Business

Tax Expert Urges Government to Boost Investment-Friendly Tax Environment

Calls for Fairness, Transparency, and Seamless Tax Process to Attract Investors

Published

2 months ago

September 23, 2023

Company Income Tax (CIT) - Investors King

Dr. Titilayo Fowokan, a former Lagos State Coordinator of the Society of Women in Taxation (SWIT), has called for a significant improvement in the tax environment.

Her recommendations encompass fairness, transparency, and a seamless tax collection process to stimulate economic growth.

Speaking recently in Lagos, Dr. Fowokan commended the present administration’s efforts in implementing tax reforms, particularly highlighting the Finance Act of 2023 and the work of the Taiwo Oyedele-led tax reform committee.

She emphasized the alignment of these initiatives with current economic realities, especially in enhancing the ease of doing business.

However, Dr. Fowokan voiced concerns about the impact of excessive exchange rate volatility and fuel subsidy removal on these reforms.

She noted that these factors have driven up the cost of doing business in the country, putting pressure on investors.

“Overall, businesses and companies are adjusting to the drive for compliance by the current tax system and reviewing their tax strategy, value and supply chain management, tax controls, risk management, and tax planning initiatives for sustainability,” Dr. Fowokan stated.

In addition to her recommendations for governments, Dr. Fowokan urged tax administrators to improve interactions between taxpayers and new digital tax payment platforms.

She acknowledged the benefits of transitioning to an automated tax system, particularly in terms of enhanced tax compliance, and called for further innovation in this area.

“In relation to administrative ease of the current tax system, the FIRS should not limit the Tax Promax platform to punishing non-compliance but also grant access to benefits for compliance. This is from the angle of penalty regimes on the platform versus the claim of Withholding tax credits through the platform. An improvement in this will be a significant boost to the ease of doing business in Nigeria,” Dr. Fowokan emphasized.

The recommendations put forth by Dr. Titilayo Fowokan underscore the importance of fostering an investment-friendly tax environment that prioritizes fairness, transparency, and efficiency. As governments contemplate their fiscal policies, her insights serve as a timely reminder of the crucial role tax reform plays in economic development and attracting investment.

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Merger and Acquisition

Equinor Concludes Sale of Stake in Chevron’s Agbami Oil Field to Chappal Energies

Published

8 hours ago

November 30, 2023

Investors King

Norwegian energy company Equinor has successfully finalized the sale of its 20.21 per cent stake in Chevron’s Agbami oil field.

The transaction, including Equinor’s 53.85 per cent ownership in Oil Mining License 128, was completed with Nigerian-owned Chappal Energies. The financial details of the deal have not been disclosed.

Equinor, a longstanding player in Nigeria’s energy sector since 1992, views this divestment as a strategic move in line with its broader international oil and gas portfolio optimization strategy.

Nina Koch, Equinor’s Senior Vice President for Africa Operations, commented on the transaction, stating, “This transaction realizes value and is in line with Equinor’s strategy to optimize its international oil and gas portfolio and focus on core areas.”

Chappal Energies, the acquiring entity, is a committed Nigerian-owned energy company with ambitions to further develop the assets, contributing significantly to the Nigerian economy.

The completion of the transaction remains contingent on various conditions, including regulatory and contractual approvals.

Equinor’s exit from the Agbami oil field signifies a shift in its global asset portfolio management, enabling the company to concentrate on its core operational areas.

The deal aligns with the broader industry dynamics and demonstrates Equinor’s commitment to strategic alignment and operational efficiency.

Company News

Dangote Petroleum Refinery Set to Make History with Public Listing on NGX

Published

2 days ago

November 28, 2023

Investors King

Aliko Dangote, the president and chief executive of Dangote Industries Limited, has announced plans to publicly list the subsidiary, Dangote Petroleum Refinery, on the Nigerian Exchange Limited (NGX).

Dangote expressed confidence in overcoming previous challenges related to crude oil supply, stating, “We have resolved all the issues with crude oil supply. We are now ready to move forward with our plans to list the refinery on the Nigerian Exchange Limited.”

The refinery, poised to commence operations in December, holds the promise of significant contributions to the Nigerian economy.

At full capacity, it is expected to produce 650,000 barrels of oil per day, with an initial rollout of 540,000 barrels daily.

The facility will produce 27 million liters of diesel, 11 million liters of kerosene, and nine million liters of jet fuel, sourcing crude from various Nigerian producers, including the state oil company.

A finalized deal for the delivery of the first cargo of approximately six million barrels next month signals the imminent realization of this ambitious project.

The refinery’s impact is anticipated to extend beyond the oil and gas sector, with projections suggesting significant cost savings for Nigeria by eliminating the need to import petrol.

Industry operators and government officials are optimistic about the transformative potential of the Dangote Refinery.

Akinwumi Adesina, President of the African Development Bank (AfDB), lauded the project as the best-industrialized initiative for Africa, projecting substantial savings for Nigeria and the continent as a whole.

As Nigeria’s largest refinery project, the facility has garnered praise from the Lagos Chamber of Commerce and Industry (LCCI).

Dr. Chinyere Almona, the LCCI Director-General, commended the visionary efforts of Aliko Dangote and the supportive federal government, emphasizing the refinery’s capacity to meet Nigeria’s refined petroleum product needs.

The impending listing on the NGX positions Dangote Petroleum Refinery as a catalyst for economic growth, energy security, and self-sufficiency in Nigeria and beyond.

Company News

Aliko Dangote: Dangote Refinery Set to Commence Operations, Eyes 350,000 Barrels Daily

Published

4 days ago

November 27, 2023

Investors King

In a recent interview with the Financial Times, Aliko Dangote, the President and CEO of the Dangote Group, announced that the long-anticipated $20 billion Dangote Refinery in Lekki, Lagos, is set to commence operations by refining 350,000 barrels per day.

Dangote revealed that a deal had been secured for the delivery of the first cargo of approximately 6 million barrels in December 2023.

He expressed confidence that the refinery could achieve its full capacity of 650,000 barrels per day by the end of 2024.

The Dangote Refinery, touted as the world’s largest “single train” facility with a singular distillation unit, is expected to significantly reduce Nigeria’s dependence on imported fuel and save billions in foreign exchange.

Dangote lamented the irony that Nigeria, a major oil producer for over 50 years, has struggled to refine its own crude adequately.

However, the project, which has faced delays and exceeded its budget by about $8 billion, has not been without challenges.

Dangote dismissed doubts about the refinery’s efficiency, stating that the challenges encountered during the project could have jeopardized his business empire.

He acknowledged being under intense pressure, facing allegations of underhand business practices and gaining unfair access to foreign exchange, which he vehemently denied.

Despite these challenges, Dangote expressed gratitude for overcoming the hurdles and reaching the destination.

The refinery is expected to generate substantial revenue, and plans are underway to eventually list it as a separate company on the Lagos stock exchange.