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FIRS Shuts More Tax-defaulting Firms

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tax relief
  • FIRS Shuts More Tax-defaulting Firms

The Federal Inland Service has continued its crackdown on tax-defaulting companies by sealing off their premises in Lagos and Abuja.

In Lagos, a team led by Mr. Umar Gana sealed off Mayssa International Limited, which situated in Etim Inyang Crescent, Victoria Island, Lagos, over a tax debt of N133.8m. The managing director of the firm, who identified himself as Mr. Robert, told the team that while the company truly owed, the debt was not on the scale the FIRS claimed.

He added that the organisation was making efforts to pay what it owed, an assurance that did not impress the team, which shut the premises.

The team also shut Modesty Properties Limited, situated at No. 255, Muri Okunola Street, Victoria Island, Lagos for a tax liability of N30.7m. The exercise also affected Joza Global Logistics Limited, situated at No. 8, Ribadu Road, Ikoyi, which was shut for owing N62.4m.

In Abuja, the FIRS team leader, Mrs. Ruth Mandeun, ordered the sealing of the premises of Hakimco Automobiles Limited at the city’s Central Business District. The company, according to a statement by the FIRS, is indebted to the tune of N335,902.

The manager claimed to have paid the debt, but when given 30 minutes to produce evidence of payment, he disappeared and the company was shut.

On Wednesday in Lagos, the premises of Ace Products and Services, situated at No. 20, Sanni Ashmiu Close, Awoyaya, was shut over a tax debt of N157.3m.

However, members of staff of the company refused to open the gates for the FIRS officials despite properly identifying themselves. The refusal to open the gates lasted about 15 minutes, after which policemen attached to the team forced the gates open for Gana to order the firm’s staff members out of the premises for the company to be sealed.

The team also visited Globasure Technology Limited at No. 10, Ashabi Adewale Close, Lekki Phase 1, Lagos. The company is said to be indebted to the tune of N36.5m, which had accumulated between 2007 and 2014.

The company’s managing director admitted that the organisation owed, but insisted that the amount was below what the FIRS claimed. He appealed to the team for more time, blaming the failure to pay on the harsh economic situation in the country. His plea was, however, ignored and the company was shut.

On Tuesday, the FIRS sealed Diplomat Hotel located at No. 1 Shonny Way, Shonibare Estate, Maryland, Lagos, which allegedly owed N35.1m accumulated over the last four years. The hotel’s customer care manager said the management was “concerned about the debt.”

The same day, the team closed the premises of Island Power Limited, a power generating firm said to be owing N132.5m from 2012 to 2014. The company’s administrative department was shut, leaving the power plant because of the essential service it provides. But at Conservative Estimate Limited, situated at No. 15 Fatai Irawo Way, Papa Ajao, Lagos, the team met the premises under lock and key, as the firm allegedly relocated four months back. The warrant showed that the company owed N15.8m.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Economy

Nigeria’s Plan to Review Oil Companies’ Gas Flaring Strategies

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Oil

Nigeria is ramping up its efforts to address environmental concerns in the oil and gas sector with a comprehensive plan to review gas flaring strategies of international and indigenous oil companies.

The Minister of State for Environment, Dr. Iziaq Salako, announced this initiative during a national stakeholders engagement meeting on methane mitigation and reduction held in Abuja, Investors King reports.

Gas flaring, a common practice in the oil industry, releases methane—a potent greenhouse gas—into the atmosphere, contributing to climate change and posing health risks to communities near oil facilities.

Nigeria aims to end routine gas flaring by 2030, aligning with global climate goals and commitments.

Dr. Salako explained the importance of reducing methane emissions and highlighted the detrimental effects on public health, food security, and economic development.

He outlined practical steps being taken to tackle methane emissions, including the development of methane guidelines and the engagement of government institutions.

The ministry, through the National Oil Spill Detection and Response Agency, will conduct periodic reviews of oil companies’ plans to ensure compliance with the gas flaring deadline.

Deloitte management consultants will assist in conducting comprehensive forensic audits to scrutinize the legitimacy of forward-contracted transactions.

President Bola Tinubu’s commitment to environmental sustainability underscores the government’s dedication to addressing climate change and fulfilling its multilateral environmental agreements.

The engagement event served as a platform for stakeholders to discuss methane mitigation strategies, existing policies, and implementation challenges.

Collaboration and dialogue among diverse sectors are crucial in charting a unified course towards sustainable methane reduction in Nigeria’s oil and gas industry.

As the country navigates its environmental agenda, ensuring accountability and transparency in gas flaring practices remains paramount for achieving a greener and healthier future.

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Economy

Interest Rate Jumps to 24.75% as CBN Takes Aggressive Stance Against Inflation

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Dr. Olayemi Michael Cardoso

The Central Bank of Nigeria (CBN) has announced a significant increase in the monetary policy rate, known as the interest rate, to 24.75%.

This move disclosed by CBN Governor Olayemi Cardoso during the 294th Meeting of the Monetary Policy Committee press briefing in Abuja, represents a bold step by the apex bank to address the mounting inflationary pressures faced by the country.

With inflation soaring to 31.70% in February, the CBN aims to moderate this upward trend by tightening its monetary policy stance.

This decision follows the previous hike in the interest rate to 22.75% in February, showcasing the CBN’s commitment to combatting inflationary forces.

While the bank opted to maintain the Cash Reserve Ratio at 45%, the significant increase in the interest rate underscores the urgency of the situation and the need for decisive action.

Governor Cardoso emphasized that these measures are essential to stabilize the economy and safeguard the purchasing power of the Nigerian currency.

The 294th MPC marks the second meeting under Governor Cardoso’s leadership, indicating a proactive approach to addressing economic challenges.

The next MPC meeting is scheduled for May 20th and 21st, 2024, highlighting the ongoing commitment of the CBN to navigate Nigeria’s economic landscape amidst inflationary pressures.

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Economy

Nigeria Braces for 10th Consecutive Interest Rate Hike by Central Bank

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Central Bank of Nigeria (CBN)

As Nigeria grapples with persistently high inflation, the Central Bank of Nigeria (CBN) is gearing up to implement its tenth consecutive interest rate hike in a bid to curb the soaring prices and attract investment.

Analysts surveyed by Bloomberg are anticipating a substantial 125 basis-point increase in the key rate to 24%, marking one of the most significant adjustments in the current tightening cycle.

The decision, expected to be announced by Governor Olayemi Cardoso on Tuesday at 2 p.m. in Abuja, comes on the heels of inflation accelerating to 31.7% in February, far surpassing the central bank’s target range of 9%.

This surge has been primarily attributed to the sharp depreciation of the naira, prompting authorities to devalue the currency twice since June to narrow the gap with the unofficial market rate and encourage investor confidence.

While these measures have seen the naira strengthen in recent days and bolstered investment inflows, including a fourfold increase in overseas remittances and significant foreign investor portfolio asset purchases, there remains a palpable need for more decisive action.

Giulia Pellegrini, a senior portfolio manager at Allianz Global Investors, emphasized the necessity for the CBN to intensify its tightening efforts to regain foreign investors’ confidence in the local bond market.

While acknowledging the positive strides made by the central bank, Pellegrini stressed the importance of a more assertive approach to prevent the diversion of investor attention to other frontier markets.

As the Nigerian economy navigates through these challenging times, the impending interest rate hike signals the CBN’s determination to address inflation head-on and foster a more stable economic environment.

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