This is quoted out of context to suit the objective of the author.

What are the issues?

1) Nigeria's VAT system places a huge burden on businesses as they are not allowed to claim the input VAT incurred on services and assets.

thecable.ng/we-need-to-inc… 2) Some items which constitute basic consumptions (food, education, and healthcare) are liable to VAT rather than being exempt or zero-rated.

3) Many small businesses have to contend with VAT compliance in view of the existing low VAT exemption threshold for small businesses.

Is Nigeria really a cash economy?

In a strict sense, cash is used to describe notes and coins issued by the Central Bank, as distinct from cheques, bank deposits or credit. Let’s call it currency or "Hard Cash".

Thread... In a broader sense, cash is synonymous to money which includes currency and cash equivalents such as deposits in your bank account, money market instruments etc. Let's call this broader cash excluding currency, "Soft Cash” or “e-Cash".

10 lessons for Nigeria from India’s demonetization policy

1. In 2016, the Indian government made a surprise announcement of the withdrawal of the country’s two highest denominations (Rs 500 & Rs 1,000)
...

Photo credit: Forbes 2. The major aim was to tackle black money especially counterfeiting, corruption and tax evasion. Also, the policy was meant to facilitate India’s transition to digital, cashless world at a time when over 190m adults had no bank accounts many of whom are illiterate

The key changes include taxation of cryptocurrency, deduction of capital losses, repeal of investment allowance on assets, and expansion of excise duties to all services including telecommunications. Effective date expected to be 1st Jan 2023. pwc.smh.re/1CSX Summary of the Key Changes

1. Gains on digital assets including cryptocurrency to be specifically chargeable to tax under the capital gains tax act at the rate of 10%.

The new cash withdrawals limit will have tax implications especially for individuals and MSMEs.

As many people will be forced to carry out transactions using electronic payments, small businesses that currently operate mostly on cash will become visible to the tax authorities. This will trigger various tax obligations including:

Income tax

If your business is registered as a company you may be liable to CIT depending on your annual turnover (i.e. no CIT if your turnover below N25m, 20% if your turnover is between N25 to N100m, ...

Crude oil theft is a haemorrhage on Nigeria. Our ave. daily production in the first 6mths of 2022 was 1.22m bpd compared to the ave. OPEC quota of 1.72m bpd for the period. This amounts to about 500k bpd shortfall all of which can be attributed to oil theft directly & indirectly. While most oil producing nations are smiling to the bank given high oil prices, Nigeria is virtually broke resorting to heavy borrowing to fund the budget.

According to the CEO of NNPC Ltd, the oil thieves include senior govt. officials, security forces & religious leaders.

Here is what you need to know about the new Telecommunications Tax in Nigeria.

A new tax (excise duty) of 5% has been introduced on Telecommunications services in Nigeria including prepaid and postpaid plans. pwc.smh.re/16_n The legal framework for the tax is the Finance Act 2020 which amended section 21 of the Customs and Excise Tariff Act by adding the subsection below as an item liable to excise duty -

Okada - To Ban or To Regulate?

A 2014 report by Premium Times indicated that there were about 8 million Okada riders in Nigeria, this number is certain to have increased since then. So, the proposed nationwide ban of motorbikes popularly known as “Okada” in Nigeria will ... ... have huge social implications if implemented. It will stretch the police in terms of enforcement and will worsen the economic conditions of many law-abiding riders and their households.

Nigerian governments across levels seem to only offer tax incentives when trying to attract investment. Apart from being ineffective, tax incentives often distort the investment environment and worsen domestic revenue mobilisation.
punchng.com/buhari-woos-sp… Rather than flaunting tax incentives, here are the Top 10 considerations to attract investments (foreign or local) which oftentimes are more important than tax incentives:

1. Stable macroeconomic and policy environment e.g. sustained low inflation and stable exchange rate regime

Finance Act 2021 - Top 10 Changes

1. Capital gains tax at 10% is chargeable on the disposal of shares worth N100m or above in any 12 consecutive months except to the extent that such proceed is reinvested in the shares of any Nigerian company. 2. The education tax payable by Nigerian companies has been increased from 2% to 2.5% of assessable profits.

My next book to highlight is:

Creative Confidence (Unleashing the creative potential within us all) by Tom and David Kelley

Everyone can be creative. “There is no word in the Tibetan language for ‘creativity’, the closest translation is ‘natural’.” Creativity means using your imagination to create something new. It includes the work of artists, as much as that of CEOs or computer programmers. There is room for creativity in every career.

This broader definition of creativity means that we are all born to be creative.

Ubuntu Lessons!

An Anthropologist while studying the culture of the Xhosa people, a tribe in South Africa, proposed a game to some of the children. He placed a basket of sweet fruits near a tree and make the children stand 100 meters away. Then he announced that whoever reaches first would get all the sweets in the basket.

When he said "Ready, Steady, Go" .... the children held each other's hands, ran together towards the basket, reached together and shared the sweets equally, and enjoyed everything together.

We have a problem but the call to #EndSARS is NOT the solution. Here is why.

SARS stands for Special Anti-Robbery Squard. It is a unit under the Criminal Investigation and Intelligence Department (CIID) of the Nigeria Police.

Thread ... It was set up in response to the rising spate of crimes especially robbery and kidnapping so the intention was good and is still relevant today.

Unfortunately many innocent Nigerians have been victims of brutality, extortion and murder by some bad elements within SARS.

Some good initiatives in the 2021 Budget Speech but Government Owned Enterprises should not be asked to focus on revenue generation, that'll be counterproductive. pwc.smh.re/0ZuD Rather, Govt Owned Enterprises should focus on rendering services and facilitating businesses. When businesses and individuals are successful, they will pay tax.

In case you’re wondering what FG is saying, this is in connection with the commencement of automatic exchange of taxpayers information between Nigeria with other countries.

https://twitter.com/nigeriagov/status/1306634568267640832

The information required is to enable reporting financial institutions determine the tax residency of their customers to know which countries to share your information with.

5 lessons from Adesina’s historic re-election as AfDB president with a 100% votes.

Thread #1 - Set a clear vision and lead with purpose

Upon assumption of office, Adesina set an agenda for the AfDB based on five development priorities known as the High 5s:

There has been an uproar about the new #CAMA2020 and regulation of NGOs. Let’s look at what the law says.

Thread Under the old CAMA, NGOs (including religious organizations) are registered as corporate bodies under Part C.

More on Stamp Duties.

In this thread, I will attempt to answer some of the Frequently Asked Questions.

Thread. Q. What is this stamp duty that everybody is talking about?
A. Stamp duty is a tax on instruments (mostly written documents). It is based on the Stamp Duties Act, CAP S8 LFN 2004 as amended. But in substance, not much has changed from the original law, the Ordinance 41 of 1939.

#Tax101 - Stamp duty on most rent agreements is at the rate of 0.78%, not 6% as being widely circulated. Based on the Stamp Duties Act, stamp duty on lease or rent agreement is payable as follows:

Thread If the lease term is less than 7 years, stamp duty rate is 0.78% (e.g. N780 on N100k rent)

For a term of 7+ to 21 years, stamp duty rate is 3% (means N3k for N100k rent)

For a term above 21 years, stamp duty rate is 6% (e.g. N6k for N100k rent)

The CBN has introduced the Global Standing Instruction #GSI as a last resort for a bank to recover monies owed by a borrower. In simple terms, it means your money in one bank may used to pay your debt in another bank without asking for your permission to do so.

Thread ...

https://twitter.com/cenbank/status/1283085554129788930

The rule applies to loans granted from 28 Aug 2019 while implementation is effective from 1 Aug 2020.

FIRS says stamp duties apply on written, printed or electronic documents and receipts including emails, SMS, instant messages (IM), documents on website or cloud-based platforms, POS receipts, and Automated Teller Machine (ATM) print-outs. pwc.smh.re/0SG5 Also, FIRS says tenancy agreement is liable to 6% stamp duty.