My Blog

Tag: Nigerian economy update

  • We Generated N8.5trn In 9 Months –Nami

    Outgoing Executive Chairman of the Federal Inland Revenue Service (FIRS), Muhammad Nami has said the Service generated the sum of N8.5 trillion between January 1 and September 14.

    Nami, who said this at the handover ceremony to the incoming Acting Chairman of the Service, Mr Zach Adedeji on Monday in Abuja, added that he implemented reforms that improved the operations of the FIRS in line with the mandate given to him when he took over in December 2019.

    President Bola Ahmed Tinubu had last week appointed Zaccheus Adedeji to head the revenue Service as acting Chairman.

    According to Nami, the reforms introduced helped boost the federal government’s revenue.

    With the NNPC Limited putting a stop to his FAAC contribution from January 2022, analysts noted that tax revenue became the mainstay of distributable revenue by the Federal Accounts’ Allocations Committee (FAAC).

    In his address, the acting head of FIRS, Zaccheus Adedeji, said the Service will continue to employ technology as it seeks to achieve its mandate of improving Nigeria’s tax revenue.

    The former Oyo finance commissioner noted that with the government spending 96 per cent of its revenue on debt servicing, improving tax revenue collection was not negotiable.

    “This stark reality necessitates swift and resolute action on our part. We cannot afford to delay; we must act decisively to reverse this concerning trend,” he said.

    The Acting FIRS Chairman stressed that during, he will focus on further improving tech use by the Service in a bid to fortify it against revenue leaks, and bolster coordination and accountability within the Service.

    He said, “Our overarching goal is to nurture voluntary tax compliance by establishing a modern, dependable tax system that gamers the trust and admiration of all stakeholders. Through this, we hope to Create an environment where taxpayers willingly fulfil their civic duties.

    “For those who deviate from their tax obligations, rest assured, we will enforce our responsibilities judiciously. We will implement a robust enforcement model that effectively defers tax evaders while maintaining fairness and transparency in our processes.

    “A fundamental aspect of our mission is to elucidate to taxpayers why their civic duty matters. We are committed to simplifying our tax system, making it accessible and comprehensible, thereby facilitating voluntary tax payments and fostering a sense of civic responsibility.

    “Quality data will be the cornerstone of our operations, enabling us to measure our progress, make informed decisions, and maintain the highest standards of accountability. We recognise that data-driven strategies are essential to our success.”

  • CBN to clear $10bn forex backlog in 14 days

    CBN to clear $10bn forex backlog in 14 days

    The Central Bank of Nigeria (CBN) has  promised to inject more foreign exchange into the market to clear the backlog as scarcity persists.

    Acting Governor of the CBN, Folashodun Shonubi, who disclosed this recently said banks will be vital in clearing the backlogs, considering the DMBs control 75 percent of forex transactions.

    Breaking down the applications that will be sorted after being stalled for years due to a drop in Foreign Direct Investments (FDIs), Foreign Portfolio Investments (FPIs) inflows and international reserves, the apex bank chief mentioned manufacturers and importers of raw material inputs.

    Other applicants listed are requests for dollars to pay international school fees, and medical bills abroad, as well as Business Travel Allowances (BTAs) and Personal Travel Allowances (PTAs).

    Explaining the situation around the forex backlog, Shonubi said: “As matter of fact, there is a large amount of the obligations that the banks in Nigeria have already taken on. So, what happened was that at maturity, they actually made the foreign exchange available for those who needed to use them like importers and what have you.

    “There are some customers who still have their obligations and part of the restructuring with the banks in Nigeria, is also to clear that backlog. That is something we have been discussing for a while. I expect that we will do that, within the next one or two weeks.

    “What that means, therefore, is that this obligation that people keep on talking about will not be left. Today, we still intervene in the market, so it is not as if it has affected our ability to make monies available to banks in the Investors and Exporters foreign exchange market.

    “When we look at the volumes, the Central Bank of Nigeria today contributes less than 25 per cent into the forex market. And the aim if you remember about a year and a half ago, was that the Central Bank did not want to be a regular player, but more of intervening to stabilise the rates and that is where we are going.

    “There are so much more foreign exchange that people don’t talk about, that is being made available through the banking system and banks are selling to their customers. It doesn’t come to the Central Bank, it doesn’t appear as part of the demand that comes to us. And it is significant. It is almost three times what we as a Central Bank make available.”