Abuja—The minister of finance and national planning, Zainab Ahmed, said Nigerians should not compare Nigeria with South Africa in area of tax rates and collection.
Zainab stated that South Africa is a tax-based economy, while Nigeria on the other hand is competing with Sudan in the area of taxation.
365News reports that the minister disclosed this on Monday while defending the government’s Medium Term Expenditure Framework and Fiscal Strategy Paper.
According to the minister, most high earners in Nigeria are not paying taxes, particularly at the state level.
She said, “The comparison between Nigeria and South Africa cannot be done. The federal government national budget and South African national budget are not proportionate.
“It is important to state that the South African budget is largely funded by taxes, unlike Nigeria’s economy. The tax base in Nigeria is still narrow. The tax rate is still quite low, VAT is still 7.5%, the average VAT rate in West Africa region is 15%.
“We have the lowest tax rate in the world, second only to Sudan. Even Sudan is increasing its VAT rate. We need to all efficiently improve tax collection. In Nigeria, PIT is very low. Individuals of high networth—only a few of them are paying taxes.”
The comments are amid plans by the federal government to borrow over N11 trillion to finance the deficit in the proposed expenditure of the federal government.
In the document submitted to the lawmakers, the federal government plans to borrow N9.32 trillion comprising N7.4 trillion from the domestic market and N1.8 trillion from foreign sources.
The government is expected to generate N206.1 billion from privatization proceeds and N1.7 trillion multilateral project-tied loans.
She added that the government cannot afford to keep subsidy beyond June 2023. As the government is not planning for subsidy beyond mid 2023.
CBN limits cash withdrawals to 20k daily, 100k weekly
Abuja—The Central Bank has directed banks and other financial institutions to ensure that cash withdrawals by individuals and corporate entities per week do not exceed N100,000 and N500, 000, respectively.
The directive is contained in a circular issued by the bank on Tuesday, according to TheCable.
These new directives is however set to be effective from 9th January 2023
“The maximum cash withdrawal over the counter (OTC) by individuals and corporate organisations per week shall henceforth be N100,000 and 500,000 respectively. Withdrawals above these limits shall attract processing fees of 5 percent and 10 percent, respectively,” the letter reads.
“Third party cheques above N50,000 shall not be eligible for payment over the counter, while extant limits of N10,000,000 on clearing cheques still subsist.
“The maximum cash withdrawal per week via Automated Teller Machine (ATM) shall be N100,000 subject to a maximum of N20,000 cash withdrawal per day.
“Only denominations of N200 and below shall be loaded into the ATMs.”
Nigerian Navy accuses NNPC of deceiving Nigerians about figures of oil theft
Abuja—The Nigerian Navy has stated that the Nigerian National Petroleum Company Limited’s (NNPC) claimed figures of crude oil theft in the country are bogus and not substantive.
According to SaharaReporters, the Navy accused NNPC of reeling out exaggerated figures to save its face, noting that they are hiding the truth from the public.
This was made known by the Navy Chief of Training and Operations, Rear Admiral Solomon Agada, while speaking to the Senate Committee on Economic and Financial Crimes during an interactive briefing of the relevant agencies implementing the Proceeds of Crime (Recovery and Management) Act, 2022 at the National Assembly, as observed and reported by Sunday PUNCH.
Agada revealed that at several interactions with the NNPC, the Navy had explained the causes of fuel scarcity to the company and that there was no way anyone would steal 100,000 barrels of oil in a day, but the NNPC had deliberately continued to mislead Nigerians.
When Agada was asked why the Navy had not been able to stop oil theft, while claiming that the waterways were secure, he said, “The challenge is that because of the criminal activity inshore by the illegal refiners in tapping into the export lines, those export lines have not been in operation since early this year.
“The major terminals have not been able to process fuel for export since around February/March and instead of the NNPC telling the Federal Government that this product is not brought out to be able to process as export, they say the oil was stolen.”
He explained that the Navy had argued that the NNPC should tell people the difference between the oil that they have shut in and not brought out, and what is being stolen.
“The stolen produce that we have been dealing with among illegal refineries is nothing compared to what the NNPC is declaring as being stolen.
“If you’re talking about stealing 100,000 barrels a day, you need about five-tonne batches 20 times a day from the creek to the high sea, which is very unrealistic.
“I told them at the NNPC that if that were to be the case, even a blind man would observe that something was happening in Nigeria’s waters and we are there on patrol and not seeing this.
“The only reasonable explanation why the fuels are not coming out is because the Shell platform on Bonny Island is not exporting and the Chevron terminal in Escravos is also not exporting. All these things are very clear, but because it is easier to say these things are stolen, then they just come up with that.
“Let’s get someone who can do a proper analysis of these figures and we’ll find out that these claims are just bogus; there is nothing substantive about them.
“We have communicated appropriately with the NNPC; even at our last interface with them, they agreed with us; but when they come to the public, they say oil theft, hiding the fact from the public.”
Agada also responded to the alleged tapping of pressure pipe under the sea, from where crude oil was said to be transferred into vessels.
He said; “On the tapping of the vessel, I also visited that location with the Chief of Defence Staff and there is a directive by the President from the office of the Secretary to the Government of the Federation to set up a committee on that particular incident.
“We are not indicting the NNPCL; we are just saying that let matters be presented correctly so that people can make informed decisions. The Navy has no hand in any stealing of oil in this country. I have no ship or vessel, nor do I know anyone who has; you can investigate me.”
The Navy boss further explained that the increase in diesel price was because of an ongoing operation to stop illegal bunkering on the waters.
“People who have been doing this illegal business will confirm to you that since we started this special task force operation in April, their business has gone sour.
“This is also responsible for the increase in diesel price in the country. Since we stopped the illegal diesel from coming to the market, the price has gone up, because once there is high demand and the supply is low, the price will go up.
“People who ought to import will cut corners and buy the illegal products, but now that they can’t import and the illegal ones are not coming, this has reduced the quantity in the country. But somehow, nobody is coming to share this information with the people.”
He added that the Nigerian Government had invested in infrastructure through the Maritime Domain Awareness Infrastructure, which had assisted the Navy in detecting and arresting illegal refiners and vessels that were usually handed over to the Economic and Financial Crimes Commission for prosecution.
Agada stated, “And right from Abuja here, we have the capacity to see the entire Nigeria Exclusive Economic Zone. We have 24 hours watch on the exclusive economic zone. Any vessel that enters Nigerian waters that is not permitted to be is immediately arrested because we see their movement.
“Any vessel in the international waters is expected to have their automatic identification system on and that shows that you’re transparently operating; so, any vessel that switches off its identification system automatically becomes a vessel for the Nigeria Navy and we will immediately arrest them and thereafter investigate.
“So, as of today, there is no tanker that can enter Nigerian waters to carry anything without being noticed. All these things that happened now have sent a very strong signal to the international communities that Nigeria is now a place where illegal activities can’t take place anymore.”
Oil can no longer feed Nigeria’s growing population—Obasanjo
Abeokuta—Former President Olusegun Obasanjo has said the oil and gas sector can no longer feed the growing population of Nigerians, according to Daily Trust.
Obasanjo spoke at the weekend when the leadership of the apex socio-cultural group in Tiv land of Benue State, Mzough U Tiv (MUT) paid him appreciation and friendship visit at his Olusegun Obasanjo Presidential Library (OOPL) Penthouse residence in Abeokuta, Ogun State capital.
He said only farming and agribusiness could tackle the nation’s growing population.
He called on people to focus on farming and agribusiness as an alternative to Nigeria’s oil-dependent economy.
“If Nigeria is ready to get it right, the 2023 election should be a turning point. We should not go for emotion that will destroy us,” Obasanjo, who was conferred with the title of a “Great Warrior” of Tiv land by the socio-political group, said.
Earlier, the President-General of the Tiv body, Chief Iorbee Ihagh demanded the former president’s intervention on the need for the establishment of a fruit juice industry in Benue State, agitation for inclusive national politics, herder’s attack on Tiv land and the power sharing formula.