Business

FG Lost N5.16tn To Tax Reliefs In 12 Months

Published

5 years ago

October 18, 2021

The Federal Government lost about N5.16tn to tax reliefs granted on Value Added Tax (VAT), Company Income Tax and Petroleum Profit Tax in 2020.
This figure was arrived at after analysing data from the 2022-2024 Medium-Term Expenditure Framework and Fiscal Policy Strategy report.
The report said Nigeria lost N4.3tn to reliefs on VAT, comprising primarily of reliefs granted by legislature and compliance burden.
According to the report, if all commodities in the Nigerian VAT system are fully taxable, the country would generate about N6tn from the existing tax structure.
The Nigerian Bureau of Statistics (NBC) had recently said VAT yielded only about N1.8tn in 2020, resulting in a tax gap of about N4.3tn.
According to the MTEF/FSP report, out of the N4.3tn tax gap, about N900bn is attributable to exemptions laid down in legislation, while the remaining N3.4tn is attributable to the compliance gap.
It said, “In most countries, their compliance gap is caused by several factors, including underground economic activity in the informal sector, aggressive tax planning and problems in tax administration.
“However, in Nigeria, some firms, notably in the financial sector, are granted relief from VAT. Because this relief is not set out in the VAT Act, it is not captured as a tax expenditure in the current estimates”.
The report said as a result of this, the current estimated loss due to policy gap might be too low and the compliance gap too high.
It said the country lost N457bn to CIT waivers from large tax offices and medium tax offices, compared to the N1.1tn in 2019, representing a decrease of N634bn.
A breakdown of the N457bn CIT waivers shows that “manufacturing accounted for 65 per cent of tax expenditure (N297bn), LTO financials contributed to 15.8 per cent of TEs (N72bn) while N440m was from exemption of profits under Section 23 of CIT Act.
According to the report, Nigeria compares poorly to regional peers and the Organization for Economic Co-operation and Development benchmark with regards to CIT collection efficiency.
On petroleum profit tax, the report said the sum of N307bn was lost due to waivers granted by the Federal Government within the period under review.
It emphasised that the losses from PPT waivers might have been higher, as only a partial computation was carried out due to limited availability of data.
The Chairman, Federal Inland Revenue Service, Muhammad Nami, recently put the number of taxpayers in the country at 41 million.
He lamented that despite having 41 million taxpayers in the country, compared to South Africa’s four million taxpayers, Nigeria earned far lower than what South Africa generated from Personal Income Tax.
The FIRS boss said, “Our total taxpayers today is in the region of about 41 million people and the total personal income tax paid last year was less than N1tn by 40 million people.
“If you also compare that with South Africa where they have a total population of about 60 million people, with just four million taxpayers, the total personal income tax paid in South Africa last year is about N13tn. You can now see that these things are not adding up.
“The number of billionaires in Lagos alone are more than the number of billionaires in the whole of South Africa but yet what we generated as Personal Income Tax by Lagos State Government is just less than N400bn”.

Business

RIVERS NUJ BACKS BONNY TOURISM, TASKS MEDIA ON DEVELOPMENT REPORTING

Published

3 days ago

August 17, 2026

The Tide

The Nigeria Union of Journalists (NUJ), Rivers State Council, has thrown its weight behind efforts to reposition Bonny Island as a major tourism destination, urging journalists to move beyond crisis reporting and deliberately promote the state’s investment, tourism and development potentials.

The Chairman of the NUJ Rivers State Council, Comrade Paul Bazia, said this at a press briefing held at the Ernest Ikoli Press Centre in Port Harcourt, recently.

Bazia said Rivers State was endowed with enormous natural and economic resources, stressing the media must gradually shift its attention from conflict-oriented reporting to development communication capable of attracting investors, tourists and other economic opportunities to the state.

He said the tourism potential of Bonny Local Government Area was enormous and could compete favourably with attractions found in Caribbean countries, urging journalists to tell the story of Bonny in a way that would attract global attention.

“If we don’t blow our own trumpet, people won’t know that we have our trumpets. Most of the people that travel to the Caribbean, Bonny is more than that. Bonny is more than just the hydrocarbon headquarters. Bonny is beautiful. Bonny environment is therapeutic,” he stated.

The NUJ chairman stressed that tourism could provide a sustainable source of income without the environmental consequences associated with some extractive economic activities, adding that the media must help to market the tourism products available in Rivers State.

“Our role is to ensure that our stories market the product that we have,” Bazia said, urging journalists across the state to consciously promote its tourism and investment opportunities.

He warned that failure to develop and promote tourism destinations such as Bonny could contribute to economic stagnation and insecurity, stressing that businesses and communities would ultimately suffer where legitimate economic opportunities were neglected.

“It is better for us now to get into it and sell the product that we have so that it will be a win-win for everybody,” he added.

Also speaking, the President of the Bonny Chamber of Commerce and Executive Director of the Discover Bonny Initiative, Mrs. Constance Nwokejiobi, Ph.D., said the initiative was a three-year strategic programme designed to transform Bonny Island into a premier tourism destination.

Nwokejiobi disclosed that Bonny Island Tourism & Investment Summit 2026, scheduled for August 18 to 20, would feature a Tourism Concierge Platform, multi-tier partnership arrangements ranging from Platinum to Community Tourism levels, as well as a privately driven Tour

She stressed that sustainable tourism could not depend solely on government, but required entrepreneurship, private investment and strategic partnerships, noting that Bonny already contributes an estimated four per cent of Nigeria’s national GDP, largely through oil and gas, while efforts were underway to develop a second and more sustainable economy based on tourism, heritage and hospitality.

Nwokejiobi said the initiative enjoyed strong support from His Majesty King Edward Asimini William Dappa Pepple III, Perekule XI, Amanyanabo of Grand Bonny Kingdom, who, she noted, had consistently promoted the island’s rich heritage and hospitality potential alongside its energy and industrial strengths.

She called on Nigerians to embrace domestic tourism by visiting Bonny and also invited international visitors and investors to discover the island as an authentic West African destination.

By: King Onunwor

Business

Jonathan, Diri, Others Laud Firm’s Milestone in Bayelsa …Says Project Will Drive Industrialisation, Create Jobs

Published

3 days ago

August 17, 2026

The Tide

Nigeria’s ex-First lady, Dame Patience Jonathan, Governor of Bayelsa State, Senator Douye Diri, and the Managing Director of the Niger Delta Development Commission(NDDC), Chief Samuel Ogbuku, have commended a Bayelsa-based firm, Azikel Group for its commitment towards industrialising the state and the Niger Delta region.

They spoke while inspecting the Crude Distillation Unit (CDU) and other facilities recently at the Azikel Refinery in Obunagha Community of Yenagoa Local Government Area of the state.

They pledged continued support for the successful completion of the multi-billion naira refinery project.

In his remarks, Governor Diri represented by his deputy, Dr Peter Akpe, expressed satisfaction with the progress made so far by the company, describing the refinery project as a major step towards industrialising the state, creating employment and opening new economic opportunities for the people.

He congratulated the President of the Azikel Group, Dr Azibapu Eruani and his team on the successful procurement of the CDU, which is the most critical component of a refinery, describing the feat as a significant milestone towards completing the project.

He said industrialisation remains an integral part of his Prosperity Administration’s agenda, noting that government’s responsibility was to create an enabling environment for businesses and investments to thrive.

According to him, the state government’s ongoing road projects were designed to improve connectivity and provide easier access to industrial investments, including the refinery.

The governor urged Bayelsans to take advantage of the opportunities that would emerge from the project, particularly employment and skills development, and warned the people against commercialising opportunities meant for them.

“The Prosperity Government, which is the agenda that we propagate, has industry and industrialisation as one of the major things. As a government, our business is to provide or enhance ease of doing business.

“Our universities have got graduates that can fit into most of the levels that will be available”, he said.

The State Chief Executive urged the people of the local communities to develop the capacity to participate meaningfully in the investment.

Also speaking, former First Lady, Dame Patience Jonathan, applauded the Bayelsa State Government for supporting the project, particularly through infrastructure development and improved road access to the refinery.

She said the investment was significant because Bayelsa had traditionally depended heavily on government, stressing that sustainable development depended more on investments that create wealth than totally relying on monthly salaries and allocations.

Dame Jonathan described the refinery as an investment that should receive the collective support of government, communities and other stakeholders, saying its benefits would extend beyond the company to the wider economy.

According to her, “It is not the amount of money you get at the moment, but the investment you put on ground that matters.

What we are doing is not for you alone; it is for all of us.”

In his remarks, the Managing Director of the Niger Delta Development Commission, Dr. Samuel Ogbuku, stressed that the refinery would have a multiplier effect on Bayelsa’s economy, particularly through job creation and increased business activities.

Dr. Ogbuku maintained the project could also boost traffic at the Bayelsa International Airport by attracting investors, contractors and other business interests into the state.

The NDDC helmsman stressed the need for Bayelsans, particularly young people not to be spectators to the investment but rather prepare and position themselves to benefit from the opportunities it would create.

He also lauded the state government for improving road access to the refinery, saying the infrastructure had helped to make the investment more accessible and demonstrated that the state was preparing for the economic opportunities associated with the project.

On his part, the President of Azikel Group, Dr. Azibapu Eruani, described the project as a major industrial milestone for Bayelsa and Nigeria, saying the refinery had reached a critical stage with the arrival of the CDU.

He disclosed that the refinery, with a capacity of 25,000 barrels per day and an investment value of about one billion dollars, would produce petrol, diesel, aviation fuel, kerosene, LPG, naphtha and heavy fuel oil.

Dr. Eruani said the arrival of the CDU represented the culmination of eight years of work and marked a significant step towards actualising the refinery project.

He explained that the CDU took more than three years to build in South Korea before being transported to Nigeria on a specially chartered vessel.

Chairman of the Bayelsa State Traditional Rulers Council, King Bubaraye Dakolo, former Chief Operating Officer, Refinery and Petrochemical of the NNPC, Mr. Mustapha Yakubu, among other dignitaries also delivered goodwill messages at the event.

By: Ariwera Ibibo-Howells, Yenagoa

Business

AKG To Purchase More Aircraft —-Targets 10 Fleets this Year

Published

3 days ago

August 17, 2026

The Tide

The Akwa Ibom State Government has announced plans to expand the fleet of its state-owned airline, Ibom Air, with the acquisition of an Airbus A220-300 aircraft.

The Commissioner for Information, Dr Aniekan Umanah, disclosed this to newsmen recently in Uyo, saying the state government would travel to Montreal, Canada, to finalise documentation for the purchase.

Umanah said the aircraft is expected to arrive at the Victor Attah International Airport on August 30, 2026, bringing Ibom Air’s fleet to 10 aircraft.

He described the planned acquisition as a milestone for the state’s aviation sector, adding that it supports the government’s ambition of positioning Akwa Ibom as a major aviation hub for business, tourism and investment under its ARISE Agenda.

The commissioner also identified tourism as a major driver of the state’s economy outside crude oil revenues, saying the government remained committed to developing the sector.

He said the expansion of Ibom Air would improve connectivity and create opportunities for young people seeking careers in aviation, while strengthening links for businesses and families.

According to him, the arrival of the Airbus A220-300 would further demonstrate the state government’s commitment to improving connectivity and supporting economic growth.

Apapa Customs Command Regs N323 Bn Revenue In July

(1)

Nkpemenyie Mcdominic, Lagos

The Nigeria Customs Service (NCS), Apapa Area Command, has posted an unprecedented revenue collection of ?323 billion in July 2026, the highest monthly figure ever recorded by the Command.

The landmark performance further underscores the strong results achieved under the leadership of Comptroller Emmanuel Oshoba, who earlier guided the Command to another record haul of ?304 billion in October 2025.

Comptroller Oshoba disclosed this during the monthly meeting with Deputy Comptrollers of Terminals and Unit Heads held on Tuesday, 11 August 2026.

He attributed the record collection to the combined impact of policy support, operational reforms and improved compliance across the Command.

In a press statement issued by the Public Relations Officer of the Command, Chief Superintendent of Customs (CSC) Isah Sulaiman, the Customs Area Controller specially commended the Comptroller-General of Customs, Bashir Adewale Adeniyi, MFR PhD and the Service management team for their commitment to the ongoing modernisation of the Nigeria Customs Service.

“We recognise and acknowledge the CGC’s devotion and dedication to the modernisation project of the Nigerian Customs Service.

“The management team has introduced several innovations that have streamlined our activities and given us clear direction,” he said.

Comptroller Oshoba noted that the reforms are already delivering measurable results. He highlighted the improved performance of the B’Odogwu system, which had earlier faced challenges but has since been enhanced and is now producing strong outcomes.

He also commended the One-Stop Shop (OSS) initiative for accelerating cargo delivery time and creating a more predictable business environment that encourages legitimate importation.

“Another important development is the Authorised Economic Operator (AEO) framework, which currently has more than 200 beneficiaries. This has positively impacted the revenue profile of the Command,” he added.

Intelligence-driven enforcement operations, he said, have further strengthened compliance where officers and men of the Command have intensified interventions that detect false declarations and ensuring compliance with the Service valuation principles to protect national revenue.

The CAC also specifically credited the enabling business environment created by President Bola Ahmed Tinubu, GCFR, particularly the relative stability in the foreign exchange mmarket.

He explained that a more predictable forex regime has allowed business operators to plan better, make informed decisions and conduct trade with greater confidence while challenging officers to examine their individual contributions beyond routine revenue generation.

“In your Area of Responsibility, you must ask yourself, apart from the normal revenue generated by your Unit, what is your own contribution in terms of intervention? What have I added?” he asked.

The CAC stressed the continued importance of trade facilitation and ease of doing business describing the current operating environment as more predictable and conducive to growth.

He directed that disputes should be resolved promptly where consignments require further scrutiny, officers must follow proper documentation and the Post Clearance Audit (PCA) process.

On stakeholder relations, Oshoba issued a clear directive, “When you interact with stakeholders, let them leave your office with hope rather than despair. As a leader, do not allow anyone who comes to you to depart feeling hopeless or depressed. Give people hope.”

He acknowledged the valuable cooperation of stakeholders and sister agencies, noting that their support has improved compliance and restored greater sanity to the business environment. Officers, he said, must continue to build trust through professionalism, respect and collaboration.

Comptroller Oshoba further urged personnel to uphold transparency and discipline, work smart, remain up to date with evolving digital processes and consult more experienced colleagues when necessary.

He described effective leadership as a collective responsibility, calling on Staff Officers to support Deputy Controllers in reinforcing discipline and fostering a healthy work environment rooted in compassion, empathy, teamwork and genuine concern for the welfare of subordinates.

The CAC called for heightened security consciousness, proper supervision, continuous in-house training and full compliance with approved procedures.

He charged all Units to sustain the current momentum, deepen professional development and remain focused on productivity and service delivery.

By: Enoch Epelle