Nation
FG To Tax Profits Made By Global Tech, Digital Giants In Nigeria
Legal provisions will be utilised to collect taxes on profits made locally by global technology and digital firms not based in Nigeria, but with significant economic presence in the country.
Vice President Yemi Osinbajo stated this during an interaction with a delegation from the Chartered Institute of Taxation of Nigeria (CITN), led by its President, Mr Adesina Adedayo, at the Presidential Villa.
Osinbajo’s spokesman, Laolu Akande, made this known in a statement on Sunday in Abuja,
“While the Federal Government will not be raising tax rates at this time, based on the Finance Act 2019, it is already empowered to widen the tax net.
“This includes collecting taxes on the Nigerian income of global tech giants with significant economic presence here, even if they have not established an office or permanent establishment, and are currently not paying taxes in Nigeria.
“In this regard, Section 4 of the Finance Act 2019, provides that the finance minister, may by order of the president, determine what constitutes the significant economic presence of a company, other than a Nigerian company.
”We have had severe economic downturns, which of course implies that we may not be able to collect taxes with the aggressiveness that would ordinarily be expected.
“I think the most important thing is that we must widen our tax net so that more people who are eligible to pay tax are paying,” Osinbajo said.
Akande siad in the statement that the vice president also noted that several efforts had been made in that regard.
“I am sure you are aware of the initiatives including the Voluntary Assets and Income Declaration Scheme (VAIDS), which was also an attempt to bring more people into the tax net, including those who have foreign assets.”
According to the vice president, the Federal Government has also recently taken a step with respect to a lot of the technology companies that are not represented in Nigeria, but who do huge volumes of business in the country.
He said that the Finance Act had shown that Nigeria was prepared to ensure that the big technology companies did not escape without their fair share of taxation in Nigeria.
“Many of them do incredible volumes here in Nigeria and in several other parts of the region.
“We have drawn up the regulations and we are prepared to go, and I think that we are at least in a good place to tap into some of the tax resources we can get from some of these companies.
“Besides the Federal Government, a recent Bloomberg news article reported that “Governments around the world are grappling with how to modernise their legal frameworks to account for the global reach of the digital economy, reshaping how policymakers think about issues as varied as monopoly power, taxation and workers’ rights.”
He said that international talks were currently ongoing in Paris on global standard rules for governments to receive taxes from such digital and technology firms with significant economic presence in foreign countries.
Osinbajo gave further explanations on legal provisions for the subject matter.
“In Nigeria, according to the Finance Act 2019, a company will pay taxes if it transmits, emits or receives signals, sounds, messages, images or data of any kind by cable, radio, electromagnetic systems, or any other electronic or wireless apparatus to Nigeria.
“This in respect of any activity, including electronic commerce, application store, high-frequency trading, electronic data storage, online adverts, participative network platform, online payments and so on, to the extent that the company has significant economic presence in Nigeria and profit can be attributable to such activity.”
He said that the Federal Government had no plans to raise taxes currently in reference to arguments that tax rates were too low, comparing Nigeria to other places in the region where the rates were much higher.
“So we have had to balance all of these issues, because clearly, higher tax rates can be a disincentive to businesses and investments.
“In terms of domestic resource mobilisation, we are trying to do the best we can given the present circumstances and I believe that there is room for improvement.
“Actually, under the Finance Act 2019, the Federal Government has reduced taxes for small companies – companies with less than N25 million in annual turnover are charged Zero Company Income Tax, CIT.
“Also CIT for Companies with revenues between N25 million and N100m (described in the Act as “medium-sized” companies) has been reduced from 30 per cent to 20 per cent.
“Besides, Nigerians making minimum wage income are not to pay tax at all,” he said.
He said that under the 2020 Finance Act, there was also an exemption of small companies from payment of education tax under the Tertiary Education Trust fund (TETFUND), meaning companies with less than N25 million turnover were eligible.
Osinbajo added there was a 50 per cent reduction in minimum tax; from 0.5 per cent to 0.25 per cent for gross turnover for financial years ending between Jan. 1, 2020 and Dec. 31, 2021.
Earlier in his remarks, Adedayo commended the leadership of the vice president in the implementation of key government interventions in the economy.
“We acknowledge your great zeal and commitment to the Nigeria project,” he said.
Adedayo said the visit became necessary given the enormous work the administration had done towards addressing the huge fiscal challenges in the polity, public financing reforms, and sustained efforts towards addressing infrastructure deficit.
Other members of the delegation included the Vice President of the Institute, Samuel Olushola Agbeluyi, past Presidents, Dame Gladys Simplice, and Dr James Naiyeju.
In attendance also were; council members Prof. Muhammad Mainoma and Babangida Ibrahim., as well as Adefisayo Awogbade, CITN Registrar/Chief Executive.
The Minister of Marine and Blue Economy, Adegboyega Oyetola, has reaffirmed the Federal Government’s commitment to enhancing the safety of the seafaring profession and upgrading maritime institutions to international standards.
Speaking at the 2025 World Seafarers’ Day celebration in Port Harcourt on Wednesday, organised by NIMASA, with the theme, “My Harassment-Free Ship.
He said that this year’s theme “speaks to our collective duty to make every ship a safe and respectful workplace noting that harassment and bullying have no place in our maritime industry.
The Minister further emphasised the importance of continuous training and retraining to ensure seafarers remain competitive and employable.
Also speaking, the Minister of Labour and Employment, Muhammadu Maigari, emphasised that seafarers are the backbone of international trade, facilitating the smooth transportation of goods and services across the globe.
He stressed the need to eliminate all forms of violence, harassment, and bullying against seafarers.
In his welcome address, the Director-General of NIMASA, Dr. Dayo Mobereola, emphasised the need for the maritime community to prioritise the welfare, safety of seafarers and maintain zero tolerance for harassment.
According to the DG, “Today provides opportunity for the Maritime Community to honor seafarers globally for their immense contribution to both domestic and international trade, powering the blue economy and connecting nations across oceans”.
He said that this year’s theme was particularly apt, as it was a call to action to “ensure that our seafarers feel safe, are valued and protected while at sea because the ship is not just their place of work; it is their temporary home. It must therefore reflect the highest standards of dignity and professionalism fostering zero tolerance for harassment”.
He declared that NIMASA must continue to play its part in ensuring that Nigeria contributes effectively to regulations affecting seafarers, as Nigeria remains the highest contributor of seafarers in Africa. “Our men and women sail on vessels in our domestic waters and also globally. This will continue to grow through the Nigerian Seafarers Development Program (NSDP) and the effort of our Maritime Training Institutions.
‘At the recently concluded 113th session of the International Labour Conference held in Geneva, seven (7) amendments to the MLC 2006 code addressing a broad range of issues affecting seafarers, including the recognition of seafarers as key workers, improved protection against ship board violence and harassment, enhanced access to shore leave and repatriation and updated medical and occupational safety standards were approved by an overwhelming majority.
These seven (7) amendments reflect collective global effort to align maritime Labour standards with the evolving landscape of global shipping.
I, therefore, call on shipowners, operators and crewing agencies to begin to review their operational manuals to align with these amendments ahead of the expected entry into force in December 2027. Our seafarers must be able to report grievances without fear of retaliation, while also ensuring protection against vexations or malicious complaints.
He added that NIMASA will play its role by establishing clear policies and procedures for preventing and addressing harassment on Nigerian-flagged vessels, ensuring confidential reporting channels for incidents of harassment and that reports are thoroughly investigated and addressed.
“Today is a clear reminder to us all – government, employers, unions, shipowners, and civil society- that seafarers should not be left alone in their struggles. They look up to us to help them foster a culture of zero tolerance on ships to protect their dignity”, he stated.
He also assured that under his leadership, NIMASA will ensure compliance with regulatory requirements, particularly the renewal of entries into force by ship owners, operators, and relevant agencies come December 2027.
Stakeholders drawn across the four local government areas of Ogoniland in Rivers State, have expressed delight over the excellent performance of the Project Coordinator of the Hydrocarbon Pollution Remediation Project (HYPREP), Prof Nenibarini Zabbey within the past two years, describing him as a true patriot, who has been showing leadership in delivering service to the people.
The stakeholders, who gave the indication in their separate goodwill messages during the mid-term stakeholders engagement and scorecard presentation organised by HYPREP in Port Harcourt, scored the Project Coordinator high on the Ogoni cleanup and the overall implementation of the recommendations of the UNEP Report on Ogoniland.
The President of KAGOTE and Board member of the Ogoni Trust Fund, Hon Emma Deeyah, particularly commended Zabbey for turning around the fortunes of the Ogoni people, as they are now having value for the money earmarked for the cleanup project, describing the Project Coordinator as “one of our best.”
He noted that Zabbey has done well on the saddle, working very hard, being an administrator and leader with listening ears, striving assiduously to meet the yearnings and expectations of the people.
He said the Ogoni cleanup is a journey that has just begun, stressing that he was happy that the Project Coordinator is not on the saddle to amass wealth but to deliver and achieve results, and appealed to the Ogoni people to continue to give him their support.
On his part, member representing Gokana/Khana Federal Constituency in the National Assembly and Chairman of the House of Representatives Committee on Host Communities, Rt Hon Dumnamene Dekor, said HYPREP under the watch of Zabbey is working with renewed vigour, and thanked the Project Coordinator for driving the Ogoni cleanup project with passion.
He noted that the funds dedicated and earmarked for the project are running out, disclosing that he was working on an Executive Bill, to facilitate the work of HYPREP.
While stressing the need for the people to take full responsibility of all the projects sited in their communities, Dekor regretted that some beneficiaries had sold the starter packs presented to them by HYPREP, while the water facility provided in his Bierra community has been vandalised.
The King of Tai Kingdom, King Samuel Nnee, said HYPREP under Zabbey as Project Coordinator has been delivering on its mandate, describing him as a square peg in a square hole, who has given hope to the Ogoni people.
The monarch urged the Ogoni people to give the Project Coordinator the necessary support.
The Paramount Ruler of Barako Community and member of the Governing Council of the University of Port Harcourt, Mene Kadilo Kabari, said Zabbey has always demonstrated that he is a true patriot by carrying along Ogoni people from all strata of the society, describing him as a performing Project Coordinator.
He noted that the bane of HYPREP before now had been the conflict between the Project Coordinator and the Minister of Environment, saying, under Zabbey, Ogoni people can now see what unity of purpose can achieve.
He expressed delight that the water facility which was the first commissioned by HYPREP in his community is functioning optimally following the solar-powered system installed by the Project.
The King of Eleme Kingdom, King(Dr) Philip Osaro Obelle thanked HYPREP’s management team for all that it is doing in Ogoniland, stressing that the Project was built on the graves, bellies and blood of Ogoni sons and daughters who lost their lives during the Ogoni struggle.
He, therefore, advised HYPREP “not to deviate from the expectations of our heroes but to do those things that would benefit Ogoni people for the betterment of Ogoniland.”
Former Nigerian Ambassador to Netherlands, Hon Oji Ngofa said HYPREP has been like the government of Ogoniland, and harped on the sustainability of all the projects.
According to him, Zabbey has been giving HYPREP a human face.
Former Vice Chancellor of the Rivers State University, Prof Barineme Fakae applauded Zabbey for the construction of the Centre of Excellence for Environmental Restoration, and stressed the need for the implementation of the recommendations of its technical committee which recently submitted its report.
According to him, if the project succeeds, Ogoni people are going to succeed.
Chief Priscillia Vikue, on her part, thanked Zabbey for his outstanding performance, saying, the women of Ogoni are very happy with what he is doing in Ogoniland.
While scoring the Project Coordinator highly on his performance, she said the women are happy because Zabbey knows what he is doing with HYPREP.
“You went to school.You did not cut corners.You are a square peg in a square hole.You have engaged women and the youths. We have seen what you have done. And we give you A1”, she said, and challenged Zabbey to see how more women would participate in the project and also how to sustain it.
In his remarks, the Project Coordinator, Prof Nenibarini Zabbey said the mid-term engagement is important because “it allows us to present tangible evidence of progress in the Ogoni cleanup effort, reinforce accountability, deepen transparency, and most importantly, enables HYPREP to interact directly with the communities and stakeholders who are the heartbeat of this project.”
He noted that the scorecard presentation is designed to show what HYPREP has achieved across key thematic areas, what challenges it is currently grappling with, and what the road ahead looks like, saying, “it is a moment for stocktaking and for re-affirming our shared commitment to the success of the Ogoni cleanup project”.
According to him, HYPREP has recorded commendable progress in the implementation of its core mandates in line with UNEP recommendations and the directives in the official gazette establishing HYPREP.
Donatus Ebi
The South-South representative of the Tertiary Education Trust Fund (TETFund) Board, Rt. Hon. Aboh Uduyok, has concluded his one-day official visit to Captain Elechi Amadi Polytechnic in Rumuola, Rivers State, with the unveiling of the Mass Communication Department classroom building. The project was executed under the 2021 TETFund intervention project.
During the unveiling of the project, Tuesday in Port Harcourt, Rt. Hon. Uduyok commended President Bola Ahmed Tinubu for his commitment to the educational sector and praised the polytechnic’s management for utilising TETFund resources judiciously.
He noted that the quality of ongoing projects met approved specifications, and expressed satisfaction with the institution’s progress.
The TETFund representative stated that his visit was aimed at familiarising himself with beneficiary schools, assess fund utilization, and identify challenges.
He assured the school management that he would convey their requests for constructing engineering works and hostel accommodations to the board and notify them of any approval.
Rt. Hon. Uduyok explained that the TETFund Board is not initiating new projects this year, except where necessary, due to presidential directives. However, he commended the institution for the commendable quality of both completed and ongoing projects.
In his welcome address, the Rector of Captain Elechi Amadi Polytechnic, Dr. Moses S. Neebee, thanked the TETFund representative for visiting, and highlighted the institution’s successes and challenges. He requested support for hostel accommodations and engineering works, emphasising that a higher institution without hostels is akin to a glorified secondary school.
Dr. Neebee while briefing the visitor on the institution’s progress, noted that it currently runs 21 National Diploma programme and five Higher National Diploma courses. He disclosed that the school accessed the 2021 TETFund release in full but faced challenges with the 2023 fund due to harsh economic conditions and bid process delays, which increased project costs. The Rector pleaded for assistance in securing additional funds for the 2023 intervention release.
Akujobi Amadi