Headlines
FG Grants Dangote, Honeywell, Others Tax Reliefs and Concessions Worth N16tn – Report
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
Headlines
‘Beer Parlour Fiction’: Fayose Gives Atiku 48Hrs to Disown Statement or He ‘Spills More Beans’
Former Ekiti State Governor Ayodele Fayose has given former Vice President Atiku Abubakar a 48-hour ultimatum to publicly disown a statement he claimed and thought was issued by his media aide, Paul Ibe, regarding a recent meeting in Minna, Niger State.
In a statement posted on his X account, Fayose expressed amusement at Ibe’s response to his earlier claims about the closed-door meeting involving Atiku, Oyo State Governor Seyi Makinde, and former military president General Ibrahim Babangida (IBB).
Fayose had previously alleged that the gathering involved discussions on political alignments, including Makinde’s interest in a vice-presidential slot on the African Democratic Congress (ADC) platform for the 2027 elections, reportedly tied to financial commitments.
Fayose stated that he assumes Atiku did not authorize Ibe’s rebuttal, which dismissed his account as fabricated. “However, because of my respect for Atiku, I will want to assume that he did not authorise the press statement and I will expect that after seeing it, he will within 48 hours, cause a rebuttal to be issued on it,” Fayose wrote.
He warned that failure to disown the statement would leave him no choice but to disclose additional details from the Minna meeting.
“Should Atiku not publicly disown the statement within the next 48 hours, I will have no option but to spill more beans, the facilitators and executioners of the Minna meeting, particularly what was said about Wike, and by then, I will be doing so without any atom of respect for him,” Fayose added.
The development follows Fayose’s initial post detailing what he described as the “untold story” of the Minna encounter, which Atiku’s camp has rejected as “beer parlour fiction,” “reckless fabrication,” and baseless gossip. Atiku’s team, including aides like Phrank Shaibu and Paul Ibe, has denied any negotiations over vice-presidential tickets, financial contributions, or related deals, insisting no such discussions occurred.
Paul Ibe has since fired back at Fayose, mocking the ultimatum and questioning its basis, with reports indicating he described the 48-hour demand as excessively long and implying Fayose’s claims lack substance.
The exchange highlights ongoing tensions within Nigeria’s opposition political circles ahead of the 2027 general elections, as figures like Atiku, Makinde, and others navigate potential alliances and party switches. Fayose’s threat to reveal more, including alleged comments about former Rivers State Governor Nyesom Wike has intensified speculation about behind-the-scenes maneuvers.
Meanwhile, the said article by Amb Phrank Shauibu, and Paul Iba as Fayose erroneously assumed.
Former Kaduna State Governor, Nasir El-Rufai, has accused the National Security Adviser (NSA), Nuhu Ribadu, of masterminding an attempt by security agencies to whisk him away at the Nnamdi Azikiwe International Airport in Abuja on Thursday.
He made this known on Thursday night when former Vice President Atiku Abubakar paid him a solidarity visit at his residence.
While recounting his ordeal, he said that shortly after he returned from a trip to Cairo, Egypt, operatives of the Department of State Services (DSS), working with the Independent Corrupt Practices and Other Related Offences Commission (ICPC), confronted him at the airport and tried to take him into custody.
He added that he initially thought the DSS officers were working with the Economic and Financial Crimes Commission (EFCC), only to later realise it was the ICPC.
“It turned out that it’s the ICPC that procured the DSS to abduct me and hand me over to them. The ICPC has never invited me.
“We now understand that it’s the ICPC, not the EFCC, that’s responsible for what happened today, and the ICPC chairman is acting on the direct orders of Nuhu Ribadu,” El-Rufai said.
Responding, Atiku expressed sympathy for the former governor and stressed the need for political unity ahead of the next general election.
He noted that opposition forces must organise themselves to challenge President Bola Tinubu in 2027.
“We must come together and form a very viable opposition because Tinubu is determined to turn Nigeria into a one-party state,” Atiku said.
Turkish Super Lig club, Galatasaray, have slapped an €80 million release clause on Victor Osimhen amid interest from Spanish giants Barcelona, Soccernet.ng reports.
Osimhen has been one of the most prolific strikers in the world over the last four years. In fact, he only recently scored his 200th career goal.
Since his permanent move to Galatasaray, he has been the club’s poster boy due to his impressive performances. This season, he has contributed 15 goals and one assist in 21 appearances across all competitions for the Cimbom.
The Nigerian international has been particularly vital in the UEFA Champions League, where he has already netted six goals.
His performances have not gone unnoticed, however, as several top clubs continue to keep tabs on him.
The 27-year-old only joined Galatasaray last summer for a Turkish transfer record fee of €75 million, but many clubs in Europe’s top five leagues would fancy having him as their leading man.
Now, according to a report by Turkish outlet Haberlisin, Spanish giants Barcelona are plotting a move for Osimhen.
Why Barcelona want Osimhen
Barcelona’s current top striker is Robert Lewandowski, and the club is looking to move on from the veteran, who will turn 38 in August.
With second-choice striker Ferran Torres not considered a reliable long-term option, the Catalans are searching for a proper talisman to lead their line.
According to Haberlisin, Barcelona have made Osimhen a major target and are willing to go all out for him in the summer.
However, Galatasaray won’t let him leave for cheap. Having paid €75 million for his services just seven months ago, they will want to maximize their return on the transfer. Consequently, they have slapped a hefty €80 million price tag on the Super Eagles star.
Although they are one of the biggest clubs in the world, Barcelona might struggle to meet this valuation due to their ongoing financial troubles. However, over the last three years, they have managed to pull off several big-money deals.
For Osimhen, even though he loves life at Galatasaray and earns a Turkish-record salary, he likely still has eyes on playing in one of Europe’s top five leagues.
It remains to be seen how hard the Spanish giants will push to get this transfer over the line and whether Osimhen will be willing to go.
