Business

Edo Governor-Elect, Obaseki Receives Certificate of Return, Promises To Put The People First

Published

8 years ago

October 7, 2016

The Edo State Governor-elect, Mr. Godwin Obaseki and his Deputy, Hon.
Philip Shuaibu have received certificate of return from the
Independence National Electoral Commission with the promise to put the
interest of the people above their personal interest.

He made the promise while giving his votes of thanks shortly after
receiving certificate of return from the Independence National
Electoral Commission at the Edo State Headquarters in Benin City
yesterday.

He said his decision to run for the governorship position of the state
is to serve and provide a good leadership for the people while putting
the interest of the people first above his personal interest.

“I decided to become governor because I want to serve. I want to serve
and I will put your interest over and above my personal interest. I
prayed that with the blessings of God which we have so far received up
to date that my effort will be crowned with success along side with my
deputy, Philip Shuaibu”, he prayed.

The governor-elect who thanked the INEC for conducting one of the
free, fairest and credible election in the state said the election was
the freest of all elections ever being conducted by the commission
noting that, that was the reason there was no protest by the citizens
of the state after the election result was announced.

He said the pocket of protest being witnessed today is being sponsored
by few individual who saw it not being fair because they lost out in
the election.

“For me, this result has shown that we can be professional, we can be
honest, we can be opened. We do not have to tell lies, we do not have
to hoodwink our people to get electoral success. I want to thank you
INEC because for me, I know as an umpire, not every player will
accept or agree to your outcome but I saw the events leading up to the
election and after the election that they have proven that you were as
fair, transparent, opened as possibly as it could be. You were
efficient, you were not perfect.

“The people of Edo State generally accepted the outcome of that
election. That is why we did not have street protest immediately the
result was announced neither that night nor the day before or day
after. Everything else you see today
is contract protest”, he said

Earlier, the Edo State Resident Electoral Commissioner, Mr. Sam
Olumekun urged the governor-elect to be magnanimous in victory and
also remember those who stood in the sun to cast their votes for him
to become the governor of the state.

He thanked the security agencies and all other stakeholders that
brought about the most peaceful election ever witnessed in the state.

On the part of the INEC national commissioner, South-South, Mohammed
Mustapha, he said the commission would keep improving on the electoral
process while stressing that the card reader which has eliminated a
lot of frauds from the electoral process in the country has come to
stay.

By Elvis Omoregie

Business

Setting the Record Straight: Clarifying NNPCL’s Role in the Dangote Refinery Investment

Published

12 hours ago

December 18, 2024

Sahara Weekly

General Buratai Urges Dangote Not To Succumb To Marketers Blackmail, Reveals Why

Setting the Record Straight: Clarifying NNPCL’s Role in the Dangote Refinery Investment

We have received numerous inquiries from the media and concerned stakeholders seeking clarification regarding a recent report attributed to the Nigerian National Petroleum Company Limited (NNPCL). The report suggested that NNPCL’s decision to secure a $1 billion loan backed by its crude was instrumental in supporting the Dangote Refinery during liquidity challenges.

We wish to categorically state that this narrative is a misrepresentation of the facts. The $1 billion referenced constitutes just about 5% of the total investment in building the Dangote Refinery.

Our partnership with NNPCL was established based on their strategic importance as the largest offtaker of Nigerian crude and, at the time, the sole supplier of gasoline into Nigeria. As part of this agreement, a 20% stake in the refinery was valued at $2.76 billion. Of this amount, NNPCL agreed to pay $1 billion upfront, while the remaining balance was structured to be recovered over five years through crude oil supply deductions and dividends.

If we had been facing liquidity challenges, such generous credit terms would not have been feasible. At the time of the agreement in 2021, the refinery was still in its pre-commissioning phase. Any claims suggesting financial struggles are inconsistent with the structure and nature of this agreement.

Regrettably, NNPCL was unable to meet its commitment to supply the agreed 300,000 barrels per day of crude oil due to pre-existing financial commitments tied to their crude cargoes. Given this, we extended a 12-month period for NNPCL to pay cash for the balance of their equity. However, they were unable to meet the deadline, which expired on June 30, 2024. Consequently, NNPCL’s equity stake in the refinery was adjusted to 7.24%.

It is therefore inaccurate to claim that NNPCL facilitated a $1 billion investment amid liquidity challenges. Their $1 billion investment secured a 7.24% ownership stake in the Dangote Refinery, a strategic partnership beneficial to their interests.

NNPCL remains a valued partner, and we urge all stakeholders to adhere to the facts and provide accurate information to ensure proper media representation for the benefit of all stakeholders and the public.

Anthony Chiejina
Group Chief Branding and Communications Officer
18th December, 2024

Business

MTN Contributes N200bn Monthly in VAT, Driving Tax Reform Debate

Published

1 day ago

December 18, 2024

Sahara Weekly

MTN Contributes N200bn Monthly in VAT, Driving Tax Reform Debate

MTN Nigeria, the nation’s largest telecom company, pays over N200 billion in Value Added Tax (VAT) monthly, making it the single biggest contributor to the country’s VAT revenue, according to Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee.

Speaking at Channels Television’s Town Hall on Tax Reforms, Oyedele highlighted significant disparities in the current VAT allocation system, revealing that all VAT paid by MTN is credited solely to Lagos State, where the company’s headquarters is located, despite the fact that services generating this revenue are consumed nationwide.

“MTN is the largest contributor to VAT in Nigeria,” Oyedele stated. “They pay over N200bn every month, and the gap between them and the second-largest contributor is massive. However, all this VAT is currently allocated to Lagos, even as calls are made across states like Kano, the FCT, Ekiti, Edo, and Kebbi.”

As part of the ongoing tax reform efforts, the committee has proposed a new framework to ensure equitable distribution of VAT revenues based on consumption rather than the corporate headquarters’ location.

Under the proposed redistribution model, Lagos State, which now retains the full N200bn from MTN, would see its share reduced to around 20 per cent. The remaining revenue would be distributed more fairly among other states where the services are consumed.

“This adjustment ensures states where VAT is generated get their fair share,” Oyedele explained. “While Lagos State’s share decreases slightly, every other state stands to gain under the new system.”

The tax reform bill, designed to address inefficiencies and promote fairness in Nigeria’s fiscal policies, has sparked debate among stakeholders. Critics have accused the committee of advancing policies that may negatively impact certain regions.

Oyedele, however, dismissed these claims, arguing that the current system is flawed and in need of urgent correction. “If something is being done wrongly, how can Lagos State or anyone oppose reforms aimed at fixing it?” he questioned.

The proposed reforms, which include provisions for revenue redistribution and efficiency improvements, are seen as pivotal to ensuring fairness and sustainability in Nigeria’s tax system.

Business

Foreign Digital Giants Boost FG Revenue with N3.8tn Tax Payment in 2024

Published

1 day ago

December 18, 2024

Sahara Weekly

Foreign Digital Giants Boost FG Revenue with N3.8tn Tax Payment in 2024

Google, Netflix, Facebook, and other foreign companies operating in Nigeria contributed N3.85tn in taxes to the Federal Government in the first nine months of 2024. This represents a 68.12 per cent increase compared to the N2.29tn collected in the same period of 2023.

The tax revenue includes payments from Company Income Tax (CIT) and Value Added Tax (VAT), as reported by the National Bureau of Statistics on Tuesday. The report highlighted a progressive increase, with collections rising from N1.03tn in the first quarter to N1.52tn in the second quarter and N1.30tn in the third quarter.

An analysis of the data shows a significant boost in tax remittance, with N2.57tn collected as CIT between January and September 2024—a 43.65 per cent rise from N1.789tn during the same period in 2023. VAT collections also surged by 157.03 per cent, reaching N1.28tn, up from N498.34bn in 2023. This growth underscores the Federal Inland Revenue Service’s (FIRS) improved collection efforts.

CIT is a 30 per cent tax on corporate profits, while VAT, set at 7.5 per cent, is levied on goods and services and ultimately paid by the final consumer.

Quarterly analysis reveals that CIT revenue climbed from N598.13bn in Q1 to N1.12tn in Q2, before slightly dipping to N852.29bn in Q3. VAT collections rose from N435.73bn in Q1 to N448.85bn in Q3, reflecting a 3.01 per cent increase.

The Federal Government’s efforts to tax foreign digital service providers have further bolstered revenues. These companies, including Netflix, Facebook, and Amazon, earn income in naira without physical offices in Nigeria. Digital tax policies require these entities to remit taxes for services like video streaming, social media advertising, and e-commerce.

Compliance among foreign platforms remains uneven, with Google, LinkedIn, and Meta adhering to regulations outlined in the “Code of Practice for Interactive Computer Service Platforms and Internet Intermediaries.” Meanwhile, TikTok and X (formerly Twitter) are yet to fulfill tax obligations.

The former Accountant-General of the Federation, Oluwatoyin Madein, noted earlier this year that tax revenue has become Nigeria’s highest income source. She emphasized its importance in supporting government activities across federal, state, and local levels, describing it as a critical contributor to the nation’s economic stability.

With the Federal Government’s tax revenue target set at N19.4tn for 2024, these gains bring Nigeria closer to its fiscal goals.