Business

FIRS Rakes In N13bn From Billionaire Tax Defaulters

Published

5 years ago

September 24, 2018

Less than a month after it commenced its substitution of accounts of recalcitrant billionaire taxpayers, the Federal Inland Revenue Service (FIRS) has collected N12.66 billion in tax revenue. Executive chairman, FIRS, Tunde Fowler, disclosed this at the weekend when he received the new minister of finance, Hajia Zainab Ahmed, during her official visit to Revenue House, FIRS headquarters in Abuja.

Fowler spoke as Hajia Zainab Ahmed, the new finance minister commended the agency for shoring-up the non-oil revenue. “The ministry of finance will continue to work collaboratively with FIRS to support all the efforts that you are doing. And as much as possible, we should interface frequently. For us, the directive I have is to increase the tax revenue and that is the most important task ahead of all of us.

You have done well. And the reward for good work is more work,” she said. Ahmed urged the FIRS to “maintain the tempo” because literarily, the country depends on the work that FIRS does to shore-up the revenue collection to support the government. She encouraged government agencies to work together to fish out all corrupt persons in the country, stating that this is President Muhammadu Buhari’s directive.

“The FIRS is a very important agency of government. I wanted to underscore this importance. FIRS is one of the first agencies in the Ministry of Finance that I am meeting. The federal government medium term plan is hinged on diversifying the economy away from the oil revenues to non-oil sector. And the report that the executive chairman of FIRS has presented indicates that the diversification effort is working.

This is reflected in the turn of the contribution of non-oil revenues over the last three years. “I am happy that we have a team in FIRS that is not only expanding the revenue base but also significantly improving tax collection and taking tax offices closer to the people and making it easier for the people to pay their taxes by online and e-tax payment procedures that you have undertaken. And I am sure that, from what I have heard today, that you would continue with all these processes. “I am also glad that you are increasing cooperation with several agencies like the EFCC, ICPC and Nigeria Customs Service.

This is important because the directive from the president for anti-corruption involves cooperation within yourselves as well as with anti-corruption agencies. It makes a lot of sense to prioritise tax collection to larger categories: from the big ones to other ones. “The effort you are doing in Abuja, Lagos and Osun on payment of taxes on property using their turnover as basis for assessment)- is a commendable one and I encourage you to maintain the tempo in generating tax revenues,”she said.

She said the country needs to continue with the efforts to strengthen the non-oil sector, stating that the part that FIRS should play is to continue with its efforts so that the non-oil sector would generate larger part of the tax revenue on sustainable basis. About a month ago, the FIRS commenced substitution of the bank accounts of high networth billionaire tax defaulters.

Fowler told the minister that the initiative has pooled about N12. 66 billion into the government coffers. “FIRS wrote to all commercial banks in May 2018, requesting for a list of companies, partnerships, and enterprises with a banking turnover of N1 billion and above. This activity is aimed at ascertaining those companies that are compliant with the tax laws and those that are not compliant. So far, non-compliant organisation have paid about N12.66billion.

“The FIRS will continue to implement initiatives that will drive compliance and generate revenue by continuous taxpayer enlightenment, implementation of the Auto VAT Collect in other sectors of the economy, simplification of the tax processes especially for small taxpayers, strengthening collaborations with other agencies such as CAC, States Boards of Internal Revenue, ministry of trade and investment, Nigeria Customs Service,” Fowler said.

The FIRS chairman also told the minister that the Service realised the sum of N2.983 billion from payment on demand notices on property owners who were being assessed based on their turnover and that 653 of 2, 672 of such non-filers have starting filing now. From enforcement, Fowler said FIRS has collected a total of N47.5 billion from 2016 till date and $32.8 million dollars, £5.9 pounds, netted N225 billion from audit and has collected more than N1trillion above its January to August collection last year (2017). He said that FIRS’ collection of N4.03 trillion in 2017 has 62.25 per cent as non-oil while oil is just 37.75 percent. It was 64.99 in favour of non-oil in 2016 and 35.01 for oil. In 2018, the FIRS has done 54.56 per cent for non-oil and 45.44 per cent for oil receipts.

Fowler added that Value Added Tax (VAT) receipt is on a steady increase. “So far in 2018, the FIRS has collected 773.49billion in eight months. The above collected this year has already surpassed that of 2015 (767.33bn), and is set to surpass 2016 (828.19bn), and 2017 (972.30bn) with four more collection months left in the year. “E-stamp duties collection is on a steady increase. So far in 2018, the FIRS have collected 10.10bn in eight months.

The above collected this year has already surpassed that of 2017 (10.9bn), 2016 (5.6bn), and 2015 (7.1billion),” Fowler said. Three weeks ago, the FIRS chairman explained at a stakeholders’ event in Lagos that substitution was allowed in the nation’s laws and empowers FIRS to appoint banks as collection agents for tax. “So, all these ones of TIN and no pay and no TIN and no pay, to the total of 6772 will have their accounts frozen or put under substitution pending when they come forward. First, they refused to come forward in 2016, they refused to come forward under VAT and are still operating here. So, we are putting them under notice that it is their civic responsibility to pay tax and to file returns on these accounts.

“We looked all businesses, partnerships, corporate accounts that have a minimum turnover of N1 billion per annum for the past three years. First of all, the law states clearly that before you open a corporate account, part of the opening documentation is the tax I.D. From the 23 banks, we have analysed so far, we have 31,395 records, out of which effectively minus duplications we had 18,602. “We broke those into three categories: Those that have TIN tax I.D, those that don’t have no TIN and of course no TIN no pay and those that have TIN and have not even paid anything. So, on a minimum, every company or business included here over the last three years have had a banking turnover of N3 billion and above.

Some of them have had banking turnover of over N5 billion and have not paid one kobo in taxes. Now the total number of TIN and no pay is 6772. “So, if someone is good in mathematics and you take the minimum level of N3 billion multiply by 409 and they are operating within our society and economy and do not remit or make any tax payment.”

Business

AfDB, GGBI partner to strengthen Africa’s green bond market

Published

7 hours ago

December 2, 2023

NewsDirect

The African Development Bank (AfDB) Group, has signed a declaration with the coalition of development finance institutions to promote green bond markets in Africa.

AfDB’s Group Vice President and Chief Financial Officer, Ms Hassatou N’Sele, said this in a statement issued on the bank’s website.

The News Agency of Nigeria (NAN) reports that Africa’s engagement in the green bond market currently represents less than one per cent of the more than 2.2 trillion dollar community green bond issued in 2022.

N’Sele said the institutions in the Global Green Bond Initiative (GGBI) comprised the European Investment Bank, European Bank for Reconstruction and Development, and Italy’s Cassa Depositi e Prestiti.

Others are the Spanish Agency for International Development Cooperation, Green Climate Fund and Germany’s KfW development bank, while PROPARCO of the AFD Group act as consortium of European development finance institutions.

The AfDB’s chief financial officer signed the declaration with representatives of the coalitions’ institutions on the sidelines of the 2023 UN Climate Change Conference (COP28) in Dubai, United Arab Emirates.

N’Sele said the engagement was to tap from the Global Green Bond Initiative technical assistance programme announced by European Commission President Ursula von der Leyen in June 2023.

”The Initiative will help private capital flow from institutional investors into climate and environmental projects in EU partner countries, increasing their access to capital.

”Providing technical assistance to green bond issuers in emerging markets and developing economies (EMDEs), and crowding in private investors through a dedicated de-risked fund.

”This will act as an anchor investor in green bonds issued in EMDEs.

“The anticipated impact can be up to 15-20 billion euro in green investments,” she said.

N’Sele said the partners supported the origination of green bonds, development and identification of pipelines of green projects, and the development of credible and coherent green bond frameworks.

“This joint declaration among us to collaborate on technical assistance on green bonds in Africa is our commitment to work together and it is significant and impactful.

”There cannot be impactful development in Africa without vibrant local capital markets,” the AfDB official said.

N’Sele highlighted the AfDB’s engagements in the green bond market, including issuing over 10 billion dollar worth of green and social bbondsin 2022 to support sustainable progress across Africa.

“Let’s help Africa fully leverage the power of green bonds, and we can contribute together towards a sustainable future for Africans,” she said.

Mr Stefano Signore of the European Commission’s partnerships directorate, described the partnership with the AfDB as an important milestone in efforts to mobilise green bonds in emerging developing economies.

Also, representative of the Spanish Agency for International Development Cooperation (AECID) expressed hope that the partnership would contribute to the intensification of climate and environmentally relevant projects.

”We hope to also contribute to pipelines that can set off the mobilisation of the global green bond initiative.”

Business

NIS opens passport office in Ikorodu

Published

9 hours ago

December 2, 2023

NewsDirect

The Comptroller- General of Nigeria Immigration Service(CGI), Mrs Caroline Adepoju ,on Friday assured Nigerians that they would get their passports within three weeks of submitting their applications.

Adepoju gave the assurance while inaugurating a new passport office in Igbogbo community in Ikorodu, Lagos State .

Adepoju said passports would now be processed and issued speedily provided applicants submit all the required details in their applications.

She advised the public to ensure that they renew their passports six months before its expiration to avoid problems while applying for visa to some countries.

Adepoju thanked the people of Igbogbo for their support and for providing all that was needed to start operation in the area.

“I thank the traditional ruler and the people of Igbogbo for their support and for ensuring the realisation of this project.

“This is my first assignment after my confirmation as the substantive Controller General of Nigeria Immigration Service.

“I want to advise the public to ensure they renew their passport six months before expiration to avoid being denied visa by some countries,” she said.

Speaking, Gov. Babajide Sanwoolu said the establishment of the passport office in Igbogbo would improve service delivery i to Nigerians and save the people of Igbogbo and environs the stress of traveling far to obtain tbeir passports..

Sanwoolu, represented by Mr Ibrahim Layode, Commussioner for Home Affairs, said the role of Immigration in any country could not be over- emphasised.

He said that the establishment of the passport front office in Igbogbo was a testament to Federal Government’s commitment to providing world -class immigration services in line with global standard.

Also speaking, the council Chairman of Igbogbo Baiyeku Local Counvil Development Area(LCDA) Mr Olusesan Daini, urged the CGI to consider expanding operations at the new passport front office .

Daini said the council would synergise with NIS to ensure the edifice was maintained.

“We will also improve our security architecture to ensure the office is secure.”he said.

He said that the new passport office was a welcome development as residents would no longer have to travel far to obtain or renew their passports.

“The establishment of this passport front office in Igbogbo will improve commercial activities.

“The council will also improve its security architecture to provide adequate security in the area,” he said.

Adeboruwa of Igbogbo, Oba Orimadegun Kasali ,who spoke on behalf of all the traditional rulers in Ikorodu Division , said he was very happy that the passport front office was established in his domain.

He added that it would go a long way in improving commercial activities in the area.

Adeboruwa commended all those who facilitated the establishment of the passport office in the community.

“I cannot say how happy I am today, infact ,this office will put Igbogbo community in world map.

” I appreciate everybody that has contributed in one way or the other to make this a success,especially the family that donated the land .

“I am glad that Igbogbo passport office has come to stay,” he said.

Business

Nigeria, Germany sign Siemens power project accelerated implementation agreement

Published

9 hours ago

December 2, 2023

NewsDirect

President Bola Tinubu and German Chancellor Olaf Scholz were witnesses to the signing of an accelerated performance agreement in Dubai on the Siemens power project in Nigeria.

The agreement was signed on the side-line of the on-going 2023 United Nations Climate Change Conference, COP28 by Mr Kenny Anuwe, Managing Director of FGN Power Company on behalf of Nigeria.

Ms Nadja Haakansson, Siemens Energy’s Senior Vice-President and Managing Director for Africa signed on behalf of the German company.

Speaking after signing the agreement, Anuwe highlighted Siemens Energy’s effective delivery of crucial equipment worth more than 63 million Euros to Nigeria since the commencement of the project.

This includes 10 units of 132/33KV mobile substations; three units of 75/100MVA transformers, and seven units of 60/66MVA transformers, currently being installed by FGN Power Company at various sites.

The Dubai agreement was signed to expedite the implementation of the Presidential Power Initiative (PPI) to improve Nigeria’s electricity supply.

The PPI, formerly known as the Nigeria Electrification Roadmap Initiative, was the outcome of the visit by former German Chancellor Angela Merkel to Abuja in August 2018.

An agreement was signed between the governments of Nigeria and Germany in 2019 to improve Nigeria’s power sector.

Special Adviser to the President on Media and Publicity, Chief Ajuri Ngelale, stated on Friday in Abuja that since assumption of office, Tinubu had advocated the accelerated realisation and expansion of the PPI.

To achieve this, the project has been a major focal point in three rounds of bilateral discussions at meetings between President Tinubu and the German Chancellor in New Delhi, in Abuja and in Berlin.

The Dubai agreement will facilitate the modernisation and expansion of Nigeria’s electric power transmission grid with full supply, delivery and installation of Siemens-manufactured equipment within 18 to 24 months, Ajuri stated.

It will ensure project sustainability and maintenance with full technology transfer and training of Nigerian engineers at the Transmission Company of Nigeria (TCN), he added.

The project will also focus on identified load demand centres with particular emphasis on economic and industrial hubs nationwide and the execution of new 330kV and 132/33KV substations in target load centres with economic priority.

These are in addition to thousands of kilometres of overhead transmission lines to connect new substations with existing ones, Ajuri also stated.