’d Reduce Company Income Tax to 10%, Says Atiku
From Ayodele Aminu in London, 11.30.2010
If elected president in 2011, former Vice-President and consensus candidate of the Northern Political Leaders Forum (NPLF) in the Peoples Democratic Party (PDP), Alhaji Atiku Abubakar, has promised to reduce company income tax from the current 30 per cent to 10 per cent and provide incentives for firms to compete globally.

Speaking yesterday at the Hult International Business School in the University of London, London, he said his administration would create the enabling environment for international private capital to flow and stay.

The presidential aspirant, who spoke on “Emerging Markets Post 2008: Preparing Africa and Nigeria for the New World,” said he would assemble a formidable crack economic team and give them all the necessary political support to succeed.

Atiku was accompanied to the event by the immediate past governor of the Central Bank, Prof. Chukwuma Soludo.

Specifically, he said his administration would ensure a double digit growth of the economy, with millions of high-paying jobs.
Besides, he promised to effect efficiency in the ports by making sure that importers can clear their goods within 48 hours.

“As a former senior official in the Customs Service, I am concerned about the inefficient ports and customs clearance system. My target is to embark on a revolution of the sector and ensure that after one year of reforms, importers will be able to clear customs in no more than 48 hours.

“We shall embark on a revolution in the agricultural sector by mainstreaming large scale commercial agriculture,” he said.
He said the target of his administration would be to significantly improve Nigeria’s rating on the “Ease of Doing Business Report”, and make Nigeria one of the preferred destinations for Foreign Direct Investment (FDI) in the world.

“Nigeria and Africa,” he said, “can provide some of the highest rates of returns on investment and we must exploit this.”
The former vice-president said his government would insist on the full implementation of the Financial System Strategy 2020 (FSS 2020), especially as they pertain to tighter regulation and supervision of the financial system, development of a robust mortgage system and consumer credit, commercial courts, and mainstreaming of insurance.

“We shall lay the foundation for Nigeria to become Africa’s financial hub. Infrastructure development, especially electricity and transport system will be of high priority,” he said.
The presidential aspirant emphasised the need for Nigeria and Africa to embark on deeper reforms, which he described as critical.

He said: “Nigeria is Africa’s most populous country and potentially its largest economy. If Nigeria does not succeed economically, it will be difficult for aggregate Sub-Saharan Africa to make it.
“Despite nearly three decades of reforms since the structural adjustment programmes (SAP), African economies remain undiversified with dependence on highly volatile primary commodities and aid.

“My goal, if the good people of Nigeria employ me as their president next year, will be to lay a solid foundation for Nigeria and Africa to be weaned of this precarious dependence and vulnerability.

“We would seek to deepen regional integration and diversify national economies to be globally competitive. In essence, my objective is to prepare the economies and ensure that they can withstand future crisis.”

He noted that as vice-president of Nigeria, he was the chairman of the National Planning Commission, chairman of the National Economic Council (NEC) and chairman of the National Council on Privatisation (NCP), stressing that these provided him the platforms to overview and oversee the general economic policies and programmes of government.
“I hope to build upon my experiences over those eight years as vice-president to take economic and institutional reforms to the next higher level.

“For a start, I understand the importance of critical skills in economic management. As vice-president, I helped to assemble what has remained Nigeria’s best economic team ever.

“As president, we will seek to re-invent government by fundamentally reconstructing our public finance on a path of sustainability, rationalise public sector institutions, and curtail the profligacy that currently adorns public expenditure,” he said.
The focus of his administration, he said, would be a private sector-led and competitive economy.

He said he would seek to deploy the bulk of public resources to build capacity for the private sector to boom.
“Of course, our education and health sectors are key priority areas. We have developed the building blocks to fight corruption and money laundering, and we will give the institutions the necessary support to succeed.
“Safety of life and property is a major concern, and we shall fight tirelessly to reduce crimes and criminality to the barest minimum.

“Externally, Nigeria under my leadership will champion the acceleration of regional integration in Africa. We shall critically evaluate the European Union’s Economic Partnership for Africa (EPA) with a view to taking a position.
“As responsible members of the international community, Nigeria will push for the conclusion of the Millennium Development Round under the WTO,” he said.

In addition, he said Nigeria would work hard with other emerging markets to push for the full implementation of the various accepted proposals for reforming the global financial and monetary architecture.

This, he said, would be the surest way to ensure that progress made at home will endure, and not be wiped off by the next crisis.
Commenting on the global economy, which has gone through the worst financial crisis in the last six decades, he said the world had all it takes to prepare to proactively pre-empt any such potential crisis and deal with it.
He stressed that only an effective global coordination system could stabilise the future.

Huuuuu, all for paper and mouth but come to action Zero,

This is a good policy. 30% corporate income tax makes no sense for a country trying to attract business.

Of course, you'll need to study how this affects gov't revenue and how to make up for any losses. But that shouldn't be too big a deal, since corporate income tax as a fraction of gov't revenue is probably small.

I like the 48 hour clearing thing too.

I also like agricultural hub. If we bring in modern farming techniques and financial backing, this is a field we can dominate in Africa. There is no reason for naija not to become the bread basket of Africa.

All of these things are good ideas. But good ideas are easy to come up with; bringing them to reality is harder.

At least no more zoning gist, someone is talking about the issues

Bla! Blaa!! Blaaa!!! All talks and promises as usual!

PDP government cannot! Will Not and shall never solve the problem of this great country!

They will only keep compounding it!

Useless thieves!

Debating on actual issues for a change

Watch out!! GEJ will soon go on Facebook and rubbish this proposal while profering none. He might even reduce his to 8%

Nice one, seems to me that speech was written by SOLUDO!!!

If atiku can choose Soludo has is running mate, i believe i can consider him.

At least, this more better than having a figure-head vice-president like we've always been having till date. Reminds me of the buhari/idi-agbon and gowon/awo regimes with strong second-in-commands.

Laudable ideas but i do not believe Atiku can or is the right person to deliver those promises.

1759:

Laudable ideas but i do not believe Atiku can or is the right person to deliver those promises.

Yea i dont think so also, but Soludo can if made VP

I would have wanted a Ribadu/Soludo Presidency, but unfortunately Soludo is with the People deceiving people party!

nice one atiku, made some good points, but i would want him to stop making reference to some stuffs like being a former customs boss, does he wanna spoil his yans with his antecedents while there, like the 53 suitcase scandal, that was when he was a customs boss abi him forget ?

“We shall embark on a revolution in the agricultural sector by mainstreaming large scale commercial agriculture,” he said.

let him state the policies he would proffer that would make that visible, its enough to say it but get down to specifics and details of achieving this,

The former vice-president said his government would insist on the full implementation of the Financial System Strategy 2020 (FSS 2020), especially as they pertain to tighter regulation and supervision of the financial system,

This is was one comment he should not make and have soludo by his side, we all saw the blunder that one made while regulating banks in Nigeria.

“We shall lay the foundation for Nigeria to become Africa’s financial hub. Infrastructure development, especially electricity and transport system will be of high priority,” he said.

, how be detail, would it be another NIPP prototype,

He noted that as vice-president of Nigeria, he was the chairman of the National Planning Commission, chairman of the National Economic Council (NEC) and chairman of the National Council on Privatisation (NCP),

, wrong OBJ put together that team and made he was made chair, and for the privatisation thing, well he shouldn't blow too hot or else his adversaries would show him who and who benefited from the privatization scheme, we all know better.

All what he is saying is the same thing every aspirant is saying they should leave all these talk talk and be specific, give details on how to accomplish it,

Atiku on the move, tested and but not trusted, if this guy should accidentally come to power were're doomed whether we like it or not

So whats new in all hes talking about? WHAT ABOUT CORRUPTION AND BLOATED GOVERNMENT ADMINISTRATION LIKE NATIONAL ASSEMBLY etc. Hes afraid of his past misdeeds and nass members abi? Corrupt businessman cum politician Barawo ole! Anyway what should we expect 4rm a retired customs officer?

Atiku should not say what he cant do, we don't have the necessary social amnesties coupled and other things and our power issues and he is thinking of cutting interest rate to 10% for corporate income tax, with depleting oil reserves coupled with the militancy affecting that sector, low productivity in the manufacturing sector reducing that tax to 10% would be a pipe dream for a man who wants to rule for only 4 years, lets leave all this talk talk miracles, even Ireland that has better a better conducive corporate environment is and facing a crisis is thinking of increasing its corporate tax from 12.5% which made it an investors heaven in the 90's and here you have a nation with one of the highest government overhead expenditure and reliance of the oil sector thinking of reducing corporate tax within 4 years to 10%, Abracadabra, I really dey laff

he has been there before and offered nothing

He is appealing to the wrong people. It's the delegates that will decide who the next PDP flagbearer will be. Most, if not all, the PDP delegates are not swayed by grammer. Thats even if they can read at at all.

This man was VP for 8 years and was a resounding success. Succeeding in furnishing his Potomac mansion to the highest possible specification, building a grand, world class private university for the wealthy amongst us, expanding his private enterprise (Intels) to staggering proportions and acquiring properties all over Dubai. Now he wants us to believe that as President he'll be more sensitive to our sufferings?.

I'm sorry, but it's only the ignorant, naive amongst us that will fall for this man's grand scams. No kidding.

Thief!!

For once we have a businessman going for the helms, last time it was MKO but his dream never realised. It's no doubt that our politicians are corrupt but at least a businessman understands the urgency of issues like electricity, roads and safety.

To hell with the listless GEJ noisemaking. Atiku's moves are making me proud.

On a side note, it's easy to determine those that wish Nigeria well. Simply look for those that challenge the national assembly. That is a simple yardstick, as NASS is the biggest drain, inhibition to our national renaisance.

The following will always be high on my list of respectables -

OBJ
Segun Aganga
Sanusi Lamido.

Everyone else is avoiding serious, real issues, playing politics to avoid rocking their boats. It's easy to come up with unworkable, big-sounding programmes to manipulate the poor, un-enlighted, hungry masses. Atiku's policies are not workable in Nigeria. It's an unsustainable model and will add very little to private sector growth.

The problem is infrastructure, infrastructure and infrastructure. Most organizations already heavily discount operational costs to the extent that corporation tax remitted is trivial. He needs to come up with workable policies that address the major infrastructure deficit, as well as a blueprint to fighting the endemic corruption that if not tackled, will render all other efforts completly irrelevant.

- Nigeria - na one big joke o! I dey laugh.

Beware of cowboys like Atiku. This is the same man who oversaw many of the privatisation initiatives and kept the bulk of money for himself.

How will 10% tax attract overseas investment when the cost of doing business in Nigeria is incomparable to our competitors? Ireland at 14% are considered way too low, whilst ~35% is seen as norm. Does Nigeria have any infrastructure to attract companies despite the low tax? Instead of concentrating on how Naija can accurately capture revenues from the thousands of companies not currently paying the correct tax, he is here yarning megedefegede. It looks like Atiku is looking for a tax break for himself and his cronies. Nigeria will never be the African tiger even if it reduces tax to 0%. There is nothing on ground to attract anyone.

My question to Atiku is how many companies are actually in Nigeria? Unless he wants to use this strategy to woo investors, he might be planning on reducing the tax for commatose, non-exitent, cobweb-ridden, abandoned,etc companies in Nigeria

Would reducing the tax rate make Nigeria a darling for corporate entities, really would it, the US has a corporate tax rate of 35%, UK 28%,south Africa 28%, ghana 25%, and Nigeria 30%, in economics its just not reducing your tax rates that makes you a darling for corporations, factors that make production easy should be put in place, you can't entice investors when there is no power, when the crime rate is high, when there are no good roads, when the government interference and bureaucracy stifles growth. This are issues he should be highlighting at first before he goes making so much noise of cutting corporate tax , you can cut the tax to 1% and still not have investors, didn't Soludo teach him that, so so talk,

I wish we could make 2 copies of nigeria, one for Jona, the other for Atiku, I bet u Nigeria will grow worse under Jona by 2015. The guy cant handle his peops in the delta, he doesnt have the sense of tact required of a helmsman, Bribes, intimidating opponents with state agencies, People should open their eyes, Jona is not a messiah, he's just another politician, worse still, he's totally lacking experience. Like a child pushed from Pry 2 to Pry 6 he doesnt have a clue what to do if he eventually gets there.

What is wrong with this man? Is he thinking people will admire him with all these white elephant dream or talk? Sorry Alhaji or Chief or Mr Atiku or whatever you are called we are tire of all these lies and deceptions all the time please say something else this one is not selling at all. I dont understand how does what you are saying affect the lives of average Nigerian or the village men and women so say something else, cowboy Atiefku!!!!!!!

Our leaders are intellectually lazy. They know that the majority of the people are gullible, a mental inertness that is the result of decades of abuse and manipulation!

That is why a confirmed thief  like Atiku can boast of the audience, following and attention he's availed of today, rather than dwelling in a cold prison cell which is his rightful place!

I wish we could make 2 copies of nigeria, one for Jona, the other for Atiku,  I bet u Nigeria will grow worse under Jona by 2015. The guy cant handle his peops in the delta, he doesnt have the sense of tact required of a helmsman,  Bribes, intimidating opponents with state agencies,  People should open their eyes, Jona is not a messiah, he's just another politician, worse still, he's totally lacking experience. Like a child pushed from Pry 2 to Pry 6 he doesnt have a clue what to do if he eventually gets there.

What clue does Atiku have, This cutting tax thing even makes him more clueless than a slowpoke, is he trying to cut tax for him and his cronies, His company intels was once in trouble for tax evasion and now he wants to help himself out by reducing it to 10%.-----does it really make sense, reducing corporate tax to 10% without the necessary infrastructure to boost production------is that the vision of a man with clues,

omojand:

The following will always be high on my list of respectables -

OBJ
Segun Aganga
Sanusi Lamido.

Sir majority of Nigerians dont like any of those people you mentioned, are you sure you are Nigerian?

babasoty:

What clue does Atiku have, This cutting tax thing even makes him more clueless than a not-so-smart person, is he trying to cut tax for him and his cronies, His company intels was once in trouble for tax evasion and now he wants to help himself out by reducing it to 10%.-----does it really make sense, reducing corporate tax to 10% without the necessary infrastructure to boost production------is that the vision of a man with clues,

Its obvious that soludo composed most of what was in that speech. Soludo believes that the private sector is the way for Nigeria, not the government. As a result reducing the corporate tax to 10% will give private companies opportunity to expand and create more jobs (which govt cant do). This should increase FDI also to Nigeria, which is all Soludo as always been after. I feel he has spoken well!

10%?

I'm sure he was kidding.


Maybe 15 or 20%

rebranded:

Its obvious that soludo composed most of what was in that speech. Soludo believes that the private sector is the way for Nigeria, not the government. As a result reducing the corporate tax to 10% will give private companies opportunity to expand and create more jobs (which govt cant do). This should increase FDI also to Nigeria, which is all Soludo as always been after. I feel he has spoken well!

Same exact thing I thought when I read the statement, it has Soludo written over it. The government cannot handle the burden of unemployment hence we need to help businesses in order to reach that goal. What people forget is taxes is not just about attracting foreign investment it is also about keeping existing local businesses alive.

Also our ports are terrible, we need an efficient port system to help companies that import raw materials.
Indeed he assembled the team of Okonjo and Soludo so am guessing he has an eye for talent. Not an Atiku fan but he has spoken well. Lets wait and see.

10%?

I'm sure he was kidding.

Maybe 15 or 20% because he did not address how he intends to make up for the shortfall in revenue.

Its however important to note that a reduction in corporation taxes will be heathly for companies considering the harsh economic and operating environment

Ibime:

Beware of cowboys like Atiku. This is the same man who oversaw many of the privatisation initiatives and kept the bulk of money for himself.

How will 10% tax attract overseas investment when the cost of doing business in Nigeria is incomparable to our competitors? Ireland at 14% are considered way too low, whilst ~35% is seen as norm. Does Nigeria have any infrastructure to attract companies despite the low tax? Instead of concentrating on how Naija can accurately capture revenues from the thousands of companies not currently paying the correct tax, he is here yarning megedefegede. It looks like Atiku is looking for a tax break for himself and his cronies. Nigeria will never be the African tiger even if it reduces tax to 0%. There is nothing on ground to attract anyone.

Poor Atiku!
Aganga really said it, dude doesn't even understand basic economics / development.