The number of BVN-linked bank accounts in Nigeria rose to 37.2 million as at March 24, 2019 Trendingaccounting has learnt. This showed that about 400 accounts were linked in the last one month as the figure stood at 36.8 million last February.

However, based on the number of active bank accounts in the country, which was 73.5 million in February, about 36.3 million accounts are yet to be linked five years after the introduction of the banking security measure. Bank Verification Number (BVN) is a unique number for customers of banks in Nigeria, which contains biometric details of customers, including the fingerprint of all 10 fingers and facial image. The Central Bank of Nigeria (CBN), through the Bankers’ Committee and in collaboration with all banks in Nigeria, launched a centralised biometric identification system for the banking industry in 2014.

The biometric identification was introduced to address identity theft, reduce exposure to fraud and enhance the banking industry’s chances of being able to fish out blacklisted customers, among others. According to NIBSS, the total number of bank accounts opened by Nigerians, which stood at 118.1 million as at the end of last December, inched up to 118.9 million in January and rose to 120.1 million in February.

Further breakdown of the data indicates that the number of active bank accounts also increased during the period, as they grew from 71.2 million last December to 71.7 million in January and 73.5 million last month. The data also reveals steady growth in the total number of current accounts during the review period as these increased from 25.7 million in December 2018 to 25.9 million in January and 28.4 million in February.

According to an email sent by a Tier 1 lender to its customers last week, the planned restriction on corporate accounts without requisite BVN details of all their directors and signatories is in compliance with a directive issued by CBN to lenders that all customers’ accounts should have the BVN details of all signatories, directors, as well as beneficial owners, linked to their respective non-individual accounts.

The bank’s email reads in part: “Kindly note that in order to avoid sanctions on the bank from CBN and disruptions in the operations of your account(s), the required information are to be provided on or before April 30, 2019, to enable us link same to your account(s) with us.”

CBN had, in a letter to DMBs, dated February 1, 2019, noted that DMBs were not fully complying with its regulations on Anti- Money Laundering and Combating the Financing of Terrorism (AML/CFT), which requires all financial Institutions and Designated Non-Financial Institutions to identify directors, all signatories and beneficial owners of accounts.

Consequently, the apex bank directed all financial institutions to ensure: “All customers’ accounts should have the BVN details of all signatories, directors and beneficial owners linked to their respective non-individual accounts.

“This is also mandatory for Non-Resident Non-Nigeria Directors (NRNND) of corporate accounts as the enrolment of Nigerian banks’ customers in diaspora for Bank Verification Number (BVN) issuance is still on-going in the 18 enrolment centres situated in different locations across the globe. “Any non-individual account that does not have the BVN details of all signatories, directors and beneficial owners linked is deemed to have inadequate Know Your Customer (KYC) requirements.”

Reminding DMBs that a circular on Uniform is deemed Account Opening Forms and the Minimum Information Requirement for Three-Tiered KYC for Customers, which it issued to them in February 2014, had stipulated that prospective and existing customers must provide BVN details of all directors and beneficial owners, the regulator directed financial institutions to intensify efforts to sensitize their customers to the issue and ensure that all accounts are BVN-linked on or before April 30, 2019.

At the end of its monthly meeting, yesterday, the Federation Accounts Allocation Committee, FAAC, shared N619.857 billion to the three tiers of government as revenue generated for the month of February 2019, but shared in March 2019.

Acting Accountant General of the Federation, AGF, Mohammed Usman, who briefed newsmen at the end of the FAAC meeting in Abuja, said the amount was lesser that N505.246 billion shared in January, which he attributed to the persistent shut down of oil installations within the month under review.

The AGF also disclosed that the balance in the Excess Crude Account, ECA, currently stands at $183m, which is less than $249 billion recorded in the previous month by $66 million.

A communiqué at the end of the meeting indicates that from the N619.857 billion, the Federal Government received N2223.157billion, the states received N113.188bn, Local Government Councils received N187.263 billion.
The oil-producing states received N45bn as 13 per cent derivation revenue and the Revenue Generating Agencies received N9.725 billion as the cost of revenue collection.

Meanwhile, for February 2019, the gross revenue of N478.434 bn was received in the month of February 2019. This is lower than the N505.246 bn received in the previous month by N26.812bn.

The gross revenue from Value Added Tax, VAT, was N96.389bn as against N104.468bn distributed in the previous month, resulting in a decrease of N8.079 billion.

SOURCE: https://www.trendingaccounting.com/2019/03/faac-shares-n619857-billion-to-fg.html

The Corporate Affairs Commission (CAC) on Tuesday revealed that it had registered 3,098,193 companies and firms in Part A, B and C categories from its inception in 1990 to March 21.

The Acting Registrar General of CAC, Mrs Azinge Azuka disclosed this at the commission customers forum in Abuja. Azuka said that in the last three years, the statistics on registration of firms and companies under Parts Limited Liability Company (A), Business Name (B) and Incorporated Trustee (C) was 618,309.

She explained that in 2016, the council got the sum of 175,098 from the LLC (A), 193,194 from Business name (B) in 2017 and 252,035 from Incorporated Trustee (C) in 2018. Azuka said the number of Annual Returns filed under the Parts A,B and C in the last three years was 190,078.
According to her, the major thrust in the present administration is to revamp the Nigerian economy though the support of Micro Small and Medium Enterprises (MSMEs).

She said the commission remained resolute in reviewing its processes regularly, in a bid to improve service delivery. “In that regard, work is at advanced stage to amend it enabling law, the Companies and Allied Matters Act (CAMA) in collaboration with the National Assembly.

“This seeks to ease starting and growing businesses in Nigeria, ensure more appropriate regulation for MSMEs.

“Enhance transparency and shareholders engagement align regulate framework with International best practices and make Nigeria an investment destination of choice,” she said.
CAC was established by the Company and Allied Matters Act, which was promulgated in 1990 to regulate the formation and management of companies in Nigeria. (NAN)

SOURCE: https://www.trendingaccounting.com/2019/03/cac-registers-3098193-companies-in-28.html

The Federal Inland Revenue Service (FIRS) yesterday explained that Value Added Tax (VAT) is a consumption tax primarily designed to support poor people, and not to create hardship for them.

The Chairman of FIRS, Babatunde Fowler allayed fears that the increase in VAT may cause hardship for the poor, stating that VAT is charged on consumption and capacity to consume. He said: “When you don’t consume certain categories of goods and services, you are not liable to pay VAT charges on those items.

VAT is not charged on all medical and pharmaceutical products. It is not charged on basic food items. It is not charged on books and educational materials. It is not charged on baby products, fertilizers, locally produced agricultural and veterinary medicine. VAT is not charged on farming machinery and farming transportation equipment.

“VAT is not charged on all exports, plant machinery and goods imported for use in Export Processing Zones and free trade zone: Provided that 100 per cent production of such company is for export.

“Other services exempted from VAT are medical services, services rendered by Community Banks, People’s Bank and Mortgage Institutions, plays and performances conducted by educational institutions as part of learning and all exported services are exempted from VAT.
Fowler said some people misunderstood what VAT is. VAT is a consumption tax. If you don’t have money to purchase certain categories of goods and services and you don’t consume them, then VAT is not your problem. “VAT is used to assist the needy.

VAT provides support for the needy, not a hardship on them; 85 per cent of VAT collected is shared among states for them to provide free education, free health services, provide basic amenities among others. “We can see what the Federal Government is doing with the tax money. Look at the rail system, the Abuja-Kaduna rail is complete. Look at the Lagos-Ibadan expressway, look at the education system, the school feeding programme among others. If at the state level, your government cannot justify the taxes you pay to them, you have the right to vote them out in the next four years,” Fowler said, according to a statement from FIRS.

Fowler said if countries such as United Arab Emirate (UAE), Saudi Arabia which are rich in oil resources would be laying emphasis on taxation, Nigeria should also emulate them.
The FIRS Chairman also explained that Nigeria’s economy is only picking up in recent times because former administrations over-looked tax reforms and depended on the depletable mineral resources.

SOURCE: https://www.trendingaccounting.com/2019/03/vat-designed-to-support-poor-says.html

For Nigeria to attract more foreign investments, government must minimise tax uncertainties, by ensuring that it plans tax reforms such that the content and timing is clearly communicated to tax payers, while maintaining the high investment returns.

This would enable the country to be continually identified by business leaders as an investment destination and the future hub for West Africa.
Indeed, Nigeria was a leading destination for Africa-bound investments and enjoyed significant growth, but uncertainty around the tax and other variables, have caused many potential investors to adopt a conservative approach to investments.

The Partner and Head, Transfer Pricing Sevices of Andersen Tax, Dr. Josh Bamfo, while speaking at the Transfer Pricing Thought Leadership Publication, in Lagos, said Nigeria has consistently been ranked first in sub-Saharan Africa in terms of opportunity and higher returns, but rated the worst in terms of perceived risks and uncertainties.

Transfer price is the price at which divisions of a company transact with each other, such as the trade of supplies or labor between departments.
Transfer prices are used when individual entities of a larger multi-entity firm are treated and measured as separately run entities. A transfer price can also be known as a transfer cost.
According to Bamfo, tax uncertainties, which are typically institutional flaws in process, as well as unclear rules, like in Nigeria, would continue to impact negatively on the country’s investment, trade and compliance level.

“FDI goes to environment where there is high returns and certainty. Everybody knows that in this part of the world, there are high returns, but the challenge is the perceived risk. As long as we can bring our risk down, with those higher expected returns, there is going to be more FDI.
“Clarity in terms of transfer pricing regulations is very important to a taxpayer - a tax payer wants to minimise cost, while tax administrator wants to maximise revenue. If there is no clarity, there will be uncertainty, which is the risk, and foreign investors would not come in a jurisdiction where there is uncertainty of regulations.

“Multinationals who want to come into this sub-region would put into considerations the level of certainty and clarity of tax because this would help them to plan compliance. As long as there is clarity in terms of transfer pricing regulations and our tax administration is fair, there will be inflow of more FDI in Nigeria.
“This is because we happened to be the last jurisdiction or region that investors need to take advantage of in terms of opportunities. All the neighbouring countries have been explored,” he said.

The Chairman of AndersenTax, Seyi Bickersteth, said if government fails to structure its tax obligations in a manner that depicts clarity and certainty, the country would suffer erosion of tax revenue because investors would move funds to a more favorable jurisdiction.

“It means that the countries would loose their revenue because it forces the multinational companies to look at their own policies to be able to benefit,” he said.

SOURCE: https://www.trendingaccounting.com/2019/03/why-nigeria-must-reduce-tax.html

Online savings accounts are accounts which are offered by financial technology companies (FinTechs). When we compare online savings accounts to savings accounts offered by deposit money banks, online savings accounts require less documentation and fast account opening processes.

Some of the FinTechs offering online savings accounts in Nigeria are Piggybank, Cowrywise, ALAT, Payvest, KoloPay, PayDay and Esusu online.

FEATURES OF ONLINE SAVINGS PLATFORMS
Irrespective of the FinTech offering the account, most of them have several common features. The major features are highlighted below.

SAVINGS LIMITS
Online savings platforms allow you to save daily, weekly or monthly depending on the one that suits you starting with N50 and above. You can start your saving plans with as low as N100 (One hundred Naira) on Cowrywise platform.

WITHDRAWAL PENALTIES
Some online savings platforms like ALAT and Kolopay has withdrawal penalties. You receive interest of 4.2 percent when you do not withdraw more than 3 times a month on ALAT while for KoloPay you pay 5% charge if you withdraw before the agreed date.

WITHDRAWAL LIMITS
Most of these online savings platform, like Piggybank, has N3000 minimum daily withdrawal limit and no maximum. You can also withdraw all your money at a go on the set date for collection while some like ALAT allows withdrawal of 50 percent of savings once in every 30 days. For PayDay, you have a daily minimum withdrawal limit of N1,000.

TRANSFERS LIMITS
Some platforms like Esusu online has a daily transfer limit of N20, 000.00 and N50, 000.00 with full Know Your Customer detail while Some do not have transfer limits because you can only transfer your saved money on the due date to your bank account in another bank.

GROUP SAVINGS
Via online savings account, you can save money towards a common goal with friends, family, and co-workers and everyone in the group also gets interests paid to them daily. The Esusu online platform has such a feature.

DEBIT CARD
Some online savings platform issues debit cards to customers while some don’t. Piggybank and Cowrywise do not issue debit cards while ALAT issues debit card.

TARGET SAVINGS
Online savings platforms have target savings ranging from N50 to N50,000 daily, N800 to N200,000 weekly and N3000 to N3 million monthly. For example, the minimum amount that can be saved on PayVest is N50,000 and the investment tenures are currently in 3, 6, 9 or 12 months.

WITHDRAWAL CHARGES
Some online savings platform charges for services rendered. Examples are ALAT which collects N65 fees when you use your debit card to make a withdrawal from another bank’s ATM after the first three times a month and KOLOPAY which accepts 5 percent charge if withdrawal is done before the set date. Others like Payvest, Cowrywise, and Piggybank do not collect withdrawal charges.

ADVANTAGES OF ONLINE SAVINGS ACCOUNTS
Online savings accounts have several benefits. Some of them include:
Easy access : For example you can access your account online or with your mobile device anytime, anywhere. This allows you the convenience of being able to deposit money and view your balance and account activity on-the-go.

Higher interest rates: Most online savings platform offer higher interest rates because their overhead costs is lower than that of traditional banks and they also charge little of no fees. For instance, Piggybank gives 0.8 percent monthly and 10 percent per annum on savings. While Cowryrise pays interest of 10 to 15 percent interest per annum.

Cheque deposits: Some online platforms allow you to pay in cheques into your online savings account. An example is ALAT by Wema Bank.

Fixed deposit : Some online savings platforms have features which allow you save some amount of money aside for a fixed period without having access to it till the agreed date for collection is up. For instance, Piggybank’s savings plan called safelock.

DISADVANTAGES OF ONLINE SAVINGS ACCOUNTS
Cash deposit: It is difficult to deposit cash into your online savings account but you can perform such by using an Automated Teller Machine (ATM) that accepts cash deposits. You cannot walk up to a bank to make a deposit.

No human interaction: There is no physical human interaction. In a situation when you want to ask questions or get help with your account, you can only contact the customer care service center online.

Withdrawal delays: It typically takes three to five days to move money from your online savings account to another institution using standard transfer services.

Limited offerings: Online savings platforms offer limited products. Some offer cheque accounts or savings accounts, but not both. Some also offer loans while others don’t.

SOURCE: https://www.trendingaccounting.com/2019/03/all-you-need-to-know-before-operating.html

According to the Debt Management Office (DMO), The Federal Government will auction by subscription N100 billion worth of bonds on March 27.

The DMO disclosed this in a circular on its official website on Tuesday in Abuja, that the five-year re-opening bonds of N40 billion to mature in April 2023 was offered at 12.75%. It said that the seven-year re-opening bonds also of N40 billion to mature in March 2025 would be auctioned at 13.53%.

It added that the 10-year bonds, also re-opening, of N20 billion which would be due in Feb. 2028, would be auctioned at 13.98%.

According to the DMO, units of sale is N1,000 per unit, subject to a minimum subscription of N50 million and in multiples of N1,000 thereafter. The DMO explained that the bonds are backed by the full faith and credit of the Nigerian Government, with interest payable semi-annually to bondholders, while bullet repayment will be made on maturity date.
Nigeria issues sovereign bonds monthly to support the local bond market, create a benchmark for corporate issuance and fund its budget deficit.

SOURCE: https://www.trendingaccounting.com/2019/03/federal-government-to-auction-n100.html

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A swift review of useful apps that will help you get organised and focused when preparing for your examinations: from Quizlet that gives you a more interactive way of learning, to our Student Exam countdown.

1. My Study Life [free; Android, iOS, Windows, Chrome]
My Study Life is an all-in-one student organiser, with scheduling and class timetabling that can sync with your calendar. The reminders notify you of incomplete tasks and upcoming classes and exams. It provides a task manager that goes beyond the simple to-do list, with functionality specific to student lifestyles. It’s also syncs across all devices, saves everything to the cloud and is available offline. So you can work on a paper offline, then save it to the cloud and have it linked to a task and timetable.

2. Exam Countdown [free; Android, iOS]
If you need even more help organising your exam dates and keeping yourself motivated, Exam Countdown is for you. It keeps the study focus up with a daily countdown to all your exams. You can colour code all your upcoming exams and add symbols, such as an abacus for maths or a book for English. You can also share on social media whereabouts you are in your countdown, which means you can help classmates stay on track too.

3. Quizlet [free, Android, iOS]
Quizlet is popular with teachers and students alike. The app allows you to create your own study materials across a wide range of subjects or use a vast library of materials created by other Quizlet users. Teachers use it to set their students challenges and tests by creating specific materials and then sharing it online, in or out of the classroom. Quizlet is a fun way to learn, as it uses videos and audio, so you can make your own dynamic flashcards and play learning games, especially useful for learning languages.

4. Pocket [Android, iOS, Chrome]
Spending as much time as we do on our phones and computers, surfing web pages with so much content, it’s hard to read everything we come across, which can be a shame when it could be something useful for your studies. If only there was a way to save things for later without it getting lost. Say hello to Pocket. It allows you to save articles, videos and other web content in a vibrant and easy to read experience on your phone, computer or tablet. It has powerful search and tagging tools, which means you can organise web pages by subject. It also works really well with apps like Twitter, Flipboard, Facebook and Evernote, among others.

5. Google Translate [free; Android, iOS]
With over 90 languages and more than 200 million people using Google Translate, there’s no reason not to be understood these days, no matter where you are or who you’re trying to communicate with: a Welsh speaking Argentinian in Patagonia or a reindeer herder in Siberia. Quite simply Google Translate is essential if you’re studying in a new language, or you’re a language student. It can also help you feel more comfortable in new countries and situations.

SOURCE: https://www.trendingaccounting.com/2019/03/5-exam-apps-that-will-help-you-study.html

The Governor of Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, yesterday, projected that Nigeria’s Gross Domestic (GDP) growth will rise to 3% in 2019 as against 1.93% recorded in 2018.

Mr Emefiele, in a keynote address delivered at the BusinessDay Post-Election Economic Agenda conference in Lagos, also said the apex bank will maintain its tight monetary policy stance and stable exchange rate throughout the year. He stressed that the nation’s economic recovery has become self sustaining with the GDP expected to pick up in the first half of the current year.

According to him, The CBN expects inflation rate to rise to 12 percent and moderate downward thereafter owing to productivity gains in the agricultural and manufacturing sectors.
He, however, noted that the CBN would adjust the Monetary Policy Rate (MPC) in line with unfolding conditions and outlooks. Just as in the previous year, he said the apex bank would continue in its drive to ensure that the MPR rate is set to balance the objectives of price stability with output stabilization.

On the exchange rate policy, he said the CBN, in spite of expected pressures from the volatility in the crude oil markets, would maintain its stable exchange rate over the next year. “Gross stability is projected in the foreign exchange market, given increased oil production and contained import bill,” he noted.

The CBN governor expressed optimism that the country’s Balance of Payments (BoP) would remain positive in the short-term, Emefiele said that the current account balance could improve further if oil prices continued to recover. He assured that this would be “supported by improved non-oil performance as diversification efforts begin to yield results to reduce undue imports.”

SOURCE: https://www.trendingaccounting.com/2019/03/cbn-projects-3-gdp-growth-in-2019.html

Nigeria's apex revenue collection body, The Federal Inland Revenue Service (FIRS) on Wednesday refuted report of planned increment of Value Added Tax (VAT) by 50 per cent to meet up payment of the newly proposed minimum wage.

Mr Wahab Gbadamosi who is the Head, Communication and Servicom Department, made this known in a statement in Abuja. The Minister of Budget and National Planning, Sen. Udo Udoma and Dr Babatunde Fowler, FIRS Chairman, had appeared before Senate Committee on Finance at the 2019-2021 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper ((PSP) interactive meeting on Tuesday.

Gbadamosi explained that at the meeting, Fowler had called for an increase in the number of Nigerians and companies paying VAT and not a 50 per cent increase in VAT rate as reported. He said that contrary to reports in the media, the FIRS Chairman called for a reduction in Companies Income Tax (CIT) rate for small businesses so as to improve compliance.
“Though he indicated that there should be an increase in VAT rate by the end of the year, he never for once suggested a 50 per cent hike of any percentage increase at all.

“Rather, he promised improved collection in CIT, Petroleum Profits Tax, PPT and VAT in 2019 relative to the collection performance of the Service in 2018,” he said. (NAN)

SOURCE: https://www.trendingaccounting.com/2019/03/firs-dismisses-report-of-50-vat-increase.html

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ICAN Postones ATSWA March 2019 Examination, See New Date Here https://www.trendingaccounting.com/2019/03/ican-postones-atswa-march-2019.html?m=1

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Africa’s telecoms giant, MTN Group, yesterday said it would list on the Nigerian Stock Exchange (NSE) in the first half of this year.
This is coming on the heels of its recording very positive trade numbers in the 2018 fiscal year. MTN Group’s balance sheet showed total revenue of 37.971billion South African rand (equivalent of about N965.3billion), a statement from the firm indicated.

It said: “MTN plans to list by introduction on The Nigerian Stock Exchange during the first half of 2019 and is looking to simplify the capital structure ahead of this listing. “The company’s listing on the Exchange will create a new telecoms asset class for investors and provide an opportunity for a wider group of Nigerians to participate in our investment story.

“This will be achieved via a listing by introduction and will be followed by a public offer once market conditions are conducive. Over time, and subject to market conditions, we anticipate that the participation of Nigerians in the ownership of the business will increase from around 20 per cent to 35 per cent.”

The telecom giant also announced a $1 billion divestment programme over the next three years that will slim down its operation and refocus it on high-growth markets on the continent and in the Middle East. Shares in the company surged 15 per cent to 87.39 rand, on course for their biggest one-day rise in since 2008.

During the year under review, MTN Nigeria increased its mobile subscriber base by another six million people, bringing its tally to 58 million subscribers nationwide.

CEO, MTN Nigeria, Ferdi Moolman, said: “In 2018 we rebuilt the base; adding another six million Nigerians to our network, giving a total of 58 million people access to worldwide communication services. “This growth was built on our sustained focus on customer centric delivery – ensuring that customers get much more value for their money.

“This included the deployment of proactive interventions to improve customer experience, together with the enhancement of network quality and coverage, and the optimisation of our services portfolio. “We also enabled an additional 8 million people to access the possibilities that the internet provides, bringing our total data subscriber base to 44 million, of which 18.7 million use more than five megabytes per month.

“We are now even better positioned to ensure that everyone can access the benefits of a modern connected life. We are excited to have been given the privilege to continue playing a role in facilitating this, and are grateful to our customers, our people, our partners and our regulator for making this possible. “We understand how access to the opportunities enabled by the internet can open up new industries even in the remotest areas of our country.

“Thus, we will continue to focus on delivering social innovations like mobile electricity, financial services for all; and leveraging our technology as a vehicle to enable high-impact mobile solutions in education, health and agriculture in our communities – urban and rural.”

SOURCE: https://www.trendingaccounting.com/2019/03/finally-mtn-nigeria-to-list-on-stock.html

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The institute Of Chartered Accountants Of Nigeria, ICAN has rescheduled the date for the March 2019 diet of the Accounting Technicians Scheme West Africa (ATSWA) Examination. The reason for the postponement is due to the upcoming governorship and state House of assembly elections across the country.

The new date for the Examination is March 19-20, 2019. The exam was earlier scheduled for 12-13 March, 2019. ATSWA Examination is an exam for people who want to be chartered accountants without a degree or Higher National Diploma. It is written twice Every year: March and September diet.

SOURCE: https://www.trendingaccounting.com/2019/03/ican-postones-atswa-march-2019.html

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The President of Chartered Institute of Forensic and Investigative Auditors of Nigeria, Dr. Victoria Enape, has said that fraud activities in Nigerian banks increased dramatically to about N25bn in the past five years.

Enape made this known in Abuja on Friday at the opening of intensive training for forensic and investigative auditors with the theme “The Use of Forensic and Investigative Auditing for Prevention of Fraud, Corruption and Cyber-crimes in Nigeria”. She noted that the training had become necessary going by the global acknowledgment of corruption in most government and financial institution and its (corruption) rejection by the United Nation, World Bank and International Monetary Fund.
“All levels of Government are losing billions of Naira every day and most of these criminal cases bordering on fraud and corruption are partly because there are no forensic and investigative auditors in Nigeria to prevent fraud from happening.

“The place of training of forensic and investigative auditors cannot be overemphasised because the whole world has embraced this current trend years ago which has assisted them in the fight against fraud. “Chartered Institute of Forensic and Investigative Auditors is an anti-fraud organisation, saddled with the responsibility of providing skills to relevant professionals on the use of science and technology to prevent, detect and investigate fraud of all kinds.

“The Institute also has mechanism to block illicit financial flows in the country; it therefore becomes indispensable in Nigeria if Nigerians and the future generation must experience peace and economic development,” Enape said.
According to her, scandalous collapses, financial loses, loss of employment, investment and investors, loss of earnings and means of livelihood are some of the consequential social dislocations and risks of corruption and fraud. She explained that fraud and corruption weakened the institutional capacity of governments and organisations as well as impedes trade and investment.

The CIFIAN boss, therefore, reiterated the urgent need for the passage of the Institute’s Bill by the House of Representatives to give concurrency after Senate passed the Bill on July 5, 2018. The Registrar of the Institute, Mr Valentine Ugwu, said the Bill, when passed would also assist government during elections.

“Forensic auditing can also be used to tackle and prevent electoral fraud. And President Buhari is the only Nigerian leader that has openly tackled corrupt persons since the existence of the country. “We intend to help President Buhari in the fight against corruption by validating and enhancing members’ standing as forensic and investigative auditors with a credible, comprehensive and internationally recognised certification,” Ugwu said.

SOURCE: https://www.trendingaccounting.com/2019/03/fraud-volume-in-nigerian-banks-rises-to.html

Millions of people in Uganda have abandoned social media after punishing taxes were imposed on the use of networking sites and on money transactions using mobile phones.

A daily levy, introduced in July to tame “idle talk” online and raise revenue, affects more than 60 online platforms including Facebook, WhatsApp and Twitter. To use such sites, Ugandans are expected to pay a tax of 200 Ugandan shillings (4p) a day.

In the three months following the introduction of the levy, the number of internet subscriptions to such services fell by more than 2.5 million, according to the Uganda Communications Commission. Fears have been raised over the impact on the economy.

At the time the tax was imposed, David Bahati, Uganda’s finance minister, said the legislation aimed to raise revenue for public services. However, the president, Yoweri Museveni, wrote to the finance ministry in March urging the introduction of the tax as a way to deal with the consequences of online “gossip”.

Critics have described the tax as an attempt to restrict free speech, and warned of the damaging impact on the economy. A lack of formal banking services in Uganda means many people rely on mobile phone companies to send money by text message.

“The tax has not generated the revenue the government anticipated,” said Irene Ikomu, a lawyer based in the capital, Kampala.

Technology and financial sectors have instead been hit, said Ikomu. The number of people paying the tax for sites listed as “Over the Top ” (OTT) – chosen by the government because they offer voice and messaging services – fell by 1.2 million.

The value of mobile money transactions also fell by almost a quarter, to 14.8tn Ugandan shillings (£3.4bn) between June and September.
In the Naguru area of Kampala, Paul Cise, who sells data for Nov Mobile Limited, said he has been forced to cut staff because of the levy.
“Customers are not happy about [the tax]. Many have resisted it,” he said. “It has made business very difficult. I can’t manage to pay employees and pay rent.” Florence Acen, a mobile money agent in Kyaliwajjala, in Uganda’s Wakiso district, said she had lost business since the tax was introduced.

The levy eats up the commission she previously earned from the lowest paying customers, she said, forcing her to turn such clients away. “It makes us too busy for nothing,” she said. “We tell them that OTT network is off. I can’t waste my time.” The plummeting number of internet subscribers has boosted calls for the tax to be scrapped, though Ibrahim Bbosa, spokesperson of the Uganda Communications Commission, expects usage to recover. The drop in data use was due to customers adjusting their behaviour, he said.

“If I can access internet at work, I would rather access it at work and probably not access it when I am off work premises,” he said. “Probably, sooner or later, people will realise this is something [they] can live with. The pattern will return to normal.”

SOURCE: https://www.trendingaccounting.com/2019/03/millions-of-ugandans-quit-internet.html

The Federation Accounts Allocation Committee (FAAC) has shared to the three tiers of government a total of N610.368 billion federal revenue generated in the month of January 2019, but shared in February 2019.

This was contained in a communique issue a at the end of its meeting last night. The Accountant General of the Federation, Ahmed Idris, said approval is being awaited from the Honourable Minister of Finance for additional N50 billion from the Foreign Exchange Equalization Account, which will be distributed accordingly. He said the excess Crude Account currently stands at $249 billion.

A communique indicated that from the N610.368 billion, the Federal Government received N252.412 billion, the States received N170.541, the Local Government Councils received N127.923 billion. The Oil Producing States received N41.992 billion as 13% derivation revenue and the Revenue Generating Agencies received N17.500 billion as cost of revenue collection.

For the month of January 2019, the gross revenue of N505.246 billion was received in the month of January 2019. This was lower than the N547.462 billion received in the previous month by N42.216 billion.

The gross revenue from Value Added Tax (VAT) was N104.468 billion as against N100.760 billion distributed in the previous month, resulting in an increase of N3.708 billion. From the total gross revenue from VAT, the Federal Government received N15.044 billion, the States received N50.145 billion, the Local Government Councils received N35.102 billion and the Revenue Generating Agencies received N1.178 billion.

The communique stated that for the month of January 2019, the federation crude oil sales increased by 2.4 million barrels, resulting in increased federation revenue by $149.94 million despite a drop in price of crude oil from $81.06 to $75.00 per barrel. In the month under review, oil royalty, import and excise duties increased substantially while Companies Income Tax (CIT) and Petroleum Profit Tax (PPT) decreased marginally.

SOURCE: https://www.trendingaccounting.com/2019/02/faac-shares-n610368b-to-fg-states-lgs.html

According to data obtained from the Central Bank of Nigeria, CBN, Nigeria earned N3.72 trillion from royalties and petroleum profit tax, PPT, in the oil and gas sector in 2018.

The CBN, in its Economic Report for the Fourth Quarter of 2018, stated that the amount the country earned from royalties and PPT in 2018 represented an improvement of 106.7 per cent compared to N1.8 trillion recorded in 2017. Analysis of the report showed that the amount earned from royalties and PPT from the petroleum industry in 2018 represented 40.9 per cent of the 2018 budget of N9.1 trillion and 42.6 per cent of the N8.73 trillion budget proposals for 2019.

Further analysis showed that royalties and PPT revenue represented 153.2 per cent, 61.2 per cent and 43.2 per cent of capital, recurrent and total allocation in the 2018 budget respectively, while in the 2019 budget proposals, PPT and royalties represented 168.8 per cent, 54.8 per cent and 42.1 per cent of capital, recurrent and total allocations respectively.

In the 2018 budget, N2.4 trillion was budgeted for capital expenditure; N6.07 trillion was earmarked for recurrent expenditure, while total allocation was N8.61 trillion.

In the 2019 budget, capital and recurrent expenditures stood at N2.032 trillion and N6.79 trillion respectively, while total allocation stood at N8.83 trillion.

Royalties and PPT, according to the report, accounted for 67.22 per cent of total gross oil revenue of N5.54 trillion recorded in 2018.
Meanwhile, the Nigeria conducted its first importation of gasoline, also known as Premium Motor Spirit, PMS, of51,000 metric tonnes (MT) from China in January, according to a report, yesterday, by global energy data firm, S&P Global Platts.

Platts, in the report obtained from China’s General Administration, said this was Nigeria’s first import of petrol from China.

Platts noted in the report that Nigeria was the fourth largest buyer of Chinese gasoline in January, and was also the only buyer outside Asia last month. It added that Nigeria was the second country in Africa to have received gasoline from China gasoline, with the first being Togo that got 50,000 mt of gasoline in April 2018.

The report noted that PetroChina, China’s largest gasoline exporter, had in 2018 set up an office in Nigeria, which could possibly point to the first gasoline cargo landing in the country.
Platts disclosed that China’s gasoil exports to African countries also continued to grow, with Mozambique and South Africa climbing to the top 10 destinations in January, receiving 147,000 mt and 82,000 mt of gasoil, respectively.

SOURCE: https://www.trendingaccounting.com/2019/02/nigeria-earns-n372trn-from-royalties.html

German Minister of finance Olaf Scholz said he expected Germany to escape recession, pointing to a subdued but upward trend in its and Europe’s economies.

With the risk of trade conflicts and Britain’s looming European Union exit as a backdrop, recent data has pointed to a marked slowdown in Europe’s largest economy.

Germany had only just skirted a recession – defined as two successive quarters of contraction – at the end of last year.
Scholz said he was confident that modest growth lay ahead.

“The global, European and German data all point to a subdued but nonetheless upwards movement,” he told public broadcaster Inforadio on Monday.

Last week, morale among German businesses fell for the sixth straight month as they anticipated fallout if the U.S. failed to resolve trade disputes with China and the European Union. Scholz said there would be no loosening of the public purse strings in response to the slowdown, as the government needed a fiscal reserve in case of a serious economic crisis.
But there was sufficient spare cash to pay for an increase in the minimum wage and pension reforms that his Social Democrats – national coalition partners of the conservative bloc – have promised their supporters.

SOURCE: https://www.trendingaccounting.com/2019/02/germany-will-escape-recession-says.html

Nigeria’s stocks and bonds rose on Monday after the conclusion of a presidential election over the weekend lifted a layer of political uncertainty in Africa’s biggest economy, traders said.

The electoral body has started to count votes in the closely-fought election that pitted President Muhammadu Buhari against businessman Atiku Abubakar but it is unclear when the winner will be declared.

Stocks rose 0.43 percent to 32,655 points while a rise in bond prices was more pronounced in longer-dated, local currency bonds such as the 2028 issue. Yields on the 10-year paper fell to 14.5 percent on Monday from a previous close of 14.68 percent.

No major trades occurred on the naira currency on Monday, traders said, as investors await the result of the vote. But on the forward market, the naira firmed to 396 per dollar, up from 401 posted a week ago.

“Barring any negative surprises at the polls, we anticipate a positive start to this week’s trading as investors price in improved certainty upon conclusion of the general elections,” analysts at Vetiva capital wrote in a note.

The election had been scheduled to take place on Feb. 16 but, just hours before it was due to begin, the electoral body postponed it by a week, citing problems in delivering ballot papers and results sheets to some parts of the country.

The head of the African Union observer mission said on Monday that the election had taken place in a generally peaceful environment. But the U.S. observer mission said the week-long delay had damaged public confidence in the process and probably reduced voter turnout.
Nigeria’s dollar-denominated eurobonds shuffled higher as investors waited on the first flurry of regional results. Longer-dated bonds with maturities as far off as 2049 climbed almost 0.5 cents in the dollar and having risen for the last five days running, they had more than made up for the losses suffered a week ago when the election was postponed.
“The market opened on a constructive note ... as evidenced by a receiving bias in USD/NGN forwards, supportive local bond performance and moderate gains in Eurobonds,” said Samir Gadio, head of Africa strategy at Standard Chartered Bank.

“The risk-on global backdrop, higher oil prices and prospects of larger portfolio inflows after the election are probably driving this positive market performance.”

SOURCE: https://www.trendingaccounting.com/2019/02/nigeria-stocks-bonds-rise-after.html

Sen @dino_melaye , blocked @TrackaNG for requesting the implementation status of projects he nominated for the people of his senatorial district. We will continue to ask until feedbacks are provided to our request. Public funds must work for the people.

A federal court in Lagos has fixed April 20 for judgment in the suit filed by the Nigerian government seeking to recover $110 million from the Nigeria Agip Oil Company Limited.
Mojisola Olatoregun, the judge, adjourned for judgment on Thursday after parties in the suit adopted their final written addresses.

The Nigerian government is accusing the oil company of under-declaring the volume of crude oil it shipped out of the country between January 2011 and December 2014.

According to the government, the company, owned by Italian oil giant, Eni, short-changed the country to the tune of $55 million.

The government is praying the court to compel the oil firm to pay the $55 million with an annual interest of 21 per cent. It also wants the court to award another $55 million against Agip as exemplary damages. The suit began in 2016, with the Nigerian government closing its case in October last year and the court adjourning for the oil company to open its defence.

The government also instituted similar lawsuits in 2016 against Total E&P Nigeria Plc and Chevron Nigeria Limited.
In the case of Total, the government sought to recover $245 million “being the total value of the missing revenues from the shortfall under-declared/undeclared crude oil shipments of the Federal Government of Nigeria.”
They sought another $245 million as general damages. The government said the lawsuits followed a forensic analysis linking the decline in crude oil export and government revenue at the time to the alleged under-declaration of the volume of crude oil shipped out of the country by the oil companies.

The federal government claimed to have uncovered the alleged illegality using high-technology Information Technology system, including satellite tracking systems, which were deployed by its consultants.
The statements of claims were backed with supporting affidavits deposed to by three United States of America-based experts – David Olowokere, a US citizen and Lead Analyst at Loumos Group LLC, US; Jerome Stanley, a lawyer in the law firm of Henchy & Hackenberg; and Micheal Kanko, founder and Chief Executive Officer, Trade Data Services Company, State of Arizona, US.

The deponents said about 57 million barrels of crude oil were allegedly illegally exported by Total and sold to buyers in the US between January 2011 and December 2014 without making due remittance to the Nigerian government.

SOURCE: https://www.trendingaccounting.com/2019/02/55-million-alleged-non-remittance-agip.html