VenturesNow

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

Published

8 months 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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ExxonMobil ‘optimistic’ over Mozambique LNG project

Published

13 hours ago

May 3, 2024

Ifeoluwa Dada

According to a company spokesman on Thursday, ExxonMobil is “optimistic and pushing forward” with its postponed Rovuma liquefied natural gas (LNG) project in Mozambique and anticipates a final investment decision before the end of next year.

In offshore Area 4 in northern Mozambique, ExxonMobil and its partner Enivare are developing the Rovuma LNG project. Exxon is in charge of building and running the onshore liquefaction and associated facilities, while Eni is focused on the Coral floating LNG and upstream activities.

ExxonMobil was also impacted by the development of shared and common facilities, such as an LNG jetty and offloading facility when TotalEnergies declared force majeure in 2021 in response to an offensive by militants linked to the Islamic State that threatened its Area 1 Mozambique LNG project.

“We recognise there are challenges and there are. We recognise that those challenges can be overcome if we work together,” Arne Gibbs, general manager at ExxonMobil Mozambique, told an energy conference in Maputo.

“My message is quite simple … We are optimistic, we are pushing forward,” he said of a project expected to enter a front-end engineering and design (FEED) phase in a few months.
Originally planned for 15 million metric tons per year (mtpa), the project has been changed to a modern, electric, modular facility capable of producing 18 mtpa of LNG, which is more flexible and emits fewer harmful pollutants, according to Gibbs.

“It was important to change our design to a project that is ready-made, that is fit for purpose for the current business environment, including the attention to CO2 emissions and GHG (greenhouse gases),” he added.

Credit Agricole declared in March that it would not lend money to two significant LNG projects, including Rovuma, on the grounds that it had made a pledge to abstain from further fossil fuel ventures.

According to Gibbs, the business acknowledged that the intervention of a regional military force and Rwanda’s military assistance to Mozambique had resulted in a notable improvement in the security environment.

In February, Exxon announced that it was keeping an eye on security developments in the province of Cabo Delgado, where terrorists affiliated with the Islamic State have been launching new attacks this year.

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Nigeria’s Insurance Corporation raises maximum deposit coverage from N500k to N5m

Published

17 hours ago

May 3, 2024

Ifeoluwa Dada

The maximum deposit insurance coverage levels for Deposit Money Banks has been raised by the Nigeria Deposit Insurance Corporation (NDIC) on Thursday from N500,000 to N5 million.

At a news conference in Abuja, NDIC Managing Director Bello Hassan declared this effective immediately. He said, “For Deposit Money Banks, the increase of the maximum deposit insurance coverage from N500,000 to N5,000,000, would provide full coverage of 98.98% of the total depositors compared with the current cover of 89.20%. Regarding the value of deposits covered, the revised coverage would increase the value of deposits covered by deposit insurance to 25.37% compared with the current cover of 6.31% of the total value of deposits.

“The increase of the maximum deposit insurance coverage from N200,000 to N2,000,000 would provide full coverage of 99.27% of the total depositors compared with the current level of 98.76% and would increase the value of deposits covered by deposit insurance to 34.43% compared with 14.38% of the total value of deposit, currently covered.

“The increase of the maximum deposit insurance coverage from N500,000 to N2,000,000 would provide full coverage of 99.34% of the total depositors compared with the current 97.98% and would increase the value of deposits covered by deposit insurance to 21.04% compared with 10.77% of the total value of the deposit, currently covered.”

Additionally, Hassan said that increasing the maximum deposit insurance coverage for primary mortgage banks from N500,000 to N2,000,000 would cover all depositors, or 99.99% of them, and increase the value of deposits covered by deposit insurance from the current 40.60% cover to 43.10% of the total deposit value.

Additionally, the Corporation increased the maximum pass-through deposit insurance coverage for each Mobile Money Operator subscriber from N500,000 to N5,000,000.