₦airaland Forum

The contribution of value added tax to Nigeria’s revenue base has witnessed a consistent growth in the last six years. Given the trend, taxation on goods and services consumed by Nigerians should become a major source of revenue for government to drive growth and development in the near future, writes Bamidele Famoofo
Revenue
There are indications that the drive of Nigeria’s government to increase revenue through other means than oil is beginning to yield some fruits. For instance, the Federal Inland Revenue Service (FIRS) showed that it remitted more revenue generated from tax to the purse of the Federal Government in 2018 more than it has ever done in the history of the country. Chairman, FIRS, Babatunde Fowler, recently announced the N5.3trillion remitted as total revenue into government’s coffers as at December 31, 2018. According to him, FIRS generated N5.3trillion in 2018, the highest in Nigeria’s history. Before 2018, the highest revenue FIRS ever realised from taxation was N5.07trillion in 2012. After the peak performance in 2012, tax revenue declined to N3.31trillion in 2016, but moved up to N4.03trillion in 2017. The figure further improved by 32 per cent to N5.3 trillion in 2018. The target for 2019, according to FIRS, is N8.0 trillion.
“While revenue from tax is growing, cost of collection of revenue is going down”, Fowler, however, lamented.
VAT
The contribution of VAT is growing as total tax revenue of government is growing. In 2018, VAT accounted for 21per cent of tax revenue collected by FIRS. In the last six years, VAT has recorded a 130 percent growth from N481.58 billion in 2013 to N5.30 trillion in 2018. Aggregate contribution of VAT to total tax revenue in six years (2013-2018) is estimated at N4.63 trillion, according to figures supplied by the National Bureau of Statistics (NBS). VAT in Nigeria is a consumption tax that was instated by the Value Added Tax Act of 1993. It is a federal tax, which is managed by the Federal Inland Revenue Service. VAT is charged on most goods and services provides in Nigeria and also on goods imported into Nigeria. Businesses add VAT to the sales price of the goods or services they offer in Nigeria. They also pay VAT, just like consumers, on goods and services they consume. VAT is calculated at a flat rate of five percent of the cost of service and products and is charged on a wide array of goods and services in Nigeria. Meanwhile, there are some exemptions. Some items that are exempted from VAT include all exports goods and other products like: Medical, Veterinary and Pharmaceutical raw materials and products. Basic food items (any unprocessed staple food item. packaged or not packaged) Other items on the list are agricultural equipment and products, some diplomatic goods (based on federal government duty free concessions), Infant food, books, newspaper and magazines. Breakdown of the performance of contribution of VAT to tax revenue since 2013 showed that the figures have been on the increase in the last six years till date. VAT stood at N481.58 billion (local collections only, excluding foreign collection) in 2013. But the figure increased by 2.57 per cent fromN481.58 billion in 2013 to N493.95 billion in 2014, which also represents local collections only, excluding foreign collection. VAT revenue, however, recorded an unprecedented growth of 61 per cent to N795.43 billion in 2015 from N493.95 billion in 2014. Between 2015 and 2016, revenue dropped by 2.25 per cent from N795.43 billion in 2015 to N777.50 billion in 2016. A 25.1 per cent growth recorded in 2017 inched VAT revenue close to the one trillion mark achieved in 2018. Revenue from VAT moved to N972.35 billion in 2017, representing a 25 percent increase from N777.50 billion level achieved in 2016. The achievement in 2018 was unprecedented at N1.11 trillion representing 14.2 per cent increase from N972.35 billion recorded in 2017.
Contribution by Sector
The mining sector of the economy emerged the biggest contributor to VAT revenue in 2018 with N182.54billion, which represents an increase of 34.8 percent year-on-year (yoy). As contained in the NBS report on VAT for fourth quarter in 2018, other manufacturing sector came next to mining in terms of total contribution to VAT in full year ended December 31, 2018 with N122.90billion, representing 2.76 percent growth year on year. The sectors in the top five categories in their contribution to VAT growth in 2018 include Professional services, N86.28billion reducing its contribution by -1.42 per cent year on year in the review financial year ended December 31, 2018. The commercial and trading sector, however, increased its quota to VAT revenue by 27.4 per cent year on year to N63.06 billion while VAT revenue from state ministries and parastatals moved up 5.05 percent to N42.95 billion in 2018 to emerge fifth largest contributor to VAT. Sectors that featured in the top 10 ranking in contribution to VAT in 2018 are oil producing, N37.45 billion, dropping -17.02 percent compared to its performance in 2017. The breweries, bottling and beverages sector recorded a marginal growth of 0.61percent to N35.93 billion; Federal ministries and parastatals ranked 8th on the performance list with N19.44 billion representing a 4.88 per cent decline from the figure posted in 2017, while banks and financial institutions also recorded a drop to by 10.88 per cent in 2018 to about N18.50 billion. Other VAT contribution accounted for N12.94billion representing a growth of 32.3 per cent year on year. Notably, agricultural and plantations recorded a growth of about 32.0 per cent in the review period suggesting that efforts of government to diversify the economy through investment in the sector is beginning to yield some desirable result. The sector contributed N2.47 billion to gross VAT revenue in the review period as it recorded a quarter to quarter (Q4, 18 vs. Q4, 17) growth of 88.72 percent in 2018
Q4 2018
Sectoral distribution of Value Added Tax (VAT) data in fourth quarter, 2018 reflected that the sum of N298.01billion was generated as VAT in Q4 2018 as against N273.50 billion generated in Q3 2018 and N266.73 billion in Q2 2018 representing 8.96 percent Increase quarter-on-quarter and 17.28per cent year-on-year. Other manufacturing generated the highest amount of VAT with N28.82 billion generated and closely followed by professional services and commercial and trading both generating N24.12billion and N16.02 billion respectively while mining generated the least and closely followed by pharmaceutical, soaps & toiletries and chemical, paints and allied industries with N35.75 million, N209.33 million and N258.39 million generated respectively. Out of the total amounted generated in Q4 2018, N138.42 billion was generated as non-Import VAT locally while N47.89 billion was generated as non-Import VAT for foreign. The balance of N111.71 billion was generated as NCS-Import VAT.

Source: Thisday

The Association of Chartered Certified Accountants (ACCA) has launched a campaign – supported by one of the largest ever global studies across the profession – on the skills accountants need as they head into the next decade. ACCA’s body of research shows there are diverse emerging issues where technical and communication skills will be vital by 2020–25. What topped the list of competencies expected to be most important over the next decade is the ability to communicate a more holistic view of corporate reporting.
Thomas Isibor, head of ACCA Nigeria, said: ‘New hardware, software, economic threats, services and regulations are all arriving at a breakneck speed and all of these changes will have a significant impact on commerce. Mr Isibor Added: ‘For FDs and CFOs, the trick is identifying what changes will have the most impact on business and how can best to prepare to meet—and take advantage of—these challenges now.’ According to the ACCA Business Forms report, business activities are an essential part of every society. Their success, especially when first starting up, depends on many social and economic variables, but one of the most important things is what legal form the business adopts. Sympathetic and pragmatic advice from experienced experts in the field can make a real difference to the success of the venture. Previous ACCA research has shown that the value ascribed to an accountant’s advice to small business comes not simply from the professional qualification but also from the client’s perception of the adviser as a peer, who has faced the same challenges and decisions in establishing their own business (Spence et al. 2012). ACCA’s report also noted that: ‘A detailed familiarity with local tax and capital movement laws and business practices will also be needed to work across (and with others in) multiple geographies’. Speaking on how to attract and retain these skills, Mr Isibor said: ‘Identifying these critical skills is one thing. Creating a workspace that attracts, rewards and amplifies them is something else entirely. It’s here where we must confront the much vaunted, and often maligned, generation known as millennials. But there is good news for the profession. The ACCA report clearly highlights that business success involves meeting, adapting and sometimes creating change. The pace of change has increased substantially over the past few years.

Source: Brandsprung

The Association of Chartered Certified Accountants (ACCA) has launched a campaign – supported by one of the largest ever global studies across the profession – on the skills accountants need as they head into the next decade. ACCA’s body of research shows there are diverse emerging issues where technical and communication skills will be vital by 2020–25. What topped the list of competencies expected to be most important over the next decade is the ability to communicate a more holistic view of corporate reporting.
Thomas Isibor, head of ACCA Nigeria, said: ‘New hardware, software, economic threats, services and regulations are all arriving at a breakneck speed and all of these changes will have a significant impact on commerce. Mr Isibor Added: ‘For FDs and CFOs, the trick is identifying what changes will have the most impact on business and how can best to prepare to meet—and take advantage of—these challenges now.’ According to the ACCA Business Forms report, business activities are an essential part of every society. Their success, especially when first starting up, depends on many social and economic variables, but one of the most important things is what legal form the business adopts. Sympathetic and pragmatic advice from experienced experts in the field can make a real difference to the success of the venture. Previous ACCA research has shown that the value ascribed to an accountant’s advice to small business comes not simply from the professional qualification but also from the client’s perception of the adviser as a peer, who has faced the same challenges and decisions in establishing their own business (Spence et al. 2012). ACCA’s report also noted that: ‘A detailed familiarity with local tax and capital movement laws and business practices will also be needed to work across (and with others in) multiple geographies’. Speaking on how to attract and retain these skills, Mr Isibor said: ‘Identifying these critical skills is one thing. Creating a workspace that attracts, rewards and amplifies them is something else entirely. It’s here where we must confront the much vaunted, and often maligned, generation known as millennials. But there is good news for the profession. The ACCA report clearly highlights that business success involves meeting, adapting and sometimes creating change. The pace of change has increased substantially over the past few years.

Source: Brandsprung

The Anambra state Internal Revenue Service (AIRS) says it would on April 1st, 2019, embark on annual audit of companies, businesses and institutions operating in the state in oder to confirm their level of adherence to deduction and remitting of income taxes.
The executive chairman of AIRS, Dr. David Nzekwu, who disclosed this in a press conference in Awka on Friday, explained that the exercise was backed by relevant tax laws. Nzekwu said it was expected that every company operating in the state should at the beginning of every year file in their annual returns before 31st January, with details of employees working with them from whom they make Pay As You Earn (PAYE) deductions. He said: “In addition, the companies are also expected to file in their own returns as a company to the board of internal revenue before 31st March. It is established that any company that fails to file in their tax returns within this period will pay penalty of N500,000. While the penalty for individual is N50,000. It is well spelt out in section 81 and section 41 under the relevant subsections of personal income tax 2011 as amended. He however, commended businesses and companies operating in the state for their compliance to tax payment, adding that it was responsibilities of every citizen and corporate entities to adequately and promptly pay their taxes. On tax evaders, the AiRS chairman, he said the agency would continue to follow due processes, which include obtaining court judgement and executing them accordingly, like it did some months back when it sealed off all branches of United Banks of Africa (UBA) in the state.

Source: Blueprint

[b]The Federal Government of Nigeria ("FGN", in furtherance of its commitment to infrastructure development being a key growth driver and economic development enabler; issued the Companies Income Tax (Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme) Order, 2019 otherwise referred to as the Presidential Executive Order No. 007 of 2019 ("EO7" or the "Order". Made pursuant to the executive powers of the Federation, as vested in the President by the Constitution of the Federal Republic of Nigeria, 1999 (as amended) and section 23(2) of the Companies Income Tax Act ("CITA" – Cap C21, Laws of the Federation of Nigeria, 2004), the Order established the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme ("the Scheme" as a Public-Private-Partnership ("PPP" intervention in the delivery of good roads across the length and breadth of the country. Pursuant to the EO7, private companies will be able to finance construction or refurbishment of federal roads designated as "Eligible Roads" under the Scheme and recoup their investments by utilizing the approved total costs expended on the particular Eligible Roads, as a credit against the annual Companies Income Tax payable by such private companies in the corresponding year of assessment. The value of the credit due to a private sector partner, known as the Road Infrastructure Tax Credit ("Tax Credit", as calculated in accordance with the terms of the Scheme, will be reflected on the Road Infrastructure Tax Credit Certificate ("Tax Credit Certificate" to be issued by the Federal Inland Revenue Service ("FIRS", in line with the conditions stipulated in the Order. In specific terms, the Scheme, which has a duration of ten (10) years from the date of commencement of the EO7, is set up to: enable the FGN leverage on private sector funding for the construction or refurbishment of Eligible Road infrastructure projects in Nigeria; focus on the development of Eligible Road infrastructure projects in an efficient and effective manner that creates value for money through private sector discipline; and guarantee Participants in the Scheme timely and full recovery of funds provided for the construction or refurbishment of Eligible Road infrastructure projects in the manner prescribed in the EO7. This article provides a synopsis of the Regulations for the Administration and Operation of the Scheme; Eligible Roads; Participants; and application of the Tax Credit granted under the Scheme.
ELIGIBLE ROAD
The EO7 defines an Eligible Road as any road approved by the President as eligible for the Scheme on the recommendation of the Minister of Finance and as duly notified to Participants and published pursuant to the Order. Such recommendation, however, is expected to be made from a list of roads presented to the Minister of Finance by the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme Management Committee ("the Committee", being the implementing and administrative body to be established pursuant to the EO7. As provided in the EO7, the list of Eligible Roads may be updated from time to time by the President on the advice of the Minister of Finance provided that such updates are published in the Official Gazette of the Federal Republic of Nigeria ("FRN".
ADMINISTRATION AND OPERATION OF THE SCHEME
The Scheme is to be implemented and administered by the Committee established by the EO7.
As provided in the Order, the Committee is expected to: be chaired by the Honourable Minister in charge of Finance while the Honourable Minister in charge of Works is to be the Deputy Chairman. The Permanent Secretary, Federal Ministry of Finance is to act as the Secretary; draw its members from specified Ministries, Departments and Agencies ("MDAs" of Government (not below the rank of a Director or its equivalent). The relevant MDAs include the Federal Ministry of Finance; Federal Ministry of Power, Works and Housing; Federal Ministry of Industry, Trade and Investment; Federal Ministry of Justice; Bureau of Public Procurement; FIRS; Nigerian Investment Promotion Commission; Securities and Exchange Commission ("SEC"; Infrastructure Concession Regulatory Commission; Budget Office of the Federation; National Bureau of Statistics; Nigerian Investment Sovereign Authority; and The Presidency; facilitate publication, in the prescribed manner, of the following documents: (i) a list of Eligible Roads as published in the Official Gazette of the FRN; (ii) design and specification of Eligible Roads; (iii) a list of required documentation by an applicant desiring to be registered as a Participant in the Scheme; (iv) Project Cost and Completion Timeline bid; review and evaluate applications submitted by any company, or a pool of companies operating through a Fund Manager; register Participants in the Scheme pursuant to the execution of appropriate Memorandum of Understanding ("MOU" executed between Participants and the Committee; register and designate as an Infrastructure Fund, any special purpose vehicle ("SPV" set up by a Fund Manager in accordance with the provisions of the Order, in conjunction with the SEC and in compliance with applicable SEC rules and procedures, as appropriate; ensure that the contracts for road construction and refurbishment included in the Project Cost bid submitted by Participants are obtained through a competitive bidding process, and thereafter facilitate the review, evaluation and approval of the submitted Project Cost and Completion Timeline bid; applying the standard procedures adopted by the Federal Ministry in charge of Works;
facilitate evaluation by the Federal Ministry in charge of Works, the degree of completion of an Eligible Road infrastructure development project and thereupon issue a certificate of work done on an annual basis;
facilitate the issuance, on an annual basis, of a Tax Credit Certificate by the FIRS to a Participant or Beneficiary under the Scheme; within fourteen (14) days of the issuance by the Committee of the certificate of work done;
do other things, specifically provided in the First Schedule to the Order, necessary for the effective administration and operation of the Scheme.
PARTICIPANTS
Participation in the Scheme is open to the following set of entities: any company or corporation (other than a corporation sole) established under the Companies and Allied Matters Act or any law in force in Nigeria, and designated as a Sponsor of an Eligible Road pursuant to the Order;
any company or corporation (other than a corporation sole) established under the Companies and Allied Matters Act or any law in force in Nigeria, and certified by the Committee as an eligible participant;
a pool of companies – operating through an SPV – which undertakes the construction or refurbishment of any Eligible Road. However, to qualify under the Scheme, a pool of companies must be represented by a Fund Manager duly registered with the SEC and certified by the Committee as an eligible participant while the representative SPV must be registered with, and designated by, the SEC as an Infrastructure Fund set up solely for the purpose of managing the amounts received by the pool of companies; and
Institutional Investors duly established as a company/companies under the Companies and Allied Matters Act and operating as Pension Fund Administrators, Collective Investment Schemes, Insurance Companies, Investment Banks etc., and are also certified by the Committee as eligible participants.

An eligible participant interested in participating in the Scheme is required to submit an application to the Committee, attaching the required documents which include a written notification of Expression of Interest in respect of an identified road project; a valid and current FIRS-issued Tax Clearance Certificate; and Project Cost and Timeline bids which must include design and specification for the identified road project, as specified.
PROJECT COST
Project Cost under the Scheme is construed as:
"any expenditure wholly, reasonably, exclusively and necessarily incurred by a Participant for the construction or refurbishment of an Eligible Road as quoted by the Participant in its Project Cost bid and as certified by the Committee".
However, as provided in the EO7, the Committee has discretionary power to determine what type of expenditure may be allowed as part of the Project Cost. In exercising this discretion, the Committee is expected to give due consideration to certain specified costs, namely:
cost of road construction or refurbishment;
professional service fees paid by the Participant in the course of executing a road construction/refurbishment contract, subject to a limit of 1.25% of the cost of the construction/refurbishment where such costs exceed ten (10) billion Naira;
cost of road maintenance for a period of five (5) years following completion of the construction or refurbishment of an Eligible Road; and
any amount in excess of the initial project cost, necessarily and reasonably incurred on an Eligible Road, which excess is certified by the relevant regulatory authority.
ROAD INFRASTRUCTURE TAX CREDIT
The amount of Tax Credit due to a Participant under the Scheme – which is reflected on the face of the Tax Credit Certificate to be issued by the FIRS – is determined by the approved Project Cost incurred in the construction or refurbishment of Eligible Roads plus a single uplift equivalent to the prevailing Central Bank of Nigeria (CBN)'s Monetary Policy Rate ("MPR" plus two (2) percent of the Project Cost.
Tax Credit = Project Cost + Single Uplift (MPR) + 2% of Project Cost.
The uplift granted to a Participant does not constitute a taxable income in the hands of the Participant or a Beneficiary under the Scheme.

Tax Credits are to be issued by the FIRS, through the Committee, and in the name of a registered Participant or its Beneficiary. In the case of a pool of companies represented by a Fund Manager or any other person, the Tax Credit shall be issued to each company in the pool separately in proportion to their respective contribution. However, a person not duly registered and certified by the Committee as a Participant or representative of a Participant; or a person not duly designated as a Beneficiary of a Tax Credit by a Participant; or a Participant/Beneficiary that is unable to provide evidence of certification of the Project Cost by the Committee; shall not be entitled to be issued with a Tax Credit.
Required Documentation for Issuance of Tax Credit Certificate Tax Credit Certificates are to be issued by the FIRS to Participants or their representatives, or to Beneficiaries of the Scheme, subject to presentation of the following documents:
Confirmation of Authorization to Participate in the Scheme (issued by the Committee);
Approval (by the Committee) of the Project Cost and Completion Timeline bid;
Contract Award Letter; and
Certification of Work done (issued by the Committee). At any stage of an Eligible Road project, the value of the Tax Credit Certificate to be issued shall be in proportion to the percentage of project completion as evaluated by the Committee, plus a proportion of the "uplift" due to the Participant (calculated as a percentage of the total uplift due).
Utilization of the Tax Credit Tax Credit issued in any year of assessment is eligible for utilization as credit against the Companies Income Tax payable in the particular year, subject to a maximum of fifty percent (50%) of such tax due. However, it is permissible for an unutilized Tax Credit to be carried forward to subsequent tax years, until fully utilized.
Tax Credit as an Intangible Asset (Transferable and Qualified for Accounting Purposes) The Tax Credit issued under the Scheme is a liquid asset capable of being disposed of, either wholly or partially, to willing buyers on the FMDQ Over-The-Counter (OTC) Securities Exchange or any other approved relevant Securities Exchange. This tradability of the Tax Credit is without prejudice to the provisions of Section 22, of the Companies Income Tax Act, 2007 ("CITA", on "Artificial Transactions". However, transfer of Tax Credit between related parties are to be carried out at arm's length while any gains or losses arising on the disposal of a Tax Credit is taxable as prescribed by applicable tax laws. Trading of Tax Credits on a relevant Securities Exchange is subject to prior approval of the Committee. A Participant wishing to transfer its Tax Credit is required to designate the registration status of the connected Tax Credit Certificate as "tradable on the Relevant Securities Exchange", in the register maintained by the Committee – used also to keep the records of the Beneficiaries of traded Tax Credits. In a similar vein, a relevant Securities Exchange is required to maintain a register of every Tax Credit Certificate registered and traded on the Exchange. A Tax Credit may qualify as an asset in a Participant's or Beneficiary's financial records in which case it will be treated in line with the International Financial Reporting Standards.
GUARANTEES & LIMITATIONS UNDER THE SCHEME
The Order makes certain provisions aimed at protecting the interest of Participants against possible bureaucratic bottlenecks or administrative inefficiencies, by guarantying the smooth operation of the Scheme in such circumstances. Hence, where a Participant incurred additional cost in excess of the initial Project Cost, such additional amount incurred shall be allowed in the computation of the approved Project Cost, if the Committee is satisfied that such additional cost was necessarily and reasonably incurred; provided that the additional cost is certified by the relevant regulatory authority;
under the Scheme, the Committee is required within two (2) weeks to facilitate notification to Participants, of certification (approval) or refusal to certify (disapproval), as the case may be, of procurement of the Project Costs as well as, issue road infrastructure development contract. However, where the Committee fails to notify a Participant of its approval, the Participant shall be entitled to commence work on the particular Eligible Road project;
where a notice of refusal to approve procurement of a Project Cost (disapproval) is issued to a Participant, the notice shall contain the grounds for the disapproval and any additional information that must be provided (if any) to secure an approval; and
where a certificate of work done has been issued by the Committee to a Participant, the FIRS has within fourteen (14) days to issue the connected Tax Credit. Where the FIRS fails to do this, the Participant shall be immediately entitled to claim its due Tax Credit in its Companies Income Tax Return. The benefits derivable under the Scheme are totally not without qualification. Essentially, there are limitations in certain circumstances which include the following: A Participant (except a Participant executing a road project in a designated Economically Disadvantaged Area) can only utilize its total Tax Credit against the tax payable in any year of assessment, subject to a maximum of fifty percent (50%) of the Companies Income Tax payable by the Participant or its Beneficiary.
A Participant entitled to a Tax Credit on an Eligible Road under the Scheme is not entitled to claim, in addition to the Tax Credit, any other tax credit, capital allowance, relief or incentives on the Project Cost incurred, in respect of the same Eligible Road under any law in force in Nigeria.
The total professional service fee payable by Participants for the services of consultants in respect of Eligible Roads with Project Cost of ten billion Naira (N10 billion) and above, is limited under the Scheme to 1.25% of the cost of construction or refurbishment.

Source: Mondaq

Coronation Merchant Bank Limited (‘CORONATION MB);Africa’s leading financial institution, has released its 2018 Full Year Results to stakeholders in which the Bank posted a Profit Before Tax of N5.3billion. Commenting on the results, Abu Jimoh, Group Managing Director/CEO of Coronation Merchant Bank Limited said, despite a difficult operating environment, our company stayed the course, recording modest growth across most financial indices. The growth we recorded in our profitability and capital position is a testament to the strength of our business model and the commitment of our people.
When we look at where we stand today, our company is stronger, simpler, and better positioned to deliver long-term value to our stakeholders, thanks to the straightforward way in which we serve our customers and clients. As a platform for improving lives, our aim is to assist our customers to identify growth opportunities, harness these opportunities and in the process, enable businesses thrive, economies grow, and ultimately, help organizations fulfil their hopes and realise their ambitions. The Group maximized opportunities in its core business to deliver stable and sustainable revenue growing the topline revenue by 10% compared to 2017. Profit Before Tax increased from N5.1bn in 2017 to N5.3bn while Total Assets grew by 63% from N136bn in 2017 to N223bn
Bua group. Earning assets grew significantly by 70% y/y to cushion the huge gap from reduced market-driven decline in yield. This resulted to a slight decline in net interest income by 5% to achieve N7.6bn (2017: N8.0bn). There was increase in foreign exchange and fixed income trading volumes, loan disbursement, e-channel transactions which saw the bank’s non-interest income increase by 46% y/y to achieve N4.1bn (2017: N2.8bn). The impact of the adoption of IFRS 9 increased the bank’s cost of risk marginally from 0% to 0.03% with all its risk assets in the stage 1 classification according to IFRS 9 classification.
Commenting further on the results, Abu Jimoh stated
“As a Group, we have continued to expand our sector reach and meet our customers’ financing needs by offering products tailor made to their varied needs. In 2018, we deliberately increased our exposures to high quality obligors in Agriculture, Manufacturing and Oil & Gas sectorswho fall within our risk acceptance criteria. The quality and efficacy of our growth strategy is evidenced by our zero NPL ratios which we have maintained for the third year running. In addition to this, our dollar asset base grew by over 100% driven largely by self-liquidating trade finance transactions that are well managed,in line with our risk management framework. Furthermore, the Bank’s commercial paper product which was launched in the year helped to provide a relatively stable funding base to support our growth. Our Customer Deposit grew by over 65% from N76bn in 2017 to N126bn in 2018. The positive results recorded by our commercial paper is an attestation of Bank’s strength in the capital market and a reflection of its growing level of investor confidence.
Financial highlights
Balance Sheet & Income Statement
Total Assets up 63% to N222.7. billion as at Dec 2018 (Decr 2017: N136.7bn)
Loans & Advances to customers up 70% to N54.8billion as at Dec 2018 (Dec 2017: N32.3b)
Customer Deposits up 65% to N126.2billion as at Dec 2018 (Dec2017: N76.4bn)
Profit Before Tax of N5.3billion (De 2017: N5.1bn)
Shareholders’ Funds increased to N31.5bn as at December 2018 (Dec 2017 29.5 bn)
Key Ratios
Capital Adequacy Ratio: 19.7%% as at Dec 2018 (Dec 2017: 24.8%)
Loan to Deposit Ratio: 43.4% as at Dec 2018 (Dec 2017: 42.2%)
NPL Ratio: 0% as at Dec 2018 (Dec 2017: 0%)
Cost to Income ratio of 53.5% as at Dec 2018 (Dec 2017: 52.6%)
Net Interest Margin: 5.1% as at Dec 2018 (Dec 2017: 7.7%)
EPS: 90.62 kobo (Dec 2017: 94.09 kobo)
DPS: 33 kobo (December 2017: 30k)
Return on Equity 15.01% as at Dec 2018 (Decr 2017: 17.17%)

Source: Nairametrics

The Association of National Accountants of Nigeria (ANAN) have appointed Dr Kayode Olushola Fasua as the new Director General of the Nigerian College of Accountancy, (N.C.A.). A statement issued by the College Public Relations Officer, Cyril Umoh in Jos stated that Dr. Fasua’s appointment took effect from March 1, 2019 as contained in a letter signed by the Registrar/Chief Executive of ANAN, Dr Nurudeen Abba Abdullahi, dated February 8, 2019.
It stated that the DG has over two decades of cognate work experience in the ANAN College and had before his appointment served as the Director of Studies of the College and on many occasions acted as the College DG.
The statement further explained that Dr Fasua holds a PhD in Accounting and Finance.
“The new Director General, who also graduated from the College 23 years ago is the first graduate of the College to head the institution within the 25 years of her existence and is expected to bring his wealth of experience from the academics and practice to bear on his new assignment.”
“ Dr Fasua took over as the Director General of N.C. A. from Dr Joseph Femi Adebisi,” it stated.

Source: Dailytrust

The Corporate Affairs Commission (CAC) has registered not less than 73,000 companies within three months under its cost-friendly Business Incentive Strategy (BIS) rolled out in October last year. Acting registrar-general of the Commission, Lady Azuka Azinge, who made this known in Abuja, yesterday, said the Commission would record a higher number of registration in the first quarter of 2019. “From 1st October to 31st December 2018, we registered 73,000 companies, if you look at the corresponding year, about 30,000 companies were registered in 2017, so you can see the BIS was successful. “Based on popular demand, we have to go back to the minister for extension which started from January 1 to March 31 2019, we are almost at the tail end of the second part and so far we are exceeding what we did last year. We expect to see much higher number which is what we are seeing already in our record,” she said. Azinge, therefore called on the private sector operators to take advantage of the BIS window which ends on March 31, 2019, to register their business name at reduced fee of N5, 000, adding that there was no going back on the various initiatives put in place to ensure ease of doing business in the country. “The Commission has undertaken many initiatives. We are fully decentralised in our operations, whereby you now have online registration of business names, limited liability companies as well as the incorporated trustees, which can be registered online 24 hours within which you get your certificate. Payments are also done online, there is also integration with the FIRS on issue of the stamp duty,” she said.

Source: Leadership

Lagos State generated N50.4 billion or 60.8 per cent of total N83.2 billion generated from Value-Added tax (VAT) into Federation Account in January 2019. According to documents related to the Federation Account Allocation Committee (FAAC), Federal Capital Territory (FCT) came a distant second with N18.9 billion. Oyo State was third on the list with a VAT collection of N3.0 billion for the month. Rivers and Kano were the only remaining states that crossed the billion naira make with N1.9 billion and N1.2 billion respectively. The document, however, revealed that the Nigeria Customs Service (NCS) also contributed N21.2 billion to the VAT pool during the month under review.
Cumulatively, N205.2 billion has been generated into VAT account between January and February this year.
This is N52.1 billion short of the projected N257.3 billion for the two month period. Meanwhile, Federal Inland Revenue Service (FIRS) repoted to the FAAC meeting which held on February 27 that it recovered N47.5 billion from waivers on taxes and penalties granted to some companies. A representative of FIRS told the meeting that a balance of N23,703.760,661.00 was still outstanding as at January 23, 2019.


Source: Tribune

As FIRS law demands, all limited liability businesses in Nigeria are to register for company tax TIN (Tax identification number) and VAT (Value Added Tax). To enforce taxation by FIRS, all limited liability businesses bank accounts and money therein, will not be allowed access by their owners after 15th March, 2019 until they register and pay current and arrears of tax based on bank cash transactions over the years, which is huge and devastating for businesses.
In view of these, there are three options for businesses that have limited liability bank accounts:
( i) Register with FIRS for company taxes and VAT, and be prepared to pay arrears of tax calculated by FIRS based on your bank cash transactions over the years.
( ii) On or before 15th March, 2019, to withdraw cash, and pay same into either personal account or enterprise account that is not limited liability businesses; and not by transfer since a transfer will still be traced by FIRS via BVN and be taxed.
(iii) Or engage a tax consultant for your company to be audited for the number of year it operated , how much tax ought to be paid, the tax due to be paid and tax clearance be collected.
Please let our people operating numerous registered limited liability bank accounts be informed to take a step to avoid frustration and embarrassment

Source: Businesstrumpet

As the battle over unpaid $2billion tax arrears between MTN Nigeria and Attorney-General of the Federation (AGF), Abubakar Malami persist, the Chief Executive Officer of MTN Group, Rob Shuter, has said that the nation’s tax authorities have no particular quarrel with the firm various tax assessments. The telecommunication company boss also, said that the AGF is “playing games” over the federal government’s demand of $2 billion tax arrears from the company. Speaking at a conference call where MTN’s 2018 annual results were presented to executives and stakeholders of the company, Shuter said, “Now, of course, what’s odd about the Nigeria-situation is it’s not the Commissioner for Inland Revenue that we have the dispute with. It’s the Attorney General, who is really not mandated to collect the tax. “So the legal process is basically saying you’re playing a game that you’re not meant to be playing. And when we talk to the tax authorities they have no particular quarrel with where we are with our various assessments. “So either we get the thing chucked out early on and the issue is finished, or it is just one of these lingering things that roll around in the system for a while. And personally, I don’t know which way it’s going to play out. “I’m just absolutely adamant that we’re a responsible company, we have paid the taxes we had to pay, and the tax authorities themselves aren’t saying that we owe them anything. So I think we’ve just got to stare this one down.” Although, the hearing of the suit against the AGF first scheduled for November 8, 2018, has been adjourned to March 26. It would be recalled that in September 2018, Malami had written to MTN Nigeria, demanding a payment of $2 billion in tax arrears. He broke the amount down to a 10-year period for import duties, Value Added Tax (VAT) and withholding taxes on foreign imports/payments. MTN Nigeria had denied any wrongdoing, saying it had fully settled all outstanding taxes. The telco also sued the AGF.

Source: Dailytimes

Introduction The Federal Inland Revenue Service (FIRS) has issued Guidelines on Mutual Agreement Procedure (MAP) in Nigeria and Certificate of Residency Forms for taxpayers seeking to take advantage of the MAP.
Mutual Agreement Procedure: MAP is a dispute resolution mechanism designed to resolve international tax disputes arising from inconsistent interpretations of double tax agreement (DTA) provisions, which may result in double taxation for taxpayers. Nigeria’s DTAs contain MAP provisions that enable taxpayers approach Competent Authorities (CAs) in Nigeria or those in jurisdictions of Nigeria’s treaty partners to seek redress where they believe they are not being taxed in accordance with the provisions of the relevant DTA.
The MAP Guidelines: The Guidelines provide guidance to taxpayers on how to obtain assistance from the Nigerian CA; and how corresponding adjustments would be applied in the event of transfer pricing (TP) adjustments.
Scenarios requiring: MAP Taxpayers may require assistance from the CA where there are disputes relating to: a)transfer pricing adjustments; b)dual residence status; c)attribution of profits of a permanent establishment; d)levy of withholding taxes beyond what is permitted by the applicable DTA; and e)uncertainties relating to the characterisation or classification of an item of income arising from the other jurisdiction.
Request for assistance: Before submitting a MAP request, a taxpayer is required to carry out pre-filing consultations (a meeting or written correspondence) with the FIRS. This should contain a summary of the facts of the case and reasons for the MAP request. State Boards of Internal Revenue (SBIR) may also participate. Where the outcome of the pre-filing consultation is positive, taxpayers would be expected to submit a detailed written request for consideration. A request for MAP would not affect the requirement regarding any disputed tax liability.
Timing of MAP: requests Although the timeframe for presenting a case for the CA’s assistance depends on the specific terms of the DTA invoked, taxpayers are expected to present their case within 3 years of receipt of the notice of assessment.
Conditions for acceptance: The Nigerian CA will accept a MAP request where: •the issue relates to a foreign country with which Nigeria has an in-force DTA; •there is evidence that the actions of one or both countries will result in taxation that is not in accordance with the DTA; •the taxpayer notifies the Nigerian CA within the acceptable timeframe; •the issue is not one that either CA has decided not to consider as a matter of policy. Once a request has been accepted, the Nigerian CA would try to resolve the issue on its own. Where this is not possible, the Nigerian CA will notify the CA in the other country of its intention to commence the MAP. The taxpayer may withdraw the request for MAP at any time before an agreement has been reached between the CAs. Likewise, the Nigerian CA may terminate the MAP in certain circumstances.
Role of the taxpayer: MAP negotiations are between the CAs, as such the taxpayer’s role is limited to presenting its views and facts. This may involve making presentations to the CAs, where necessary.
Notification of agreement; The Nigerian CA will notify the taxpayer in writing of any agreement that has been reached during the MAP. Where the taxpayer is not satisfied with the outcome of the MAP, the taxpayer may seek legal remedy. If the taxpayer accepts the decision of the MAP, a request for refund of taxes or reassessment of tax to reflect the decision of the MAP must be filed by the taxpayer within 3 months of the decision, but not later than 6 years after the MAP decision.
Takeaway: The Guidelines bring Nigeria closer to international standards as it affords taxpayers an additional avenue for resolving jurisdictional double taxation tax dispute. However, considering Nigeria’s limited treaty network, it remains to be seen how far reaching the impact of the MAP would be on Nigerian taxpayers

Source: Mondaq

The cost for the registration of business names in Nigeria has been reduced from N10,000 to N5,000. This was announced by the Corporate Affairs Commission on Wednesday, March 6 - According to CAC, the reduced cost of business name registration will end on Sunday, March 31.
The Corporate Affairs Commission (CAC) has announced a reduction in the cost of business names' registration. The commission on Wednesday, March 6, said the registration fee for business names in Nigeria has been reduced from N10,000 to N5,000. However, the CAC said the reduction in cost for business name registration will end on Sunday, March 31. The commission also advised the general public to take advantage of the Business Incentive Strategy (BIS) window to formalize their businesses before the deadline. Meanwhile, Legit.ng previously reported that the CAC had earlier promised to register business names within six hours of successful application. The commission said it will ensure an effective deployment of information technology for registration of business names. During the annual conference of the Nigerian Bar Association, the acting registrar of the commission, Azuka Azinge, said the move is part of efforts aimed at addressing some of the bottlenecks usually encountered during the registration of business names.

Source: Legit

The shares of Seplat Petroleum Development Company Plc fell 3.5 per cent yesterday as investors reacted negatively to the audited results of the company for the year ended December 31, 2018. The shares fell from N619.00 to N596.90 per share. The firm, which is listed on the Nigerian Stock Exchange (NSE) and London Stock Exchange (LSE) yesterday released its audited results. Although the company recorded higher revenue, profit after tax (PAT) fell by 44.6 per cent.

Specifically, Seplat posted revenue of N228.4 billion in 2018, up by 65.2 per cent from N138.3 billion recorded in 2017. Cost of sales rose 48 per cent from N73.4 billion to N108.6 billion, while gross profit jumped by 84.6 per cent to N119.8 billion from N64.9 billion in 2017. Net finance cost fell by 31.8 per cent to N14.3 billion, from N20.9 billion in 2017. Profit before tax (PBT) increased by 499 per cent from N13.5 billion to N80.6 billion. However, PAT fell from N81.1 billion to N44.9 billion due to debt of N35.7 billion in 2018, compared with a tax credit of N67.7 billion in 2017. The board of directors has recommended a dividend of N18 per share. The Chairman of Seplat, ABC Orjiako had disclosed plan of the company to invest more in its gas business in last year so as to boost revenue and deliver more returns to investors. “Our strategy to diversify and grow our sources of income through the expansion of our gas business continues to gain momentum. Since the government launched various initiatives to stimulate investment in the gas sector, including opening the Domestic Supply Obligation (‘DSO’) price to commercial market forces, Seplat has been at the forefront of gas commercialisation and made substantial investments in support of the government’s energy agenda,” he said. The Chief Executive Officer of Seplat, Austin Avuru had said the company registered strong cash flow performance and significantly strengthened the balance sheet the previous year. “Our proactive and decisive management coupled with the strong underlying fundamentals of the business have seen us emerge from an exceptionally challenging period a much fitter and stronger business that is well equipped to deliver long-term value for our shareholders,” he said. Meanwhile, the the three-day bullish run in the domestic equities market was halted yesterday as the NSE All-Share Index declined 0.16 per cent to close at 32,121.74.

Source: Thisday

Guaranty Trust Bank (GTBank) Plc has announced improved performance for the year ended December 31, 2018 and recommended a final dividend payment of 245 kobo per share. The bank recorded gross earnings for the year grew by 3.7 per cent to N434.7billion, from N419.2billion reported in 2017. Its net interest income fell from N246.663 billion to N222.433 billion, while net fee and commission income improved from N40.732 billion to N50.470 billion in 2018. Impairment charges reduced significantly from N12.169 billion to N4.906 billion,. GTBank ended the year with profit before tax of N215.6 billion, representing a growth of 9.1 per cent over N197.7billion recorded the previous year, while profit after tax (PAT) stood at N184.639 billion compared with N167.913 billion posted in 2017. The bank’s customer deposits increased by 10.3 per cent to N2.274trillion from N2.062trillion in December 2017, while loan book dipped by 12.9 per cent from N1.449 trillion in 2017 to N1.262trillion in 2018. The bank is proposing final dividend of N2.45 per share in addition to interim dividend of 30 kobo bringing total dividend for 2018 financial year to N2.75. Commenting on the results, the Managing Director/CEO of GTBank Plc, Mr. Segun Agbaje, said: “In 2018, our focus on staying nimble, strengthening customer relationships and driving our digital-first strategy paid off. We successfully navigated the pressures of our challenging and radically changing business environment, recorded growth across key financial indices and reaffirmed our position as one of the best performing and well managed financial institutions in Africa.” According to him, the performance reflects, not just the fundamental strength of the brand, but also its commitment to its values of excellence, creating value for all stakeholders and putting its customers first in everything that it does. “Driven by these values, we are building the bank of the future by pairing the best of our business with the massive potential of digital technologies to create Africa’s first integrated and trusted platform; Habari,” Agbaje said. In recognition of the bank’s bias for world class corporate governance standards, excellent service delivery and innovation, GTBank has been a recipient of numerous awards over the years. Some of the bank’s awards in 2018 included: Bank of the Year – Nigeria from the Banker Magazine, Best Banking Group and Best Retail Bank Nigeria from World Finance Magazine, Most Innovative Bank from the African Investor, and Best Digital Banking Brand in Nigeria from the Global Brands Magazine.

Source: Thisday

Telecommunication companies (Telcos) have expressed concerns over recent move by various states ministry of environment to impose environmental impact assessment (EIA) levy on their operations across the country. They described the development as another form of multiple taxation that would impede the growth of the sector.
To this end, the operators under the aegis of the Association of Licensed Telecoms Operators of Nigeria (ALTON), have written to the Federal Ministry of Environment, explaining the economic implication of allowing States’ Ministry of Environment to collect environmental impact assessment levy directly from the operators across the country, after they have paid same levy to the federal government through the Federal Ministry of Environment and the National Environmental Standards and Regulations Enforcement Agency (NESREA). The operators want the Federal Ministry of Environment to review the existing telecoms tariff in order to address every anomaly with telecoms tariff and taxes. According to the operators, they obtained EIA from the Federal Ministry of Environment through NESREA in collaboration with each state ministry of environment, but wondered why the states are now coming up with fresh demands for EIA levy, which they said, amounted to multiple taxation and charges. “We have received complaints from our members that they have been receiving demand notices for environmental impact assessment payment from some states government ministries of environment, which we considered as an aberration of the existing law,” ALTON said in the letter, which was signed by its Chairman, Gbenga Adebayo. The letter dated February 21, 2019, sought clarification on issues such as: “That the Federal Ministry of Environment has ceded the EIA oversight functions to some states ministry of environment to issue EIA certification to its members and that some states ministry of environment as the case may be can conduct EIA process in its members without recourse to the Federal Ministry of Environment and National Environmental Standards and Regulations Enforcement Agency (NESREA).” Others include: “That the statutory responsibility on environmental issues of the Federal Ministry of Environment has been transferred to the states government; That the states now have power to collect ecological fund from private sector after payment has been made to them by the federal government.” In the letter, Adebayo requested from the Federal Ministry of Environment to clarify these positions, so as to guide ALTON in its dealing with the situation and to advise its members accordingly. Adebayo also called on the federal government to look into the issue of Tax and Levy Amended Order 2015, which he said, was hurriedly signed by the former Minister of Finance in the last administration, Mrs. Ngozi Okonjo-Iweala. The signed order according to him, had created confusion in the taxes and levies regime and making the telecoms environment hash for business, not minding the federal government policy on ‘Ease of Doing Business’ in Nigeria.
Adebayo, had said since the order was signed in 2015, it has created a lot of confusion in the taxes and levies regime and made the telecoms environment hash for business, not minding the federal government executive order on ‘Ease of Doing Business in Nigeria.’ According to him, “The telecommunications industry has been the best customer centric sector, where issue pertaining to subscribers are taken very seriously by both the operators and the regulator, and despite all challenges there has not for once been an outage compare to other sectors, where you are put on estimated bills and inconsistence in flight schedules that have made several people missed appointments and valued meetings just to mention few. “There was no face-off between NCAA and ALTON and its members. Although we need clarification on the charges, this led to the agreement at the meeting to form an advisory committee which comprises NCAA and ALTON representatives. Our members are responsible corporate citizens of the country and natural partners in progress that follow due processes.”

Source: Thisday

Federal Inland Revenue Service (FIRS) has recently been issuing Notice of Refusal to Amend (NORA) assessments issued in respect of on-going tax audit exercises. This is notwithstanding that taxpayers have objected such assessment notices or that some of the issues raised by FIRS have been resolved/documented at reconciliation meetings. In letters issued to some taxpayers, FIRS demanded settlement of the alleged additional tax liabilities within 30 days of issuance of the NORA, irrespective of the level of progress made during the tax audit reconciliation process. FIRS also expressed its intention to commence enforcement actions to recover the alleged tax liabilities where these are not paid within the said timeline. While Section 69(5) of the Companies Income Tax Act (CITA) empowers FIRS to issue NORA, it only allows FIRS to do so in the event of a stalemate during the reconciliation process. This is distinguishable from FIRS' recent practice of issuing NORA solely on the basis that tax issues have remained unresolved for at least 6 months despite reconciliation. Furthermore, there is no provision in CITA or any other relevant legislation that empowers FIRS to issue NORA only on the basis that reconciliatory processes have spanned more than a defined period. By this development, FIRS has disregarded all the time and resources invested by itself and taxpayers in resolving such pending tax disputes. Aggrieved taxpayers may consider proceeding to the Tax Appeal Tribunal (TAT) to challenge FIRS' action/decision; thereby increasing the cost of dispute resolution, regulatory compliance and ultimately, inhibiting the ease of doing business in Nigeria. In enforcing tax compliance, it is essential that tax authorities' actions should not deter voluntary tax compliance. We therefore expect FIRS to revisit its approach and avail taxpayers more time to close out ongoing tax disputes/audit exercises. Also, where FIRS insists on issuing NORA, it should consider issues that have already been resolved during the reconciliation phase and focus only on unresolved tax issues. In the meantime, we advise taxpayers with ongoing tax audit cases to engage FIRS to reconcile their tax positions in order to prevent any adverse decision of FIRS.

Source: Mondaq

The Institute of Chartered Accountants of Nigeria (ICAN) on Tuesday commended the laudable achievements of the Federal Government under the Federal Ministry of Finance in the last three and half years, saying it has blocked leakages and set the tone for improved revenue generation to finance government’s economic development agenda. ICAN President, Alhaji Razak Adeleke Jaiyeola, who stated this when executive members of the organisation visited the Minister of Finance, Mrs Zainab Ahmed in Abuja, solicited the Ministry’s collaboration in organizing in-house training for staff and ICAN members in the Ministry. According to a statement by her Special Adviser on Media and Communications, Paul Abechi, the minister assured ICAN of the readiness of the ministry to collaborate with it. Ahmed who welcomed ICAN’s recently released Accountability Index, noted that the country was often measured by external index which did not take local peculiarities into consideration and that it will encourage both the federal and state governments to ensure good public governance. Speaking earlier, the ICAN President particularly noted the giant strides of the Federal Inland Revenue Service (FIRS) under the President Muhammadu Buhari-led administration, which he said, has led to an all time high revenue generation of the sum of N5.3 trillion in 2018. While expressing worries over delays in national budget, Alhaji Jaiyeola, commended the implementation of the TSA, pointing out that many of the software that drive the process are not locally sourced. He called on the federal government to deploy more local content which he said will both preserve “our hard-earned foreign exchange and create more jobs for the citizenry”. According to him, “Let me seize this auspicious opportunity to warmly commend the laudable achievements recorded by the Federal Ministry of Finance in the last three and half years. The Treasury Single Account (TSA), the Voluntary Assets and Income Declaration Scheme (VAIDS), Whistle-blower Policy, the establishment of the Development Bank of Nigeria (DBN) and the Efficiency Unit, the Collateral Registry under the Central Bank of Nigeria, the laudable reforms in the FIRS, are all initiatives driven by your ministry not only to set a credible governance tone at the top and raise the bar of credibility.” He said the move of FIRS to recover N23 billion from 45,000 people who had more than N100 million in their accounts in 2018 through substitution of their bank account is highly commendable. On collaboration, the ICAN President said, “we are willing to collaborate with the Ministry of Finance at organizing in-house training for its staff and mandatory Professional Continuing Education (MCPE) for members of ICAN who work in the Ministry.” “As you are aware, ICAN released the first result of its Accountability Index during the 48th Annual Accountants’ Conference. This strategic initiative was jointly financed by ICAN and the Internal Federation of Accountants (IFAC). The ICAN-AI is an initiative for improving public sector finance management at the three tiers of government, he said. “The objectives of the ICAN AI among others include encouraging fiscal responsibility and good public financial management, tackling corruption by encouraging quality professionals in the public sector and providing a holistic, objective and evidenced-based framework for assessing performance of public sector entities, the ICAN boss added”.

Source: Today.ng

FIFA has confirmed it has received Chelsea's appeal against their transfer ban, though no decision has been taken on freezing the sanction during the legal process.
Chelsea previously said they "categorically refute the findings of the FIFA Disciplinary Committee", and would be appealing the ban on registering new players for two transfer windows, which FIFA imposed for breaching rules to protect teenage players.
FIFA says "there is no exact timetable" for Chelsea's case, and the appeal panel chairman must decide on freezing the punishment.
FIFA's disciplinary committee had imposed the two-window ban on Chelsea registering new players for breaches of regulations relating to the transfer of 29 players aged under 18.
Chelsea were also fined 600,000 Swiss francs (over £460,000) and the Football Association was fined 510,000 Swiss francs (over £390,000).
The Premier League club also twice breached regulations relating to third-party influence, according to FIFA.
In similar cases, FIFA agreed not to enforce the transfer ban while the appeal process was ongoing.
Barcelona and Real Madrid were previously allowed to sign players in anticipation of their bans taking effect.
Barcelona eventually were not allowed to register new players for two transfer windows, while Madrid served a one-period ban.

Source: Skysports

The Federal Government’s intention to generate almost double of the amount realised last year in tax revenue may set it on collision path with the Organised Private Sector (OPS). The concern for a possible friction stems from the nation’s current economic situation, poor infrastructure, and difficulties in accessing funds among others, which members of the OPS are sounding a serious warning that the Federal Government would be making a mistake if it intends to generate the target revenue through tax increases.
The new Director General of the Nigeria Employers Consultative Association (NECA), Mr. Timothy Olawale, lamented that businesses in Nigeria are presently encumbered with the payment of over 55 different taxes at the three levels of government. He also speaks on how banks have failed playing their role of ensuring small businesses thrive. Olawale, while expressing the readiness of the OPS to pay the new Minimum Wage of N30,000, said that anything below that is criminal. The NECA DG, among other issues, expressed worry over the nation’s rising debt profile, the Economic Recovery Growth Plan (ERGP) among other issues in the economy.
Excerpts: Support for new minimum wage
We stuck out our neck on the issue of new minimum wage because it came out as a result of a process in which we are actively involved. We were actively part of the discussion, decision and we agreed and believed in the discussion of the tripartite committee with every sense of responsibility coupled with the fact that we believe in corporate responsibility. The second reason is that when you think about the welfare of workers, we believe N30,000 is ideal and that anything below that is inappropriate. Employers have the responsibility of taking care of their employees before they can increase productivity. You are not making life meaningful for them if you don’t pay them good salary.
Is N30,000 really enough for workers?
We all know the value and worth of money in the present economy. The question we should ask ourselves is how far will the N30,000 go in taking care of a worker and his or her entire family. By the time a worker goes to and from his/her workplace everyday, that N30,000 will substantially have gone. Don’t forget that there are also other basic needs like shelter, feeding, medicals, education for the children. So when you benchmark all these with the said amount, it can’t go far. And I want to say personally that anything below that is criminal.
Effect of N30,000 minimum wage on the economy
Yes, there is going to be a consequential effect, but it is going to be minimal and it is going to be controlled. One of the effects is that there is insufficient enlightenment to the general public to let them know that the fact that there is new minimum wage now, does not mean that everywhere will be awash with money. Because based on that belief, there will be an increase in the prices of goods and services. Everyone, both market women and men, will want to benefit directly from the new minimum wage. And when that happens, the effect is that workers’ welfare will be totally lost. What it means is that the new minimum wage will not have any positive effect on the workers. The disadvantage of this is the prolonged process in arriving at the new minimum wage. Because everybody that doesn’t even know what minimum wage is all about before are aware now and are anticipating when it will take effect so that they will also benefit. It is so unfortunate, but that is Nigerians for you.
OPS complying with new minimum wage
There is no reason all members of the OPS should not be able to pay N30,000 minimum wage. This is because they all agreed after due consultation. So, we are saying authoritatively that all members of the OPS will implement N30,000. The simple truth is that 70 per cent of the organised labour is paying way above N30,000 as minimum wage. So, the consequential impact is very minimal, if not nil, because it is supposed to affect the chain or review, where your benchmark is below N30,000. So, if you are paying way above N30,000, you need not bother, except if you want to enter what we call a ‘sweetheart agreement’ with your workers and you decide to raise their salaries. As we speak, some sectors have started negotiating without waiting for government’s decision on the N30,000 proposal. My concern, however, is the informal sector – the Small and Medium Enterprises (SMEs), which are struggling and don’t have enough support from the government and its agencies to survive. The question is: are they well positioned to absorb the effect of N30,000? Can they implement it? We have encouraged them to embrace the plan of relevant bodies like the International Labour Organisation (ILO), which NECA is a part of, to help them transit from informal to formal sector. This will help their businesses and deepen their access to capital. Also, they need to engage their workers because the major problem that has reflected in the rate of unemployment is that what Nigerians are even looking for is to be able to leave their houses and have a means of survival in the first instance. Majority of our teeming population are out of jobs; well over 30 million Nigerians are said to be out of job. Abraham Maslow’s hierarchy of needs talks about subsistence level. In other words, the physiological need is: ‘Let me even have somewhere to go and have something to sustain myself and my family.’ It is after meeting that need that you start thinking of how to improve on it and then maybe the issue of minimum wage will arise. Our focus – and what we have always told the government – is for us to have a situation where majority are gainfully employed in the first instance. Then, we can talk about improving on it. We have also advised the SMEs to broaden their scope of operation so that more and more people can get into the employment net through their activities. Then, you can bother about the issue of minimum wage. It also came up in our discussion at the National Minimum Wage Tripartite Committee about the issue of enforcement. Because it is one thing to have a law, it is another thing to enforce it.
NACCIMA backing out of agreement
On the unfortunate response from the representative of NACCIMA, the person did not speak on behalf of NACCIMA as a body. The position has since been denied by the body she represented. They said they never sent her. The speaker said she was on her own and that she was never sent. And for her to have said that, it is only her that can explain. They also said the position of the OPS is okay by them and that they are in line with it.
Multiple taxation
There is no doubt that multiple taxation is killing businesses in the country. Businesses in Nigeria are encumbered with the payment of over 55 different taxes at the three levels of government. The incidence of double taxation, particularly consumption tax, has assumed a very dangerous dimension. We expect the government to intervene through an appropriate statutory or policy declaration. Government should not make mistakes of generating revenue through tax increase. We know that government will want to meet up with its revenue requirement. If you increase tax, it will increase cost of goods and services and it is the consumers that will suffer for it. You don’t make people poorer by adding to their burden. So government must be very careful when it says it want to generate more revenue internally. Rather than increase the tax, I think what government should do is to widen the tax gap between the rich and the poor or average Nigerian. Some companies and well to do individuals are not paying tax. Government should also focus on luxury goods, especially foreign goods that we can do away with. Government should not tax those goods that have direct effect on the common man.
Debt burden on the increase
Figures released by the Debt Management Office (DMO) showed that the Federal Government’s domestic debt profile rose to N15.814 trillion in September 2018 from N15.629 trillion in June 2018. That is 1.19 per cent increase. This figure becomes more worrisome when we look at the total public debt stock, comprising external and domestic debts of the Federal Government, the 36 states and the FCT hitting $73.208 billion (N22.38 trillion) recorded in June 2018. This trend, which is very disturbing, could have a negative effect on the developmental capacity of Nigeria, despite government’s financial managers’ argument that the rate of increase is within a manageable limit. Financial experts at the International Monetary Fund (IMF) and the World Bank have, in fact, advised that the revenue-to-debt ratio is unsustainable and it portends a serious danger for the future generation.
How OPS is faring with economic situation
We have to start by commending the government in doing everything possible to make businesses thrive. Specifically, we commend the office of the Vice President for the efforts at ensuring that we have a favourable economic environment to operate. Having said all these, there are instances where some agencies of government have not keyed into the good work the government is doing. Some of them are not in line with the vision of the government in ensuring that there is ease of doing business. But the good news is that while the leadership of those agencies are mounting their onslaught on businesses through regulating of business outside the rule of law (because we are not against regulation), the government has been very responsive in calling them to order anytime we raise an issue with them, which is also commendable. In time past, we complained, raised issues, but nobody listened to us. So, we commend the present government for listening to us when there are issues raised. When you have an avenue or window to complain about the situation of things, I think it’s a wonderful thing.
Economic policies and job creation
We think that government should look at the policies that have to do with the banking sector. Banks are not playing their role in ensuring that small businesses thrive. Banks will rather lending money to government or big businesses where they know the returns will be big. I think government needs to look into this.

Source: Sunnews

The Federal Inland Revenue Service (FIRS) has disclosed that a total of N12.62 trillion was generated as revenue from 2016 to 2018. This was revealed in a document made available to newsmen by the Head of Communications and Servicom Department of the agency, Wahab Gbadamosi. N3.3 trillion was generated in 2016, N4.02 trillion in 2017 and N5.32 trillion was realised in 2018, making it the highest revenue generated in the last three years. The document stated that this was made possible as a result of several initiatives designed by the agency to ensure a robust tax administration that is beneficial to all stakeholders. It explained that non-oil tax revenue increased to N2.149 trillion in 2016, N2.5 trillion in 2017 and N2.852 trillion in 2018. The document quoted the Executive Chairman of the agency, Babatunde Fowler saying the achievement was a reflection of the diversification of the Nigerian economy by the Federal Government. “This does not mean that we have left behind the oil tax revenues. It grew from N1.15 trillion in 2016 to N1.52 trillion in 2017 and N2.52trillion in 2018. Non-oil tax revenue is still over in excess of the oil tax revenue. “We also do collect four per cent in terms of cost of collection but only for non-oil revenue collected. On oil revenue collection, we do not get any commission and we have been able to make sure that our services are more efficient and convenient to taxpayers. “This has brought about a considerable reduction in the cost of collection of actual taxes. “In 2016, it was 2.6 per cent, 2017, 2.49 per cent and 2018, 2.14 per cent, meaning that our actual cost of collection is heading downwards based on the efficiency and technology that we are deploying to tax collection. “Some of the ICT initiatives that we have continued to build on are the e-payment channels which make it convenient and easy to pay taxes anywhere in the world and to also download receipts of payment from any point one so desires,” he said.

Source: RipplesNigeria

On 13 January, 2016, the International Accounting Standard Board (IASB) announced the issuance of a new accounting standard: International Financial Reporting Standard (IFRS) 16, on leases, which took effect on 1 January 2019. The new standard has changed the basis of accounting for leases which was in force for more than thirty years. While IFRS 16 completely replaces the old rule under International Accounting Standard (IAS) 17, the major impact is on the recognition, measurement and disclosure requirements for lessees. The new standard eliminates the classification of leases as either operating or finance for lessees and, instead, introduces a single lessee accounting model. According to an IASB survey conducted in 2016, listed companies around the world had around US$3.3 trillion worth of leases. Based on IAS 17 requirements, over 85% of the leases are labelled as operating leases and are not recorded on the balance sheet of these companies. This amounts to about $2.8 trillion worth of leases off the balance sheet of such entities. Given the effective date of 1 January 2019 for the adoption of the new standard, most companies had about three years to evaluate the legal, commercial and financial reporting impact of the new standard on their financial positions and transactions. In this article, we have discussed the extent to which the new rule disrupts the Nigerian tax space, and the options available to companies and businesses moving forward.
The Old Wine Explained In line with the Federal Inland Revenue Service (FIRS) information Circular No.2010/01 on Guidelines on the tax implication of Leases , a lease can be broadly defined as a contractual agreement between an owner (the lessor) and another party (the lessee) which conveys to the lessee the right to use the leased-asset for consideration usually periodic payments called rents. With the adoption of International Financial Reporting Standards (IFRS) in 2012, recognition of leases have been based on IAS 17 (the old rule). Under the old rule, a lease arrangement is classified as either an operating lease or a finance lease. Finance leases are arrangements that transfer risk and rewards relating to the use of an asset from the lessor to the lessee. This means that in a finance lease arrangement, the lessee is deemed the economic owner of the asset since he is able to apply the asset to generate economic benefits from continuous usage. All other types of lease arrangements are classified as operating lease.
Accounting by Lessee and Lessor under the Old Rule - Finance Lease Under the old rule, lessees were required to recognize a finance lease arrangement as both an asset and a liability at an amount equal to the fair value (sale price agreed upon by a willing buyer and seller, assuming both parties enter the transaction freely and knowledgeably) of leased asset. Where this value is lower than the fair value, recognition should be based on the present value of the minimum lease payments to be made by the lessee. Finance (interest) charge is also accrued on the liability over the term of the lease. Subsequently, the annual lease payment made by the lessee is applied towards settling the liability and finance charge that has accrued in relation to the arrangement. Thus, by the end of the lease term, the lessee would have paid for the fair value of the asset plus the finance charge on the leased assets. The lessee depreciates (it may fair value or revalue alternatively) the leased assets annually and charges the annual finance (interest) cost to its income statement. Since risk and rewards are transferred in a finance lease, lessors are not allowed to recognize the leased asset in their books. Rather, they recognize a receivable (from the lessee) equal to the fair value of the leased asset. Additionally, lessors recognize annual finance income receivable from lessee over the term of the lease.
Accounting by Lessee and Lessor under the Old Rule - Operating Lease Under operating lease, lessors retain the risk and rewards. Hence, lessees are not allowed to recognize any asset. Lessees recognize operating lease payment as periodic expense on a straight-line basis over the term of the lease. Lessors however continue to carry the asset in its books, depreciating them on annual basis. Additionally, they recognize the operating lease rental receivable from lessee over the term of the lease from lessees as periodic income in the income statements.
Tax Implications of the Old Rule The Companies Income Tax Act provides for the tax treatments of leases. The tax treatments are also explained in the Federal Inland Revenue Service (FIRS) Circular on the Tax Implication of the Adoption of the IFRS. It should be noted that the prescribed tax treatment aligns with the old rule under IAS 17. Under a finance lease arrangement, lessees have the responsibility to deduct withholding tax on the annual finance/interest charge while they claim capital allowance on the leased asset. The interest charge constitutes a deductible expense when computing their income tax liability. For lessors, the finance income constitutes a taxable income and they are not allowed to claim capital allowance on the leased assets. For operating lease arrangement, the lessee deducts withholding tax on the annual operating lease rental while the lessor accounts for the VAT on the amount. The lease rental constitute deductible expense and taxable income in the books of the lessee and lessor respectively. Additionally, the lessor continues to claim capital allowance on the asset.
What has Changed? The new rule retains the two categories of leases, operating and finance, for the lessor, as well as the recognition under the old rule. However, it prescribes a single accounting treatment for lessees. The new rule requires lessees to recognize a "right-of-use asset" and a lease liability at the inception of the lease. The lease liability is measured at the present value of outstanding lease payment. The recognized liability accrues finance (interest) charges over the term of the lease and any payment made by the lessee is used to settle the original liability and any finance charge that might have accrued for the period. Lessees subsequently depreciate (or fair value or revalue) the "right-of-use asset" over the term of the lease or life of asset. One major implication of the above for the lessee is that, its balance sheet must recognize all lease assets and liabilities. Thus, lessees would now recognize operating lease arrangements as leased assets and liabilities. Another resulting implication is that both lessee and lessor will recognize an asset in their respective books for the same transaction. An example is a 20-year lease of a property. Based on the new rule, the lessee must recognize a "right-of-use asset" measured at the present value of annual lease payments over the 20 years, adding any other incidental costs to the arrangement. The lessee depreciates the right-of-use asset over 20 years and recognizes the finance/interest charge in his income statement. On the other hand, the lessor continues to carry the cost of the property in his books and depreciates it over its useful life. This calls for a review of the tax implication of leases since both the lessee and the Lessor are now allowed to recognize the assets in their books.
Tax Implications and Available Options Addressing the tax implications of the new lease rule may be tricky. First, the Nigerian tax laws have not changed in this regard. Thus, it can be presumed that tax treatments of transactions remain the same, irrespective of changes to accounting practices. Secondly, the interpretation of tax laws usually follows the rule of commercial accountancy, except where specific provisions in the law exist to the contrary. Hence, where new accounting rules have been prescribed for a transaction, the accounting principle can guide the tax treatment except where it directly contradicts an existing provision of the tax law. There are a number of tax issues to deal with relating to the new lease rule especially as it relates to operating lease arrangements since the existing tax rules are still relevant for Finance lease arrangements. Consequently, it is important to determine the tax treatment of right-of-use assets recognized by the lessee. In addition, the tax treatments of finance cost and depreciation expense relating to this right-of-use-asset, needs to be ascertained. This is important as the lessor is also recognizing the same asset in its records, albeit at the historical purchase amount. Lastly, it is important to critically consider the impact of the new rule on deferred tax calculations for businesses. Three alternative tax treatments can be given to the right-of-use asset. The right-of-use asset can be treated as a qualifying capital expenditure on which the lessee can claim capital allowance. Although there is no direct provision for this in our current law, the substance of the arrangement bestows upon lessees the title of economic user of the asset. Alternatively, the depreciation expense can be allowed as a deductible expense over the term of the lease. This option may also seem to contradict deductibility rule, but it is consistent with the current treatment of allowing amortization of intangibles as deductible expense. The third option will be to restrict the deductible expense to actual lease rental payable for each period over the term of the lease. This option is in line with the tax treatment under the old lease rule. The tax treatment accorded the associated finance cost follows the option adopted for the right-of-use asset closely. Where the deductible expense is restricted to the actual lease rental, the finance cost also constitutes a non-deductible expense. The withholding tax obligation would then be on the actual lease rental. Where the depreciation expense is treated as deductible or capital allowance is claimed in lieu, the finance cost is also allowed as deductible expense. Withholding tax becomes due on the accrued finance/interest charge for the period. Deferred tax liability or asset will also arise since the tax base of the leased assets and liability will be different from their carrying amount, depending on the tax treatment given the transactions. Subject to the circumstances and a company's tax accounting policy, this new lease rule will potentially have an impact on the deferred tax position of companies in their financial statements. It is also important to note that tax related processes and controls, transfer pricing policy and other key performance indicators may need to be up-dated in order to capture all required information.
Conclusion
In conclusion, companies and businesses should evaluate, in addition to legal, commercial and accounting review, the tax impact that the new lease rule will have on their balance sheet. This is even more critical for entities in the aviation, shipping, heavy equipment, banking and leasing sectors who have numerous operating lease contracts. Tax authorities in other jurisdictions such as US, UK and Europe are taking proactive steps in addressing the tax implications of new accounting rules by coming up with detailed guidelines and circulars that can be adopted by taxpayers (and their representatives) when filing their tax returns. This reduces uncertainty and frictions for the taxpayers and tax authority. The FIRS should therefore take the lead by coming up with a detailed circular to provide guidance on the tax treatments to be adopted by taxpayers as was done in the past.

Source: Mondaq

The year 2018 was not the best of years for the stock market but the economy grew at its fastest pace since the recession in 2016 after real gross domestic product in 2018 expanded at 1.9 percent. Companies like Zenith Bank and Dangote who have released their 2018 results have seen strong profit growth in the past year, however, BusinessDay has identified 3 companies who despite having a better business performance in 2018 than in 2017 are on course to still deliver lower profits when their full year results are released, and you will never guess why. In 2017, companies like Seplat, Forte Oil and Presco had Uncle Sam to thank for their big profit after tax (PAT) figures. These three companies received combined tax credits from the government totaling around N83.7 billion, which helped boost their bottom-line figures significantly. The highest tax credit was enjoyed by Seplat who received about N67.6 billion, which helped the company report full year PAT of N81.1 billion in 2017 after the oil exploration company had earned only N13.4 billion in profit before tax (PBT). Based on projections using the 2018 Q3 report, analysts now expect that excluding any tax credit, the full year profit of the oil company will be around N36 billion, representing a profit decline of around 56 percent. Don’t be fooled by the bottom-line numbers though, Seplat had one of its best years in 2018. Although net profit could decline, the company will deliver revenue growth of around 67 percent while PBT will jump around 444 percent, capping a fantastic year for the company after the oil price rebound has helped boost revenue and allowed the company pay down some of its debt. Analysts told BusinessDay that they do not expect Seplat to allow its PAT to fall that low considering they could still call on more tax credits in 2018. The company currently holds around N41.83 billion in deferred tax asset and has already paid about N9.6 billion of tax liabilities in advance as at the end of Q3 2018. Therefore, the oil producer still has more tax credits to collect at their disgression which may see them report profits that significantly exceeds our forecasted N36 billion PAT. A deferred tax asset is an asset on a company’s balance sheet that may be used to reduce taxable income. It is created when recorded income taxes payable are higher than the income taxes paid to the government. Presco, one of Nigeria’s largest oil palm producing companies is expected to see its PAT decline to N7 billion in 2018 from N25.4 billion in 2017. Presco owes most of its profit in 2017 to the government after it received about N14.4 billion in tax credit, adding to its PBT of around N10.9 billion. The tax credit accounted for around 57 percent of PAT and 132 percent of PBT. Asides the tax credit, Presco’s profit was also lifted by revaluation gains of around N2.78 billion which analysts now expect that the revaluation gains and tax credits may not be available for pickup as it was last year. Another oil company with a similar story is Forte Oil which has been in the news lately as its former owner is currently divesting away from the company. In 2017, Forte Oil received tax credit of around N1.6 billion, which helped the company deliver PAT of around N12.2 billion after the company reported N10.6 billion in PBT. This year, analysts project that the company’s full year 2018 PAT will be around N8.9 billion if Uncle Sam fails to extend a helping hand once again. Unlike Seplat, the company’s revenue and PBT is expected to be slightly lower in 2018 than it was in 2017 due to sluggish sales. “We will have to wait and see if these companies take a hit on profit in 2018 when their full year reports are released. While I see Forte oil and Presco reporting lower yearend profit, its possible Seplat will deliver profits that show marginal growth if the deferred tax assets are converted to tax credits in their reports,” said Tochukwu Okafor, Lecturer in Banking and Finance department at Covenant University. Dangote Cement another benefactor of tax credits in 2018 reported its highest profit ever in 2018 after it collected tax credit of around N89.5 billion when it secured its pioneer status last year. Analysts say the company may struggle to match its N390.3 billion PAT it achieved last year in 2019.

Source: Business day

The National Council of Managing Directors of Licensed Customs Agents (NCMDLCA) has called on the federal government to take urgent steps and stop the recent additional shipping charges by shipping companies called “the government and port taxes”. According to the agents, by the action, the shipping companies had violated the provision of the Convention of World Trade Organisation (WTO) Articles VIII 3(b).
In a petition addressed to the Minister of Transportation, Rotimi Amaechi and signed by its national president, Mr Lucky Amiwero, the body said the additional shipping charges was introduced through circular issued by shipping companies to their customers dated October 28, 2016, which is being implemented. The customs agents added that the increase captioned “Government & Port Taxes,” was charged at N38,000 per container without any government intervention in line with the provision of the legislative instruments and the memorandum of understanding (MoU) signed by all the stakeholders. The provision of the law authorises the carrier to hand over the goods to the consignee at the port of discharge without any cost, as all cost are embodied in the freight paid by importer based on the law. “Any other charges introduced by the shipping companies, contravenes the provision of the convention of WTO Articles VIII 3(b), the domestic laws and regulation, the practice constitutes very high percentage of charges that is not tied to service, which is a contributory factor to the high clearing cost that necessitate the diversion of Nigerian bound vessels to neighbouring West African ports,” Amiwero said. He added: “The shipping line is an agent to the carrier who are double agent in Nigeria, collecting from their principal-(carrier) and from the Nigeria importers, shipping line charges, without any operational cost like the provision of the following: Non-provision of terminal space, non -provision of equipment, non-provision of security and non-provision of staff. “There is the need to stop the present increase and any other charge that is not tied to services in line the United Nations Convention on Carriage of Goods by sea (Ratification and Enforcement) Act 2005, WTO Articles VIII and the various domestic laws and regulation in Nigeria.” The Association of Nigeria Licensed Customs Agents (ANLCA) recently accused shipping companies and terminal operators of sabotaging the Nigerian economy by charging fees that are unfounded and increasing the cost of doing business at the nation’s ports in favour of other countries. Former president of ANLCA, Olayiwola Shittu, had stated this when the Managing Director of the Nigerian Ports Authority (NPA), Ms Hadiza Bala-Usman paid a courtesy visit to ANLCA in Lagos. Shitu, said shipping companies and terminal operators have increased charges claiming that the NPA has increased its due. Some of the charges, he stated, included: shipping due departing charges, facility charge and others. He said: “There is also the sea protection levy that is also being charged by the Nigeria Maritime Administration and Safety Agency (NIMASA). At the end these charges are transferred to the consumer, making life unbearable for them “Shipping companies and terminal operators are reaping us off charging all manners of fees. They believe Nigeria is big and they can get all the monies they want from the country to service other West African region. We have it on good authority that what the shipping companies get from Nigeria is what they rely on for survival because of the next- to-nothing charges they get from other countries in Africa. “Again, the demurrage they are charging in Nigeria; they don’t have the facility to support it, they are required to have holding bays they don’t have. It does not matter if the fault is theirs or not – you are still charged demurrage. Their charge is the cause of the high cost of doing business at the port and this is affecting the Nigerian economy.” They also urged the NPA to consider the illumination of the ports as they cannot clear cargo at night ANLCA also accused the NPA security personnel of aiding touts and beggars at the port while denying their members entrance to the port. “We were asked to get gate pass and we have complied. Severally, I have had to go to the gate to intervene when the NPA official are harassing our members who has genuine gate pass whereas beggars and touts are allowed to move freely within and outside the port premises. I want you to take it into consideration and put an end to this anomaly,” he said.

Source: Thisday

Personal income tax act is a topic everyone should know, whether you are an employee or an employer. Taxation is a crucial part of the everyday life of every person. We encounter taxes everywhere: at work, in a supermarket, and even at home. However, personal income tax is the most important of them. We have gathered all the vital information about it so that you understand all the intricacies of the law. Income tax image: pixabay.com Source: UGC If a thought about calculating and paying your personal income tax scares you, do not worry. Luckily, you have us to help you with this issue. Read on and become a fearless master of taxes.
What is personal income tax and personal income tax act? To start off, we should understand what a tax is. It is an obligatory payment all citizens of a country must make to a government. A government, in turn, uses this money to improve and sustain the functioning of a country and the life of its residents. Personal Income Tax (PIT) is a kind of obligatory levy that all individuals who gain any type of profit are obliged to pay. These people usually either are employed or have their own enterprises with or without employees. Personal income taxpayers also can be self-employed people. Money coins Image: pixabay.com Source: UGC All profits of the Nigerians fall under taxation. Even if you earned your money working for a foreign company and this revenue has a foreign origin, the levy is applied if the money is remitted to Nigeria. However, artists and athletes who earned money abroad are not obliged to pay the levy for these funds. They pay the levy only for money earned on the territory of Nigeria. Foreigners also pay the tariff only for funds earned in Nigeria. Personal Income Tax Act is the amendment of the Personal Income Tax Cap P8, LFN 2004. This law is relevant to levies and taxpayers. In Nigeria, taxpayers are all people who earn salaries or gain any kind of profit out any other sources of money. Your rights and obligations as a taxpayer Coins Image: pixabay.com Source: UGC As a taxpayer, you can demand from the authorities to be informed about what your levy money was spent on. Also, you are able to request any information about the procedure of paying the levies and all related matters, the authorities must fulfil this request. Having rights never goes alone without having certain obligations. In the case of PIT, all individuals must not keep in secret their sources of revenue and the amount of money they make. Also, based on your salary, you should pay your tariffs in time and calculate correctly the amount of taxes you have to pay. If you have, under any circumstances, failed to pay a PIT, certain penalties will be applied. 10% of the sum of levies not duly paid will be added to your obligatory payments. Additionally, you will be forced to cover all expenses related to the attainment of the funds not initially paid to the government. There are two ways by which the PIT can be paid. The first one is PAYE or pay-as-you-earn method. It applies to all people who work full-time for an employer. In this case, the employer is obliged to pay the levy for you by subtracting it from the salary you earn. Thus, you get your money with levies deducted already. By the way, employees who earn less than N300,000 a year must apply for a return of the levy. The second way is applied to self-employed individuals or those people owning a business and is called self-assessment or direct assessment. In this case, such individuals calculate the levy themselves and pay it to the relevant tax authority directly. Personal income tax rate in Nigeria In Nigeria, the rate of the PIT depends on the amount of money a person makes in one year. For the first N300,000, the levy rate is 7%. If a person makes another N300,000, then the rate increases to 11%. The next N500,000 escalate the deductible tariff rate to 15%, and subsequent N500,000 heighten it to 19%. The next N1,600,000 raises the levy rate to 21%. Then, in case a person receives another portion of revenue over N3,200,000, the rate soars to 24%. What is income tax in Nigeria? Money to pay Image: pixabay.com Source: UGC You should not confuse personal income tax with income tax (IT) or companies income tax (CIT). CIT is applicable to corporations and similar organisations. Such companies are entitled to pay the IT at the rate of 30% of their annual income. All corporations located in Nigeria are liable to this kind of taxation. Personal income tax in Nigeria can be a tricky matter. All Nigerian citizens have to pay this levy if they gain any revenue. The rate of the levy depends on how much money an individual makes. Your employer can pay PIT if you are an employee, or you have to calculate and pay it yourself if you are a self-employed person. Paying the tax on time is crucial. In the other case, unpleasant penalties will be applied. DIsclaimer This article is intended for general informational purposes only and does not address individual circumstances. It is not a substitute for professional advice or help and should not be relied on to make decisions of any kind. Any action you take upon the information presented in this article is strictly at your own risk and responsibility!

Source: Legit

The National Bureau of Statistics (NBS), has said that the Nigerian manufacturing sector contributed about N864 billion of the N3.63 trillion generated as Value Added Tax (VAT) between 2013 to 2018. The NBS report on Sectoral Distribution of VAT showed that the manufacturing sector’s contribution represented 24 per cent of the total VAT generated within the six-year period. A breakdown of the N3.63 trillion indicated that N481.5 billion was generated in 2013, N493.9 billion in 2014, while N759.4 billion and N777.51 billion were generated in 2015 and 2016 respectively.

According to the report, N972.35 billion and N1.10 trillion were generated as VAT in 2017 and 2018 respectively, with the amount generated in 2018 VAT being the highest in the six-year period. The manufacturing sector has eight sectoral activities among the 28 sectoral categories in the report. The sector’s activities included automobiles and assemblies, breweries, bottling and beverages, as well as chemicals, paints and allied industries. Others are manufacturing, petrochemical and petroleum refineries; pharmaceutical, soaps and toiletries; publishing, printing and paper packaging; and textile and garment industries. For VAT in the six-year period, the automobiles and assemblies contributed N8,691,597,713.42, breweries, bottling and beverages added N192,028,180,262, and chemicals, paints and allied industries accounted for N6,989,648,842.73. Others include manufacturing, N597,005,133,563, petrochemical and petroleum refineries, N37,013,858,414.6, and pharmaceutical, soaps and toiletries providing N7,131,243,714.78 to VAT. Similarly, Publishing, printing, paper packaging contributed N9,685,665,303.04, while textile and garment industry added N5,501,007,456.24 to the VAT in the six-year period. Director General, Nigeria Textile Manufacturers Association, Mr. Hamma Kwajaffa, commended the manufacturing sector’s contribution to VAT, saying there was a correlation between economic growth and VAT revenue. He said that increased contribution of manufacturing sector to VAT, especially in the fourth quarter of 2018, was driven by consumer spending during Christmas season. Kwajaffa urged the Federal Government to improve infrastructure support, fiscal incentives, financing, anti-smuggling activities and implementation of the Executive Order on patronage of locally produced goods. He said that doing these would boost the sector’s performance and invariably its contribution to VAT and Gross Domestic Product (GDP).

Source: The Sun

The Society of Women in Taxation (SWIT), Lagos Chapter, has stressed the need for improved tax revenue for national development. The group, an arm of the Chartered Institute of Taxation of Nigeria (CITN), which made this known during an event held in Lagos recently, said there was need to raise awareness on tax payment. In her address, the Chairperson, Mrs. Dena-Rose Ajayi said the event was organised to arouse the interest of the masses towards sourcing for tax revenue to better the society. She explained that for decades, over-reliance on oil revenue had made other sectors to suffer hence the need for the campaign. Ajayi, also pointed out that the issue at hand was very important for national development because it brings about creation of basic amenities for the citizenry.
She further used the opportunity to laud the Lagos State government for its giant stride in developing the state over the years through Internally Generated Revenue (IGR) and urged other states to emulate Lagos.
“I am very happy with Lagos State government for its giant stride in developing the state with IGR over the years. So, I urged other States to emulate this laudable feat, “she said. Meanwhile, a former President, CITN, Mr. Anthony Dike, in an interview, described the programme as a good initiative, adding that it would go a long way in boosting economic growth. He also posited that all should not be about talking alone, but the implementation of promises made so as to aid tax payers to do more. Moreover, a guest speaker during the event, Mrs. Atinuke Balogun said: “We don’t have to be the president to better the lives of the citizenry, but we can do so through our various capacities as tax professionals.” As the campaign for increased tax revenue continues, the federal government recently disclosed that it generated a total sum of N1.10 trillion as Value Added Tax (VAT) in 2018, representing a growth of 13.96 per cent (year-on-year) when compared to the N972.34billion collected in 2017. The National Bureau of Statistics (NBS) which disclosed this, however noted that a total sum of N298.01 billion was realised in the fourth quarter (Q4, 2018), representing an increase of 8.96 per cent when compared to the N273.50 billion collected in the preceding quarter. The Sectoral Distribution of Value Added Tax (Q4 and Full Year 2018) had shown that other manufacturing generated the highest amount of VAT with N28.82 billion in Q4, closely followed by professional services and commercial and trading which both generated N24.12 billion and N16.02 billion respectively. Mining activities generated the least VAT followed by pharmaceutical, soaps & toiletries and chemical, paints and allied industries with N35.75 million, N209.33 million and N258.39 million respectively. Of the total amount generated in Q4, N138.42 billion was collected as non-import VAT locally while N47.89 billion was generated as non-import VAT for foreign.

Source: ThisDay

Mrs Ene Obi, the Country-Director of Actionaid, has called on all taxable citizens and corporate bodies to pay their correct taxes to boost national development. Ene, represented by the Governance Manager, Actionaid, Mr Celestine Odo, made the appeal on Tuesday in Lagos at the opening of a three-day workshop on breaking barriers to education by increasing fair tax revenue in the country. She said it was fair for everyone to pay their taxes so that inequality does not spiral out of hand in the country.
The country-director said tax revenue remained the most sustainable way to develop the economy and provide adequate public services to Nigerians. To this end, Obi appealed to workers in the formal and informal sectors, as well as local and foreign companies in the country to pay their fair share of tax. She said taxation was a powerful tool for redistributing wealth within the society to address poverty and inequality rate. “A functioning state that can meet the basic needs of its people must rely ultimately on its revenue to meet its development objectives. An effective tax structure can also create incentives to improve governance, strengthen channels of political representations and reducing corruption,’’ she said. Furthermore, Obi said without increasing tax, the Nigerian government can generate additional tax revenue by blocking leakages and end the regime of granting unnecessary tax incentives to companies and high net-worth individuals. Similarly, the Education Programme Coordinator, Actionaid Nigeria, Mr Laban Onisimus, said government is unable to make adequate investments in quality public education especially for children in remote areas due to lack of sustainable financing for the sector. (NAN)

Source: Daily Trust

The Association of Licensed Telecommunications Operators of Nigeria has lamented the huge tax burden telecoms operators bear as a result of statutory and non-statutory taxes and levies from government agencies. The Secretary, ALTON, Mr Gbolahan Awonuga, said in a statement that the cost of doing business in the country was enormous despite the Ease of Doing Business initiative of the Federal Government. He noted that the cost of running business in the country was triple the cost in Ghana and other neighbouring countries. “We have witnessed in Nigeria today that most of the regulatory bodies have left the regulatory functions and now turn to revenue generating bodies and this brings about multiple taxation and regulation. “Please don’t forget that telecommunications operations are not isolated to the ecosystem, the cost of running business in Nigeria, especially telecoms is triple the cost of running same in Ghana and neighbouring countries. Almost all agencies of government are after telecommunications, why? We cannot afford to have crisis in the industry because we operate one network in all networks. He called on the Federal Government to consider a review of the Tax and Levy Amended Order 2015 signed by a former Minister of Finance, Mrs Ngozi Okonji-Iwaela. According to him, the order has created a lot of confusion in the industry. The association complained about the sabotage operators were facing in some states, saying the cost of right of way formed more than half of the cost of constructing telecoms infrastructure. Awonuga added, “This order has created a lot of confusion in the taxes and levies regime and making the environment harsh for business, not minding the government Ease of Doing Business programme. “The telecommunications industry has been the best customer-centric sector, where issue pertaining to subscribers are taken very seriously by both the operators and the regulator and despite all the challenges, there has not for once be an outage compare to other sectors, where you are put on estimated bills and inconsistence in flight schedules that has made several people missed appointments and valued meetings just to mention few. “We are talking about smart state initiatives and last mile penetration but some states’ demands on Right of Way are outrageous. The states are supposed to provide infrastructure for operators to lease but telecoms spent about 70 per cent of their capex on Right of Way leaving the remaining 30 per cent to build, this is not fair.” Awonuga also clarified some media reports which stated that there was a face-off between the Nigerian Civil Aviation Authority and ALTON and its members. According to him, ALTON sought clarifications on the charges, which led to the formation of an Advisory Committee which comprised NCAA and ALTON representatives. Awonuga added that the agency had also explained reasons for aviation height clearance, saying it was for safety as pilots needed guidance on the routes to navigate. “We were informed that there are categories of aircraft, big, medium and small, also the choppers and the drones are part of their responsibilities and these are not limited to telecoms infrastructure but to banks, radio stations and high-rise building. The director general said there were lots of airstrips and helipads, thus the reason for charging across the board,” he said. “The issue of aviation mast height clearance was discussed at the meeting because our members are being charged across the nation be it close to the airports or not and the agency tried to increase some of the charges as reported to us by our members and we took it up with the NCAA. Our members are responsible corporate citizens of the country and natural partners in progress that follow due processes.

Source: Punch

NIGERIA’s deepening frustration in her bid to boost non-oil revenue is a self-inflicted morass. Apparently finding it difficult to meet its revenue projections, the Federal Inland Revenue Service has vowed again to clamp down on wealthy tax evaders. The FIRS chairman, Babatunde Fowler, recited this mantra at his inaugural meeting with the acting Inspector-General of Police, Mohammed Adamu, saying that the service will pursue affluent tax defaulters in 2019. In an era of volatility in the prices of crude oil, which contributes the bulk of Nigeria’s earnings, this is a sound statement of intent. Nevertheless, in Nigeria’s pathetic enforcement milieu, Fowler’s avowal seems superficial. Irritatingly, the FIRS had missed almost all the previous deadlines to act decisively in reining in tax offenders. Although it generated a record N5.32 trillion in 2018, as many as 85,000 millionaires and billionaires, and corporate organisations still refuse to pay tax, Fowler stated. Through a scrutiny of 45,000 tax debtors in 2018, the FIRS collected N23 billion, but several more debtors are escaping the dragnet. “So far, we have 45,361 that have TIN (Tax identification Number) and are making payments,” Fowler said. “We have 40,611 that have TIN that made tax payment and, we have 44,504 that have no TIN and no payment. We have close to 75,000 in this group that are still not taxpayers and we have said the payment of tax is not only for the civil servants, it is for all Nigerians.” This, really, is the bottom line. A habitual indulgence, the rich in Nigeria get away without paying tax. Thus, Nigeria’s non-oil tax-to-Gross Domestic Product of six per cent is very low. Comparatively, South Africa has a tax-to-GDP ratio of 28.5 per cent; Kenya 18.4 per cent; and nearby Ghana 18.2 per cent. Among the developed economies, the United States boasts 26.0 per cent, the United Kingdom 34.4 per cent and Germany 44.5 per cent, the World Bank said. Therefore, a chunk of the tax here is derived from the public sector workers. A one-way traffic, it lopsidedly imposes a heavy burden on this group and the few compliant private sector workers. By bringing in the rich into the net, a 2018 report said the Federal Government could generate an additional $1 billion. Over the years, this complacency has cost the country dearly in revenue, apparently because the income from crude oil lulled the managers of the economy into shifting attention away from taxes. Vice-President Yemi Osinbajo told a bewildered nation in 2017 that just 214 Nigerians, all based in Lagos, paid a tax of N20 million and above each, annually. In all, 914 others paid N10 million in tax, with two of them based in Ogun State and the rest resident in Lagos. Out of a population of almost 200 million, in which 69 million are taxable, only 14 million paid taxes. This is ludicrous. It makes the target to achieve a tax-to-GDP rate of 15 per cent by 2020 a tall order. Cyclically, the government gives an impression that it is deadly serious about improving tax revenue. To make up, it proposed various schemes, including its intention to raise the value added tax and other taxes. This is poor thinking, a lazy way out that is likely to harm the economy the more. With criticism attending the VAT increment, government touted the Voluntary Assets and Income Declaration Scheme. A sensible scheme, it allowed tax defaulters to voluntarily pay what they owed without penalties. In the first 11 months of the amnesty period, it brought in N30 billion. That figure was 90 per cent to the government at the centre and 10 per cent to the states. It also increased the national tax base from 14 million tax paying adults in 2017 to 19 million in 2018, Fowler stated. Ominously, all seems to have gone quiet since the grace period elapsed in August 2018. In Nigeria, that silence is a bad sign; it is often an indication of the lack of political will to enforce the law, especially when the rich are involved. In contrast, the wealthy are being heavily subjected to taxation in Europe, the United States and Australia. Revenue, Ireland’s tax body, offers a sterling illustration. Periodically, it publishes a list of defaulters. The agency said it pursued 101 listed cases of under- and non-declaration between April and June 2016, which netted €17.44 million. Other settlements within that period yielded €125.3 million for the authorities. Spain, in the past two years, has brought famous sports stars to book for tax evasion. Among others, Cristiano Ronaldo, the world’s richest footballer, upon conviction, settled his case by paying €19 million last January. The trial judge turned down Ronaldo’s request to be accorded the privilege of using a backdoor entry into the court to avoid the prying eyes of the media on the day judgement was delivered. Nothing is left to chance in these countries and no one is above the law. Every Nigerian must pay tax. The FIRS and state revenue agencies should act creatively and firmly, bringing in more people into the tax net. It is scandalous that public office holders who earn jumbo remuneration pay unusually meagre tax. Government should intensify policies on progressive taxation, in which case, the richer you get, the more you pay, as is the practice in Europe.

Source: Punch

The results of last Saturday’s presidential election so far released by the Independent National Electoral Commission (INEC) have shown President Muhammadu Buhari winning all the way. The results, which have been collated and announced by INEC at its National Collation Centre in Abuja, put Buhari, the All Progressives Congress (APC) presidential candidate ahead of his main rival, Alhaji Atiku Abubakar of the Peoples Democratic Party (PDP), with a wide margin. However, the opposition PDP has rejected collation of the results over allegations of irregularities. Whether from states in the Southwest, Northeast, Northwest, or North Central geo-political zones, Buhari won with huge votes. The stage for Buhari’s victory was set by Ekiti State where the incumbent president defeated Atiku, followed by Ogun, Osun, and Lagos States. But Atiku halted Buhari’s smooth run in the Southwest when he came top in Ondo and Oyo States where results have already been declared by INEC at the collation centre. He has also won in Abia, Enugu, Ebonyi and Akwa Ibom States. Buhari however repeated the feat in Kwara, Kogi, Niger, Nasarawa States while Atiku stepped in winning in Benue and Plateau States in the North Central zone and Abuja, the Federal Capital Territory (FCT). The president also fared better in the Northeast zone as he floored Atiku in Borno, Yobe, Gombe except in Adamawa State where the PDP candidate held sway. Before INEC shut down the National Collation Centre yesterday evening to resume later at 10pm, Buhari had won seven of the 10 states’ results announced by INEC to Atiku’s three states and the FCT. The results are announced by INEC as they arrived in Abuja from the states. The details of the collated results showed that Buhari won in Yobe with 497,914 votes while Atiku got 50,763. In Ondo State, the president lost to Atiku, scoring 241,769 to the PDP candidate’s 275,901 votes. For Abia State, the president received 85,058 votes while Atiku won the state with 219,698 votes. Buhari won Gombe State with 402,961 votes as against Atiku’s 138,484 votes. The president also defeated Atiku in Kogi State with 285,894 votes to the latter’s 218,207. In Kaduna State, Buhari won the contest with 993,482 while Atiku received 613,318. INEC however named Atiku the winner of the poll in Oyo and Enugu States. In Enugu, Atiku got 355,553 votes to Buhari’s 54,423 while in Oyo, Atiku scored 366,592 to Buhari’s 365,229. The results of Kogi was protested by PDP representative, Mr.Osita Chidoka, who said that there was an earlier agreement that the results of Dekina local government area should not to be included because of the violence that broke out in the council, even as he expressed shock that the figures were in the final result sheet. In Kwara State, Buhari polled 308,984 while Atiku had 138,184. The situation was not different in Nasarawa State as Buhari got 289,903 and Atiku polled 283,847. In the FCT, Buhari lost to Atiku with 152,224 to 259,997 votes. The president emerged winner in Ekiti State with 219,231 votes while Atiku garnered 154,032. Also in Osun State, Buhari won with 347,634 votes to Atiku’s 337,377. During the presentation of the results, INEC chairman, Prof. Mahmood Yakubu asked the collation officer for Ondo State, Kayode Shoremekun, the vice chancellor of the Federal University, Ado Ekiti, to go back and reorganise himself. He had issues reconciling certain figures. Meanwhile, At INEC headquarters in Jos, Plateau State, the commission said that Atiku won the presidential election in the state with 530,334 votes to Buhari’s 470,538 votes. The collation officer, Prof. Anande Richard Kimbir, vice chancellor, University of Agriculture, Makurdi said that 93,000 votes were cancelled in Kabong, Tudun Wada due to over voting and other irregularities. Atiku won 11 councils of Mikang, Kanke, Pankshin, Langtang South, Jos South, Riyom, Bokkos, Langtang North, Barkin Ladi, Mangu, Riyom and Bassa. Buhari however swept Jos East, Qua’an Pan, Shendam, Wase, Kanam and Jos North. The details of the result from Lagos State showed that Buhari won in 15 of the 20 councils with a margin of 132,798 votes. INEC chief collation officer, Prof. Felix Salako, said yesterday that Buhari received 580,825 votes to beat Atiku, who got 448,015 votes in keenly contested election. While Buhari won in 15 LGAs, Atiku topped in five councils. Salako said the number of registered voters stood at 6,313,507, accredited voters 1, 096,490, total valid votes 1,089,567, total vote cast 1,156,590, while the rejected votes 67,023. It would be recalled that Buhari won the state in 2015 with a margin of 160,143 votes to defeat former President Goodluck Jonathan. Buhari then polled 792,460 votes while Jonathan got 632,327. Also, Buhari trumped Atiku in Gombe State. Announcing the result yesterday afternoon in Gombe, the returning officer for the presidential election in the state, Prof. Mohammed Kyari, from Modibbo Adama University of Technology, Yola said that Buhari won convincingly in nine of the 11 councils of Akko, Balanga, Kaltungo, Gombe, Dukku, Nafada, Kwami, Yamaltu-Deba and Funakaye while Atiku won in Billiri and Shongom LGAs. Kyari said that 604,340 voters were accredited but only 554,203 votes were valid while 26,486 votes were invalid. In Nasarawa State, the returning officer, Prof. Azubuike Nwankwo, said that Buhari polled 289, 903 votes to defeat Atiku, who scored 283,847 votes. The result showed that Buhari won in eight of the 13 local government areas while Atiku clinched five. Nwankwo said that 613,720 voters were accredited, while the total votes cast in the presidential election stood at 599,399. He said that the total number of valid votes was 580,778, while 18,621 votes were rejected. In Ogun State, the collation officer, Prof. Joseph Adeola-Fuwape, said that Buhari polled 281,762 votes to defeat Atiku with 194, 655 votes. He explained that the total number of registered voters in Ogun stood at 2,336,887, of which 613, 397 voters were accredited. Adeola-Fuwape said that the total number of votes cast stood at 605,938, of which the valid votes were 564, 256 and 41,682 were rejected. A breakdown of the total votes pulled by Buhari indicated that he won in 14 of the 20 local government areas of the state while Atiku won in six local government areas. INEC resident electoral commissioner (REC) in Ogun, Prof. Abdulganiyu Raji, said the commission officials in Ijebu East were forced to cancel the election results in the entire Ajebamdele Ward where malpractices was discovered at Polling Unit 06. INEC also declared Buhari winner of the election in Jigawa State. The commission’s chief returning officer in the state, Prof. Abdullahi Abdu Zuru, said that Buhari scored 794,738 votes while Atiku got 289,895 votes. The presidential collation officer for Adamawa State, Prof Andrew Haruna announced that Buhari who scored 378,074 votes was defeated by Atiku’s 410,266 votes. Haruna said that the total number of registered voters for the presidential polls were 1,959,322 and accredited voters were 8,74920. PDP Rejects Poll Results Meanwhile, the main opposition Peoples Democratic Party (PDP) yesterday rejected the election results being called by INEC describing them as incorrect and unacceptable to the party. The party also called for the nullification of all results from the Northern parts of the country where Card Readers were not used, in line with INEC guidelines. The national chairman of the PDP, Prince Uche Secondus, who made this statement while addressing a press conference in Abuja, also called for the cancellation of Nasarawa State presidential election. According to INEC, 157,591 votes from the 86 polling units were cancelled in Nasarawa State. Secondus also accused the Buhari presidency of dispatching some senior government officials to manipulate votes shortly after the election results began to trickle in on Sunday evening. “I want to categorically state that our collation centres have all original results from every polling unit, in every ward, in every Local Government Area (LGA) in Nigeria, of which the international community is well aware, implying all results currently being announced by INEC are incorrect, and thus unacceptable to our party and people. “Second, officials of both President Buhari’s government and the All Progressive Congress (APC), working with INEC officers, have tried to alter the course of history and disenfranchise our people through the cancellation and manipulation of figures for results already announced at polling units, nationwide, in LGAs, where our party, the PDP, had commanding votes; this must now be resisted by every well-meaning Nigerian.” It went on to accuse the ruling party of employing strategies it described as murderous, undignified, and disrespectful of the wishes of the electorate, our people and the international community who have been in solidarity with our nation as we attempt to strengthen our democracy and its institutions. The PDP further accused the ruling APC of colluding with INEC in manipulating the electoral process through inducement and aggressive tendencies using security agencies like the army, police, Department of State Services (DSS), the Economic and Financial Crimes Commission (EFCC) to silence the voices of the people. He said: “This is disheartening considering the terms of the Peace Accord, which called for impartiality and non-partisanship by members of our security organisations with constitutional roles to play during this civic exercise. “As results trickled in on Sunday, February 24, 2019, clearly putting the PDP in the lead, the ruling party and President Buhari dispatched high-ranking officials to coercively influence outcomes in different geopolitical zones in the country.” According to him, the minister of the interior was dispatched to the North West of the country; the Secretary of the Government of the Federation was dispatched to the North East of the country, while the Attorney General and another minister were dispatched to the South East and South-South regions. He also alleged that the INEC IT server had been hacked by agents of the APC to manipulate results in certain areas. He went on: “As if these provocations are not enough, our agents and officials are constantly arrested and in many cases locked up for complaining that Card Readers were not in use in many Northern states, implying that all results from the Northern part of the country where Card Readers were not used should be voided in accordance with INEC guidelines.” Secondus also called for the release of Eng. Buba Galadima. “In that context, I call for Buba Galadima’s immediate and unconditional release, as well as that of all officials and agents of the PDP in the Southwest, who were mostly arrested on the eve of the elections where intimidation became the APCs sole election strategy. “Despite these provocations, intimidation and attempts to hijack our democracy and change the course of history, I must, in fact, convey to our good people the fact that the PDP is on course to victory; therefore, remain resolute and steadfast, because our party shares in your uncertainty and suffering, which must decisively come to a good end for us all.” Opposition Planning To Cause Crisis – FG However, in its response to comments by the PDP leader, Prince Secondus, rejecting the results, the federal government yesterday raised the alarm that the Peoples Democratic Party (PDP) was plotting a constitutional crisis in the country. The government, however, warned against ongoing plans by the desperate opposition to truncate the electoral process and render last Saturday’s elections inconclusive, in order to push for an interim government. Minister of Information and Culture, Alhaji Lai Mohammed, who issued the warning in a statement, noted that “PDP has started laying the groundwork for a constitutional crisis by unleashing its talking heads, including Buba Galadima, Osita Chidoka and Femi Fani-Kayode, on the public space to claim victory in Saturday’s election even when INEC has yet to announce the results, an action that amounts to a clear case of impunity.” Mohammed also noted that by usurping the role of INEC through the announcement of results, the PDP had violated the Electoral Act and should face very serious consequences. ‘’By announcing the result and saying they have won the February 23 election, the PDP is deliberately seeking to confuse the polity and lay the foundation for rejecting the outcome if, when INEC eventually announces the result, the party does not win. ‘’This confirms what we said in a series of pre-election press conferences – that the PDP, realizing it cannot win a free and fair election, wIll do everything possible to scuttle the polls, failing which it will proceed to the next stage, which is to discredit the entire electoral process, including the result, with the ultimate aim of precipitating a constitutional crisis and pushing for an interim government,’’ he said. He called on the security agencies to nip in the bud the constitutional crisis that the PDP was working frantically to trigger by immediately arresting and prosecuting anyone who announces the result of last Saturday’s presidential and National Assembly elections illegally. Kudos, Knocks As EU, ECOWAS Present Election Assessment It was a mixture of praise and condemnation as some foreign observer teams present their assessment of the just concluded presidential and national assembly polls. The European Union Election Observation Mission (EU EOM) to Nigeria stated that the February 23, 2019 elections were marked by serious operational shortcomings resulting in delays. In a preliminary report of the Mission presented in Abuja yesterday, the EU (EOM) lauded the positive roles the civil society played in enhancing the transparency and accountability of the electoral process. The EU Chief Observer, Maria Arena, admitted that INEC operated in a difficult environment and made a number of improvements since 2015, including the introduction of continuous accreditation and voting. She explained that the last-minute postponement of the elections, and the delayed start of voting on 23 February, placed an undue burden on voters. “Going forward, there is a great need for more transparency and communication during the whole process, with political parties, civil society, the media and, most importantly, citizens,” said Ms Arena The mission expressed sadness at the loss of life in violent incidents during the campaign and on Election Day. Meanwhile, the Economic Community of West African States (ECOWAS) has commended INEC and security agencies for their dedication and professionalism during the course of the election. The mission, in a statement signed by Ellen Johnson-Sirleaf, the head of the ECOWAS observation mission, noted that the voting process went on smoothly despite the widespread delays witnessed at the commencement of the polls. ECOWAS also applauded the effective presence of security agencies at various polling units for maintaining peaceful order and curtailing outbreak of violence experienced in some places. The statement commended voters for comporting themselves and for the, patience and tolerance exhibited which contributed to peaceful conduct during the electoral process. The mission stated that the electoral process was largely peaceful and transparent as voters were able to cast their votes freely without any form of intimidation. While congratulating Nigerians on the patriotism, tolerance and sense of duty which contributed to maintaining peace and stability during the elections, ECOWAS however urged INEC and other stakeholders to approach the final phases of the process with fairness and transparency until the announcement of the final results. I’ll Wait For Final Results – PMB In a reaction to the polls’ results yesterday, Buhari said that he doesn’t believe in rumours and would wait for the final outcome to be declared by INEC. The president stated this on his arrival at the Nnamdi Azikiwe International Airport, Abuja from his home state of Katsinam where he voted during the poll. Buhari had left Abuja on Friday for Daura, Katsina State, to exercise his franchise. Asked of his reaction to what he heard from across the country, Buhari said: “I don’t want to depend on rumours, but we will rather wait for INEC to announce the results.” On his message to Nigerians as they await the final results, Buhari said that “l hope that Nigerians will appreciate that it was this government which made sure that they were allowed in security and peace to cast their votes for whichever party and candidates they wanted.” US Cautions Against Social Media Results Meanwhile, the United States Ambassador to Nigeria, Stuart Symington, has urged all candidates that participated in the general elections to honour the Peace Accord they signed whether they win or lose. Symington who was present during the formal opening of collation in Abuja, in a statement made available to journalists, advised all candidates to convince those supporting them to refrain from using force or violence to interfere with the results announced by the Independent National Electoral Commission (INEC). According to him, “No one should break the law by announcing results before INEC does, or break the peace by claiming victory before the results are final. He also enjoined Nigerians to be wary of fake results circulated through the different social media platforms. “Everyone has a common interest in showing patience as INEC collates and announces the election results.” The ambassador, however, lauded the efforts of many Nigerians and the hundreds of thousands who worked together with INEC to conduct the elections. “As noted by many observer groups in their preliminary reports, this election was predominantly peaceful, and it was proof of the Nigerian people’s resolute commitment to choose their leaders. The peaceful achievement of millions was shadowed by the violence of a few,” he said. Commonwealth Observers Urge Transparency In Results Collation As the INEC continues collation today, the Commonwealth Group observing the election has urged transparency in the final stages of collation and announcement of results. In its interim statement released yesterday, the group also called on political parties to reject violence, while also commending the people of Nigeria for their commitment to democracy, including positive steps taken for women and youth participation in politics. Chairperson of the observer mission and former president of Tanzania, Jakaya Kikwete, said, “We trust that the final stages of collation and announcement of results will be handled in a transparent and credible manner.” He added that the people of “Nigeria have demonstrated patience and commitment to their democracy. We appeal to them to maintain the same commitment in the post-election period.” He decried the spate of violence that trailed the elections.

Source: Leadership

President Muhammadu Buhari on Wednesday morning after the Returning Officer for the 2019 presidential elections, Prof. Mahmood Yakubu, declared him the winner of the election, thanked the millions of Nigerians who voted for him to continue to serve them for the next four years. President Muhammadu Buhari now at the APC Presidential Campaign Council Office addressing the country after his re-election. He thanks millions of Nigerians who voted him to continue serving us for the next four years. President Buhari of the All Progressives Party (APC) polled 15,191,847 votes to defeat the former Vice President Atiku Abubakar of Peoples Democratic Party (PDP), who had 11,262,978 votes and others. Buhari President Nigeria’s anti-corruption president President Muhammadu Buhari was elected in 2015 on a wave of hope that he could defeat Boko Haram Islamists and turn around a country blighted by decades of corruption and poor governance. But while he will go down in history as Nigeria’s first opposition candidate to defeat an incumbent, his first term was dominated by questions about his fitness to govern. From May 2016 until mid-2017, Buhari was in London for medical treatment for increasingly long periods of time, forcing government denials that he was gravely ill or even dead. To date, he has not disclosed details about his condition, apart from saying he had “never been so ill” and had to undergo multiple blood transfusions. But after US President Donald Trump reportedly called him “lifeless” after the recovering Buhari visited Washington, his critics found a potent slur. His absence also sparked one of politics’ more unusual conspiracy theories — that he had died and been replaced by a lookalike from Sudan. In recent months, some critics have focused less on his physical frailties and more on his mental faculties. After an appearance in a live televised question-and-answer session in January 2019, one commentator called Buhari “intellectually disabled”. Others were less kind. Buhari’s opponents say they have been vindicated for claiming before the 2015 election that he was too old to run and had terminal prostate cancer. But his ruling All Progressives Congress (APC) party dismiss the assertions as smears, and voters gave Buhari a second mandate in the February 23 presidential vote. – Dogged by the past? – How far Buhari’s illness has affected his attempt to end the threat from Boko Haram, tackle corruption, and boost the economy will be a subject of discussion for years. On security, there are worrying signs of a turnaround in initial gains against the jihadists, as the group’s Islamic State-backed faction grows stronger in the northeast. New security threats have also emerged elsewhere, including pro-Biafran secessionists in the southeast, and deadly clashes between farmers and herders in central states. In the north, armed bandits are carrying out kidnappings for ransom and rustling cattle, putting them into conflict with local vigilantes set up because of a lack of police. Buhari, a former army general who led a tough military government in the 1980s, had campaigned on a promise to make the country safer. He also touted himself as a “converted democrat” to persuade those with misgivings that his military past was history. But in office he has struggled to shake off claims of authoritarianism — particularly in his fight against corruption which critics say has been one-sided against perceived political opponents. His main challenger for the presidency, Atiku Abubakar, accused him of being “dictatorial” for suspending the country’s chief justice just weeks before February elections. Nigerian lawyers said it was an “attempted coup against the judiciary”, as the judge would have heard any legal challenges to the result. Former president and military ruler Olusegun Obasanjo even accused Buhari of trying to copy the hardline regime of Sani Abacha, by suppressing free speech and silencing opponents. – Ruling ‘cabal’ – Buhari came to power largely through the overwhelming support of northern voters, who see him as a down-to-earth “man of the people”. He has done little to challenge that perception, and is rarely seen in anything other than traditional Muslim robes. He has a reputation for a simple lifestyle. But his leadership style has been attacked for concentrating power within a small group of trusted advisors, who like him are Hausa-speaking, ethnic Fulani Muslims from the north. On several occasions, his wife, Aisha, criticised the so-called “cabal” around her husband, suggesting they held the real power. She also indicated she would not support him in his bid for re-election, and even retweeted videos of opposition lawmakers criticising the government. Critics, who gave Buhari the nickname “Baba Go Slow” because it took him six months to even appoint a cabinet, complain he has been sluggish to implement policies. Some blamed his economic management after Nigeria’s currency crashed and the country plunged into recession. But to some extent the cause of the crash — the global slump in oil prices — was beyond Buhari’s control, and forced the government to start thinking about diversifying the economy. Many have been satisfied he at least started to tackle the scourge of corruption, even if it at times he appeared to struggle with consensual politics. Buhari, from Daura, in the northern state of Katsina, divorced his first wife, Safinatu, with whom he had five children. Aisha, whom he married in 1989, is his second wife.
They also have five children.

Source: Vanguard