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FG Grants Dangote, Honeywell, Others Tax Reliefs and Concessions Worth N16tn – Report

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The Federal Government has foregone N16.76tn in revenue to tax reliefs and concessions given to large companies between 2019 and 2021, according to findings by The PUNCH.

As of the end of 2021, 46 companies had benefitted from various tax incentives and duty waiver schemes while the requests of 186 companies were still pending.

These were contained in the tax expenditure statement (TES) reports in the Medium-Term Expenditure and Fiscal Strategy documents posted on the website of the Budget Office of the Federation.

The TES deals with revenue forgone on Company Income Tax, Value Added Tax, Petroleum Production Tax, and Customs Duty.

In the TES report for 2019, it was stated that the Federal Government had forgone revenue of N4.2tn from two main sources, CIT and VAT.

For CIT, the estimated amount of revenue forgone was N1.1tn while N3.1tn was for VAT.

The TES report read, “The most significant conclusion is the large size of Nigeria’s revenue forgone from just two of the main taxes, i.e., CIT and VAT. Nigeria’s non-oil revenue potential is at least twice its current collections.

“The preliminary estimate of revenue forgone from CIT incentives and concessions in 2019 is N1.1tn; for contrast, 2019 CIT collections was N1.6tn. The preliminary estimate of revenue forgone from VAT policy choices and compliance gaps is estimated to be NGN 3.1tn and could possibly be more. It is worth reiterating that revenue forgone from Customs Duty, Excises, Petroleum Production Tax, Personal Income Tax and concessions under the Oil and Gas Zones legislation is still to be computed.”

According to the TES report, the figure for revenue foregone would likely exceed N4.2tn if there were sufficient data, especially from Customs Duty, Excises, PPT, Personal Income Tax and concessions under the Oil and Gas Zones legislation.

By 2020, the figure rose to N5.8tn, with majority of it coming from revenue forgone under VAT. A breakdown showed that N4.3tn was forgone under VAT; N457bn under CIT; N307bn under PPT, and N780bn under customs duty.

It was also noted that five countries accounted for about 86 per cent of total customs relief, with China accounting for nearly two-thirds of total relief granted. Netherlands, Togo, Benin and India were the other top sources of supplies benefitting from the reliefs.

The total figure continued to rise in 2021, hitting N6.79tn, with revenue foregone on VAT accounting for most of it. A breakdown showed that N3.87tn was forgone under VAT, N548.40bn under CIT; N337.70bn under PPT; N1.84tn under customs duty; and N111.15bn under imports VAT.

For the three-year period, therefore, the Federal Government had to forgo a total of N16.79tn in tax reliefs, Customs duty waivers and concessions, according to an analysis by The PUNCH.

Under this figure, tax exemptions covered imported goods covered by diplomatic privileges, military hardware, fuels and lubricants, hospital and surgical equipment, aircraft (their parts and ancillary equipment), plant and machinery imported for use by companies in export processing zones, health and medical supplies to abate the spread of COVID.

Other exemptions included: reliefs on the presidential initiative on COVID-19 supplies, Import Duty and VAT on commercial airlines.

It was also noted that five countries accounted for about 92 per cent of total Customs relief with China accounting for nearly half of the total relief granted. Singapore, Netherlands, Togo, Benin Republic and India were the other top sources of supplies benefitting from the reliefs.

Meanwhile, the beneficiaries of the tax reliefs and concessions included Dangote, Lafarge, Honeywell and 43 other major beneficiaries.

As of the end of 2021, 46 companies had benefitted from the tax incentive scheme while the requests of 186 companies were still pending.

They were beneficiaries of the pioneer status tax relief under the Industrial Development Income Tax Act with tax reliefs for a three-year period.

This was contained in the Q4 2021 PSI report released by the Nigeria Investment Promotion Commission.

The pioneer status is an incentive offered by the Federal Government, which exempts companies from paying income tax for a certain period. This tax exemption can be full or partial.

The incentive is generally regarded as an industrial measure aimed at stimulating investments in the economy.

The products or companies eligible for this pioneer status are those that do not already exist in the country.

These companies included: Dangote Sinotrucks West Africa Limited, Lafarge Africa Plc, Honeywell Flour Mills Nigeria Plc, Jigawa Rice Limited, and Stallion Motors Limited.

Others included: African Foundries Limited, Royal Pacific Group Limited, Kunoch Hotels Limited, Princess Medi Clinics Nigeria Limited, Medlog Logistics Limited, and Masters Liquefied Gas Limited.

The Punch

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Tinubu Orders Arrest, Suspension of Three Perm Secs As ICPC Uncovers Another Fake Govt Agency

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President Bola Tinubu on Friday ordered the immediate arrest and suspension of three federal Permanent Secretaries over their alleged involvement in the operation of another fake agency uncovered by the Independent Corrupt Practices and Other Related Offences Commission (ICPC).

ICPC Chairman, Dr Musa Adamu Aliyu, who disclosed this to newsmen after briefing President Tinubu on the latest findings from the commission’s ongoing investigation into fictitious agencies and weaknesses in public sector processes named the affected Permanent Secretaries to include M S Danjuma, Engr Nadungu Gagare, and Richard Pheelangwah.

The Commision’s latest discovery is coming barely few weeks after exposing the fictitious Presidential Foreign Intervention Promotion Council (PFIPC).

According to Aliyu, the newly uncovered entity, operating as National Brands Development and Made-in-Nigeria Special Project Office, had allegedly secured office accommodation within the premises of the Office of the Secretary to the Government of the Federation (OSGF) without authorisation from the President.

The discovery, he said, was made during the broader investigation into the PFIPC, which President Tinubu had directed the ICPC to undertake.

The fake agency, according to ICPC boss, was promoted by Prince George Buchi Nwabueze, who allegedly operated under several variations of his name, including George Nathan Nwabueze, Honourable George Buchi Nwabueze, Prince George Buchi Nwabueze and George Buchi Nwabueze.

Aliyu disclosed that the commission was engaging relevant officials in the Office of the Secretary to the Government of the Federation to establish how the purported agency came to operate from government premises and to obtain other vital information required for the investigation.
“I have briefed Mr President comprehensively on these new developments. ICPC will continue with its investigation,” he said.

Following the fresh findings, Aliyu said President Tinubu had directed the immediate arrest of Prince George Buchi Nwabueze, as well as the immediate suspension of the three named permanent secretaries.

The commission is expected to establish the roles played by the suspended officials and other individuals in the emergence and operation of the purported agency.

Aliyu said the latest discovery underscored the need for tighter controls and greater scrutiny of government institutions and internal administrative processes.

He commended President Tinubu for ordering a wider policy audit of federal agencies and government processes, describing the initiative as a proactive measure to strengthen the governance system.

His said: “President Bola Tinubu must be commended for the proactive step of directing the policy audit of MDAs and internal government processes towards strengthening government governance system.”

The latest development has widened the scope of the ICPC’s investigation into the proliferation of fictitious government entities and alleged exploitation of official structures by individuals seeking to create the impression of government authority.
The commission’s investigation into the PFIPC was initiated after the purported agency came under scrutiny, with the President subsequently directing the ICPC to unravel those behind its operations and determine whether public officials facilitated its activities.

With the discovery of another purported agency operating from government premises, the ICPC probe is now expected to examine broader institutional weaknesses that may have enabled unauthorised entities to gain access to federal government facilities and present themselves as legitimate government bodies.

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2027: Atiku Promises to Restore Fuel Subsidy If Elected President

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The African Democratic Congress (ADC) presidential candidate, Atiku Abubakar, has promised to restore the petrol subsidy if he wins the 2027 presidential election.

Atiku made the pledge during an interview on Wednesday while questioning the use of funds he said were saved following the removal of the subsidy.

He said the policy could have been beneficial to Nigerians if the savings had been properly accounted for and invested in areas such as poverty reduction and education.

“I did not oppose the removal of the oil subsidy, but where is the money? Where did it go? It was intended to reduce poverty and help children attend school. Where is the money now? It seems they are just stealing it,” Atiku said in Hausa.

“If elected, I will bring back the oil subsidy, and whoever stole the money must refund it.”

The former vice president said he would also consider the removal of the subsidy if the funds generated from the policy were transparently used to address the country’s development challenges.

“The government successfully removed the subsidy, but we do not know where the money went. If they had used the money for development, to solve security problems, for education, and to create opportunities for the youth, it would be different. If elected, I can remove the subsidy and use the money to do all these properly.”

President Bola Tinubu announced the removal of the petrol subsidy during his inaugural address on May 29, 2023, before assuming office.

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I’m Not Afraid of Anybody, Cardinal Onaiyekan Replies Presidency

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The Catholic Archbishop Emeritus of Abuja, Cardinal John Onaiyekan, has fired back at the Presidency over its criticism of his public account of a meeting between Catholic bishops and President Bola Tinubu, declaring that he did not appear on national television to please the government and was not afraid of anyone.

The 82-year-old cleric said he appeared on Arise News to tell Nigerians what he believed was the truth about the issues discussed during the bishops’ engagement with the President, insisting that neither his age nor criticism from government officials would silence him.

Onaiyekan spoke in a video shared by Symfoni TV on Wednesday, weeks after the Presidency criticised his decision to publicly disclose aspects of the meeting between the Catholic Bishops’ Conference of Nigeria (CBCN) and Tinubu.

“I didn’t go to Arise to please the government, or to just please people, but to tell the truth. That’s all I stand for,” Onaiyekan said.

He also dismissed attacks against him on social media, saying he had no reason to engage those criticising him because other Nigerians had already responded on his behalf.

“I don’t have to respond to those attacking me on social media because other Nigerians have spoken on my behalf,” he said.

The cleric went further, declaring that he was not concerned about the possibility of being embarrassed or intimidated because of his advanced age.

“I cannot be embarrassed. I’m 82 years old; nobody can embarrass me. And I’m not afraid of anybody. Nobody, at this stage now, are they going to arrest me, carry me to where?” he declared.

Senior Special Assistant to President Bola Tinubu on Media and Publicity, Temitope Ajayi, who said his criticism of Cardinal John Onaiyekan was not intended to disrespect the cleric.

The controversy that followed a July 28 meeting between Tinubu and a delegation of the CBCN at the State House, Abuja.

The delegation was led by the CBCN President, Archbishop Matthew Man-Oso Ndagoso of Kaduna, and included Onaiyekan, Cardinal Peter Okpaleke, Bishop Matthew Kukah of Sokoto and other senior Catholic clerics.

During the meeting, the bishops raised a number of issues concerning the state of the nation, including economic hardship, insecurity, democracy, preparations for the 2027 elections, religious freedom and the return of mission schools.

Three days later, Onaiyekan appeared on Arise News and publicly recounted aspects of the engagement while speaking about the concerns expressed by the Catholic leadership over the condition of the country.

His comments subsequently attracted criticism from the Presidency. The President’s Senior Special Assistant on Media and Publicity, Temitope Ajayi, criticised the disclosure of details from the meeting, describing the engagement as a private interaction.

The Presidency’s reaction sparked a debate over the extent to which details of engagements between government and religious leaders should remain confidential, particularly when the discussions concern matters of public interest.

Onaiyekan, however, has maintained that his intervention was neither personal nor intended to embarrass the government. The cleric rejected any suggestion that he had presented a personal opinion during his television appearance.

According to him, the issues he discussed reflected the collective position of the Catholic bishops who participated in the engagement with the President.

“No, mind you, I didn’t talk on my own now. I spoke on behalf of my fellow bishops,” he said.

Onaiyekan disclosed that the bishops had prepared a joint statement containing the issues he subsequently discussed during the television interview.

“We drafted a statement which contained all that I said in the interview. So, all the bishops of Nigeria spoke that way. It was their voice I was echoing,” he stated.

Onaiyekan also emphasised that Catholic bishops remained entitled to speak within their respective dioceses about issues affecting Nigerians.

“I cannot speak on behalf of other religious leaders. Everybody has their own job to do, but many of the other religious leaders have supported us,” Onaiyekan said.

Onaiyekan also broadened his comments beyond the dispute with the Presidency, stressing that the economic difficulties confronting Nigerians could not be dismissed as a disagreement between the government and religious leaders.

He said the widespread poverty and suffering in the country affected everyone.

“When it comes to what is happening to Nigeria, the poverty, the suffering, we are all in the same boat now, abi?” he asked.

The cleric urged Nigerians not to take the country’s remaining space for public criticism and expression for granted.

“And we are still lucky in this Nigeria that we can still talk. We shouldn’t take that for granted. There are many countries in Africa where no bishop dares to talk like we do here,” he said

Meanwhile, Ajayi has sought to draw a line under the controversy, saying his earlier response to Onaiyekan was not intended to disrespect the Catholic cleric or the church.

Ajayi made the clarification during an interview on Arise TV on Thursday, days after criticising Onaiyekan for publicly discussing the details of the closed-door meeting between Tinubu and the CBCN.

The presidential aide said the matter had been resolved and insisted that there was no intention to disparage the respected cleric.

“Well, I think that episode has been closed. Cardinal Onaiyekan is a respected clergy and a statement in his own right,” Ajayi said.

He explained that his intervention was aimed at providing a different interpretation of the account given by the cardinal, rather than questioning his standing in the church or wider society.

“My response to him did not in any way disrespect him or disrespect his standing in the society and the church. He’s one of the leaders of the faith,” Ajayi said, adding that he only sought to offer another perspective on the account of the meeting between the bishops and the President.

“I only tried to provide a different perspective from his own account of the bishop’s encounter with the president, and I think that point has been made. And I think it’s not something we really want to dwell further on,” he said.

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