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Nigeria Needs Taxes to Develop -Fowler

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Evaluation of Public Accountability and Tax Culture among Tax Payers in Nigeria
  • Nigeria Needs Taxes to Develop -Fowler

The Executive Chairman of the Federal Inland Revenue Services (FIRS), Mr. Babatunde Fowler, has called on Nigerians to fulfill their obligation to the country by paying their taxes, saying without taxes, Nigeria cannot develop.

Speaking on Arise News Network yesterday, he said when Nigerians go abroad, they pay taxes for consumables, adding that “in foreign countries, they pay what is required as tax at the point of departure, and the government of that country claims their VAT, so let’s do the same here too.

Fowler reiterated that the current Voluntary Assets and Income Declaration Scheme (VAIDS) by acting President Yemi Osibanjo was not designed to put pressure on Nigeria.

He said the current federal government tax drive presents Nigerians with the window of opportunity to right the wrong in the area of tax payment.

“This country requires those taxes to develop too. Nobody will develop Nigeria except we start developing it”.

Fowler noted that the nation was harping on taxation now because government in the past did not see any need for it because of the discovery of oil in commercial quantities and the income it had generated, but since the oil price had crashed, there was an urgent need for the citizens to pay taxes.

Speaking on the newly introduced Voluntary Asset Income Declaration Scheme (VAIDS), the FIRS boss said it offers opportunities for all adults, be it in private business or corporate entities, to come forward and declare the amount of profit they had earned and the assets they have acquired and pay the commensurate taxes.

According to him, the initiative will free individuals or entities from paying penalties, or face prosecution, making them good citizens.

He added that those who have been in business, even for years, without making any profit were not expected to pay taxes, concluding that if Nigerians in their millions decided to pay their taxes, the government would have enough money to execute its budget and embark on significant projects of national importance.

According to him, though we have our records, we need to see what Nigerians declare their earnings and assets.

“For example, if you declare that you own a car of N10 million, and a house worth N50 million, your clothes, including your suit, watch and tie maybe worth a million naira and you declare that you earn N2 million year, the question would be if you earn such amount yearly, how can you you afford the house, the car, the expensive suit and the wrist watch?

“These are the questions we are asking. So we believe quite frankly that Nigerians can be law abiding,” he said.

Meanwhile, the federal government has declared that it is committed to providing free training to accountants, lawyers, wealth managers, stockbrokers and other professional advisers to the public to support the successful implementation of the recently-launched Vncome Declaration Scheme (VAIDS.

The free training is aimed at equipping them to give advice to their clients for participation on the scheme.

The Minister of Finance, Mrs. Kemi Adeosun, in a message to the Conference of the Chartered Institute of Stockbrokers held in Abuja, said that professional advisers were critical to the success of the scheme due to their role in financial management.

In the message with the theme: ‘Transiting from Recession to a Global Economic Power,’ she said: “Those who manage wealth and undertake transactions on behalf of their clients are best placed to advise them to take advantage of the VAIDS offer by declaring their assets and income honestly.”

Adeosun enjoined stockbrokers to join hands with the federal government in improving tax-payer education and compliance, crediting their side customer network as a key advantage.

A statement issued by the Director (Information), Ministry of Finance, Mr. Salisu Na’Inna Dambatta, said the minister specifically commended stockbrokers for their role in the recently launched Federal Government Savings Bonds, which relied on their distribution network.

“The success of this product shows that you continue to have a wide reach and therefore must partner with government,” the minister noted.

She also commended the role of the stock brokers in the recent successful Eurobond and Diaspora Bond issuances, adding that despite these debt issuances, Government is focussed on changing its financing mix and on raising more revenue.

Nigeria, she added, is on the road to recovery and emphasised the role of investments in infrastructure to enhance productivity and competitiveness.

Citing the N1.2 trillion already released for capital projects under the 2016 budget, Adeosun assured that much more could be done if every citizen paid the correct taxes. “It would be like thinking the unthinkable; it is time that Nigerians said Nigeria First.”

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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