Business
Necessary reforms, imperative to ramp up tax revenues — Chairman
By Matthew Denis
For Nigeria to attain optimum tax revenue collection capacity across the Federal, States and Local Government tax authorities, the country must make hard but necessary reforms that would yield long term benefits.
This was the position stated by the Chairman of the Joint Tax Board (JTB), Mr. Muhammad Nami, who is also the Executive Chairman of the Federal Inland Revenue Service (FIRS) at the 153rd Meeting of the Board which held today in Abuja with the theme: “Harmonization and codification of taxes at the National and Sub-national levels: Key to achieving a tax friendly environment in Nigeria.”
Mr. Nami, while delivering his address to the Board stated that for progress to be made in taxation, tax authorities must continue to explore and adopt measures and innovative initiatives that will lead to the optimisation of tax revenue for all levels of government.
“As the new administrations attempt to address the many socioeconomic challenges facing the nation on many fronts, it becomes imperative for all the levers of State to shake-off any lethargic antecedents and focus on the goal of a national resurgence.
“The unique and privileged offices we occupy as drivers of the nation’s tax administration processes presents us with a rare opportunity to take hard, but necessary decisions that are expected to yield long term benefits and add immense value to our collective prosperity as a nation.
“In recent years, especially since the dawn of our current democratic dispensation, the importance of taxation has continued to be reiterated and reinforced by all, and the critical role that tax-revenue plays in funding government and governance cannot be over-emphasized.
“However, as we continue to make progress in our unique model of taxation, it is appropriate that we continue to explore and adopt measures and innovative initiatives that will lead to the optimization of tax revenue for all the levels of government, in more efficient, more effective, more inclusive, and more sustainable ways.
“It is only by achieving this, that our efforts as tax administrators can trigger the manner of activity required in the productive sectors of our economy, towards achieving the immense economic potentials that we are capable of,” Mr. Nami said.
The Chairman of the Joint Tax Board further assured Executive Chairmen of State Revenue Authorities present that given the thrust of the current administration’s tax policy direction, the country was on the pathway to eradicating multiplicity of taxes as a core of its overall economic regeneration objectives.
Mr. Taiwo Oyedele, Chairman, Presidential Fiscal Policy & Tax Reforms Committee, while delivering a presentation on the theme of the meeting highlighted that multiple taxation was causing low tax morale in the country, as well as discouraging investments, while creating room for corruption and making doing business difficult.
The Presidential Fiscal Policy and Tax Reforms Committee Chairman further noted that the solution to the country’s revenue challenges is not to introduce more taxes, but to focus on the few taxes that are high yielding, noting that with these, tax authorities would be able to collect far more than is currently being collected.
Mr. Taiwo stated that for the government to raise more revenue, it needed to get to a point where the total number of taxes collected at the Federal, State and Local government levels would be at a single digit.
“We also need to clarify on taxing rights. We need to integrate tax collection functions-that is, all revenues that are to be collected must be collected by a single revenue agency. Government must also do well to fund our tax agencies well. We also need to harmonise revenue administration and simplify our approach to tax compliance,” Mr. Taiwo stated.
He further advocated for the country’s tax authorities to use more technology, review the country’s constitution and tax laws, as well revisit Nigeria’s concept of fiscal federalism.
The Central Bank of Nigeria (CBN) has announced new measures to enhance local currency liquidity for the settlement of diaspora remittances.
The measures will allow eligible international money transfer operators (IMTOs) to access naira liquidity at the official window.
This move is part of the regulator’s commitment to the smooth functioning of the foreign exchange (FX) markets and enabling greater remittance flows through formal channels.
According to the CBN, the new measures will widen access to local currency liquidity for the settlement of diaspora remittances.
Eligible IMTO operators will be able to access the CBN window directly or through their Authorized Dealer Banks (ADBs) to execute transactions for the sale of foreign exchange in the market.
The IMTOs are companies that provide cross-border money transfer services, facilitating the transfer of funds from individuals or entities residing abroad to recipients in Nigeria.
The CBN has stipulated rules to guide the process and enable compliance, including same-day settlement for transactions executed before 12 noon on a trading date.
Pricing on the CBN portal will be reflective of NAFEX traded rates observable on an acceptable market benchmark.
The operation of this market segment will follow the existing arrangement in place for authorized dealers with Foreign Portfolio Investment participating in the primary market securities auctions.
Regulatory returns to be submitted to the CBN by all participants on a daily basis are mandatory and must contain all relevant information on the sources of funds.
The CBN’s move is expected to significantly improve the liquidity of local currency for diaspora remittances, enhancing the overall efficiency and reliability of the foreign exchange market in the country.
The bank has been collaborating with IMTOs to double remittance flows through formal channels into Nigeria, with the goal of increasing transparency and competitiveness in the FX market.
In May, the CBN granted approval in principle (AIP) to 14 new IMTOs, and the governor of the CBN, Olayemi Cardoso, has expressed confidence in the bank’s ability to double remittance flows into Nigeria within a year.
By Esther Agbo
The Chartered Pension Institute of Nigeria (CPIN) will recognise notable individuals who have significantly contributed to the success of Nigeria’s contributory pension scheme.
This honour will be bestowed during the induction program scheduled for June 27, 2024, marking the 20th anniversary of the Contributory Pension Scheme.
The Executive Secretary/CEO of CPIN, Dr. Samson Akinyemi, emphasised that the awards aim to acknowledge the efforts of those who have fostered the growth of Nigeria’s pension industry and its economy.
The institute will also honour senior management from various states, pension fund operators, and private organisations with extensive experience and contributions to the sector.
Practitioners with around 20 years or more in the industry will also receive recognition.
He mentioned that membership in the institute is available to the public, provided they meet the required qualifications.
The highest membership level, to become a fellow, requires candidates to have held an Associate Certificate of the institute for at least seven years and possess advanced academic qualifications, along with substantial senior management experience in pension management or academia.
Dr. Akinyemi further stated that to become an associate, candidates must be employed in a pension management field, pass the institute’s examination, and hold at least a university first degree or HND.
Additionally, undergraduates or school certificate holders employed by pension management companies can apply for the Pension Technician Certificate.
By Matthew Denis
The Management of Shoprite Mall has announced its intention to cease operation in one of its Abuja branches from June 30, 2024.
The branch is situated at Novare Central Mall in Wuse Zone 5.
This was contained in a circular signed by the Chief Executive Officer, Dr Folakemi Fadahunsi, on behalf of the retail supermarket and obtained by our Business Correspondent on Monday.
A staff at the store who pleaded anonymity also confirmed the report, saying, “Yes, it is true, we just heard it here too.”
The popular mall attributed its decision to a thorough evaluation of the store’s financial situation and the current business climate.
It additionally notified vendors that their services would no longer be needed at the store.
The circular read, “We regret to inform you that as of June 30, 2024, Retail Supermarkets Nigeria Limited will be closing its Wuse Store located in Novare Wuse Central Mall, Abuja. This decision has been made after a thorough evaluation of the store’s financial situation and the current business climate. We believe this is the best course of action for our organisation’s long-term growth.
“Effective June 30, 2024, our company will no longer operate in Wuse, Abuja, and we will no longer require your services for the Novare Wuse Central Mall Store. Please note that all existing service contracts will also terminate for the store.”
The circular added the company would be reviewing its accounting records in the next 60 days to settle outstanding balances.
“If your services are specifically tied to the Novare Wuse Central Mall Store and if there is an outstanding balance between our companies, we will carefully review our accounting records over the next 60 days (about 2 months). We will then promptly contact you to confirm the amount owed and discuss a suitable payment schedule.
“We would like to express our gratitude for your past business. It has been a pleasure working with you and your team. If you have any questions or concerns, or if there is anything we can do to assist you during this challenging transition, please do not hesitate to reach out to us, it added.
Recall that multiple multinationals have left Nigeria by either scaling down operations, transferring ownership or selling their stakes, the most recent being the sale of beverage company Diageo’s 58.02 per cent shareholding in Guinness Nigeria to Tolaram Group on June 11, 2024.
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