The former Minister of Internal Affairs, Tunji Olagunju has called on accounting practitioners to set the pace for good governance in Nigeria.
The former minister who is also a former Ambassador of Nigeria to South Africa
made this known during the 17th Conferment of Fellowship Status on Institute of Chartered Accountants of Nigeria (ICAN) certified accountants on Tuesday at ICAN Centre, Lagos.

Olagunju who was the Guest Speaker at the event said that Accountants whose job is to be proactive in financial administrations, as he added that they must do so with probity should champion the fight against corruption.
Meanwhile, Alhaji Rasak Jaiyeola, the 57th President of ICAN in his speech also supported Ambassador Olagunju’s advice as he charged the inductees to live up to the billings of ICAN Motto – accuracy and integrity.

According to the chairman, ICAN is a major stakeholder in the economy of Nigeria and they must utilise the technology advancement to deliver better and faster financial tasks. He said; “ICAN must reconnect with other sectors and thereby translate the business environment."

He also said that Uber, a multinational city transport firm, does not own a single vehicle but rides on the ease of doing business as offered by the internet to deliver cutting edge transport service. The Fellowship Status of ICAN is the highest a member can attain in his professional career as a Chartered Accountant.

Trending Accounting understands that ICAN, now currently has a membership of 46,591 out of which 13,287 are fellows. 1,301 eligible Chattered Accountants were inducted and awarded the distinguished honour.

SOURCE: https://www.trendingaccounting.com/2019/04/ican-induction-ex-minister-charges.html

The Society of Women in Taxation (SWIT) has raised concern that 70% of the N5.2 trillion taxes collected in 2018 in Nigeria, came from Lagos State alone. This development shows a lopsided tax base, and also an indication that the long four-year tax reforms and campaign have little impact in the remaining 35 states in Nigeria.

The Chairperson of SWIT, Mrs Justina Okoror, said it is worrisome that 35 states and the FCT contributed a paltry 30% of the total. She also said that to broaden the nation’s tax base, there was the need to expand tax collections into the interior parts of Nigeria, to increase the number of people in the tax pool.

“For instance, out of the trillions of naira generated by the Federal Inland Revenue Service (FIRS), 70 per cent came from Lagos, which means that 35 states plus FCT contributed only 30 per cent.” It means that there are so many states with nearly no productive activities happening, and by implication are not paying tax. If Lagos decides to become a sovereign state, Nigeria will not be able to generate any revenue from tax, she said. It’s mostly in the cities that there is a record of organisations paying tax, but in suburbs and local councils, there are no tax collections.

Stressing the need to expand the tax base, Okoror said with some states mining gold, diamond, and other natural resources, there is an urgent need for government to go into the hinterland and increase their revenue base, especially from private companies. Government must take seriously tax revenue generation just like what is being done with crude oil. They should go into these places with natural resources and make it another revenue base, she said.

She however, called on the Federal Government to engage governors on how to make their states viable, to attract investors and create more productive activities that would increase the tax base and revenue generation.
Furthermore, the incoming National Chairperson of SWIT, Kudiirat Abdulhamid, queried government’s increased borrowing, when potential revenue generation is lying idly, saying the increasing obligations is tying the nation’s resources to payment and servicing of the loan that is being taken.

She said that revenue generation through taxation is more sustainable, especially when such resources are judiciously tailored towards development projects that would benefit the people. It is the responsibility of government to provide basic amenities for the comfort of the citizens, while the citizens have the responsibility to pay directly or indirectly for it, she said the present situation in the country is not inspiring.

“I agree with people complaining over government borrowing, but if citizens pay taxes and it is judiciously utilised for provision of this services, people will be eager to pay more. But when government borrows money without providing infrastructures, citizens would become angry,” she said.

SOURCE:. https://www.trendingaccounting.com/2019/04/70-of-nigerias-n52-trillion-tax-revenue.html

Ashewo dey everywhere, even self gay dey fear say ashewo go collect all the boys for this year #IfIDie

On this day, 9 years ago (22 April 2010), We lost Oladapo Olaitan Olaonipekun aka Dagrin, aka lyrical werrey, aka CEO, aka Omo Ogun, aka Barrack O'grin, aka Fi mi le Jo. Keep resting in Peace. Drop your favorite Dagrin's lyrics

The Institute of Chartered Accountants of Nigeria, (ICAN) yesterday said the rejection of the proposed Chartered Institute of Forensic and Investigative Auditors of Nigeria (CIFIAN) by the House of Representatives, was a victory for professionalism in the country.

It maintained that the result of the debate on the bill shows clearly that it is not an issue between ICAN and the promoters of the bill, but the need to prevent duplication of the accounting profession and promote competence. ICAN president, Razak Jaiyeola stated during an interaction with newsmen in Lagos, alleging that the promoters of the bill are not competent and cannot use their skill to curb corruption in Nigeria.

Members of the proposed CIFIAN and the leadership of ICAN have been at logger heads with the former accusing ICAN of moves to frustrate the passage of the bill to establish CIFIAN which was passed by the senate but rejected last week by the House of Reps.

Jaiyeola said in its determination to make accountants more relevant, the Institute plans to hold its accountants technology conference also known as ‘Accounteks’.

The summit, he said would provide avenue for accountants and other business professionals to understand opportunities that exist in the area of technology for their profession.

The event which holds in Lagos, he disclosed will also provide a platform of interaction between members and manufacturers/vendors of these technologies in addition to helping narrow the technology gap between members who are Chief Finance Officers and their Chief Information Officers counterparts.

“The two-day summit hold between 29th and 30th April 2019 and will feature some of the most experienced and innovative business and technology technocrats in Nigeria and Africa”, he said.

https://guardian.ng/news/house-rejection-of-forensic-bill-victory-for-professionalism-says-ican/amp

Following the successful conclusion of its merger with Diamond Bank, Access Bank Plc said it now has the largest loan book in Nigeria’s banking industry, at over N3 trillion.

Mr. Victor Etuokwu, the bank's Executive Director, Retail Banking disclosed this yesterday in Abuja, at the Access Bank Business Workshop for Health Practitioners, noted that the bank has also emerged the largest lender to the small and medium enterprises (SMEs) sector.

He further stated that historically, Access and Diamond Banks were known to rank among the biggest lenders to SMEs in the country, adding that the merger had cemented the bank’s position as the biggest financiers of SMEs and other critical sectors of the economy.

He stated: “Today, Access Bank has the largest loan book in the industry, about N3 trillion. No other bank has that amount. With our merger with Diamond Bank, we have two banks today, who lend the most to SMEs. Diamond was a major lender to SMEs, same thing with Access Bank. Today, we are the bank that is truly the home for SMEs.”

Etuokwu called for increased support for the country’s health sector, while he added that the Federal Government needed to be prodded to invest more in health insurance.

“The health sector guarantees that people are able to even do business. It is a sector that tends to well-being. Any sector that tends to and drive well-being in Nigerians would do well. If you are not healthy, you cannot do business. Any sector that drives healthy conditions supports you to be well. This is a sector that we need to finance a lot more, needs to be a lot structured. We need to have a lot more health practitioners in the country.

“If you look at the ratio of health workers to population, it is very low. Effective demand for health, the ability to pay for health in the country is quite low. We need to drive government to invest a lot more in health insurance. Health insurance drives the health sector.”

https://www.vanguardngr.com/2019/04/merger-access-banks-loan-book-hits-n3trn/amp/

The Chief Executive officer (CEO) and co-founder of Jobberman, the biggest job website in Sub-Saharan Africa, Ayodeji Adewunmi has resigned from his position to pursue a professional career in investment.
Mr Adewunmi resigned after nearly 10 years as the CEO of the company to pursue his new career.

He said “I think it is great timing to say goodbye and explore what is next.” It is truly overwhelming but I have the comfort of knowing that I am leaving Jobberman in better hands than my own. It is such an incredible feeling and honour to experience what you founded takes a life of its own. I will remain close to the company and have full faith in the team and new management to continue to solve Nigeria’s recruitment needs.”

However, the company has announced Matthew Page, the Head of Jobs of Ringier One Africa Media (ROAM), as the interim head.
“We wish Ayodeji incredible success in the future and we are grateful for the impressive work he has done in building a remarkable brand.” Page said.

Jobberman was Launched in August 2009, and has grown to be the biggest job site in Sub-Saharan Africa with strategic partnerships with key media companies. Since 2017 Jobberman is part of the portfolio of Ringier One Africa Media.

SOURCE: https://www.trendingaccounting.com/2019/04/ayodeji-adewunmi-quits-as-ceo-of.html

The Federal High Court in Katsina has sacked the Honourable member-elect representing Bakori/Danja Federal constituency, Hon. Amiru Bakori.

Recall that the court had earlier fixed today for ruling and judgment on the case before it filed by Engr. Yakubu Nuhu Danja challenging the legitimacy of the candidature of Amiru Bakori for Bakori/Danja Federal constituency in the APC primary elections conducted in November 2018.

When the matter came up during the court proceedings, the plaintiffs argued before the judge that the first dependent and the current member representing Bakori and Danja in the Federal House of Representatives, Amiru Bakori is not the legitimate winner of the primary election conducted.

The plaintiffs, therefore, after their presentation of exhibits including the results sheet of the primary election conducted, prayed that the court void the earlier decision of the APC and directed them to in turn pronounce Engr. Yakubu Nuhu as the winner.

Recall that, Engr. Yakubu Nuhu Danja, has raised concerns over alleged substitution of his name by the national headquarters of the party.
Engr. Danja polled 314 votes to defeat the incumbent Member, Amiru Bakori, with 305 votes in the primary and was declared winner by the APC National Electoral Committee in the state headed by Dr. Isah Adamu.
He said efforts by Gov. Aminu Bello Masari and the party’s Chairman in the state, Shittu Shittu, to correct the anomaly were being frustrated by some forces in Abuja.

“I will be left with no other option than to resort to litigation given that the period of final substitution and correction of candidates is fast approaching,” he said.

SOURCE: http://katsinapost.com.ng/2019/04/18/breaking-court-sacks-katsina-apc-house-of-reps-member-elect/

Governor Aminu Bello Masari Says the move of the federal government to construct new prison yard in the state was a welcome development.
The governor who spoke through his Deputy QS. Alhaji Mannir Yakubu was speaking when he received Minister of Interior Alhaji Abdurrahman Bello Dambazau on a courtesy visit.

Alh Mannir Yakubu said the new prison yard would assist to wards reducing prison yard congestion and over crowd.

On the issue of will defence agro range formed by federal government to protect farmer, from kidnapping and arm bandit. The governor observed that, the Idea would contribute towards improving farming activities and production in the state.

Earlier the minister of Interior Alhaji Abdurrahman Dambazau said, he was being carrying out by the federal government.
The project according to him include construction of men modern prison yard and and training of civil defence agro range.

SOURCE: http://katsinapost.com.ng/2019/04/18/governor-masari-thanked-fg-buhari-for-a-new-prison-in-katsina/

According to latest statistics from the Central Bank Of Nigeria (CBN), the nation’s foreign reserves rose by $1.85 billion to $44.728 billion as of April 12 from $42.87 billion in March 12, 2018.

The value, rose from a value of $43.041 billion in December 17, 2018 to $43.047 billion as of January 9, 2019. Records revealed that the reserves, which suffered declines in past months, had been maintaining a steady rise of recent.

While speaking on efforts to conserve the country's foreign exchange, the Central Bank Governor, Godwin Emefiele said,“ We introduced a demand management approach in order to conserve our reserves. In this regard, we analysed our import bill, and encouraged manufacturers to consider local options in sourcing their raw materials, by restricting access to foreign exchange on 41 items, which we later increased to 43 items.”

Emefiele, had earlier said that because crude oil was a major source of the country’ s foreign exchange, the nation's economy became sensitive to fluctuations in the price of crude oil. “Significant declines in the price of crude oil not only reduced Nigeria’s export earnings, but the nation was also subjected to higher inflation and lower growth, given our dependence on imported goods,” he said.

With the discovery of shale oil, along with policy measures being put in place by advanced countries, such as the United States and China, towards reducing car emissions and supporting alternative sources of energy such as battery powered cars, he said it had become imperative to build up buffers that would insulate the nation's economy from volatility in the crude oil market.

He said, “At the height of drop in crude oil prices, our FX Reserves had declined to $23.7 billion in October 2016. With the implementation of the tools, the stock of our external reserves has recovered steadily and has risen to $44.8 billion as at March 19, 2019.”

SOURCE: https://www.trendingaccounting.com/2019/04/foreign-reserves-gained-185-billion-in.html

Following its merger with Diamond bank, Access Bank Plc has declared N45.10 billion as Profit Before Tax, for its first quarter which ended March 31, 2019. The profit represents 64.4% increase compared to N27.44 billion posted in the corresponding quarter in Q1’18.

Details of the bank’s Q1 financial statement released on the Nigerian Stock Exchange, NSE, showed that the bank’s earnings rose by 16.4% to N160.12 billion on the back of 9.1% increase in interest income.

The net assets of the bank also was up 17.5% to N576.47 billion from N490.51 billion in Q1’18, while the interest income rose to N95.12 billion from N87.24 billion. The basic earnings per share at N1.39 kobo was 80.5% increase compared to N0.77 in the corresponding period in 2018.

Commenting on the report, Mr Herbert Wigwe, Group Managing Director/Chief Executive Officer, Access Bank, said: “The group delivered solid earnings underscoring the value potentials of the newly expanded business model. Gross earnings showed a 16% increase to N160.1 billion from the prior year, comprising strong earnings on interest income and non-interest income of 69% and 31% respectively, whilst Profit before Tax (PBT) grew by 66% to N45.1billion.

“Our capital and liquidity position remained above regulatory levels, with CAR at 19.5 percent and liquidity ratio of 47.6% further demonstrating the capacity of the enlarged balance sheet to cope with possible negative shocks. Following the successful completion of the merger with Diamond Bank in March 2019, we have now fully positioned ourselves in the retail market with a view to bringing the power of banking to the doorsteps of millions.

Nigeria's giant bank, Guaranty Trust Bank Plc yesterday released its latest unaudited financial results for the quarter ended March 31, 2019 (Q1’19), which revealed that profit before tax (PBT) rose by 8.3% to N57 billion during the quarter.

A statement from the bank disclosed that: “Gross earnings for the period grew by 1.2 percent to N110.3 billion from N109 billion posted in March 2018. Profit before tax improved to N57 billion from N52.6 billion recorded in the corresponding period of March 2018, representing a growth of 8.3 percent. Customers’ deposits also rose by 6.0 percent to N2.410 trillion in March 2019 from N2.274 trillion in December 2018, whilst the Bank’s Loan book grew by 1.6 percent from N1.262 trillion as at December 2018 to N1.282trillion in March 2019.

“Balance sheet remained strong with the Bank closing the quarter ended March 31, 2019 with Total Assets of N3.556 trillion and Shareholders’ Funds of N627.2 billion. In terms of Assets quality, NPL ratio and Cost of Risk closed 7.03% and 0.05% in March 2019 from 7.30 percent and 0.34% in December 2018 respectively.”

The Managing Director/Chief Executive Officer of Guaranty Trust Bank Plc, Mr Segun Agbaje, while commenting said; “Going into 2019, we knew that it would be a challenging year, but our strategy and unwavering focus on delivering value for our customers and shareholders continues to underpin our ability to consistently deliver solid results despite changing market variables. We carried on the momentum of the previous year, posting strong growth in earnings, effectively managing costs and leveraging our digital-first customer-centric strategy to deliver world-class services that are simple, cheap and easily accessible.”

In the past week, on three separate occasions, I've overheard someone ask, “How do I answer that interview question about what my passions are if I don't even know what I'm passionate about?” And so, here, I'd like to offer a few thoughts on what appears to be a common issue when it comes to interviewing.

WHY DO INTERVIEWERS ASK ABOUT YOUR PASSIONS?
First, I think it's important to back up for a minute and ask why interviewers often pose this question to job candidates. The way I see it, there are three possible reasons.

One, your interviewers want to get to know you better. They want to get beyond your resume. They want to see what you really care about, which might tell them if they'd like to work with you, if others at their company would like to work with you. It's a sort of 'Do you fit the company culture?' test to see if you're compatible with others at the company.

Two, your interviewers want to find out if you're a hardworking person. Yes, through the passion question, it can be determined if you're a committed follow-through type of person. Note, this passion question is never about the passion itself. Rather, it's about what you do with that passion: where you take it, how you incorporate it into your life (and how it might apply to the job you’re interviewing for). So, you will be fielding follow-up questions (more on that later). And through this question, an interviewer can get a good sense of how you follow through on things you believe in.

Three, your interviewers want to try to understand the depth of your thought process. Another way to put it, more simply, is they want to find out how deep you are. Are you passionate about weighty things or simplistic things? This doesn't mean you need to be passionate about existential philosophy, but it's important to show to your interviewers that you're a serious person and have the ability to problem solve and think deeply, thoroughly, and broadly.

WHAT IS AND WHAT ISN'T A PASSION?
With all that in mind, and before we get to what a good answer to the passion question might look like, I think it's also important to talk a little about the word "passion." In my opinion, "passion" is an overused and often misunderstood word, which is partly why people have such a problem answering the passion question, and why they believe they might not have any passions.

To get at what a passion is, maybe it's easier to begin with what a passion doesn't necessarily have to be. To me, it doesn't have to be your life's work. It doesn't have to be the one thing you hold higher in importance than all others in your life. It doesn't have to be the one true love of your life. It doesn't have to be something incredibly weighty. And it doesn't have to be something that you do every day.

As for what a passion could be, it could be something you like to do very much but don't get to partake in all that much. It could be something you do in your free time. It could be a so-called hobby and not related to your career. And it could be something abstract. For example, it could be competition, solving problems, storytelling, learning, or standing up for the oppressed.

CHOOSING A "PASSION" TO TALK ABOUT IN YOUR INTERVIEWS.
Now that you have an idea what interviewers are trying to determine when asking about your passions, and what a passion is and isn't, it's time to decide on a passion to give your interviewer. As mentioned above, you should be prepared to talk at length about your passion since there will likely be follow-up questions about your passion. And so, as a first step, make sure your "passion" is something you feel comfortable with talking about for a long time. Which is to say, make sure it's something you know quite a bit about, could hold a conversation about for several minutes to an hour, and make sure it's something that excites you (you definitely don't want to come across as not all that excited about something that you say you like a fair amount).

Next, make sure it's something that'll get across a quality of yours that you'd like your interviewer to know about and that will help your job candidacy. This should go without saying, but never forget that the intention behind everything you say and do in an interview is to get the job (or at least, get to the next round of interviews). You want to highlight why you'd be a good fit for the job and excel at the job. And the passion question is a perfect place to help differentiate yourself from other candidates.

Finally, make sure you answer honestly. This should also go without saying, but there is a tendency (an understandable one) to give your interviewers answers you think you should give them as opposed to answers that are honest.

WHAT A GOOD ANSWER MIGHT LOOK LIKE.
Above I used "competition" as a possible "abstract " passion. It's my sense that a lot of job candidates (especially younger ones like recent college grads and recent grad-school grads) that receive interviews with top companies are, to a great extent, passionate about competition. And they might not even realize it. At least, they might not think of competition as a passion. But I believe it could be a perfect answer to this passion question—especially for those who struggle to determine what they’re passionate about—in part because a competitive spirit is a (written or unwritten) requirement for most professional jobs out there.

For example, you likely can't become a highly successful student or athlete (or employee) without loving to compete. You might think the obvious way to use a competitive passion is to compete against the competition, but I think what makes successful students and athletes truly successful is they love to compete against themselves. They love to compete to see not only if they can score or perform higher or better than others, but also, and perhaps more importantly, if they can score higher and perform better than they themselves had done previously, if they can push themselves to be better, faster, stronger, more productive, etc.
This is also true in other pursuits. Even artistic ones. Ernest Hemingway, for one, didn't just want to write good prose; he went on record as saying he wanted to be the best writer to ever live. And so, it was his competitive nature that helped push him to be better, not necessarily his love of literature (though that probably didn't hurt, either).

So, let's say that you, on further thought, find that competing is indeed one of your passions, and so you decide to use competition as your answer. Your interviewer will then likely ask you to tell about how this fits into your life. You could, in response, talk about past experiences in which you competed (academically, athletically, on the job—where you wanted to perform better as an individual and/or as part of a team).

You could also talk about how it fits into other hobbies of yours, how you always try to make something a little bit better than you did before (say, if you often cook) or do better than you did before (say, if you run marathons). This will underscore that you strive to do excellent work (while showing you have other interests) and that you are committed to outdoing yourself, that you continually want to improve upon work you did previously. Which is certainly a good quality for any employee at any company.
And then, if you're asked why you're passionate about competing, your answer might include that you take great joy and satisfaction in trying to outdo yourself, in trying to see how far you can go, how well you can perform (again, in an individual setting, team setting, or both). Maybe it's also exciting to see that you're able to go further than you thought, to see that your mind likes to tell you you can't possibly do better but through perseverance you're often proven otherwise.

Of course, this is just one of numerous possible passions that could be used. It’s up to you to search yourself and your own life and experiences to find your specific passions. And then it’s up to you to determine which of these so-called passions is the best fit for the job you're interviewing for.

ICAN is behind this, they just want monopoly of power in the accounting Profession. I remembered how Pa Akintola Williams and MKO Abiola fought the establishment of ANAN.

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The National Bureau of Statistics (NBS) has disclosed that the country’s inflation measured by the Consumer Price Index (CPI) in March 2019 was 0.06% points lower than the rate recorded in February.

In its “CPI and Inflation Report" released on Tuesday in Abuja, the bureau said the CPI which measures inflation decreased to 11.25% (year-on-year) in March 2019.

According to the NBS, this is 0.06% points lower than the rate recorded in February 2019 which was 11.31%. It, however, said increases were recorded in all Classification of Individual Consumption by Purpose (COICOP) divisions that yielded the Headline index. On a month-on-month basis, the bureau said the Headline Index increased by 0.79% in March 2019, this was 0.06 per cent rate higher than the rate recorded in February 2019 0.73%.

The Report said the percentage change in the average composite CPI for the period of 12 months ending in March over the previous 12 months was 11.40%. It said the figure showed 0.16% point from 11.56% recorded in February.
Meanwhile, the bureau said the urban inflation rate increased by 11.54% (year-on-year) in March from 11.59% recorded in February 2019.

It said the rural inflation rate increased by 10.99% in March from 11.05% in February.
On a month-on-month basis, it said the urban index rose by 0.81% in March 2019, up by 0.05 from 0.76% recorded in February. Also, it said the rural index rose by 0.77% in March, up by 0.06% from the rate recorded in February (0.71) per cent.

According to the report, the corresponding twelve-month year-on-year average percentage change for the urban index is 11.78% in March. This is less than 11.95% reported in February while the corresponding rural inflation rate in March is 11.08% compared to 11.23% recorded in February.

The CPI measures the average change over time in prices of goods and services consumed by people for day-to-day living. The construction of the CPI combines economic theory, sampling and other statistical techniques using data from other surveys to produce a weighted measure of average price changes in the Nigerian economy.

The House of Representatives of Nigeria on Tuesday rejected the Bill for an Act to establish the Chartered Institute of Forensic and Investigative Auditors of Nigeria (CIFIAN) for effective regulation, cerification and registration of members.

The audit bill which was sponsored by Hon. Uzoma Nkem-Abonta (PDP-Abia) and two other lawmakers also determines the knowledge, cerification and skills that a practitioner is required to attain in order to qualify to practice as a Forensic and Investigative Auditor.
The bill, which passed first reading in the year 2018 at the senate, was rejected by the House for the conflicting role of the Chartered Institute of Forensic and Investigative Auditors of Nigeria with similar professional body such as the Institute of Chartered Accountants of Nigeria (ICAN) and the Association of National Accountants of Nigeria (ANAN).

The Deputy Speaker, Mr. Lasun Yussuff, while contributing to the bill stated that since the word ‘audit’ was being contested, it could, for clarity purposes, be coined to read ‘forensic investigators’ or ‘experts’.

Hon. Yussuff went further to explain that the Bill could look like an exclusive accounting bill, but with his advice, it would be more encompassing for other fields. Nkem-Abonta said that the word ‘audit,’ was encompassing and could be used as investigation and the bill should not be rejected just because accountants don’t like it. He also noted that the bill, as it was, was not an exclusively accounting one, but all encompassing.

A reps Member, Hon. Simon Arabo (PDP-Kaduna), while contributing stated that if the word ‘auditor’ was the only contention, it could be expunged to accommodate the content. Hon. Kayode Oladele (APC-Ogun), said that since it had been discovered by the three-man committee set up by the Speaker that other countries had the proposed body, the Bill needed to be passed. Rep. Oladimeji Ayodele (PDP-Ekiti), said that if the proposed Bill was for the establishment of an association, it would be okay; but the fact that the proposed institute seeks to be chartered, then it was contradictory to laid down law.

Rep. Shehu Garba (APC-Kaduna), said that auditing was one responsibility strictly reserved for accountants and passing the proposed bill as it was would be creating confusion of agency roles in the minds of Nigerians. Also, Hon. Babangida Ibrahim (APC-Katsina), on his part, said that an auditor was a professional.

“So, the word ‘audit’ should be expunged. The way it is being applied in the proposed bill or the bill should not be passed. ”Nkem Abonta, in exercising his right of reply, said that the term ‘audit’ in the bill was just to investigate and did not seek to take anything away from the accounting profession.

The lawmakers unanimously declined passing the bill through second reading when it was put to a voice vote by the speaker, Hon. Yakubu Dogara

SOURCE: https://www.trendingaccounting.com/2019/04/reps-reject-forensic-audit-bill-say.html

FBN Holdings Plc has announced N59.7 billion Profit After Tax (PAT) for the full-year ended December 31, 2018. The result released at the weekend also showed PBT also rose by 19.7 per cent from N54.5 billion in 2017 to N65.3 billion last year.

However, gross earnings dipped by two per cent from N595.4 billion in 2017 to N583.5 billion in 2018 while the group is proposing a dividend per share of N0.26 for 2018 as against N0.25 paid in the previous year.

The group’s total assets increased by 6.3 per cent y-o-y to N5..6 trillion as against N5.2 trillion driven by 33.3 per cent year-on-year increase in investment securities to N1.7 trillion compared to N1.2 trillion in 2017. Total customer deposits grew by 10.9 per cent year-on-year to N3.49 trillion (compared with N3.14 trillion in the previous year.

“Capital adequacy ratio for FirstBank (Nigeria) remains strong at 17.3 per compared with 2017 figure of 17.7 per cent, 230 basis points above the regulatory minimum of 15 per cent, while the capital adequacy ratio for FBN Merchant Bank closed at 12.2 per cent as against 13.5 per cent in the previous financial year above the 10 per cent regulatory requirement for merchant banks. See Report below

Nigeria's external reserves are set to hit six months high of $45 billion before the end of this month as foreign portfolio investors, FPIs, sustained dollar injection in a bid to take advantage of the double digit interest rate on Nigeria’s fixed income instruments.

Last week the reserves maintained upward trend for the sixth consecutive week. Data from the Central Bank of Nigeria, CBN, showed that the reserves rose to $44.722 billion as at Thursday, April 11, from $44.683 billion on Thursday April 4, implying weekly increase of $39 million.

Further analysis showed that the reserves have gained $294 million dollars from $44.428 million since the beginning of the month. With this upward trend expected to continue, the reserves will hit $45 billion before April 30.

This will translate to the highest level of external reserves for the country in six months, specifically since September 18 when the reserves stood at $45.002 billion. After falling persistently for seven months, from peak of $47.989 billion on July 5, 2018, the reserves commenced steady ascent from $41.296 billion on February 28. Since then the reserves have gained $3.43 billion or 8.3 percent.

This sharp gain is driven by increase in crude oil price and huge dollar injection by foreign portfolio investors seeking to take advantage of double digit interest rates on Nigeria’s fixed income instruments, namely treasury bills and FGN bonds, to maximise returns on their investment.

According to FSDH Merchant Bank, “The rise in the external reserves was driven by the significant rise in Foreign Portfolio Investors, FPI, in March and increase in crude oil price. We believe the increase in FPI was as a result of foreign investors’ interest in the Nigerian fixed income market on account of attractive yield and relatively stable exchange rate.”

Financial Vanguard analysis showed that dollar injection by foreign portfolio investors, FPIs, spiked by 363 percent to $7.54 billion dollars in the first quarter of the year, Q1’19 from $1.63 billion in the previous quarter, Q4’18. The highest dollar injection of $4.47 billion by foreign portfolio investors was recorded in March, up by154 percent from $1.75 billion in February. Meanwhile activities in the Investors and Exporters, I&E, foreign exchange window indicate that dollar injection from FPIs is still high though lower than the level recorded in March.

Data from FMDQ showed that $2.1 billion have been traded in the window in the first two weeks of April. This translates to weekly average of $1.05 billion so far in April, down from weekly average of $2.3 billion in March.

https://www.vanguardngr.com/2019/04/external-reserves-to-hit-45bn-as-dollar-inflow-from-fpis-continues/amp/

All roads lead to Eko Hotel & Suites, Victoria Island, Lagos for the 2019 ICAN Merit Award slated for Saturday April, 13, 2019.

Awards will be bestowed on prominent Nigerians and corporate bodies that have distinguished themselves in accounting or other fields of endeavour and have made outstanding contribution(s) to the nation’s development.
The Institute’s flagship social event is for Chartered Accountants in strategic positions in private and public sectors as well as key players in other professions, government, members of the diplomatic corps and outstanding business people in Nigeria.

Awards will be given in the member’s, non-members’ and corporate body categories.
Members to be honoured are Otunba Abdul Lateef Owoyemi, FCA, a past President of the Institute and Dr. Awa Ibraheem, FCA, the Chairman of Oak Pensions.

The Merit Award will also be bestowed on two non-members namely the Emir of Kano, HH Muhammadu Sanusi II and Prof Ibrahim Gambari, Former Minister of External Affairs while Deloitte and KPMG Professional Services will be honoured in the corporate body category.

Dr. Sarah Alade, the former Deputy Governor of the Central Bank of Nigeria will be the Special Guest of Honour at the Annual Dinner & Awards while the Ooni of Ife, His Imperial Majesty Oba Adeyeye Ogunwusi is the royal father of the day.

SOURCE: https://www.trendingaccounting.com/2019/04/2019-ican-merit-award-is-here.html

CHAIRMAN of Heir Holdings, Tony Elumelu on Friday told the International Monetary Fund (IMF) and other development party to provide alternatives to Nigeria if collecting loans from China was injuries to the nation’s economy.

Elumelu also said that his Foundation will continue to support the government and the people through the $5,000 grant, so as to create a more prosperous society. The International business tycoon spoke with State House correspondents after he paid a private visit to President Muhammadu Buhari at the Presidential Villa, Abuja.

Reacting to the warning by the IMF to Nigeria to be weary of China loan, he said that anyone that was opposed to taking loan from the country should provide alternative source of funding.
Mr Tobias Adrian, the Financial Counsellor and Director of the IMF’s Monetary and Capital Markets Department had warned on Wednesday during the launch of the Global Financial Stability Report for April, 2019 at the IMF/World Bank meetings in Washington D.C, United of America. According to him, “Capital flows, which includes capital flows from China are of course important for development.

“On the other hand, what is very important in lending arrangements are the terms of the loans and we urge countries to make sure that when they borrow from abroad the terms are favorable.

“In particular, we recommend that loans to countries should conform with Paris Club arrangements and that is not always the case of loans from China,” he said. But Elumelu said nature abhors vacuum, hence the IMF, World Bank and other development partners should provide alternatives that will create jobs.

Asked his position on the IMF warning, Elumelu said, “My position is that nature abhors vacuum, if you do not want Nigeria to take China loan, provide the alternative. Like I keep saying, they should also support the development of entrepreneurs, they should look at ways to help us eradicate poverty in a manner that is sustainable.

“For me, one of the surest way to eradicate poverty is to ensure that our youths are gainfully employed through entrepreneurship. “Also to make sure that development agencies – IMF, World Bank and co help and support Nigeria to improve on her infrastructure, road transportation, access to electricity.

“These are things that will help us improve on security in Nigeria, these are things that will help us increase prosperity through employment which is the most important thing. “So, the advise is good but nature abhors vacuum.”
“On the economy and the next level, let us just continue in what we are doing, improve on them, increase capacity.

“I operate in the power sector, we are the biggest generator of electricity in Nigeria through Transcorp power and I know first hand what efforts government is doing. “But we need to do more, we need to convert gas to power, we need to compliment what is going on already in agric space and as you know there is peace and prosperity in that sector but we need to add a little zeal to it to be able to attract investors.
“I think the elections are over and we need to move forward as a team, as a country so that our people will be better for it.”

https://www.vanguardngr.com/2019/04/china-loan-provide-alternatives-to-nigeria-elumelu-replies-imf/amp/

The Chartered Institute of Forensic and Investigative Auditors of Nigeria (CIFIAN) has renewed its plea to the leadership of the House of Representatives to ensure the Bill establishing CIFIAN was passed before the end of 8th assembly.

Dr. Victoria Enape, Pro-tem President, CIFIAN, and other council members made the call at the induction of about 100 new members into the circle of forensic auditors.

She said that the House of Representatives had between now and June to tell Nigerians that it abhors corruption by passing the CIFIAN bill for possible concurrence after it was passed by the Senate on July 5, 2018. According to her, the passage of the bill by the House of Reps will also signify that the legislators are in support of President Buhari’s fight against corruption.
“We are surprised and worried about the delay in the House of Representatives due to the activities of enemies of the Bill which is orchestrated by greediness and parochial interest of group of persons that has no interest of Nigeria at heart.

“We are calling on the House of Reps to disregard the antics of the enemies of Nigeria who have continued to prevent the country from experiencing deliverance from fraud, corruption and cyber-crimes which have dwarfed development over the years.

“This is rather unfortunate, and all antics by the enemies need to be disregarded by the House of Representatives to enable possible concurrence to the Bill without further delay based on its merits, as posterity will remember them,” Enape said.

Enape who noted that CIFIAN was not another accounting body just as some people have insinuated urged the new members of the institute to work with other members to ensure that fraud was prevented in the country. Prof. Oladipupo Adeshina, a fellow of the institute said the only way to fight financial crime was to allow CIFIAN to come on-board through the necessary legislative backing.

This, he said would enable the country join other league of nations in the fight against financial crime. Dr Jerome Agi, another fellow of the institute and a council member, urge Nigerians to take advantage of the CIFIAN training to become a forensic auditor as the world has now shifted attention to using forensic method to tackle fraud.

Agi said: “Fighting corruption is the number one priority of President Muhammadu Buhari because corruption has eaten deep into the fabrics of our nation and it can only be halted when a body like CIFIAN is given the legitimate rights and powers to carry out reforms.
“This is why CIFIAN is different from other accounting bodies because we go beyond looking at the books; we go to look for corruption and cyber-crimes where ever they are hiding.

“The developed world has done this because they are in need of it and their society is better off for it; in Nigeria, we must do it so that monies can be used rightly for the development that will benefit the entire nation.” He urged the legislators not to be cajoled into believing that the Bill would be used against them or against anybody other than those involved in financial crime.

Another fellow of the institute, Dr. Paul Mannixs noted that one cannot continue to do the same thing all the time and expect new result. “It is expedient that government do something that will bring a change in the fight against corruption and CIFIAN direction is the right direction.

“Nobody is a custodian of knowledge; there is nobody who can make it by himself, so government and private institution must collaborate for one goal – how to make the country better. “Therefore, no organisation or individual should be an obstacle to that right direction which is in the common interest of the society,” Mannixs said.

SOURCE: https://www.trendingaccounting.com/2019/04/forensic-auditors-beg-dogara-others-to.html

The Federal government and the 36 states spent N428.4 billion to service external debt amounting to N7.76 trillion ($25.3 billion) in 2018. The amount spent on external debt services represents 4.7 percent of the N9.1 trillion approved budget for 2018.

National Bureau of Statistics (NBS) disclosed this in a report titled, “Nigeria’s Foreign and Domestic Debt position for Fourth Quarter, and 2018″. The report showed that the country’s external debt rose by 33.8 percent to N7.76 trillion ($25.3 billion) in 2018 from N5.8 trillion ($18.91 billion) in 2017.

Further disaggregation of Nigeria’s external debt showed that multilateral debt stood at $11.01 billion and accounted for $249.05 million or 16.92 percent of the total external debt service. Bilateral debt (AFD) which stood at $344.63 million accounted for $150.36 million or 10.21 percent of the external debt service figure, while $11.17 billion of the external debt which was commercial (basically Eurobonds and diaspora bonds), accounted for $1.03 billion or 70.03 percent of the total external debt service. Others, comprising of agency fees and oil warrants, accounted for the remaining $41.75 million or 2.84 percent of the total external debt service fee.

Meanwhile the country’s total public debt comprising of foreign and domestic debts rose by 12 percent to N24.39 trillion in December 2018 from N21.73 trillion in December 2018.
Further analysis showed that the domestic debt rose by 4.3 percent to N16.63 trillion in December 2018 from N15.94 trillion in December 2017.

Lagos State has for the highest foreign debt profile among the thirty-six states and the FCT, accounting for 5.64 percent of the total debt, while Edo (1.09 percent), Kaduna (0.90 percent) and Cross River (0.75 percent) followed closely.
Similarly, Lagos State accounting for 3.19 percent of the total domestic debt stock, while Yobe State has the least debt stock with a contribution of 0.17 percent to the total domestic debt stock.

SOURCE: https://www.trendingaccounting.com/2019/04/fg-states-spend-n428bn-to-service.html

The National Assembly has urged the Federal Government to consider increasing taxes on luxury goods to boost revenues, it said yesterday while considering the country’s spending plan for 2019.

Nigeria has been trying to raise government revenues in the face of lower oil prices after the country recovered from a recession that slashed public finances, weakened its currency and cut spending on capital projects. Africa’s largest economy, which has one of the lowest tax rates on the continent, relies on crude oil sales for much of government revenues.

In the past, the government has mulled the idea of raising taxes on luxury goods to 15 per cent from the current rate of five per cent, to boost its tax to gross domestic product (GDP) ratio to 15 percent from six per cent between 2017 and 2020.

But collection has been a major challenge in a country where many small business are not registered. Also, economists say the timing of a tax hike would be closely watched as companies and consumers face cost pressures in a time of slow growth.

In elections in February, President Muhammadu Buhari won a second four-year term that will start in May. He has pledged to revive the economy and boost growth through spending on roads and railways.

The Senate said the government was budgeting for a deficit of N1.86 trillion ($6.1 billion) in 2019 to be funded via borrowing, privatisation proceeds and loans secured for specific projects.

It expected the country to generate N172.47 billion ($564 million) from privatisation proceeds. The parliament did not identify the assets for sale. Last month, the government said it planned to cut its stake in oil joint ventures this year.

Nigeria is budgeting N8.83 trillion of expenditure for 2019, based on oil output of 2.3 million barrel per day production at assumed benchmark price of $60 per barrel. The plan is under consideration by parliament.

The government has said it would borrow N1.649 trillion to help fund the budget, half of which is targeted to come from offshore sources.

Bank of America Corp said on Tuesday it would raise its minimum wage to 20 dollars (about N7,200) per hour over a two-year period. “The increase will occur in increments. On May 1, 2019, the minimum hourly wage will increase to 17 dollars and will continue to rise until it reaches 20 dollars in 2021.

“This is part of the company’s commitment to being a great place to work and delivering sustainable, responsible growth through competitive benefits and programs that support the diverse needs of its 205,000+ employees.

“We are raising our minimum wage because we believe that to best serve our customers and clients, we need the best teams,” said Sheri Bronstein, chief human resources officer at Bank of America.

Bank of America joins other Wall Street banks that have raised hourly wages following U.S. President Donald Trump’s move to cut corporate tax rates in 2017. JPMorgan Chase & Co has been raising hourly wages to between 15 dollars and 18 dollars to pass on the benefits of the tax windfall to employees.

JPMorgan Chase & Co unveiled a 20 billion dollars investment plan on Tuesday to hike wages, hire more, open new branches and expand its business as it takes advantage of sweeping changes to the U.S. tax law and a more favorable regulatory environment.

The bank joined several other U.S. companies that have already announced spending plans after the federal tax overhaul was signed into law in December, bringing lower corporate rates and other changes.

In the most explicit use of tax savings announced by any major bank, JPMorgan said it would raise wages for 22,000 employees by an average of 10 percent, to between 15 dollars and 18 dollars per hour, hire 4,000 employees and add up to 400 Chase branches.

The five-year plan comes after Chief Executive Jamie Dimon’s push to ramp up investment in businesses as the bank has finished the majority of work needed to clean up troubled home mortgages and comply with tougher capital requirements following the 2007-2009 financial crisis.

However, Bank of America raised its minimum wage to 15 dollars two years ago. The bank’s hourly wage has risen by 4 dollars since 2010, it said.

The naira yesterday appreciated to N360.55 per dollar in the Investors and Exporters (I&E) window even as the Central Bank of Nigeria (CBN) injected N210 million into the inter-bank foreign exchange market.

Figures obtained from the CBN yesterday showed that authorized dealers in the wholesale segment of the market received $100 million, while the Small and Medium Enterprises (SMEs) segment and customers requiring foreign exchange for invisibles were allocated $55 million each.

A statement by the apex bank’s spokesman, Mr. Isaac Okorafor reiterated the CBN’s commitment to continue to boost interbank foreign exchange market to ensure liquidity and stability in the market. Data from FMDQ showed that the indicative exchange rate for the I&E window dropped to N360.55 per dollar from N360.68 per dollar on Monday, translating to 13 kobo appreciation for the naira.

The volume of dollars (turnover) traded yesterday dropped by 50 percent to $132.88 million from $88.79million sold on Monday. The naira, however, was stable at N358.7 in the parallel market.

SOURCE: https://www.trendingaccounting.com/2019/04/naira-climbs-to-n36055-as-cbn-injects.html

The National Assembly has urged the Federal Government to consider increasing taxes on luxury goods to boost revenues, it said yesterday while considering the country’s spending plan for 2019.

Nigeria has been trying to raise government revenues in the face of lower oil prices after the country recovered from a recession that slashed public finances, weakened its currency and cut spending on capital projects. Africa’s largest economy, which has one of the lowest tax rates on the continent, relies on crude oil sales for much of government revenues.

In the past, the government has mulled the idea of raising taxes on luxury goods to 15 per cent from the current rate of five per cent, to boost its tax to gross domestic product (GDP) ratio to 15 percent from six per cent between 2017 and 2020.

But collection has been a major challenge in a country where many small business are not registered. Also, economists say the timing of a tax hike would be closely watched as companies and consumers face cost pressures in a time of slow growth.

In elections in February, President Muhammadu Buhari won a second four-year term that will start in May. He has pledged to revive the economy and boost growth through spending on roads and railways.

The Senate said the government was budgeting for a deficit of N1.86 trillion ($6.1 billion) in 2019 to be funded via borrowing, privatisation proceeds and loans secured for specific projects.

It expected the country to generate N172.47 billion ($564 million) from privatisation proceeds. The parliament did not identify the assets for sale. Last month, the government said it planned to cut its stake in oil joint ventures this year.

Nigeria is budgeting N8.83 trillion of expenditure for 2019, based on oil output of 2.3 million barrel per day production at assumed benchmark price of $60 per barrel. The plan is under consideration by parliament. The government has said it would borrow N1.649 trillion to help fund the budget, half of which is targeted to come from offshore sources.

SOURCE: https://www.trendingaccounting.com/2019/04/nigeria-lawmakers-okay-tax-on-luxury.html

The Federal Inland Revenue Service (FIRS) says it plans to realize its revenue target for the year through recoveries from defaulting millionaire taxpayers, values added (VAT) and compliance enforcement activities.

The Chairman of FIRS, Tunde Fowler, said in January that the agency’s revenue collection target for 2019 was about N8 trillion.

Mr Fowler told the House of Representatives joint committees on Finance, Appropriations, Aids, Loans and Debt Management Legislative Budget and Research and National Planning and Economic Development that he hopes about N750bn would be realized from about 55,000 defaulting taxpayers during the year.

Mr Fowler, who spoke on the 2019/2021 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), said using banking information to bring non-compliant taxpayers with N1 billion and above turnover to comply about N23.25 billion has been recovered so far.

He also restated that 85% of VAT collected goes to State Governments. He said the exercise has been extended to cover those with turnover of N100 million and above.

“To date, about 500 of the tax defaulters have come forward and have paid about N24 billion. We believe we should be able to go through the 55,000 before the middle of this year.
“In terms of estimates we should be able to be able to generate from this exercise alone about N750 billion.”

Besides, Mr Fowler said the FIRS also expects that the increase in Value Added Tax (VAT) collection between 2015 and 2018 will continue during the year.

He said FIRS is already broadening its VAT collection scope with the adoption of States Accountants Generals (SAG) collection platform, VAT Auto-Collect, integration of the GIFMIS platform with Ministries, Departments and Agencies, (MDAs) and through e-Service payment options.

Out of about N5.3 trillion, a large percentage of the revenue is shared between states and local governments.’ In VAT, there has been a growth of over 44 per cent between 2015 and 2018 at the current rate of 5 percent.

“When you look at Africa as a continent, Nigeria still has the lowest VAT rate. When we look at the items that do not attract VAT, they include basic food items, medicals, and education.
Insisting VAT is not for the poor, Mr Fowler said if one is able to go to a restaurant to eat and drink the same thing one can buy in the open market, then one can pay VAT.

“So, VAT basically is a consumption tax, and those who choose not to go to the open market to buy their food and cook at home are subject to VAT. So, VAT is not a hardship on the low income earners.

“For those who have the ability and the desire to take the choice of going to areas where they have to pay VAT, then they should be allowed to pay VAT,” he added. He said revenue collection by FIRS increased by about 32 per cent from N4.02 trillion in 2017 to N5.3 trillion in 2018.
The FIRS Chairman told the committee that through enforcement activities in respect of defaulting taxpayers from various tax offices, tax audit and investigation assessments, the agency recovered about N28. 51 billion and $77. 83 million.

Also, the FIRS is partnering with the Economic and Financial Crimes Commission (EFCC) and Joint Tax Force (JTF) since 2018 to enhance the fight against tax related economic fraud. As at December 2018, he said about N6. 94 billion and $278,430 had been recovered by the JTF as part of initiatives to boost revenue generation.
To deepen tax revenue collection and expand the nation’s tax net as well as increase the revenue base, Mr Fowler said the FIRS also initiated income tax on property owners in Abuja and Lagos.

He said the initiative, which was initially targeted at property owners in Abuja and Lagos, has so far yielded N4.3 billion, and is being extended to other locations like Oyo and Kaduna states.
“It is important to note that this is not a property tax, but rather the use of the provisions of the law to bring into the tax net companies that own properties but failed to file necessary tax returns and pay appropriate taxes due," Mr Fowler said.

On tax audit exercise of the Service, the FIRS boss said this will cover both the National Tax Audit (NTA) and the Pioneer Audit (PA). The NTA exercise contributed the sum of N212.79 billion to tax collection in 2018.

SOURCE: https://www.trendingaccounting.com/2019/04/how-firs-plans-to-realise-its-revenue.html

The Managing Director of Mutunci Company Nig. Ltd, Mr Bharat Vora, on Monday prayed a Federal High Court in Abuja to award him N2 billion damages against the Federal Inland Revenue Service (FIRS) for illegally shutting down his business.

Vora, also asked for the refund of N7 million that he paid FIRS to re-open his factory which they have failed to honour. The plaintiff, who was prosecution witness number 3, and who was led in evidence by his counsel, Mr Sepirido Peters, identified the bundle of exhibits numbered 1-165 given to him by his lawyer.

The exhibits, which reflected the stage of proceedings, contained the witness statements on oath, his tax clearance certificates, invoices, ledgers, original copies of sales books, audited documents, among other exhibits. The exhibits were all marked as PW2 (a), 3(aa), 3 (ii) and others.

According to Peters, the FIRS “asked the plaintiff to pay taxes on money he never earned,’’ which led to the eventual shut down of the company in 2016. Counsel to the FIRS, Mrs Efe Lawrence, however, did not oppose the identification of documents by the witness.

The plaintiff said in his statement that his company was incorporated under the laws of the Federal Republic of Nigeria and carried out operations in Kaduna State. He said they had been in the business of manufacturing and sale of pipes and other accessories.

He said that based on a request by the FIRS, he had agreed for a tax audit on the company’s accounts for 2011 and 2012. He said the audit, which began in July 2013, led to the closure of his business in 2016 over payment of taxws on monies he never earned.

Justice Inyang Ekwo, adjourned the case until May 2, for cross examination and continuation of hearing.

While defending his ministry's budget in the Senate, the Minister of Budget and National planning, Udoma Udo Udoma has disclosed that the Federal Government will revert to the January to December budget cycle, beginning with the 2020 national budget.

Udoma expressed the executive’s willingness to comply with the provisions of the Fiscal Responsibility Act 2007 by submitting the Medium Term Expenditure Framework and Fiscal Strategy Paper to the National Assembly on time.

He said it would be achieved by collaborating with the legislature. He noted that the new arrangement would not only make planning easier for both the public and private sectors but would also ensure proper oversight by relevant committees of the National Assembly.
He said the delay in submitting and passing the 2019 budget was caused by both the executive and legislative arms of government which relegated governance to the back seat because politics occupied centre stage during the 2019 elections.

He said, “I believe that going into 2020, this is a year that we should be able to achieve it. This is the year that we should be able to sit down with the National Assembly and achieve it. The President is determined to achieve it.

“We will be sitting down with the National Assembly so that we can achieve it. And we don’t need to do it by legislation. I think it is better to do it by cooperation, working together.”
The MTEF/FSP, an annual rolling three year-expenditure planning, sets out the medium-term expenditure priorities and provides the basis for the preparation of the annual national budget.

Specifically, Section 11 (b) of the Fiscal Responsibility Act stipulates that the MTEF/FSP be submitted to the National Assembly‘ not later than four months before commencement of the next financial year.'

A total of 14 commercial banks listed on the Nigerian Stock Exchange are billed to pay N103 billion in taxes to the Federal Inland Revenue Service for the 2018 financial year.

An analysis of the recent financial statements filed by the banks on the NSE showed that Ecobank Transnational Incorporated will pay the highest amount of N33.61 billion.

A breakdown of the amount revealed that the tax liability was originally N35.076 billion, but a deferred tax asset of N1.46 billion was deducted from the amount.

Guaranty Trust Bank Plc has the second highest tax liability of N30.85 billion, followed by United Bank for Africa Plc, which reported a tax liability of N14.30 billion.

UBA listed its tax components to include N8.98 billion current tax, and N550 million Information Technology tax and a deferred tax of N5.32 million.

Stanbic IBTC Bank Plc reported a tax liability of N13.712 billion, followed by Zenith Bank Plc, which is to pay N4.052 billion minimum tax.
An analysis of the financial statement of Zenith Bank showed that the bank had a total tax liability of N26.63 billion, but was assessed based on the minimum tax rule because of a significant non-taxable income that resulted in a taxable loss for the bank. Zenith Bank said included in the total tax amount was N18.04 billion dividend tax for 2018 financial year, but it was liable to dividend tax of N25.43 billion, which represented 30 per cent of the N84.77 billion dividend paid as the Nigerian tax laws required companies to pay tax calculated at 30 per cent of the higher of taxable profit and dividend paid.

However, the total Company Income Tax payable based on minimum tax was N4.35 billion as the bank had tax paid in the prior year and tax credits amounting to N3.04 billion.
The difference between income tax payable assessed on dividend and income tax payable assessed on minimum tax amounted to N18.04 billion, which was charged as tax expense during the period.

Fidelity Bank Plc has a tax liability of N2.16 billion, made up of a current tax of N1.91 billion and IT tax of N251 million.

Access Bank Plc reported a tax payable of N1.65 billion, which comprised CIT of N4.37 billion, IT tax of N752.4 million and Capital Gains Tax of N17.8 millio, after which a deferred tax of N63.49 billion was deducted.

Wema Bank Plc is billed to pay a tax of N1.47 billion for the 2018 financial year, which can further be grouped into CIT of N351.8 million, National Information Technology Development Agency tax of N56.06 million, and a deferred tax of N1.063 billion.

Sterling Bank Plc reported a tax of N271 Million for the period, saying it paid N710 Million during the year.

It had a tax balance brought forward of N232m, a current tax charge of N173 Million, CIT of N173 Million and IT tax of N98 Million. Sterling Bank said the basis of its income tax for 2018 was 30 per cent of N575.808 Million, which was the value of the dividend paid to shareholders in 2018 and relating to the 2017 financial year.
First City Monument Bank Plc reported a tax liability of N123.3 Million, made up of N107.1 Million of dividend tax and N16.2 Million income tax.

It said all the provisions of the CITA that mandated a minimum tax assessment, where a taxpayer did not have any tax liability arising from its tax assessment, were applied.

As of the time of collating the results, Diamond Bank Plc, First Bank of Nigeria Limited, Union Bank Plc and Unity Bank Plc had yet to file their 2018 financial statements, so, their financial statements for the nine-months period ended September 30, 2018, were used.

Diamond Bank reported a tax of N398.4m, Union Bank reported N164m, Unity Bank reported N57.94m and First Bank reported N38m.
Union Bank said it was not liable to pay income tax as it recorded a tax loss for the period.

The Minister of finance, Zainab Ahmed, told Lawmakers in Abuja that the federal government has concluded plans to increase revenue by introducing new taxes. Mrs Ahmed spoke at the public hearing on the 2019 budget organised by the Senate and House of Representatives committees on appropriation.

The minister also said the federal government has devised a new revenue initiative to increase revenue to fund the 2019 budget. She said the initiative is segregated into three thematic areas and appealed for the support of the National Assembly.

“The first area is sustainability in revenue generation. The focus of this is for us to build a sustainable revenue generation ecosystem by ensuring resilience and applying automising revenue streams, applying the right incentives, the right safeguards as well as ensuring accountability and performance management systems.”

For this focus, the government seeks to improve collection, shock loopholes, and collaborate with trading partners to manage performance, deregulate and provide funding for the energy sector.

“The second thematic area is to identify new and enhance the enforcement of existing revenues streams. We plan to grow revenue by collecting new taxes, modulling the tax base and enabling strategic investment that will spur economic growth. In this area, we have identified some new taxes that we’ll be coming to discuss with the National Assembly. We’ve also continuously been working to broaden the tax base to expand and improve the value added tax performance.

“We will be working with the National Assembly to amend some laws and we might be using some executive orders.” Although Mrs Ahmed did not state the details of the new taxes.
Different government officials have suggested new taxes on luxury goods like alcoholic beverages, as well as increase in the Value Added Tax.

This announcement is coming barely a week after the Minister of Budget and National Planning Ministry, Udo Udoma, and chairman of the Federal Inland Revenue Service, Babatunde Fowler, announced that the government is planning to increase the Value Added Tax (VAT) to fund minimum wage.

The government some months ago increased the minimum wage from N18,000 to N30,000. The new wage has been passed by the National Assembly and assented by the president.
Mrs Ahmed said the third thematic area is achieving cohesion in the revenue ecosystem. She noted that the federal government is making efforts to ensure that the performance of the 2019 budget exceeds that of 2018.

UPDATE: https://www.trendingaccounting.com/2019/03/nigeria-to-introduce-new-taxes-to.html