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Facebook to Start Charging Nigerians 7.5% VAT on Ads

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Starting from January 1, 2022 Nigerians will begin to pay 7.5 percent value-added tax (VAT) on all ads placements on Facebook, Facebook has said.

In a statement issued on Thursday, the social media giant disclosed that the new development will apply to those buying ads for businesses or personal purposes.

Due to implementation of a value-added tax (VAT) in Nigeria, Facebook is required to charge VAT on the sale of ads to advertisers, regardless of whether you’re buying ads for business or personal purposes,” the statement read.

The statement continued, “If you’re registered for VAT and provide your VAT ID, your VAT ID will show up on your ads receipts. In the event that you’re entitled to recover the VAT, this may help you recover any VAT you paid to the Nigerian tax authorities if you are a VAT registered business in Nigeria.”

The company that recently changed its name to META also added that the same 7.5 percent VAT charge will apply to Instagram ads.

The decision may be connected to the Federal Government’s strategy to develop regulations for media outfits that have a significant presence in the country and work on modalities to tax them.

It will be recalled that some months back federal government had suspended Twitter after the microblogging platform took down a post of the President, Muhammad Buhari. In the series of negotiations and mediations that followed, the Presidency through the Minister of information stated that the federal government will work on measures to regulate the activities of all major social media outlets in the country.

In this light, the President has developed and transmitted the 2021 Finance Bill to parliament. The bill if passed into law will give the Federal Inland Revenue Service (FIRS) power to assess and charge companies income tax (CIT) on any digital company with a significant presence in the country thereby increasing government revenue.

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Company News

Lagos-Ibadan Train: We Spend N4 Million Naira on Diesel Every Day, Says NRC

Nigerian Railway Corporation (NRC) has revealed that it spent N4 million on diesel daily despite struggling to make N1.7 million in a day.

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Lagos-Ibadan Train Services - Investors King

Nigerian Railway Corporation (NRC) has revealed that it spent N4 million on diesel daily despite struggling to make N1.7 million in a day.

According to the corporation, the high cost of diesel in recent times has really affected the profitability of the railway corporation. 

The corporation said it uses about 24,000 litres of diesel daily for the Lagos-Ibadan route, amounting to about N4 million while it barely makes N1.7 million a day.

This represents a cost-to-revenue ratio of 135.3 percent in favour of the cost. Besides, there are other costs incurred daily by the corporation. 

In the words of the NRC Managing Director, Mr Fidet Okhiria, “We can hardly buy diesel to operate. In fact, the major headache now is the price of diesel. For instance, on average, we use about 24,000 litres daily for the Lagos-Ibadan service and we barely earn up to N1.7m per day”. 

“Now the supply cost for a litre of diesel is close to N1,000. At the filling stations, you get it for about N700 to N800, but if you have a supplier, he will have to put his profit margin, VAT and others, and this brings the cost to about N1,000 per litre. So, we are talking about spending almost N4m on diesel alone, when we barely make N1.7m. But we still have to provide the services on that route.” He stated. 

Mr Fidet Okhiria further lamented that government allocation for the corporation in the 2022 budget is grossly inadequate to run operations.

He stated that the government provided about N500 million to purchase diesel for all rail services across the country which barely lasts up to a month. 

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Merger and Acquisition

PowerDFI Acquires Nigerian Startup Naijacrypto to Impove BlockChain Transparency And Security

PowerDFI, a US-based blockchain company that redefines payments and enables the usage of tokenized assets, has acquired Nigerian-owned cryptocurrency exchange company Naijacrypto.

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PowerDFI, a US-based blockchain company that redefines payments and enables the usage of tokenized assets, has acquired Nigerian-owned cryptocurrency exchange company Naijacrypto.

The Nigerian cryptocurrency exchange startup expanded its offering into six new markets this year and also improved its presence in existing markets.

It is one of the few Nigerian cryptocurrency exchange platforms with its presence in the Caribbean, and has on several occasions indicated an interest in expanding to other Latin American countries.

Speaking on the recent acquisition, PowerDFI CEO Tim Webb said “Adding the work done by Naijacrypto to what we are building in PowerDFI fills out our technology suite to handle trillions in assets over the next decade.”

“We are set to lead the transition of the $57 trillion shadow banking market to the blockchain to improve transparency and security,”

Our combined strengths of being first in the market to allow the staking of physical assets using smart contracts on the blockchain and the integration of various yield mechanisms to be a leading fintech globally.” 

We’re also building a derivative platform on the blockchain to help businesses hedge against native currency and asset exposure risk to global markets,” Webb explained.

Also speaking on the acquisition, Naijacrypto CEO Chiagozie Iwu in an email to its users said;

“Harnessing its innovative blockchain technologies, PowerDfi also expects to lead the way in “bringing physical asset economic utility to the Blockchain.

This acquisition allows us to bring the future of financing vast amounts of critical assets to the blockchain. No other DeFi platform is making it possible for tokenized assets to be leveraged for staking, loans, and derivative creation.

Large amounts of equity can now be unlocked and unfrozen because of the PowerDfi platform and its staking and lending protocols.

At a time of job-cutting and freezing client funds in this sector, we’re creating a robust new platform that will drive asset financing on the blockchain globally.

PowerDfi’s acquisition of Naijacrypto is a fit-like-a-glove, synergistic arrangement in which the capabilities of each company perfectly meet the needs of the other”.

PowerDfi is the next phase of the DeFi evolution, and I am glad Naijacrypto and its entire team will have a front seat on this journey”.

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Merger and Acquisition

Adobe To Acquire Web-Based Design Platform, Figma in a Deal Worth $20 Billion

Figma announced it has entered into an agreement to be acquired by Adobe, the Co-Founder and CEO of Figma, Dylan Field said in a blog statement sent to Figma users. 

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Today, September 15, 2022, Figma announced it has entered into an agreement to be acquired by Adobe, the Co-Founder and CEO of Figma, Dylan Field said in a blog statement sent to Figma users. 

Figma is an advanced web-based graphic design tool that offers next-generation collaborative work on UI/UX prototyping. It is a robust application that enables you to create unique UX designs that are user-friendly yet professional. It was founded 10 years ago by Dylan Field and Evan Wallace.

The collaborative design platform has become key for many businesses in recent years.

Investors King gathered that Adobe offered approximately $20 billion in cash and stock for the leading web-based collaborative design platform. 

While Adobe is used to create, view, and annotate text among others, the combination of Adobe and Figma will usher in a new era of collaborative creativity.

According to Adobe in a press statement, “Together, Adobe and Figma will reimagine the future of creativity and productivity, accelerate creativity on the web, advance product design and inspire global communities of creators, designers and developers. The combined company will have a massive, fast-growing market opportunity and capabilities to drive significant value for customers, shareholders and the industry”

“Adobe and Figma share a passion for helping individuals and teams to be more creative and productive. With Adobe’s and Figma’s extensive product portfolio, the combined company will have a rare opportunity to power the future of work by bringing together capabilities for brainstorming, sharing, creativity and collaboration and delivering these innovations to hundreds of millions of customers”, the statement added. 

After the acquisition, Adobe will allow Figma to work autonomously and retain Dylan as Figma’s Chief Executive Officer (CEO). Dylan will however be reporting to David Wadhwani. David Wadhwani is the Executive Vice President and Chief Business Officer, Digital Media at Adobe Incorporated. 

 

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