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

Published

9 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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Nigerian govt denies reports it plans to borrow pension fund for infrastructure

Published

15 hours ago

May 17, 2024

Ifeoluwa Dada

The Nigerian government has denied reports that it plans to borrow the N20tn pension fund to finance infrastructural projects.

In a statement made in Abuja, Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, stated that the government would abide by the laws and guidelines in place pertaining to the pension fund.

Following a two-day Federal Executive Council meeting at the Presidential Villa on Tuesday, the minister reportedly informed reporters that the government would present a plan to use local funds, including the fund, to finance infrastructure development.

Edunstated that the government does not intend to exceed these legal boundaries, emphasising that the government was committed to protecting workers’ pensions.

“It has come to my notice that stories are making the round that the Federal Government plans to illegally access the hard-earned savings and pension contributions of workers. Nothing could be farther from the truth.

“The pension industry, like most the financial industries, is highly regulated. There are rules. There are limitations about what pension money can be invested in and what it cannot be invested in.

“The Federal Government has no intention whatsoever to go beyond those limitations and go outside those bounds which are there to safeguard the pensions of workers.

“What was announced to the Federal Executive Council was that there was an ongoing initiative drawing in all the major stakeholders in the long-term saving industry, those that handle funds that are available over a long period to see how, within the regulations and the laws; these funds could be used maximally to drive investment in key growth areas,” Edun clarified.

The plan to spend the pension fund was reported and was widely criticised. The Trade Union Congress of Nigeria and the Nigeria Labour Congress had earlier on Thursday urged the government to abstain from making any changes to the pension fund.

They stated, “Nigerian workers have entrusted their hard-earned savings for retirement security, not as a means for government projects. It is imperative to halt any further plans to tap into these funds, especially given the lack of transparency and accountability in past government borrowing practices.”

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Nigeria’s inflation hits 28-year high of 33.69% in April

Published

2 days ago

May 16, 2024

Ifeoluwa Dada

Nigeria’s consumer inflation reached a 28-year high of 33.69% in April, up from 33.20% in March, according to statistics agency figures released on Wednesday.

President Bola Tinubu’s administration has slashed petrol and energy subsidies and devalued the local naira currency twice.

To manage pricing pressures, the central bank has hiked interest rates twice this year, including the highest hike in almost 17 years. The central bank governor has stated that rates will remain high for as long as necessary to reduce inflation. The bank will host another rate-setting meeting next week.

When compared to the previous year, the inflation rate in April 2024 was 11.47 percentage points more than in April 2023, when it stood at 22.22 percent. This implies that the headline inflation rate has increased dramatically during the last year.

According to the National Bureau of Statistics, food and nonalcoholic beverages remained the largest contributor to inflation in April. Food inflation, which accounts for most of the inflation basket, rose to 40.53% yearly from 40.01% in March.

Price pressures have left millions of Nigerians facing the biggest cost-of-living crisis in decades, as they fight to satisfy their most basic necessities.

Tinubu has offered a 35% salary increase for state personnel to alleviate pressure on government workers. To assist disadvantaged households, his government has resumed a direct cash transfer program and provided at least 42,000 tons of grains such as corn and millet.