Economy

LIRS, FIRS Sign MoU, to Ease Joint Tax Audit Implementation

Published

2 months ago

February 7, 2023

LIRS, FIRS Sign MoU, to Ease Joint Tax Audit Implementation

The Lagos State Internal Revenue Service (LIRS) has signed a Memorandum of Understanding (MoU) with the Federal Inland Revenue Service (FIRS) to ease the implementation of joint tax audit and investigation exercise.

The signing ceremony on Monday in Lagos was witnessed by Lagos State Governor, Mr. Babajide Sanwo-Olu, FIRS, and LIRS coordinating directors amongst others.

While the Executive Chairman, LIRS, Mr. Ayodele Subair signed on behalf of Lagos State; his counterpart, Mr. Muhammad Nami, Executive Chairman, FIRS, signed on behalf of the Federal Government.

Sanwo-Olu in his remarks said that the conversation for the harmonisation of both agencies’ mandates started about a year ago.

He explained that it was based on the need to forge a common front to widen the tax net to raise the country’s tax to Gross Domestic Product (GDP) ratio.

Sanwo-Olu noted that Nigeria had maintained an unimpressive tax-to-GDP ratio of between six to eight percent, in spite of the yearly record-breaking turnovers by both FIRS and LIRS.

This, he said, mounted pressure on the nation’s resources and created an imbalance in government expenditure.

He affirmed that Nigeria must operate at the same level as other nations within sub-Saharan Africa doing between 14 and 15 percent in tax to GDP ratio to support the government’s development programmes and improve accountability.

“For us as a state, we are humbled by this collaborative effort and we believe our citizens will be the ultimate beneficiaries of this initiative.

“This collaboration did not just happen by chance; it is a conversation we started about a year ago with the chairman of FIRS when both parties reviewed their successes and limitations and it was clear there was a need for a relationship to be consummated.

“Studies have shown that there would be better service delivery to the citizens and improvement in the efficiency of tax collection when the two agencies work together.

“The cost of tax collection would be reduced, we would see better customer satisfaction and more resources would be generated for the Government to deliver more dividends of democracy.

“The MoU is in the best interest of the public, as it affirms the reason why we need to come together and strengthen the cordial working relationship between the two agencies,” he said.

Subair, in his remarks, noted that the significance of the agreement was to foster greater collaboration between the two agencies.

He said that the collaboration between the tax authorities was to promote the smooth operation of activities not only for their benefit but for improved service delivery for taxpayers.

Subair noted that notwithstanding its inclusion as a fundamental obligation of every Nigerian citizen pursuant to Section 24 (f) of the 1999 Constitution, filing of annual income tax returns or payment of tax therefrom was not an issue that citizens were keen on.

“Nonetheless, citizens expect to have direct benefit of democracy and good governance without remembering that the most reliable and sustainable means of domestic Resource mobilisation for government expenditure is taxation.

“There is no reason to debate the above as it has been established that tax compliance and good governance are expected to co-exist as the undividable social contract that binds citizens and governments anywhere in the world.

“Therefore, citizens and governments are expected to fulfill their end of the bargain in achieving a balance.

“While this initiative of a joint audit is not a new one, it is peculiar because it comes at a time when our dear nation struggles with dwindling oil receipts and other economic woes which have affected the tax-to-GDP ratio.

“This is currently adjudged as the lowest globally, standing at approximately six percent, compared to neighboring countries which average between 15 – 25 percent,” Subair submitted.

Subair said that some of the expected achievements from the collaboration between both tax authorities include a reduction of compliance costs for taxpayers and improved transparency in the tax administration process.

These, he explained, would impact tax disputes, incidences and reconciliation; reduce administration costs for both tax authorities; and eliminate hiding places for recalcitrant taxable persons and entities.

Nami, the FIRS Chairman, said the essence of the collaboration between the FIRS and LIRS was to enable the two agencies to carry out joint projects and investigations together.

He added that the development would ensure automatic exchange of information which would enable the agency to get bigger data for seamless tax administration.

“We will work together as a team during the investigation and have an automatic exchange of information and with this, we will be able to carry out our mandate seamlessly.

“As part of the joint operation, we will be able to implement presumptive tax as far as issues of tax administration is concerned, he said.

Economy

Ramadan: Transportation Minister calls for self-reflection, prayer for Nigeria

Published

2 days ago

March 24, 2023

Maritime First

Ramadan: Transportation Minister calls for self-reflection, prayer for Nigeria

… As Bauchi auto crash claims 25 lives, injures 10 others***

The Minister of Transportation, Mu’azu Sambo has advised Nigerian Muslims to engage in self-reflection and prayers for the country during Ramadan.

This was made known in a statement issued by Henshaw Ogubike, the Director of Press and Public Relations in the Ministry on Friday in Abuja.

In his Ramadan message, Sambo extended warm wishes to Islamic faithfuls and prayed to Almighty Allah to shower them with love, peace, prosperity and joy.

The minister urged Muslims to deepen their devotion and show brotherly love to everyone around, particularly the less privileged, during the holy month.

“Let us therefore in this holy month deepen our devotion, extend our bond of fellowship and compassion to everyone around, particularly the less privileged in our communities,” he said.

The minister also prayed for the security of all Nigerians and prosperity for the country.

“May the Almighty Allah ease our adversity; shower us with love, peace, prosperity and joy. May we be free from harm, and our nation be blessed and prosperous,” he said.

Tragedy struck on Thursday in Udobo village in Gamawa Local Government Area of Bauchi State when 25 people lost their lives in a lone auto crash.

Sector Commander of the FRSC in Bauchi State, Mr. Yusuf Abdullahi, told the press in Bauchi on Friday that 10 other persons sustained injuries in the crash.

He said the accident involved one Toyota Hummer bus in which the over-speeding driver lost control after a tyre burst.

“Thirty-five persons were involved in the road crash.

“Twenty-five of them – nine adult male, 11 adult females, two male children and three female children – lost their lives on the spot.

“Ten others sustained serious injuries and they are all male adults,’’ he said.

He added that the injured were taken to the Federal Medical Centre, Azare in Katagum Local Government Area of the state, while corpses of the deceased were taken to Hadeja in Jigawa for burial.

Abdullahi charged motorists to always be conscious of traffic rules and regulations while plying the roads.

Economy

AfDB, BCI promote women’s access to finance in Africa with $485,000

Published

2 days ago

March 24, 2023

Maritime First

AfDB, BCI promote women’s access to finance in Africa with $485,000

The African Development Bank (AfDB) and the Bank for Trade and Industry (BCI) of Mauritania have signed a 485,000 dollars agreement for Affirmative Finance Action for Women in Africa (AFAWA).

The bank in a statement said that the programme was aimed at promoting women’s access to finance in Africa.

“The Promoting Access of Women-Owned Enterprises to Financial and Technical Support Services in the Western Sahel Region project is financed by AfDB with support from Women Entrepreneurs Finance Initiative (We-Fi).

“The project aims to strengthen BCI’s financing capacity for trade and industry and to better support women small and medium enterprises in Mauritania, Mali, Senegal and Guinea,’’ it said.

It said that Mohamed El -Azizi, AfDB’s Director-General for North Africa and Isselmou Tajidine, Managing Director of BCI’s Trade and Industry Group, signed the agreement.

It said that the agreement was signed on the sidelines of the Mauritania Investment Forum.

The forum with the theme, “Invest Days-Nouakchott’’, was organised by the Mauritania Investment Promotion Agency.

AfDB’s director-general for North Africa said: “The signing of this technical assistance agreement with the BCI Group is an important step in supporting financial inclusion and growth of women-led SMEs.

“This plays a crucial role in Mauritania’s economic development.

“The agreement consolidates a 10 million euro line of credit, approved by AfDB’s board of directors to BCI in 2021, to support growth and trade of strategic small businesses of women entrepreneurs.’’

BCI’s managing director said that the project reinforced the bank’s strategic partnership with AfDB and would position the bank as the choice for women entrepreneurs in Mauritania, Senegal, Mali and Guinea.

Tajidine added that it would help to expand the bank’s offering of financial products and technical support for women-led businesses.

AFAWA and the Mauritania Investment Promotion Agency organised a workshop on strengthening financial inclusion of women’s SMEs in Mauritania during the Invest Days-Nouakchott Forum.

The session presented the mechanisms of the initiative, including the “Guarantee for Growth” programme implemented by the African Guarantee Fund.

It also provided an opportunity to discuss the regulatory framework and steps that authorities and businesses can take to improve financial access for women’s businesses.

The forum also featured the inauguration of the AFAWA ambassadors programme which will advocate accelerated access to finance for Africa’s women entrepreneurs and showcase women leaders.

Economy

Cooking gas price increased by 24.05% in one year – NBS

Published

2 days ago

March 24, 2023

Maritime First

Cooking gas price increased by 24.05% in one year – NBS

The National Bureau of Statistics (NBS), says the average price of 5kg of cooking gas increased from N3,708.58 in February 2022 to N4,600.57 in February 2023.

This is contained in the Bureau’s “Cooking Gas Price Watch’’ for February 2023 released on Friday in Abuja.

The report said the February price represented a 24.05 per cent increase compared to what was obtained in February 2022.

The report said on a month-on-month basis, the price rose by 0.26 per cent from N4,588.75 recorded in January 2023 to N4,600.57 in February 2023.

On state profile analysis, the report showed that Kwara recorded the highest average price of N4,962.86 for refilling a 5kg cooking gas, followed by Adamawa at N4,914.00, and Niger at N4,907.50.

It said on the other hand, Enugu recorded the lowest price at N4,179.41, followed by Rivers and Abia at N4,204.44 and N4,220.00.

Analysis by zone showed that the North-Central recorded the highest average retail price of N4,845.44 for 5kg cooking gas, followed by the North-West at N4,629.19.

“The South-East recorded the lowest average price at N4,428.97 for 5kg cooking gas.’’

The NBS also said the average retail price for refilling a 12.5kg cooking gas declined by 0.23 percent on a month-on-month basis from N10,277.17 in January 2023 to N10,253.39 in February 2023.

“On a year-on-year basis, this rose by 37.67 percent from N7,447.79 in February 2022.’’

State profile analysis showed that Akwa Ibom recorded the highest average retail price of N10,879.50 for 12.5kg cooking gas followed by Cross River at N10,803.57 and Anambra at N10,768.75.

On the other hand, the report showed that the lowest average price for 12.5kg of cooking gas was recorded in Yobe at N9,580.00, followed by Gombe and Borno at N9,766.67 and N9,857.14, respectively.

Analysis by zone showed that the South-South recorded the highest average retail price for refilling a 12.5kg cooking gas at N10,590.18, followed by the South-East at N10,478.54.

“The North-East recorded the lowest price at N9,801.46.’’

Similarly, the average retail price per litre of kerosene rose to N1,173.89 in February 2023 on a month-on-month basis, showing an increase of 1.78 per cent compared to N1,153.40 recorded in January 2023.

According to its National Kerosene Price Watch for February 2023, on a year-on-year basis, the average retail price per litre of kerosene rose by 160.48 per cent from N450.66 in February 2022 to N1,173.89 in February 2023.

Analysis by the state showed that the highest average retail price per litre of kerosene was recorded in Plateau at N1,550.00, followed by Abuja at N1,473.33 and Adamawa at N1,438.10.

“On the other hand, the lowest price was recorded in Nassarawa at N923.81, followed by Katsina at N945.83 and Sokoto at N956.94.’’

The NBS said that analysis by zones showed that the South-West recorded the highest average retail price of Kerosene at N1,259.96 per litre, followed by the South-East at N1,255.12, while the North-West recorded the lowest at N976.24.’’

The report showed that the average price of a gallon of kerosene was sold at N3,926.23 in February 2023, indicating an increase of 1.03 percent from N3,886.11 in January 2023.

“On a year-on-year basis, this increased by 151.72 percent from N1,559.78 in February 2022.’’

State profile analysis showed that Kwara recorded the highest average retail price per gallon of kerosene at N4,905.83, followed by Ebonyi at N4,606.25 and Anambra at N4,550.00.

It said Borno and Gombe recorded the lowest price at N3,050.00, followed by Bayelsa and Delta at N3,071.43 and N3,116.67, respectively.

Analysis by zone indicated that the South-East recorded the highest average retail price per gallon of kerosene at N4,517.60, followed by the North Central at N4,107.59, while the South-South recorded the lowest at N3,474.47.