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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
The Akwa Ibom State Governor, Umo Eno, says he has concluded plans to join the All Progressives Congress (APC) in no distant time.
He has reportedly mandated his commissioners and other appointees to either join him in the APC or resign if they are not comfortable with his decision.
A Government House source, who confirmed the development, said the governor broke the news during the State Executive Council meeting on Thursday.
The source, who pleaded anonymity, said Governor Eno warned his appointees that he had nothing to negotiate with them other than for them to follow him or leave.
The governor was quoted as saying, “Anybody who claims he is not aware of my intention to leave the PDP is still living in the 18th century.
“Apart from elected officials like House of Assembly members and Local Government Chairmen, I have nothing to negotiate with you.
“Let me tell you, anybody who believes that when I leave the PDP he will use the party structure to fight me is lying, because I will still control the PDP structure.”
Eno disclosed that he is in love with the leadership style of President Ahmed Bola Tinubu and, as such, would like to align with him.
The Peoples Democratic Party (PDP) Chairman in the state, Aniekan Akpan, could not confirm the development at the time of filing this report, as his lines were busy. However, the Director of the APC Media Network, Mr. Iniobong John, confirmed the news to journalists.
John said, “It is no longer a rumour. I think there are some confirmations that the governor is defecting to the APC. Though unofficial, I can confirm that the governor is joining our party sooner or later. No official date has been confirmed yet, but all plans have been perfected for his defection to our party.”
He described the proposed defection as great news for the APC in the state and for Akwa Ibom in general, adding that the state would now be better connected to the national power center.
Daily Post
The All Progressives Congress has endorsed President Bola Tinubu as its flag bearer in the 2027 presidential elections.
The Party’s National Chairman, Dr. Abdullahi Ganduje, announced this on Thursday, on behalf of its National Working Committee, at its National Summit held at the State House Banquet Hall, Abuja.
The endorsement came hours after APC governors and lawmakers cast a vote of confidence on the president and endorsed him for a second term.
The Federal Government has filed a criminal suit against the senator representing Kogi Central, Natasha Akpoti-Uduaghan, over comments she made on national television that were allegedly deemed defamatory.
The case, marked CR/297/25, was filed on May 16, 2025, before the Federal Capital Territory (FCT) High Court, with Akpoti-Uduaghan listed as the sole defendant.
According to court documents, the government is charging the senator under Section 391 of the Penal Code (Cap 89, Laws of the Federation, 1990) for allegedly “making imputation knowing or having reason to believe that such imputation will harm the reputation of a person.”
The said comments were allegedly made during a live broadcast of Channels Television’s ‘Politics Today’ on April 3, 2025, where Akpoti-Uduaghan was said to have criticised unnamed individuals in a manner the government claimed was defamatory.
Count two of the charges accused Akpoti-Uduaghan of “making an imputation knowing or having reason to believe that such imputation will harm the reputation of a person, contrary to Section 391 of the Penal Code Law, Cap. 89, Laws of the Federation, 1990, and punishable under Section 392 of the same Law.
“That you, Senator Natasha Akpoti-Uduaghan, on or about the 3rd day of April 2025, during the same Politics Today programme on Channels Television in Abuja, Federal Capital Territory, made the following imputation concerning Yahaya Adoza Bello, former Governor of Kogi State.
“It was part of the meeting, the discussions that Akpabio had with Yahaya Bello that night to eliminate me. When he met with him, he then emphasised that I should be killed, but I should be killed in Kogi.
“You knew or had reason to believe that such imputations would harm the reputation of Yahaya Adoza Bello, former Governor of Kogi State”, the charge added.
Among the witnesses lined up to testify include Senate President Godswill Akpabio and former Kogi State governor Yahaya Bello, who are identified in court filings as the nominal complainants.
Other witnesses listed include Senator Asuquo Ekpenyong, Sandra Duru, and police investigators Maya Iliya and Abdulhafiz Garba, who were involved in probing the matter.
The former Kogi governor had in April, petitioned the Inspector-General of Police (IGP), accusing Akpoti-Uduaghan, of making defamatory statements against him.
The former Kogi governor alleged that during a homecoming event on April 1, 2025, in Okehi Local Government Area, the female lawmaker ‘maliciously’ defamed him and accused him of being involved in an assassination plot.
The case comes amid ongoing political tensions surrounding Akpoti-Uduaghan, who was suspended from the Senate earlier this year. Her suspension sparked widespread criticism and allegations of political persecution.
Akpoti-Uduaghan had accused Akpabio of targeting her after she rejected his alleged sexual advances, claiming that her suspension was orchestrated to silence her.
She made the allegations following the altercation over sitting arrangement in the Senate Chamber that led to Akpabio ordering the sergeant-at-arms to eject her from the chamber when she rejected the seat offered to her.
She is challenging her suspension at the Federal High Court, where the hearing has been scheduled for June 27.
Source: ICIR
