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Banks Paid N8.51bn as IT Levy in 2018

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6 years ago

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Bank - Investors King
  • Banks Paid N8.51bn as IT Levy in 2018

Eleven Nigerian banks paid about N8.51bn Information Technology-related levies to the government in 2018, the audited financial reports of the banks showed.

This is an increase of N1.34bn over the N7.17bn IT levy the 11 banks paid to the government in the corresponding period in 2017.

The National Information and Technology Development Agency had established a Fund to which companies and enterprises with an annual turnover of N100m or more are mandated to contribute one per cent of their profits before tax to.

Companies liable to pay the levy as stated in the NITDA Act are GSM service providers and all telecommunications companies; cyber-companies and Internet providers; pension managers and pension-related companies; banks and other financial institutions; and insurance companies.

Some of the banks, whose annual reports were assessed, are Zenith Bank Plc, First City Monument Bank, Access Bank Plc, Guaranty Trust Bank Plc, United Bank for Africa Plc, Sterling Bank Plc and First Bank of Nigeria Limited.

Others are Jaiz Bank Plc, Union Bank Plc, Wema Bank Plc and Fidelity Bank Plc.

UBA paid the highest IT levy out of all the banks in 2018, reporting N2.31bn, a 49 per cent increase from N1.55bn remitted in 2017.

Zenith Bank ranked second, reporting N2.06bn IT levy remittance to the government, a 14 per cent increase compared with N1.80bn paid within the same period of 2017.

Having paid N1.90bn to the coffers of the government, GTB reported a two per cent increase in its IT levy remittance in 2018 as against N1.86bn paid in 2017.

IT tax expenses reported by First Bank rose by 12 per cent from N692m in 2017 to N774m in 2018.

As contained in its annual report, Access Bank’s IT levy remittance to the Nigerian government in 2018 was N752m, an increase of 12 per cent over N670m made in 2017.

Fidelity Bank’s IT levy remittance for 2018 improved by 24 per cent to N251m as against N203m in 2017.

Further analyses of the financial report indicated that FCMB’s IT tax levy paid to the Nigerian government reduced by eight per cent from N131.2m reported in 2017 to N120.5m in 2018.

For Jaiz Bank, the IT levy paid dropped by 38 per cent from N8.85m in 2017 to N5.45m in 2018.

With N98m reported in 2018, Sterling Bank’s IT levy paid to the government increased by 15 per cent year-on-year.

Wema Bank remitted N56.1m from its profits to the government in 2018, compared to N31.5m it paid in 2017, recording 78 per cent growth in IT levy remittance.

Details of Union Bank’s annual report indicated that the bank paid N185m as IT levy to the government in 2018, recording 42 per cent increase as against N130m in 2017.

According to NITDA Act 2007, companies eligible to pay the one per cent levy are assessed and issued a demand notice by the Federal Inland Revenue Service.

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Insurance

Senate Passes Bill to Bolster Nigeria Deposit Insurance, Protect Depositors’ Funds

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10 mins ago

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October 30, 2024

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Insurance - Investors King

The Nigerian Senate has taken a significant step to safeguard depositors and promote trust in the country’s banking system by passing a bill to enhance the Nigeria Deposit Insurance Corporation (NDIC).

The Senate passed the bill on Tuesday, October 29, during its plenary.

Senator Adetokunbo Abiru (APC-Lagos), who sponsored the bill titled “The Nigeria Deposit Insurance Corporation Act 2023” said the bill aims to strengthen the country’s financial system.

According to him, the amendment of the NDIC bill will not only ensure the safety of depositors’ funds but also the stability of financial institutions and promote trust in the banking sector.

Abiru said, “The Nigerian Deposit Insurance Corporation (Amendment) Bill, 2024, is a critical piece of legislation aimed at strengthening the Nigerian financial system.

“The proposed amendments will enhance the NDIC’s capacity to safeguard depositors, ensure the stability of financial institutions, and promote trust in the banking system.

“Given the rapidly evolving nature of the financial sector, this Bill represents a timely response to the challenges and opportunities that lie ahead.”

He added that the bill seeks to empower the corporation by guaranteeing its independence in performing its statutory functions per Section 1 (3) of the principal Act.

“The principal (2023) Act restricts the President’s power to appoint the Managing Director and Executive Directors, requiring recommendations from the Central Bank of Nigeria Governor.

“The 2024 bill now seeks to align this provision with the President’s appointment powers as enshrined in the Constitution of the Federal Republic of Nigeria 1999 as amended.

“The Act’s provision that makes the Permanent Secretary, Ministry of Finance, the Chairman of the Board is also under review due to the demands on that office.

“Furthermore, the bill introduces a requirement for the Minister of Finance to constitute an Interim Management Committee for the Corporation within 30 days after the Board’s term expires or is terminated.

“This is to prevent challenges in the Corporation’s operations caused by the absence of a board.”

The bill, which received the support of all members, was approved following the Senate Committee on Banking, Insurance, and Other Financial Institutions’ report review.

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Banking Sector

No System Upgrade Currently Underway, First Bank Tells Customers 

Published

5 days ago

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October 25, 2024

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FirstBank Headquarter - Investors King

One of the leading first generational banks in Nigeria, First Bank has clarified that it is not embarking on any system upgrade as erroneously reported in the social media.

Many of the commercial bank’s customers have expressed concerns over possible disruptions in banking transactions as fake report filtered that First Bank was upgrading its services.

Some had said there might be difficulties in withdrawing money or using the applications of the bank for their transactions.

Meanwhile, clarifying the misleading reports, First Bank assured its customers of seamless banking operations.

Maintaining that there is no system upgrade underway, a statement issued by the management and obtained by Investors King on Friday explained that the misrepresented statement was intended to its vendors only.

It said the step was focused on transitioning from its current I-Supplier Platform to a new Cloud-Based Supplier for improved benefits for its vendors.

“We wish to address a misleading report circulating in the media regarding a system upgrade at FirstBank.

“The message which was incorrectly interpreted and reported was sent to, and intended for our vendors only and focused on transitioning from our current I-Supplier Platform (our automated platform that connects us to suppliers) to a new Cloud-based Supplier Platform (worldclass platform for managing suppliers), to enable additional capabilities and benefits for our vendors.

“Please be informed that no system upgrade is currently underway, and all our customer applications are fully operational. We are not experiencing disruption to our services, and our banking systems, customer transactions, channels, etc, will not be affected by the enhanced supplier platform.

“Rest assured that our commitment to seamless service delivery remains unwavering as you continue to enjoy uninterrupted access to our services,” the statement reads.

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Loans

NNPC Has Started Settling $6bn Debt to Foreign Suppliers— Wale Edun

Published

6 days ago

on

October 24, 2024

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NNPC - Investors King

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun has said the Nigerian National Petroleum Company (NNPC) Limited has commenced the repayment of $6 billion debt owed to suppliers.

Edun made this announcement during a meeting with investors in the U.S. capital on the sidelines of the 2024 annual meetings of the International Monetary Fund (IMF) and the World Bank.

The revelation came amidst growing concerns about the NNPC’s financial stability and its capacity to sustain petrol supply to the domestic market.

The company had previously acknowledged owing suppliers of premium motor spirit (PMS).

Addressing the issue of ongoing foreign exchange subsidies, Minister Edun clarified that “In terms of NNPC and their situation, the reality is that, although the subsidy on May 29, 2023, was removed and was no longer on the balance sheet of the government, it did rear its head, not in terms of petrol subsidy, but foreign exchange subsidy, which was borne elsewhere, and borne mainly by NNPC,” the minister said.

Mr Edun also expressed optimism about the company’s future.

“I think what I can say about their own situation is with where they are now, they have a route to paying down their payables and I’m sure that in no time at all, they will start.

“From what I understand, they have even commenced the process of paying down their payables,”he said.

The NNPC had some months ago acknowledged that it was owing the money, but admitted it was remitting money into the purse of the country.

“But NNPC Ltd., through its subsidiary, NNPC Trading, has many open trade credit lines from several traders.

“The company is paying its obligations of related invoices on a first-in-first-out (FIFO) basis,” he said.

“It is not correct to say that NNPC Ltd. has not remitted any money to the Federation Account since January. NNPC Ltd. and all its subsidiaries remit their taxes to the Federal Inland Revenue Service (FIRS) regularly.

“This is in addition to payments of CIT to road contractors under the Road Investment Tax Credit Scheme. In all, NNPC Ltd. is the largest contributor to the tax revenue shared every month at the Federation Account Allocation Committee (FAAC),” the NNPC had said in a statement in August.

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