—to go after tax evaders
The Federal Inland Revenue Service (FIRS) has concluded a plan to expand its tax net to the maritime and aviation sectors in a bid to capture tax evaders i8nn these sectors.
Towards this end, the tax authority will soon commence a back-end tax audit on operators in the maritime and aviation industries to checkmate tax evasion.
The Executive Chairman, Muhammad Nami, who made the disclosure while delivering an address at the Pedabo Thought Leadership event, noted that foreign players in the industries lifting cargo out of Nigeria do so without paying taxes.
In July, FIRS appointed some banks as agents to recover N1.8 trillion from accounts of Messrs MultiChoice Nigeria Limited (MCN) And MultiChoice Africa (MCA) over evasion of Value Added Tax (VAT) payment.
Just last week, a Federal High Court dismissed the appeal of MultiChoice on the case, clearing the way for FIRS to recover the sum while the DSTV and GOTV operator insisted on no wrongdoing.
A statement by his Special Assistant on Media, Johannes Afolabi Wojuola said, “The FIRS will soon launch a tax audit exercise on operators in the maritime and aviation industries.” And the Back-end pre-audit activities will be in collaboration with regulatory authorities which are in an advanced stage.”
The chairman, therefore, urged all foreign companies that have lifted cargo (including crude oil) out of Nigeria without paying tax to voluntarily come forward to regularise their tax positions, adding that those who wait for the audit would not be taken lightly.
“Tax authorities are unable to police these foreign companies because the transportation contracts are executed outside Nigeria and the tax authorities do not have the lifting schedules of the vessels ahead of their arrival in Nigeria,” he stated.
Discos gross N2.4trn revenue in 5 years amidst power outage
The Electricity Distribution Companies (Discos) raked in a total of N2.4 trillion as revenue between 2015 and 2020, the National Bureau of Statistics (NBS) has revealed.
According to the NBS, revenue generated by the DisCos in 2015 stood at N278.89 billion and rose to N303.03 billion in 2016, showing an 8.65 percent growth rate.
Also, in 2017, revenue generated by the Discos increased by 22.25 percent to N370.46 billion and further rose by 19.48 percent in 2018 to N442.63 billion.
It further increased by 9.03 percent in 2019, to N482.61 billion as well as a sustained positive growth of 9.15 percent when N526.77 billion was collected in 2020.
The statistical agency disclosed this in its June Electricity Report which presents statistics on electricity from 2015 to 2020.
The report focuses on customer numbers, metered customers, estimated billing customers, and most importantly, electricity supply and revenue collected under the reviewed period.
In the 2020 revenue receipt, the highest collection was by Ibadan Electricity Distribution Company (IEDC) with N102.10 billion. It was closely followed by EKEDC with N81.39 billion while the least collection was recorded in YEDC with N10.64 billion.
Nonetheless, electricity supplied to customers during the period of the review showed an unstable trajectory.
The NBS stated that in 2015, 20,337.40 Gigawatt hours (GWh) were supplied across Nigeria. This fell by 6.36 percent in 2016, when 19,044.30 GWh were supplied. Also, it rose in 2017 by 2.04 percent with 19,432.39 GWh and further rose in 2018 by 10.55 percent with 21,483.25 GWh.
In total, electricity supplied in 2019 stood at 22,450.67 GWh but declined in 2020 by 1.82 percent when 22,042.28 GWh were supplied.
The NBS pointed out that customer numbers under the reviewed period increased successively on a year-on-year basis, with the highest numbers recorded in IBEDC.
Generally, customers numbers rose from 6.99 million in 2015 to 10.37 million in 2020.
Similarly, the number of metered customers increased consecutively on a year-on-year basis from 3.15 million in 2015 to 3.80 million in 2019 but declined to 3.51 million in 2020.
In 2015, Benin Electricity Distribution Company (BEDC) recorded the highest number, while IBEDC stood top between 2016 and 2019 while Abuja Electricity Distribution Company (AEDC) recorded the highest in 2020.
The NBS said the estimated billing customer records also showed a year-on-year positive growth rate consecutively from 3.85 million in 2015 to 6.86 million in 2020.
It added that in 2020, the customer numbers were highest in IBEDC with 1,282,136 and lowest in Eko Distribution Company (EKEDC) with 269,022.
The Statistician-General of the Federation, Mr. Adeyemi Adeniran, said: “Today, with the overwhelming global demand for energy and the emphasis positioned by the Sustainable Development Goal (7) on access to energy for all places the need for statistics on electricity as a form of energy.
“Thus, electricity statistics remain a very useful tool for socio-economic planning and development, particularly for a developing economy like Nigeria. These numbers will provide an insight and shape policymaking on improving energy, specifically the electricity supply in Nigeria.”
The report further stated that the trajectory of metered customers had shown annual positive growth rates consecutively except in 2020.
In 2015, metered customers were 3.15 million and rose slightly by 0.23 percent in 2016. This also increased in 2017 and 2018 with 3.57 million and 3.58 million customers respectively.
Metered customers in 2019 stood at 3.80 million, showing a 5.96 percent growth rate, yet lower in 2020 when 3.51 million customers were metered.
AfCFTA Secretary-General allays fears of turning Nigeria into dumping ground
“So, we have to make sure that we are very vigilant against the transshipment of goods, against fraudulent invoicing.
“In the agreement, there are rules: anti-dumping measures, all these rules are meant to protect domestic economies.
“If you see there is the importation of certain goods from certain countries, the agreement allows you to take action against those goods in that country.
“So we have built into the agreement safeguards to make sure that we minimize these.
“Fraudulent invoicing, and transshipment, like any other crimes, those things will always be there, the issue is to mitigate and make it difficult” Mr Mene declared.
“What I always find interesting is that many times, we are willing to accept goods from a country whose name I would not mention that is not on this continent., substandard goods, goods that don’t meet our own requirements, these are the things we have to be vigilant against because it is not a Nigerian market, a Malian market, a Ghanian market, it is AFCTA market.
“We are now creating one market, so if there is dumping in Nigeria, it impacts all of us. If it is dumped in another country, it imparts on all of us.
“So I really appreciate the sensitivity of this issue of dumping and I understand it.
“I mentioned in the previous session that in Southern Africa, there is a sugar that is being dumped from another part of the world that is being brought here, displacing the local market in Southern Africa, and creating job loss.
Auditor General indicts MTN over evasion of Customs duty since 2021
The Office of the Auditor General of Federation has indicted the telecom giant, MTN, over evasion of payment of Customs duties since 2021.
Speaking at the resumed hearing of the investigations on queries issued by the office of the Auditor General of the Federation against the Ministries, Departments and Agencies, (MDAs) of the Federal Government, the Chairman of the committee Hon Oluwole Oluwole Oke, lamented the level of external borrowings by the federal government, saying that the committee’s probe of public funds was aimed at curtailing revenue leakages to boost government treasury.
His statement was coming against the backdrop of tax evasion by the telecom service provider, MTN whose current assets stand at N2.68 trillion in the country, yet does not have proof of customs duty over the years.
Following the failure of the MTN representative to tender the relevant documents to buttress his position that the company was up to date, the committee resolved to write the Nigeria Customs Service, (NCS) to furnish it with relevant documents, including MTN duty permit so as to ascertain the total amount it owes government since 2001.
Hon Oke, therefore, directed the Clerk of the Committee to write to the Management of the Nigeria Customs Service on the financial indebtedness of the firm to the federal government.
Customs4 weeks ago
Finally, FG concessions operations of Customs to Chinese, Nigerian company for 20 years.
Customs4 weeks ago
Customs loses Compt. Danlami Haruna, Area Controller Bauchi/Gombe Command
Customs2 months ago
Exclusive! Mass retirement hits Customs as 549 officers bow out of service in 2023
Customs2 months ago
Customs High Command interdicts officers over assault on Gov. Okonwa’s aide
Customs4 weeks ago
Terrorists overrun Customs Post in Katsina
Customs1 month ago
Court orders Customs to pay ₦100m compensation over gruesome murder of peasant farmer in Kebbi state