Serial digital entrepreneur and Chairman of Zinox Group, Leo Stan Ekeh, has charged the Federal Government to seriously consider extending exceptional tax concessions to the technology sector as a means of encouraging the huge undoubted youthful potential in the sector to create a new economy.

According to Ekeh, the tech sector that is driving leading economies in the world is struggling seriously in Nigeria. And in spite of the great and sincere efforts of the present administration, the Nigerian economy is also fatigued as a result of its predominantly analogue nature. In his opinion, millions of Nigerian youths nurse big dreams and have the capacity to thrive in a new and futuristic economy that is technology-driven, but urgently need government support in terms of structured capital and tax concession during their incubation period.

Ekeh affirmed that these young men and women have globally certified education and need the right environment to exhibit their capacity, noting that if the country cannot provide it, the situation will create unfortunate ones who would resort to scientific robbery, kidnapping and many other vices. He also warned that the nation may not experience all-inclusive peace until we provide for these brilliant kids.

The Zinox Chairman made this call at the Silverbird Man of the Year Awards held at the prestigious Eko Hotel & Suites, Victoria Island, Lagos on Friday, February 23rd, 2018.

In attendance at the event was a host of dignitaries from the public and private sectors including former Vice President, Atiku Abubakar; Deputy Senate President, Ike Ekweremadu, several serving Governors including Ekiti State Governor, Ayo Fayose; Rivers’ State Governor, Nyesom Wike; Governor of Kebbi state, Abubakar Bagudu and the Bayelsa State Governor, Seriake Dickson. Also present was the CBN Governor, Godwin Emefiele, Senators Dino Melaye and Ademola Adeleke as well as Hon. Femi Gbajabiamila. Others include Chief Abba Folawiyo, Senator Daisy Danjuma, Lady Maiden Ibru and Stella Chinyelu Okoli, among others.

Ekeh, who received the Extraordinary Business Achievement Award at the event, disclosed that globally, technology has become the driving force behind the fortunes of many nations. According to him, the 10 richest men in the world and the biggest companies in the world today can all be found in the technology sector – a reality that shows how technology remains the only profession that can help Nigeria bridge the gap between it and other advanced countries in the world.

“Technology is the only profession in the world today that can make the son of the poorest man the richest man in the world. Though still struggling, I am a practical testimony of the possibilities in the sector, having led several technology teams that deployed in Iraq, Libya, Guinea Bissau, etc. However, I am still Nigeria-based. It is not just its lifestyle nature but technology is the only profession in the world today in which you can experience miracle wealth. Our kids have read, seen and worked in tech companies or tech-driven companies in the world that became multi-billion dollar companies within five years and they are smarter than many of these foreign entrepreneurs but their only sin is that they are Nigerians and living in Nigeria.

“I have experienced this frustration for over 30 years and it is too late for me to complain. These kids are 21st Century youths and the majority of them are not interested in agriculture and will never be forced to adopt it because of its unstructured nature. Youths today are faith-driven and can anticipate the future better than their parents and leaders.  My research shows that over 85%  of them would rather prefer to make money only from tech-driven platforms which certifies them as global citizens or do nothing.”

Continuing, Ekeh disclosed that, “If the Federal Government of Nigeria can invest 20% of what she has invested in the Agricultural sector in the Tech sector, over 75% of present unemployed youths would become employed or self-employed in a profession that has a future. I am not against investment in the Agricultural sector, but it is a sector of extreme passion today due to its present analogue nature.  Our leaders should ask their children who trained in quality institutions if any of them would want to do farming, for example. I’m sure the answer you will get is 100% NO. So, who do you expect his child to go into farming? Farming is good, but it is a profession of passion. You can’t force a young man or woman to farm,” he declared.

While commending the government and its agencies, especially the Federal Inland Revenue Service (FIRS) for improving the tax revenue base of the country, Ekeh pleaded with the Federal Government to encourage a new and prosperous economy by allowing entrepreneurs in the ICT sector a decent tax-free period of at least ten years – an incentive that will see Nigeria prosper immensely in the technology front.

“If this is granted, this country will experience, within the next five years, an army of tech billionaires whose one-year tax payments shall significantly be more than our present ten years’ collections. We must see the bigger picture and prepare for tomorrow instead of frustrating people at incubation period. IT companies in today’s Nigeria are the poorest corporates and slowly disappearing – a situation which I find very unfortunate. Tech kids are restless and need time to develop, experiment and deliver products into the market successfully. Most times you succeed with one out of the thirty you invested money and time in.  It takes time to stabilize in a country that is not digitally-driven. I am in a better position to tell this story because I have been in the same sector for over 30 years. The sector is full of hype because it is a youth-dominated profession and when the FIRS personnel read, they come to the conclusion that you are a multi-billionaire and then go after your company.

“I plead with the Federal Government to grant tax concessions to the technology sector. Tech guys have the potential to create sustainable wealth and transform this country for good. I challenge the people in government, including the few present here such as the Deputy Senate President, distinguished senators and several Governors.”

Ekeh, who heaped praises on the Central Bank of Nigeria (CBN) Governor, Godwin Emefiele and his team for protecting the economy from failure during the recent economic recession, also called on him to intervene in the IT sector more than he has done in the Agricultural sector by extending support to millions of young Nigerians yearning for an opportunity to transform the fortunes of the country.

“I advise him to have a simple conversation with his kids during breakfast and see where their faith for decent future belongs.”

He rounded off by encouraging the younger generation to remain focused in a brighter future.

“Having done this for the past 35 years as a disruptive digital entrepreneur in Africa, I can only encourage the younger ones here. When I look at the global figures and the stock market, the biggest enterprises in the world are tech companies. It tells me there is a future for you, so do not be discouraged,” he concluded.

Arguably Africa’s biggest technology entrepreneur, Ekeh has built the Zinox Group into a foremost integrated ICT conglomerate with a 360-degree spectrum orientation and advanced competencies in manufacturing, software development, distribution, core and enterprise ICT solutions, retail and after-sales support, among others. His recent acquisition of e-commerce giants, Konga – a development that is widely expected to raise the profile of e-commerce in the country – has further gone a long way to show the far-reaching ambitions of Ekeh who launched BuyRight Africa, Nigeria’s first e-commerce company about 10 years ago.



SOURCE: https://brandspurng.com/ekeh-to-fg-grant-exceptional-tax-concessions-to-save-tech-sector/

Good one.

That will make much sense

This is the kind of people that should be in the helm of affairs in Nigeria..
People who have built successful businesses and companies..
People who know how the modern days work..

Unfortunately we are left with a cattle rearer..

Very true, and not just those that have the 5milliom or so criteria, all even business names.
Ko easy to they pay tax oh.

Very true...

In January alone.....I made over 600k and one e-diot keeps asking me why I resigned from my bank work where I earned 40k per month 3yrs ago.

This is why....

Ps: Don't DM me to ask how....I won't tell you nothing

Ill read later

If you can't meet up, quit the business. I hate when somebody comes to social media to preach special treatment.


DUNCE

Nice one mr ekeh,tell them....

Dee leo Stan Eke from umuogbaka Amauburu Ubomiri mbaitolu local government of Imo State
You are My close neighbor and uncle please charity begins at home

You have made your point

Your attention is needed at home

E-commerce already has tax exemption. So is software development.

Hmmmmmmmmm
Lemme cum and be goinnnnn

That is not his picture

Tax

Cattle colony should come first

.

Jarus:
E-commerce already has tax exemption. So is software development.

Not totally true.

I dont agree. Farming is definitely more rewarding than tech in nigeria. We dont have a competing advantage for tech and neither do we have the huge funds required. Agriculture on the other hand is already a thriving economy. It is not beyond the reach of majority like tech

Jarus:
E-commerce already has tax exemption. So is software development.

Very incorrect

obalove:
Hmmmmmmmmm
Lemme cum and be goinnnnn

Lil u have spoil o
Oya cum na

maxiuc:


Dee leo Stan Eke from umuogbaka Amauburu Ubomiri mbaitolu local government of Imo State
You are My close neighbor and uncle please charity begins at home

You have made your point

Your attention is needed at home

blackpanda:


Very incorrect

OBAGADAFFI:


Not totally true.

OBAGADAFFI:


Not totally true.

Smh. You're talking to someone that makes key input in tax policy formulation for Nigerian government.

Someone that makes a living from knowledge of tax laws.

Check numbers 21 and 22 in this list of activities granted tax exemption of 3- 5 years last year

http://www.opinions.ng/konga-jumia-others-now-eligible-tax-exemption/

Sorry my Ekeh, I disagree

corperscorner:
Very true...

In January alone.....I made over 600k and one e-diot keeps asking me why I resigned from my bank work where I earned 40k per month 3yrs ago.

This is why....

Ps: Don't DM me to ask how....I won't tell you nothing

What do they say about empty barrels?

oPPOSEE:
If you can't meet up, quit the business. I hate when somebody comes to social media to preach special treatment.


DUNCE

You just revealed your level of literacy.

He got a point but I disagree with him partially, even the Americans don't prioritise tech over Agric.
But then I understand his grief. because in this part of the world if you don't make bombastically absurd statements nobody will hear your voice above the Nigerian national Noise

Xisnin:


What do they say about empty barrels?

Your dad might have an idea

If you cant see how that was meant to be motivative...then get a brain transplant

Jarus:







Smh. You're talking to someone that makes key input in tax policy formulation for Nigerian government.

Someone that makes a living from knowledge of tax laws.

Check numbers 21 and 22 in this list of activities granted tax exemption of 3- 5 years last year

http://www.opinions.ng/konga-jumia-others-now-eligible-tax-exemption/

The FGN has granted 27 more activities tax free status, called Pioneer Relief. This relief, on application and approval, gets the company engaging in the activities to enjoy exemption from tax on their profits for first 3 years of production (and extension of up to 2 more years).

With e-commerce on the new list, it means Konga, Jumia and others (including potentially JarusHub, the online career services company) will enjoy tax holiday of 3-5 years[b] if they apply.[/b]

Note the Bold.


I can give you a list of in these category(including e.commerce and software development companies) that are still being taxed.

OBAGADAFFI:


The FGN has granted 27 more activities tax free status, called Pioneer Relief. This relief, on application and approval, gets the company engaging in the activities to enjoy exemption from tax on their profits for first 3 years of production (and extension of up to 2 more years).

With e-commerce on the new list, it means Konga, Jumia and others (including potentially JarusHub, the online career services company) will enjoy tax holiday of 3-5 years[b] if they apply.[/b]

Note the Bold.


I can give you a list of in these category(including e.commerce and software development companies) that are still being taxed.

So when government announced that there is tax exemption for a business, you expect the government to walk to the business and grant the exemption while the business is sitting there without applying?

What happens to tracking and records management by government? How will government have data on the tax exemptions and impact without formal application process?

If a school announces it is tuition free, does it mean the school is still expected to go to people and beg them to come and enjoy the free tuition and not people applying?

Does it stop the fact that free tuition is available to people by that school?


Or you expect me to be giving all the minute details of processes of getting tax exemption by ecommerce and software development businesses?

Oga, the Law is straightforward: Tax exemption is available for ecommerce and software development companies. If they don't apply, it is not government's business.

And by the way, 95% of ecommerce businesses in Nigeria still make losses, so there are no income taxes to pay with or without tax exemption.