report on Kyari as Buhari didn’t cancel memos, appointments approved by him

How Nigeria recorded its highest non-oil exports ever in 2019

by Nairametrics

April 10, 2020

Nigeria recorded a total export revenue of $10.4 billion in 2019, the highest since 2008 which is farthest we can ...

Bike-hailing firms in talks with Lagos State to resume operations

by Fakoyejo Olalekan

April 10, 2020

Bike-hailing firms are in talks with the Lagos State Government to lift the ban and resume operation in the state.

FG will soon subsidize data – Sunday Dare

FG may soon subsidize phone data cost– Sunday Dare

by Ruth Okwumbu-Imafidon

April 10, 2020

The Federal Government is currently considering data subsidy for Nigerians, in order to cushion the impacts of the Coronavirus pandemic ...

PWC Chief Economist offers FG solution to help self-employed, informal sector affected by Coronavirus

PwC’s Andrew Nevin urges FG to provide more economic stimulus amid Covid-19

by Emmanuel Abara Benson

April 10, 2020

PwC Nigeria’s Chief Economist, Dr Andrew S. Nevin, believes the Nigerian Government needs to provide more economic stimulus to manufacturers ...

Tag: Nigerian Business News