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Nigeria’s consumers, companies’ taxes jump 96% to N2.3tn

Published

1 year ago

September 4, 2023

In the second quarter of 2023, taxes from businesses and consumers increased by 96.11 percent to N2.31 trillion, according to the most recent information from Nigeria’s official public statistics source, the National Bureau of Statistics (NBS).

The NBS said the large increase in taxes collected in Q2 was mostly due to Business Income Tax, which increased by 226.40% quarterly to N1.53 trillion from N469.01 billion in Q1, 2023. It added that the most recent data on company income tax revealed that companies in Nigeria paid the government around N1.53 trillion in taxes during the second quarter of 2023.

VAT, a consumption tax of 7.5% that is paid by a product’s final consumer, climbed marginally by 10.11% quarter-over-quarter to N781.35 billion in Q2 from N709.59 billion in Q1.

“On the aggregate, CIT for Q2 2023 was recorded at N1.53tn, representing a growth rate of 226.40% on a quarter-over-quarter basis from N469.01bn in Q1 2023. In Q2 2023, local payments totalled N1.02 trillion, while foreign CIT payments contributed N505.91 billion.”

On the whole, VAT for Q2 2023 was reported at N781.35 billion, representing a growth rate of 10.11% on a quarterly basis from N709.59 billion in Q1 2023, according to the document. In Q2 2023, local payments were N512.03 billion, foreign VAT payments were N142.63 billion, and import VAT contributed N126.69 billion.

As part of moves to increase its revenue, Nigeria’s Presidential Tax Reform Committee last week pushed for a reduction in tax waivers to corporate entities in the country as tax incentives hit N6tn annually.

The committee Chairman, Mr Taiwo Oyedele, said the body had undertaken comprehensive tax waiver review in line with the plan the previous administration had set. Nigeria is currently in a record debt crisis and revenue challenge, amid continued industrial-scale oil theft.

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IMF mission concludes 4th loan program assessment in Egypt

Published

1 day ago

November 22, 2024

Ifeoluwa Dada

Following the completion of a recent visit to Egypt, the International Monetary Fund (IMF) has announced that its mission had achieved significant strides in policy talks aimed at concluding the fourth review of the IMF loan program.

The review is the fourth in Egypt’s most recent 46-month IMF loan program, which was authorised in 2022 and increased to $8 billion this year following an economic crisis characterised by high inflation and chronic foreign exchange shortages. It may unleash more than $1.2 billion in financing.

Along with reaffirming its commitment to maintain a flexible exchange rate system, the IMF stated that Egypt “has implemented key reforms to preserve macroeconomic stability,” including the unification of the currency rate that facilitated imports.

Earlier on Wednesday, Egypt’s Prime Minister Mostafa Madbouly said Cairo has asked the IMF to modify the targets for the programme not only for this year, but for its full duration, he added without giving more details.

“Discussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review,” the IMF added in its statement.

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Kenya seeks $750m from World Bank, obtains $200m from AfDB— Official

Published

3 days ago

November 20, 2024

Ifeoluwa Dada

The head of debt management for the finance ministry told Reuters that Kenya had obtained a $200 million loan from the African Development Bank (AfDB) and was negotiating a fresh $750 million loan with the World Bank.

After being forced to abandon proposed tax rises costing more than 346 billion shillings ($2.68 billion) in June due to fatal demonstrations, the East African nation’s administration, which has been grappling with significant debt, has been frantically seeking fresh funding.

The Finance Ministry’s public debt management office director general, Raphael Owino, told Reuters that the IMF’s October clearance of the seventh and eighth reviews, which opened the door for a $606 million loan tranche, had aided the ministry’s talks for more loans.

“The World Bank is coming on board, riding on the back of IMF receipts,” Owino said. “The AfDB is already on board.”

The discussions for more assistance, which came under the World Bank’s “Development Policy Operations” (DPO) with the government, were confirmed by a representative at the organization’s Kenya office.

“The amount of the current (loan) is yet to be determined. The amount will also depend on the implementation of the policy reforms agreed upon,” the spokesperson told Reuters, adding that past DPO loans averaged about $750 million.

In May, the World Bank approved the latest round of DPO loans, totalling $1.2 billion.

According to a statement made last month by Finance Minister John Mbadi, Kenya has set a foreign borrowing goal of 168 billion shillings for the fiscal year ending in June 2025.