Connect with us

Business

FG targets N553bn from petroleum unremitted shipping taxes

Published

on

By Seun Ibiyemi

The Federal Government says it intends to recoup over N553 billion unremitted taxes from international petroleum shipping companies operating in Nigeria.

The Director, International Tax, Federal Inland Revenue Service (FIRS), Mr Abdullahi Aliyu, said that recouping the sum which accrued from 2010 to 2019 would help address the nation’s budget deficits.

Aliyu said with the country’s overall budget deficit of N11.34 trillion, the N553 billion unremitted taxes represents 5.03 per cent and would be an alternative to addressing Nigeria’s economic woes instead of borrowing.

He said this while speaking at a virtual summit organised by the Nigerian Chamber of Shipping (NCS) on Wednesday with the theme; “Sensitising the Nigerian Maritime Industry on the New Tax Policy and Objectives.”

Aliyu, however, noted that shipping companies involved in dry cargo activities in Nigeria and foreign airlines had been complying with the tax laws that most operators in the oil sector had neglected.

“The onus is on global businesses to understand the local laws and taxation in the countries where they transact business, and these specific laws have been in place in the nation for decades. “Nigerian taxes are more favourable to non-residents compared to indigenous companies, thereby creating an unfair business environment for local operators,” he said.

In his paper presentation, the Assistant Director, Tax, FIRS, Mr Oluwole Oni, pointed out that the agency had advertised the planned taxation exercise in December 2021 to prevent disruptions in the essential global shipping business.

“Non-resident vessels earn freight income from transportation services provided in transporting petroleum products (crude oil and gas products) from Nigeria to the agreed location, outside of Nigeria.

“Irrespective of the commercial arrangement adopted by the non-resident vessels to lift crude oil from Nigeria, freight income attributable to Nigeria is taxable in line with the Companies Income Tax Act (CITA),” he said.

Oni said that the FIRS had written officially to operators who owed taxes for the period between 2010 and 2019, adding that the companies were expected to send in their responses within 30 days.

“Those who received the letters are expected to send in their responses which aren’t only about payment. The response can be an acknowledgement of receipt, a demand for clarification, payment.

“The first step to compliance is registration with FIRS and most operators are yet to register,” Oni said.

The Senior Advisor for Shipping Policy at the ICS, Georgia Spencer-Rowland, stated that communication on tax regime was not properly carried out as most members of ICS were oblivious of tax framework.

She noted that members of ICS comprised over 80 per cent of the world’s merchant ships and 40 national ship-owners associations.

Oni, however, encouraged FIRS to clearly communicate in an official document, the period allotted as grace period for the tax implementation.

“Do these taxes affect inbound or outbound ships? Are the taxes payables on freight, income or profits? “Will ICS members as stakeholders be allowed to participate in the Presidential Technical Committee ahead of the implementation of these taxes?” Georgia asked.

Meanwhile, the Legal Counsel to INTERTANKO, Ms Selena Challacombe, said that the figures and volumes quoted by FIRS for taxation were not the actual figures in the transactions carried out by INTERTANKO members.

Challacombe said that there could be challenges in recouping taxes with the figures for 2010 to 2019 as ship charterers are unlikely to provide the vital information seen as germane to their businesses.

She said the situation should not be termed tax evasion when the alleged violators had not profited from the negligence of taxes they never knew existed.

She added that Australia had a similar law enacted since 1936 and members of INTERTANKO factored in the taxes when undertaking contracts for Australia.

In his welcome remarks, the President of NCS, Mr Aminu Umar, stressed the need for collaboration among stakeholders and government agencies for a smooth implementation of taxation.

Umar said the chamber was willing to partner with government to collect revenue for national sustainability, adding that there must be collective input to rightly shape the shipping sector and encourage investments.

He described the Presidential Technical Committee for the implementation of taxation as an ideal avenue for collaborations between local and global shipping operators and government agencies to advance the nation’s maritime sector.

Reports that FIRS draws its legal backing from Section 14(1) of the Companies Income Tax Act (CITA), titled “Companies engaged in shipping or air transport”.

The act states: “Where a company other than a Nigerian company carries on the business of transport by sea or air, and any ship or aircraft owned or chartered by it calls at any port or airport in Nigeria, its profit or loss to be deemed to be derived from Nigeria shall be the full profits or loss arising from the carriage of passengers, mails, livestock or goods shipped or loaded into an aircraft in Nigeria.”

Stakeholders at the summit, the International Association of Independent Tanker Owners (INTERTANKO), ICS, indigenous ship-owners, tax experts, among others called for more clarity and time for operators to understand the Nigerian tax regime.

The global bodies also claimed that their members were not aware of the tax provisions and public notice given by FIRS, and expressed fears on Nigeria’s insistence on recouping taxes on previous transactions between 2010 and 2019.

Other dignitaries at the summit included the President of Ship Owners Association of Nigeria (SOAN), Dr Mkgeorge Onyung; Vice President of NCS, Ify Akerele; President, Nigerian Shipowners Association (NISA), Mr Sola Adewumi; among others.

Business

Nigeria to host 2025 NADPA conference

Published

on

By Blessing Emmanuel

Nigeria has been unanimously selected to host the 10th edition of the Network of African Data Protection Authorities’ (NADPA-RADPA) Conference and Annual General Meeting.

This was announced after the country made a bid made by the country’s representative, the Nigeria Data Protection Commission (NDPC) at the just concluded 9th NADPA Annual General Meeting held in Nairobi, Kenya.

Led by the National Commissioner/CEO, Dr. Vincent Olatunji, NDPC emerged as the frontrunner among the 23 Data Protection Authorities across Africa.

Established in Ouagadougou in 2016, NADPA-RAPDP aims to foster collaboration among its members and amplify Africa’s voice in global partnerships. Nigeria’s active engagement since joining in 2022, including its role as coordinator for the Regulatory Harmonization working group, underscores its commitment to the network’s objectives.

In a statement by Head of Media Unit at NDPC, Mr. Itunu Dosekun, the recent Nairobi conference saw an impressive turnout, with over 1500 individuals and organisations, including multinational corporations like Google, Amazon Web Services, EY, and Microsoft, alongside development partners such as the European Union and the German Corporation.

The 2025 conference in Nigeria promises to be a pivotal platform for Data Protection Authorities to convene, collaborate, and exchange insights on emerging trends and challenges in data protection and privacy. Beyond fostering economic growth through Foreign Direct Investments and boosting the tourism sector, the event will elevate Nigeria’s reputation as a hub for innovation and academic excellence.

As Nigeria prepares to welcome esteemed delegates, the conference underscores the country’s dedication to advancing data protection principles and fostering international cooperation. With a multifaceted agenda, the event is poised to drive advancement within the data protection landscape and beyond, igniting growth and fostering collaboration.

Continue Reading

Business

FG unveils portal to promote ease of investments in mining sector

Published

on

The Federal Government on Tuesday unveiled a portal to facilitate the ease of investments into Nigeria’s mining sector.

The portal was unveiled by the Ministry of Solid Minerals Development in Abuja by the Minister of Solid Minerals Development, Dr Dele Alake.

Speaking, Alake said the Nigeria Mineral Resources Decision Support System (NMDSS) underscores the commitment of the federal government to expanding access of prospective investors to necessary information about Nigeria’s mineral deposits, policies guiding the mining sector and incentives for investment from anywhere in the world.

The Nigeria Mineral Resources Decision Support System (NMDSS) is a marketing strategy to enhance the ease of doing business in the solid minerals sector.

In his words: “Before, if you are a prospective foreign investor, you have to travel to Nigeria with your contingent to access required information. But with this launch today, anywhere you are in the world, with a click of a button, you can access all the information you require to make informed investment decisions about the mining sector.”

Speaking further, Dr. Alake emphasised that the support system will assist critical stakeholders in the mining sector and potential investors to garner requisite information, bringing them closer to the industry and providing answers to pertinent questions about mineral deposits and mining infrastructure amongst others.

Highlighting on-going efforts to sanitise the mining sector, the Minister revealed that the nefarious activities of illegal miners are being curbed by the recently unveiled mining marshals, whilst about 152 cooperatives have been formed by artisanal miners to legalise their operations, in line with his 7-point agenda.

In his remarks, the Minister of Interior, Hon. Tunji Olubunmi-Ojo lauded the transformative leadership that his solid minerals counterpart has brought to bear on the mining sector, noting that the launch of the NMDSS is a game-changer that will attract more foreign investments.

“Saudi Arabia today has non-oil industry contributing over 50 percent to her Gross Domestic Product (GDP). If Saudi Arabia can do it, Nigeria can do it, and the journey starts with the ministry of solid minerals. With a workaholic and visionary minister like Dr. Alake, working earnestly to attract the big players and also supporting local operators, the sky is the starting point. For us in the Ministry of Interior, we are there to support because a reformed mining industry is the pivot of the Renewed Hope agenda,” Hon. Olubunmi-Ojo said.

The Permanent Secretary, Ministry of Solid Minerals Development, Dr. Mary Ogbe, in her closing remarks, charged critical stakeholders in the mining sector and Nigerians at large to market the nation’s vast solid minerals potentials, stressing that reforms of the present administration are steadily repositioning the mining sector.

The Nigeria Mineral Resource Decision Support System (NMDSS) is a comprehensive software platform that serves as a one-stop shop for investors seeking credible and decisive information about Nigeria’s mineral resources, facilities and infrastructure.

The NMDSS portal can be accessed via: miningdecision.minesandsteel.gov.ng/nmrdss/.

Continue Reading

Business

Media organisations to enjoy financing at single digit interest rates — Idris

Published

on

Minister of Information and National Orientation, Mohammed Idris has disclosed that President Bola Ahmed Tinubu has directed the Federal Ministry of Industry, Trade and Investment, through the Bank of Industry (BOI), to extend its single-digit interest-rate financing to media organisations in the country.

The Minister of Information and National Orientation, Mohammed Idris stated this in Abuja on Wednesday when he received members of the Independent Broadcasting Association of Nigeria (IBAN) on a courtesy visit to his office.

According to the Minister, the gesture is in keeping with the administration’s resolve to create an enabling business environment for the media to operate in Nigeria.

“Let me say that the Federal Ministry of Information and National Orientation under my leadership, as part of our five pillars, will support all media platforms in this country, whether they are public or private.

“I can tell you that the President has directed the Federal Ministry of Industry, Trade and Investment to extend financing to media organisations at single-digit interest rates. I think you need to take advantage of that,” he said.

He therefore urged the IBAN members to develop bankable proposals to access the financing facility being offered by the Federal Government.

The Minister also frowned at instances of willful violation of advertising industry payment standards, condemning the habit by some practitioners of failing to remit advertising payments to media organizations within the approved 90 days.

Idris said, henceforth, the Advertising Regulatory Commission of Nigeria (ARCON), would be mandated to ensure that all advertising revenues due to media organisations are released to them promptly.

The Minister advised the private broadcasters to key into the Compressed Natural Gas (CNG) Initiative of the Federal Government to bring down the cost of their operations through cheaper access to energy.

Idris said with the commissioning of three gas projects by the President and other initiatives of his administration, Nigeria aims to attain sufficiency in gas processing for local consumption and export.

In response to the request from IBAN regarding the resumption of the Digital Switch Over (DSO) rollout, the Minister, who expressed deep concerns over the historically slow progress of the DSO initiative, stressed the need for a renewed and vigorous approach to ensure timely completion.

He conveyed that the President has instructed the ministry to expedite the DSO project by adopting successful models from other countries that have effectively transitioned from analog to digital broadcasting.

Earlier in his remarks, the Chairman of IBAN, Alhaji Ahmed Tijjani Ramalan complained of multifaceted challenges confronting the broadcasting industry in Nigeria, and called for urgent steps to revitalize the sector to stimulate innovation and empower indigenous media owners.

“The Nigerian broadcast industry, a cornerstone of the nation’s information and entertainment landscape, faces significant challenges hindering its ability to reach its full potential. There is the urgent need to take the initiative with a design to revitalise the industry, stimulate innovation, unlock the potential media economy and empower indigenous media entities,” he said.

He identified the high cost of energy, shortage of analog frequencies, delay in the payment of advertising revenues, and unrealistic audience measurement systems as some of the challenges bedeviling the broadcasting industry.

Continue Reading

Trending