The report that about 107 companies including Dangote and Mikano International are currently enjoying tax exemption from the Nigerian Government despite its insistence to discontinue the programme and drastic steps to improve its revenue base is one of the trending stories in Nigerian newspapers on Monday.
The Punch reports that about 107 companies, including Dangote and Mikano International are currently enjoying tax exemption from the Federal Government despite its insistence to discontinue the programme and drastic steps to improve its revenue base.
According to the findings by The PUNCH newspaper, it also increased the number of beneficiaries enjoying Pioneer Status under the Industrial Development Income Tax Act by 24 from 83 in the first quarter of 2023 to 107 firms by the fourth quarter of 2023.
This was disclosed in the latest Pioneer Status Incentive reports released by the Nigerian Investment Promotion Commission and obtained by our correspondent on Sunday.
An analysis of the PSI report showed that while the requests of 79 firms were newly received, 211 firms are pending; 56 companies had their applications approved in principle, while 19 firms were granted incentive extensions for another three years to 2026.
“Approvals-in-principle are subject to the payment of application fees and only take effect after the payment of such fees,” the report stated.
The pioneer status is an incentive offered by the Federal Government, which exempts companies from paying income tax for a certain period. This tax exemption can be full or partial.
Offered under the Industrial Development Income Tax Act with tax reliefs for a three-year period, the incentive is generally regarded as an industrial measure aimed at stimulating investments in the economy.
The products or companies eligible for this pioneer status are those that do not already exist in the country.
The newspaper says that the Nigerian Government has adopted a virtual means of evacuation of crude oil that involves the utilisation of barges and trucks for the transportation of crude from the point of production to injection/storage points for eventual transportation to export terminals.
It said the Alternative Crude Oil Evacuation Systems was implemented to avoid production deferment, losses and other undesirable consequences as a result of pipeline disruption and outages.
This is contained in a new presentation by the Nigerian Upstream Petroleum Regulatory Commission on “Stability in the Nigerian Energy Sector: Integrated Strategies for Infrastructure, Transportation and Security,” obtained by our correspondent in Abuja on Sunday.
Nigeria loses trillions of naira to crude oil theft and pipeline vandalism annually, a development that made the government consider virtual means of transporting the commodity.
In October 2023, The PUNCH reported that the Senate ordered a comprehensive probe into the activities of security forces and organised groups employing sophisticated techniques to steal crude oil in the country.
The report stated that the decision was prompted by a motion put forth by Senator Ned Nwoko (PDP, Delta North), who reeled out data on what Nigeria loses to pipeline vandalism and oil bunkering.
Nwoko had pointed out that Nigeria lost N2.3tn to oil theft in 2023 alone.
“In March 2023, Nigeria incurred a substantial loss of 65.7 million barrels of crude oil, valued at $83 per barrel, translating to a staggering revenue loss of N2.3tn as a result of oil theft,” the senator stated.
To tackle this, the NUPRC said the government had to promote the Alternative Crude Oil Evacuation Systems by transporting the commodity through trucks and barges instead of pumping them through pipelines.
The Vanguard reports that the Nigerian economy recorded $1.5 billion inflow within a week after the Central Bank of Nigeria (CBN) raised the Monetary Policy Rate (MPR) by 200 basis points to 24.75 percent on Tuesday.
The Bank’s Acting Director of Corporate Communications Department, Mrs. Hakama Sidi Ali, said in Abuja, yesterday, that the development was an indicarion that CBN monetary policy efforts were working positively.
She noted that data available to the Bank indicated that the inflows resulted from the Bank’s concerted effort to stabilise the foreign exchange market.
According to her, the Naira has also continued to record gains in the Autonomous Foreign Exchange market as it traded at N1,309/$1 as against N1,611/$1 in the second week of March 2024.
While noting that Thursday’s rate signified that the Naira was headed in the right direction, she assured that the Cardoso-led CBN would remain committed to ensuring the stability of the market and the appropriate pricing of the Naira against other major currencies worldwide.
It will be recalled that the CBN’s Monetary Policy Committee (MPC) announced a two-percent increase in its benchmark rate from 22.75% to 24.75% on Tuesday.
During his post-meeting briefing, the Governor, Mr. Olayemi Cardoso, also reiterated that the CBN had cleared all verified foreign exchange backlog, underscoring the fact that liquidity would improve in the foreign exchange market.
The newspaper says that the era where people take in young relatives, raising them along with their children is gradually coming to an end.
The limited purchasing power of every Nigerian at the moment fuels that.
Economy and lifestyle discovered that one of such new ways is turning down the adoption or accommodation of close relatives or returning those who had been under their care.
Before now, Nigerians take turns assisting various family members, particularly those with low economic power.
But today, an average family of five can hardly fend for themselves, let alone, adding a relative. Therefore, an additional member to them is like committing suicide.
Mrs. Amanda Odudu, a fashion designer, complained bitterly about how her niece had returned her daughter, who had stayed with them for six years.
“Last month, my niece called, saying that my daughter, who had stayed with them for six years, would be returning home.
“I thought she was joking, not until I saw her at my doorstep the next day.
“My niece’s action was based on her husband’s request who complained bitterly about the state of the economy.
“She noted that she had no job to support her husband which could have made her keep my daughter.
“She had to succumb.”
On her part, Mr Onokoya Samson, a businessman, said his son was returned to him after spending three years with his brother.
“It is still like a dream. I have a family of six.
“My brother was the one who requested I allow my son to live with him so that he can reduce my responsibility.
“My brother just brought my son to the house without informing me.
“He said that he and his family are travelling abroad for greener pastures and have sold all they have to acquire their Visa and flight tickets.
“He has two children and a wife.
“I didn’t blame him but was grateful that he even helped me for three years.
“Now I am faced with an extra responsibility.
“Business is not profiting anymore. But my hope is in God. I believe he will save Nigerians from this horrible situation we have found ourselves in.”
GIK/APA