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Tax Conference: Sanwo-Olu, Zulum, Amosun, Other Experts Seek Transparent Tax System to Boost Internally Generated Revenues
Lagos State Governor, Mr. Babajide Sanwo-Olu, and his counterparts from Sokoto and Borno States have emphasised the need to make the country’s tax system more transparent and accountable to Nigerians to boost confidence and voluntary compliance.
The governors made the call at the ongoing 26th Annual Tax Conference organized by the Chartered Institute of Taxation of Nigeria (CITN) in Abuja, with the theme, “Sustainable Tax Culture and Economic Roadmap for Nation Building”.
Speaking at the conference, Governor Sanwo-Olu who was represented by his Special Adviser on Taxation and Revenue, Mr. Abdul-Kabir Opeyemi Ogungbo, said the theme of the Conference was apt and timely given that Nigeria, like many other nations, is currently facing significant economic challenges.
While underscoring the crucial role of a transparent and efficient tax administration in fostering confidence and voluntary compliance among taxpayers, he emphasized the necessity for citizens to witness tangible outcomes from their tax contributions, highlighting the pivotal role taxes play in fueling public services and infrastructural development.
Sanwo-Olu stressed the shift in mindset needed, urging taxpayers to view tax payments not as a burden but as an investment in a better future for Nigeria.
He said building a strong and sustainable future through a robust tax system that fosters economic growth and development had become inevitable.
Sanwo-Olu said, “We must all understand the crucial role taxes play in building a better Nigeria for ourselves and for generations to come.
“The theme also highlights the need for a clear economic roadmap which should take note of the architecture of our developmental ideologies as they are designed to provide the government with the necessary resources to cater for the social needs of its citizens, therefore we need a tax system that incentivizes investment, job creation, and economic diversification.
“We need to explore innovative ways to expand the tax base while fostering a business environment that allows our economy to thrive. The good news is that Nigeria is already taking positive steps in these directions. The recent efforts to streamline state-level taxes and the focus on integrating the growing remote workforce into the tax net are commendable initiatives.”
The governor said, “The CITN plays a vital role in fostering this vital shift. Your commitment to professional excellence and education is instrumental in ensuring a tax system that is fair, efficient, and promotes economic development.”
However, former Governor of Ogun State, Senator Ibikunle Amosun, who declared the conference open, while stressing the need to prioritize growing Internally Generated Revenue (IGR) over relying solely on borrowing to fund national and sub-national budgets, said borrowing to fund the budgets was not the way to go amid the current national economic challenge when “our nation and its constituent states and local governments are going through very difficult times and finding it hard to provide for its teeming populace, acceptable standards of living, employment with the growing population of youths, infrastructure and basic amenities that will make life more meaningful”.
Governor Babagana Zulum of Borno State criticized inefficiencies and corruption in the current tax administration system.
Zulum, represented by the Deputy Governor of Borno State, Umar Kadafur, highlighted the shortcomings of the current tax system, including tax evasion, avoidance, and lack of transparency.
He called for critical reforms to address these issues, including tackling corruption in both the oil sector and governance system. He criticized the political protection of tax evaders and emphasized the importance of transparency and accountability in tax administration.
While calling for critical reforms, he lamented the manipulation and connivance of multinationals with tax administration to short-change the system, he added that this represented one of the hallmarks of corruption in both the oil and governance system.
In his remarks, the Governor of Sokoto State, Ahmad Aliyu Sokoto, said the conference will greatly assist in exploring innovative ways of improving revenue generation in the country.
He said the economic and revenue challenges had made it difficult for governments at all levels to implement their people-oriented programmes, thus the need for the government to devise a means for more funds to provide the dividends of democracy to the people.
The governor said taxation remained a veritable source of resource mobilization for the government adding that his administration would work with CITN to boost IGR in the state.
The Auditor-General for the Federation (AuGF), Mr. Shaakaa Chira, said the country’s tax system was plagued by instances of tax evasion especially by the upper class, multiple taxation and inability to properly account for taxes collected by administrators.
The Chairman of the conference planning committee, Dr. Adeyemi Sanni, noted that for Nigeria to achieve meaningful fiscal development over the long term, it is imperative to establish a tax culture that can withstand economic fluctuations and challenges.
President and Chairman of the CITN council, Mr. Samuel Agbeluyi, emphasized the importance of investing in technology and people at the subnational level to effectively track revenues in the digital space, including cryptocurrency. This, he believes, will help maximize government revenue flow.
Mr. Agbeluyi stressed the need to provide support to revenue authorities through financial and administrative autonomy, empowering them to effectively administer taxes as he noted it is clear that a strategic approach to revenue management is crucial for the overall financial health of the government.
The CITN boss stated further, “This is a thought-provoking topic that requires all of us to put on our thinking hats. As we deliberate, we must recognize that our nation faces significant challenges. Our current economic realities as a country are multifaceted, despite efforts to improve the narrative by the current government.
He said, “The 2024 budget of “Renewed Hope” as we know relies significantly on non-oil revenue, and this trend is expected to continue in the future. Therefore, building a sustainable tax culture capable of significantly improving our tax revenue performance for an effective. economic and capital formation becomes a top priority.”
Dangote oil refinery, indigenous oil refinery owned by Aliko Dangote, Africa’s richest man, is reselling cargoes of U.S. and Nigerian crude, four trade sources familiar with the matter said on Friday, according to a Reuters report.
Aliko Dangote
Three of the sources indicated that the reoffer was linked to technical problems at the refinery.
However, a Dangote executive, when asked about the offers and market rumours of operational issues affecting the crude distillation unit (CDU), stated that the CDU is in operation.
The refinery, which began production in January, is set to become the largest in Africa and Europe upon reaching full capacity.
This could significantly alter the lucrative Europe-to-Africa fuel trade and transform Nigeria into an exporter of fuels.
Among the grades being offered were Nigerian Escravos and Forcados crude, as well as U.S. WTI Midland crude, according to the sources. Traders have reported that the plant has been importing several crude cargoes monthly.
While resales by refineries are rare, they are not unheard of, traders noted. Following the news, crude prices fell further, with Brent crude dropping as much as 2.5% towards $80 a barrel, before recovering to above $81 by 1700 GMT.
The 650,000 barrel-per-day refinery, built at $20 billion by Africa’s richest man Aliko Dangote, aims to reverse Nigeria’s reliance on fuel imports despite being Africa’s largest oil producer.
Tomorrow is your birthday Madam, kindly permit me to be the first to strike a positive chord and shine a spotlight on you, an exceptional woman, who is helping shape modern finance in Nigeria and indeed the world.
Dr. Nneka Onyeali-Ikpe, GMD/CEO, Fidelity Bank
You are inspirational, an elegant stallion that radiates beauty in brilliance.
Meet, Dr. Nneka Onyeali-Ikpe, OON, an Amazon and group managing director and chief executive officer, Fidelity Bank Plc who turns 60 in a few hours.
She is a leader who instills in her people a hope for success and a belief in themselves.
Born July 28, 1964 in Lagos, Dr. Nneka Onyeali-Ikpe, is a creative problem solver motivated by obstacles.
The desire to overcome a challenge fuels her to get things accomplished.
She does not take ‘no’ for an answer.”
Dr. Nneka Onyeali-Ikpe, joined Fidelity Bank as an executive director in 2015 and was appointed managing director/CEO in January 2021, becoming the first female MD/CEO in the bank’s history.
The birthday lady holds a Bachelor of Law from the University of Nigeria, Nsukka, and a Master of Law from King’s College London.
She has attended executive training programs at various institutions including Harvard Business School, The Wharton School University of Pennsylvania, and London Business School.
Additionally, she recently completed a Diploma program in Organizational Leadership at Said Business School, Oxford University, UK.
She holds an honorary doctorate degree in Business Administration from the University of Nigeria, Nsukka (UNN) and is an Officer of the Order of the Niger (OON), awarded by the Federal Government of Nigeria in 2023.
In 1990, she began working in banking as a legal officer for the now-defunct African Continental Bank. She subsequently worked as a treasury officer for the First African Trust Bank.
She later joined Zenith Bank and Standard Chartered Bank respectively.
Nneka Onyeali-Ikpe has held leadership positions at Citizens International Bank, Zenith Bank, and Standard Chartered Bank, among others.
She has been instrumental in structuring complex transactions across various sectors including Oil and Gas, Manufacturing, Aviation, Real Estate, and Export.
In 2011, she joined Enterprise Bank as an executive director of the bank’s operations in Lagos and other locations in the South-Western region in Nigeria.
Nneka Onyeali-Ikpe joined the commercial bank Fidelity as an executive director in January, 2015. Fidelity Bank announced Onyeali-Ikpe as its managing director in December 2021.
Under her leadership, Fidelity Bank witnessed significant growth, increasing its Profit Before Tax (PBT) from N25.22bn in FY 2021 to N122bn in FY 2023.
She has led the bank’s expansion into international markets, including the recent approval by the Central Bank of Nigeria to acquire Fidelity Bank UK Limited (formerly Union Bank UK).
Passionate about innovation and technology, Nneka Onyeali-Ikpe has spearheaded initiatives such as PayGate Plus, an online payment platform, and the Fidelity International Trade & Creative Connect (FITCC) aimed at supporting Small and Medium Enterprises (SMEs) globally[citation needed]
In recognition of her leadership, Nneka Onyeali-Ikpe has received several awards including The Banker of the Year 2022 at the 14th Leadership Annual Conference, Best Banking CEO Nigeria 2023 in the 2023 Global Banking & Finance Awards, 2023 Top 25 CEOs in Nigeria at the BusinessDay Awards, and Banker of the Year 2022 at the Champion Newspapers’ Awards of the Year 2022.
She also received acknowledgment from the Assets Management Corporation of Nigeria (AMCON) for her role in restructuring the former Enterprise Bank. As an Executive Director, she oversaw operations in the Lagos and southwest regions, managing the Retail and SME divisions. Additionally, she played a key role in establishing the Bank’s SME group.
She serves on various Committees and organizations including the Financial Literacy and Public Enlightenment Sub-Committee of the CBN Bankers Committee and the Chartered Institute of Bankers of Nigeria.
Onyeali-Ikpe is married to Dr. Ken Onyeali Ikpe, PhD, a leader in Marketing, Branding, and Consumer Consulting.
As you celebrate today, may you have all the love your heart can hold, all the happiness a day can bring, and all the blessings a life can unfold.
May the years ahead be greater.
Happy birthday, God Bless!
The proposed 5 percent tax on companies earning over N100 million for community development projects could result in the exits of multinationals from the country, a new report by Afrexim Bank has said.
“Nigeria’s National Assembly is considering a 5 percent levy on big companies to invest in community projects, despite opposition from companies and their supporters.
Critics argue that companies already pay 20-30 percent of their profits in corporate taxes and the plan could prompt international companies to leave the market,” the report titled Monthly Developments in the African Macroeconomic Environment stated.
However, the bill has faced rejection from the organized private sector.
The Manufacturers Association of Nigeria (MAN), which sent representatives to the public hearing organized by the parliament, described the proposal as ill-timed and unnecessary.
They argued that CSR should be at the discretion of each organization, emphasizing that it is an internal matter.
Additionally, they expressed concerns about the current multiplicity of taxes and the high operating expenses that manufacturers are already struggling with.
Olumide Osoba, member of the House of Representatives, recently introduced the Corporate Social Responsibility Bill 2023 to set high standards of corporate governance and ensure firms integrate long-term economic, environmental, and social aspects into their business strategies.
The bill includes provisions for establishing a department within the Federal Ministry of Budget and National Planning.
This department will be headed by a commissioner appointed by the president based on the budget minister’s recommendation.
The commissioner will coordinate the activities of agencies related to CSR and monitor compliance with the law.
For non-extractive companies with a net worth of N500 million or a net profit of N100 million in a financial year, the bill requires them to form a CSR committee consisting of three or more directors, one of whom must be an independent director. This committee will be responsible for the company’s CSR policy and ensure compliance.
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60 Hearty Cheers to Dr. Nneka Onyeali-Ikpe, GMD/CEO, Fidelity Bank
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