Business

UBA CFO, Finance Team Shine at CFO Awards

Published

8 years ago

November 24, 2016

Pan-African financial services group, United Bank for Africa Plc repeated the outstanding feat, it recorded last year at the 2^nd edition of Nigeria CFO awards, with a notch higher when its Group Chief Finance Officer (Group CFO) and the Finance Team bagged the treble at the awards night held on November 19, 2016 at Oriental Hotel, Lekki Lagos. The bank won the following awards; CFO of the Year; Financial Innovation Project of the Year and Finance Team of the Year.

Ugo Nwaghodoh, UBA’s Group Chief Finance Officer was ahead of other nominees in the banking category, to emerge CFO of the year.

The Finance team of the year was also given to the finance division of UBA for their exceptional performance in the year under review, which the organiser say resulted in the bank emerging as one of the resilient performers in the Nigerian banking industry, despite the economic downturn.

Receiving the awards, UBA’s Group CFO, flanked by some of his colleagues, thanked the organizers for the recognition which is coming, second time in a row, noting that he couldn’t have done it alone and that he is delighted to be working with the best finance team in the Nigerian banking industry. He dedicated the awards to his team who he said work assiduously with the passion to always exceed expectations. Achieving a feat like this at a challenging period, only indicates that hard work and dedication truly pays. We are further encouraged by these awards but speaking the minds of my colleagues, this presents new challenges to us, as we will intensify our commitment towards setting benchmarks for the industry, particularly in our strategic roles beyond financial reporting and performance management , Nwaghodoh said.

Also speaking at the awards night, the Chief Executive Officer of Instinct Business magazine, Organisers of the CFO awards, Akin Naphtal, explained that CFOs are integral to the successes of organizations as their expansive financial perspectives help fuel growth. That is why we believe the achievements of financial executives who have been outstanding in their profession and have contributed in no small measure to the growth of their organisations and the economy at large, must be recognized and celebrated”.

The awards nights was a colorful gathering of CFOs from different industries, including, banking, Insurance, Telecoms, Pharmaceuticals, Construction, Investment Banking, Media broadcast, Conglomerate, Logistics & transport, and Public sector across Nigeria with many lauding the organizers for the rare initiative.

Mr Nwaghodoh, UBA’s Group CFO is a seasoned financial analyst and accountant with over two decades experience spanning assurance, advisory, financial control, strategy and business transformation, investor relations, mergers and acquisitions, business integration and project management. Prior to his appointment as Group Chief Finance Officer of UBA, he was at different times, Group Financial Controller, Group Chief Compliance Officer and Head – Performance Management in UBA. Before joining UBA in 2004, he had almost one decade experience with Deloitte and PricewaterhouseCoopers, both in Nigeria and Kenya.

He holds a BSc degree from the University of Ibadan, Nigeria and an MSc degree in Finance and Management from Cranfield University, England. He is a fellow of the Institute of Chartered Accountants of Nigeria and Institute of Credit Administration. He is also an Honorary Senior Member (HCIB) of the Chartered Institute of Bankers of Nigeria (CIBN), and a member of Cranfield Management Association.

In his capacity as GCFO, the Bank has sustained robust level of growth by consistently recording significant and enviable financial performance.

Business

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

Published

3 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

17 hours 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

17 hours 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.