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

Published

12 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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Moroccan annual inflation rises to 0.8% in November

Published

2 days ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

3 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”