Wolé Olúyemí Profile picture
May 12, 2020 10 tweets 3 min read Read on X
I got this post from three people already and let me try to address some of the issues raised by @AmakaAnku - some of which are, I believe, innocent errors probably due to inadequate information.
In the Nigerian tax system, Company Income Tax (CIT) is chargeable on the profits of all companies apart from those engaged in oil exploration and production.

This is the basis of corporate taxation for companies in Nigeria.
Expenses are deductible if they are 'wholly, exclusively, necessarily and reasonably' incurred in the process of making the taxable profits.

For agricultural companies, costs such as labour costs, debt servicing costs, cost of seedlings, transportation and storage are deductible
So, in Nigeria, all agricultural companies are able to deduct the costs of labour, debt servicing costs, fertilizer, seedlings, transport, storage, etc before arriving at their taxable profit, along with several other reliefs that are available for the agricultural sector.
Therefore, Amaka missed this position of the Nigerian tax law (it’s not even a new law as it has been there before I started my accounting degree in 1996) in her argument, especially when she was comparing with the oil and gas sector.
For the Petroleum Profit Tax (PPT), which is charged at 85% vs the 30% for regular companies, the oil and gas companies pay their taxes in advance (based on estimates) unlike the agricultural and other companies that pay in arrears (on a preceding year basis).
So, the good news is that the Nigerian tax laws are already ahead of Amaka’s thoughts and suggestions.

On this one, @AmakaAnku should be a strong #ProudlyNigerian advocate 😁
The tax regime for an oil and gas company may not necessarily be at the 85% I mentioned above. There are instances where a lower rate may be applicable depending on the type of contract entered into by the company.
The lower rates may be applicable in the instances where the company is within the first five years of operation and those involved in a production-sharing contract (PSC) or agreement (PSA).
However, any activity that is not regarded as petroleum operation is subject to tax at a rate of 30% irrespective of the fact that the business activity is performed by an “oil and gas” company.

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More from @WoleOluyemiCo

Nov 7, 2020
On education, the FGN needs to grant full autonomy to the schools, issue clear KPIs (admission, teaching, research, infrastructure quality, graduates’ placement rates), and then regulate.

Let me attempt to answer @ItsChristy__ ‘s question 😁

#Thread #EducationReform #education
First, let’s be clear - I won’t disagree with @ItsChristy__ on government’s inefficiency and pervasive corruption.

My position is that we can’t continue to do the same thing over and over, and expect a different result. That’s insanity!

#EducationReforms #WO
We need a drastic reform in our educational sector.

The Universities governing councils should run the schools. Let them be autonomous and self funding.

#EducationReforms #WO
Read 15 tweets
Sep 23, 2020
Janet (name disguised), one of my mentees, was sacked last week with practically zero notice period. I was angry.

I read her employment letter when she got the job and I thought I knew the content.

I didn't realize she went back to renegotiate one of the clauses.

#Thread #WO
Apparently, she went back to negotiate the termination clause.

The company had a policy that termination or resignation required 4-weeks notice with no payment-in-lieu.

She didn't like it. It limits her flexibility to switch to a new job if such an opportunity comes.
They agreed to give her a waiver because they desperately needed her.

The company now agreed to amend the clause to say that both parties could terminate the employment contract with one week notice or payment in lieu. The updated employment letter was signed.
Read 11 tweets
Sep 21, 2020
The session by #CFAANigeria is on. Don’t miss it.

Pastor Femi Atoyebi is on. The way he is dissecting issues, SAN title just dey hungry me.
True.

Jesus could have said “Do you know who I am”? when he was asked about taxes. - Pastor Femi Atoyebi on submission to authourity.
Accountability is all what Part F of CAMA2020 is all about - Pastor Femi Atoyebi.
Read 28 tweets
Sep 18, 2020
I remember one “smart” guy who got a $4K per month job in CA and was so excited that they processed work visa for him.

I told him the salary would make him worse than the N500K he was earning in Lagos. He thought I was stupid.

It didn’t take long before he realized.

#Thread
How will $4k ($4,000 x N420 = N1,680,000) not be better than 500k in Lagos?
He suddenly realized that accommodation around San Francisco was about $3k per month and he didn’t have anyone to stay with.

Cheapest mattress he got was about $250.

Gas & Electric - $200/month

Water - $150/month

1 drumstick of chicken 🍗 - $1.
Read 5 tweets
Sep 12, 2020
Thanks Prof @yomitheprof for this article. While your conclusions are not aligned with my views on this topic, I believe that most of the arguments are logical and fair.

I believe that some of the issues raised should drive the discussion for the first amendment to #CAMA2020 😁
My view points are already shared in this article here - businessday.ng/opinion/articl…
Yomi’s article is actually the best non pro-CAMA article that I have seen - it came with strong logic that is devoid of unnecessary emotions and sentiments.

Let me just share my thoughts on some of the issues raised.
Read 10 tweets
Sep 11, 2020
Agriculture (note that I didn’t say farming) is a good business.

There are so many parts of the agrifood value chain.

Yes, people are making millions. But, many are making losses.

It depends on where and how you are playing out your strategy.
I don’t believe that Nigeria is underproducing - especially for most of our food products (crops and livestock’s).

For me, the challenge is from the harvesting stage and from the farmgate.
I won’t invest a $1 in any Nigerian business in the pre-harvest stage of the value chain (as of today). That’s me - as of today.

For those that have sent their investments decks to me for businesses in that part of the value chain, the answer has been an emphatic NO.
Read 6 tweets

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