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Nigeria can generate N10tn annually from non-oil assets—Tax Advisor

Published

11 months ago

December 30, 2023

The Chairman of Nigeria’s Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has asserted that the country can earn up to N10 trillion annually through efficient management of its non-oil assets.

Oyedele made this claim in Lagos during a stakeholders’ forum hosted by the Harvard Business School Association of Nigeria, where he emphasised that inadequate attention and mismanagement were occurring with the nation’s non-oil assets, which are estimated to be worth between N80 and N100 trillion.

Following a sharp decline in the nation’s oil output in November 2023 relative to October’s output, Nigeria lost roughly N289.6 billion in revenue from crude oil in that month. Meanwhile, its non-oil sector has continued to exceed earnings projections all year.

He said, “We found out that other than oil, when you are talking about assets, some estimates, although still working on it, show something in the region of N80 to N100tn scattered all over the place. We haven’t shown any care at all as a country about those assets, such that they have been mismanaged.

“We also found an asset worth trillions of naira, and someone even dared to register a company with the Corporate Affairs Commission to hold those assets, and the shareholders are still in this same Nigeria,” the chairman said.

Oyedele emphasised the necessity of better asset management as well as the possible advantages of liquidating underperforming assets to raise capital and promote economic expansion.

He said, “Imagine that you become more efficient with an N100tn asset alone; even if you get a return of 10 per cent year, that’s easily N10tn. If you cannot manage the asset well, then sell it and get liquidity.

“You need some of the FX liquidity, and then the private sector becomes more productive not only with that stimulated economic activity, but they will pay taxes,” he said.

He also revealed that the committee would present extensive tax reforms designed to support economic expansion and lessen the burden on companies. The realisation of the difficulties businesses face, especially the burden of taxes on working capital, is at the heart of the reform agenda.

Since the beginning of the current Bola Tinubu administration, the Nigerian government has sought to reform the country’s fiscal and monetary policies, leading to bold policies by the central bank as well as the Oyedele-led tax advisory committee.

Related Topics:Featured Nigeria non-oil assets Tax Reform

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Food prices drive second straight monthly hike in Nigeria’s inflation

Published

2 days ago

November 17, 2024

Ifeoluwa Dada

According to official statistics released on Friday, Nigeria’s inflation rate increased for the second consecutive month in October, rising to 33.88% in annual terms from 32.70% in September, mostly as a result of increasing food costs.

In an attempt to boost economic development and strengthen public finances, President Bola Tinubu devalued the naira and reduced subsidies, which caused inflation to spike in the second half of last year.

As the effects of the naira devaluation started to lessen in July of this year, a slew of hikes in the price of petroleum and devastating floods that destroyed crops once again exacerbated pricing pressures, making the greatest cost-of-living crisis in decades worse in Africa’s most populous country.

According to the National Bureau of Statistics, price increases for basics such as rice, maize, bread, potatoes, and cooking oil prompted food inflation to surge from 37.77% in October to 39.16% year over year.

This year, more than 1.5 million hectares of agriculture have been damaged by torrential rain and floods in 29 of Nigeria’s 36 states, leaving millions hungry and displacing large numbers of people.

In an effort to curb inflation, the central bank has raised interest rates five times this year. On November 26, it is expected to make its final rate decision of the year.

VenturesNow

MTN financial report reveals drop in group service revenue

Published

2 days ago

November 17, 2024

Ifeoluwa Dada

Due to operational difficulties in Sudan and the depreciation of the Nigerian naira, MTN Group, Africa’s largest telecom provider, announced on Thursday an 18.5% decline in service revenue for the third quarter that concluded on September 30.

With 288 million users in 17 African regions, MTN said that its group service revenue dropped from 156.3 billion rand ($6.99 billion) in the same quarter of the previous year to 127.4 billion rand.

Despite stating that “the naira was less volatile on a sequential basis in Q3 than in preceding quarters,” the business reported a 48.7% decline in MTN Nigeria’s income due to the currency’s depreciation.

Due to a stronger Ugandan shilling than the previous year, Uganda’s largest contributor, MTN South Africa (MTN SA), expanded by a meagre 3.3%.

Due to “subscriber registration regulations in Nigeria and a decline in users in Sudan, where the conflict has displaced millions of people,” the business reported that its subscriber base increased by 1.6% to 288 million.

Given the higher demand in Nigeria despite the legal obstacles, MTN plans to increase its capital expenditures, which it expects would total between 28 and 33 billion rand for the entire year.