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FIRS Sets N8tn Revenue Target in 2019

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FIRS
  • FIRS Sets N8tn Revenue Target in 2019

The Federal Inland Revenue Service has given itself a target to generate N8tn revenue in 2019.

As such, it called on all taxpayers and other stakeholders to support the drive to make the target achievable.

The Chairman, FIRS, Mr Tunde Fowler, disclosed this at the organisation’s 2019 management and stakeholders’ retreat, with the theme: ‘Parliamentary support for effective taxation of the digital economy,’ in Lagos on Monday.

He said the FIRS set the new target after it collected the country’s highest annual revenue of N5.32tn in 2018.

The chairman said, “The parliament is here, the 2019 budget has not yet been approved, but we are here in the corridors of power. The target of the FIRS is in the region of N8tn and with their support and the support of all taxpayers we believe it is achievable.”

Fowler disclosed that prior to 2018, the highest revenue figure ever attained by the FIRS was N5.07tn, which it generated in 2012.

The FIRS’ generation of N5.3tn, he noted, was remarkable, given that it was achieved at a period when oil prices averaged $70 per barrel compared with between 2010 and 2013 when oil price was at an average of $100 to $120 per barrel.

He said the non-oil component of the N5.32tn was N2.467tn (53.62 per cent), while oil contributed N2.852tn (46.38 per cent).

He said the FIRS collected N212.79bn exclusively from audit, a figure that arose from 2,278 cases, and with a huge reduction in audit circle.

Fowler said, “While we have been steadily increasing revenue collection over the years, our cost of collection has actually been going down. In 2016, we collected N3.307tn; in 2017, we collected N4.027tn and in 2018, we collected N5.32tn. “Meanwhile, the cost of collection as a percentage of actual taxes collected has been reducing. In 2016, it was 2.6 per cent. In 2017, it was 2.49 per cent, while in 2018 it was 2.14 per cent.”

He added that the FIRS had been working hard to ensure an increase in the amount of non-oil revenue it collected.

The non-oil collection, he disclosed, contributed 64.99 per cent in 2016, 62.25 per cent in 2017 and 53.62 per cent in 2018.

This, he stated, was indicative of the government’s increasing focus on non-oil revenue sources and diversification of the country’s economy.

He attributed the steady rise in the collection figures to a series of initiatives adopted and implemented by the revenue service to enhance tax administration and easy tax payment.

Among these, he added, was the deployment of Information and Communications Technology initiatives, which enabled taxpayers to pay taxes from anywhere in the world and at any time.

He said, “With the e-payment channel, one can pay taxes with the click of a button and one can also download their receipts.

“Other e-services are the e-registration, e-filing, -stamp duty and e-tax clearance certificate.

“Taxpayers can now also choose the tax office where they would like to conduct their tax transactions.”

Fowler noted that taxpayers were fast embracing modern tax collection methods introduced by the FIRS through the six e-solutions.

He equally said that the service was automating Value Added Tax collection to ensure compliance and cost reduction.

Fowler said, “We are doing system-to-system integration between banks and the FIRS. And I am happy to announce to you that we had a 31 per cent increase year-on-year in VAT collection in the banks that have gone live between January 2017 to December 2018 and collected N25bn so far.

“We are also automating the payment of VAT by states through the State Offices of Accountant-General platform. This will ensure that we automate and deduct at source and remittance of VAT and WHT from state government contract payments directly to FIRS’s account and so far, collected N13bn.”

He noted that the number of taxpayers that requested for and processed their Tax Clearance Certificates through tcc.firs.gov.ng grew from 9,574 to 59,350 within a year of introducing the platform.

“Auto VAT collection in key sectors has also facilitated the reduction in the cost of compliance. Between January, 2017 and December, 2018, VAT collection increased by 31 per cent, which translates to a collection of N25bn. Overall, in 2018, VAT crossed the N1tn mark. Indeed, VAT is the fastest growing tax type in the world and even rich countries that did not depend on taxation have now introduced VAT, like the United Arab Emirates.”

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

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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.”

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Banking Sector

CIBN, NIBSS Introduce e-Payment Certification Programmes

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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.

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Finance

Stanbic IBTC Offers Low-Interest Agric Loans

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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.

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