Connect with us

Finance

We’re Profiling Rich Nigerians for Tax Payment – Adeosun

Published

on

minister-of-finance-kemi-adeosun
  • We’re Profiling Rich Nigerians for Tax Payment

The Minister of Finance, Mrs. Kemi Adeosun, on Thursday said that the Federal Government was currently profiling high net worth individuals to ensure that what they currently own as assets correspond with the amount they were paying as taxes.

She said this via a video posted on her Facebook page where she responded to questions from Nigerians about the implementation of the Voluntary Asset and Income Declaration Scheme.

The VAIDS offers a grace period from July 1, 2017 to March 31, 2018, for tax defaulters to voluntarily pay back to the government what they owed.

In exchange for full and honest declaration, the government promises to waive penalties that should have been levied and also waive the interest that should have been paid on overdue taxes.

In addition, those who declare their tax obligation honestly will not be subjected to any investigation or tax audit after the nine-month grace period.

The minister said Nigeria had one of the lowest tax compliance rates in the world with a tax to Gross Domestic Product ratio currently standing at six per cent.

She stated that with such a low tax-to-GDP ratio, the government needed to do all it could to shore up the tax revenue.

Adeosun explained that in the last 15 months, the Ministry of Finance had been building a database of high net worth individuals through information received from both local and international sources.

For instance, she explained that while the assets of some of the high net worth individuals had been obtained by the ministry through local sources, their assets owned abroad were obtained from the Panama Papers as well as other information supplied by countries, which Nigeria had tax treaties with.

The minister said a situation whereby policemen and other low income earners were paying taxes through deductions from their salaries, while high net worth individuals who should pay more, were evading payment was unacceptable to the government.

She added that the ministry would use technology to improve the rate of tax compliance.

Adeosun stated, “We only have 14 million taxpayers out of the 70 million active people. We are sharing tax information with other countries and this will help us draw a picture of taxpayers and their lifestyles.

“We are profiling high net worth individuals to enable us determine if what they pay as tax corresponds with their lifestyles. For 15 months, we have been doing that at the Ministry of Finance, and we are looking at their assets not only in Nigeria, but abroad.”

She explained that the Federal Government would implement its policy on luxury taxes.

The minister added, “We signed something yesterday (Wednesday) on luxury goods like champagne, brandy, whiskey, wines, and high-end jewellery. We’ve signed something that will bill access charge on first class and business class tickets; we are just doing the final parts of the implementation and we also want to try and amend the taxpayer book on high-end luxury cars.

“If we move our tax-to-GDP ratio up, it means we will be able to provide more services to our people. Many of the things we are not able to do are functions of the fact that we don’t have enough money.”

She explained that for the country to be called a rich nation, the citizens must be ready to pay the right amount of taxes to enable the government build roads, schools and other infrastructure.

Adesoun added, “We need to build more schools; we need to build more hospitals; we need to build more roads. This is not rocket science. Every country has challenges; there is nothing we are facing that other countries haven’t faced. Every poor nation has a very poor tax compliance rate, and every rich nation has a high compliance rate. So, we want to be a prosperous nation.

“So, what is in it for the citizens? If everybody pays, there will be far more money in the pool to be spent on the services that we need.

“These things are what we call public goods, and they are funded from taxes. If you have been all around the country, you’ve seen the need, you’ve seen the number of people that are living in poverty; we can lift people from poverty if we have the right money.”

She expressed satisfaction with the rate of response from Nigerians on the VAIDS scheme, adding that many companies are now willing to take advantage of the nine months amnesty period.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Banking Sector

Sterling Bank Approves Audited Financial Statements for 2020

Published

on

Sterling Bank

Board of Sterling Bank Approves 2020 Audited Financial Statements

The Board of Sterling Bank Plc said it has approved the audited financial statements for the year ended 31, December 2020.

The lender said the approval was done at a meeting held on 23rd February 2021.

Details of the financial statements will be released upon approval of the Central Bank of Nigeria (CBN), Sterling Bank stated in a statement filed with the Nigerian Stock Exchange on Thursday.

It said “We are pleased to inform our shareholders and other stakeholders that the Board of Sterling Bank Plc at its meeting of 23rd February 2021 approved the audited Financial Statements for the year ended 31st December 2020 subject to the approval of the Central Bank of Nigeria (CBN).

“Kindly note that details of the Financial Statements will be communicated to you upon approval of same by the CBN.

“Consequently, the closed period for trading in the shares of the Bank by its insiders which commenced from 8th February, 2021 will continue until 24 hours after the Audited Financial Statements for the year ended 31st December, 2020 are released on the floor of the Nigerian Stock Exchange.”

Continue Reading

Banking Sector

CIBN, NIBSS Introduce e-Payment Certification Programmes

Published

on

NIBSS

CIBN, NIBSS Introduce e-Payment Certification Programmes

The Chartered Institute of Bankers of Nigeria (CIBN) in collaboration with Nigerian Interbank Settlement Systems Plc (NIBSS) have introduced professional certification programmes on electronic payments for financial service providers and institutions.

Both organisations disclosed that the programme was designed to enhance the electronic payment skills and knowledge of financial practitioners in order to equip them with efficient tools and information required to upscale innovation and services.

Speaking to journalists at a media briefing in Lagos, yesterday, the Chief Executive Officer, Chartered Institute of Bankers of Nigeria, Mr. Seye Awojobi, said the initiative is an international programme, well grounded in the local realities of the Nigerian e-payment industry and captures the current dynamics, as well as aspects of digital financial services practices.

“This programme would set the standards for e-payment expertise in Nigeria; foster a category of high performing professionals in the industry and build a resilient, safe and secured payment technology driven platform.

“The curriculum for the programme adequately covers recent methods required, which are in line with global practices.

“The introduction of the scheme cannot be more timely than now considering the COVID-19 pandemic, which created serious disruptions in our professional and personal lives,” he added.

On his part, Chief Executive Officer, Nigerian Inter-Bank Settlement Systems Plc, Premier Oiwoh explained that the introduction of the programme would determine the capacity and work experience criteria required to recognise beginners, intermediate and advanced.

“It would create a growth roadmap for fledging e-payment workers, including the unemployed who has the desire to make a career in the electronic sector.

“Also, it would enable us continue to tackle the issue of insecurity within the financial technology payment and banking space,” he added.

The institutions also noted that in order to maintain a certification credential, the practitioners must earn some recertification credits over a three year span and valid for three years after it has been issued.

The CIBN last week has reintroduced its mentoring scheme. The initiatives aims at up-scaling the leadership capacity and productivity of workers within the financial and banking sector.

Speaking during the virtual forum, Director General, Securities and Exchange Commission, Lamido Yuguda, had explained that mentoring schemes are essential for the sustenance and development of the sector as it is built upon values such as trust and professionalism.

“These values can be taught. But are reinforced when practiced by the senior co-workers and emulated by junior colleagues. Such initiatives enable workers to avoid being distracted by the material, prestigious and monetary incentives the space presents.

Continue Reading

Finance

Stanbic IBTC Offers Low-Interest Agric Loans

Published

on

Stanbic IBTC Bank

Stanbic IBTC Offers Low-Interest Agric Loans

Stanbic IBTC Bank Plc has reaffirmed its commitment to the growth of Nigeria’s agriculture sector by supporting farmers and other players in the agricultural value chain.

As the demands on agribusinesses change seasonally, the financial institution provides financing solutions for agricultural enterprises to suit their requirements.

A statement explained that the needs range from availability of resources, to farming equipment, as well as enhancement of seasonal cashflow, amongst others.

Stanbic IBTC Bank offers various low-interest credit facilities across the agricultural sector that will help clients to cushion the impacts of the Covid-19 pandemic.

Speaking on this, Head, Agribusiness, Stanbic IBTC Bank, Wole Oshin, said the agribusiness financial solution was geared towards ensuring that players in the agriculture space are not hindered by lack of finance.

He said: “The bank’s suite of agribusiness solutions minimises risks, ensures maximum control and optimises profits associated with international trade by making transactions smoother, simpler and safer for all parties involved.

“Some benefits of the Stanbic IBTC Agribusiness Finance include: availability of gap-funding for unforeseen financial needs, maintenance of cash flow and flexibility of repayment terms based on the type of funding. This facility is also versatile and can be utilised for funding resources, vehicles and farming equipment.”

Oshin noted that agricultural enterprises could access overdraft to finance their short-term cash flow and working capital needs.

“With quick and flexible processes, funds are available when needed and interest is paid only on funds utilised, not on the full amount on which the limit is set,” he added.

He further reiterated that the asset finance solution could aid in the financing of all farming vehicle and implement needs, with a wide range of packages to suit business’ cash flow and tax requirements.

“Vehicles and assets such as tractors, harvesters, irrigation equipment and so on, to enhance production,” he said.

Other available facilities are Business Revolving Credit Loan, Agricultural Production Loan and Medium-Term Finance.

These are suitable for grain farmers, individual farmers, groups and entities in the agricultural sector. Our loans are designed to accommodate the purchase of various agricultural inputs (like seeds, fertilizers etc), livestock, agriculture-related products and asset acquisition.

Continue Reading

Trending