The International Monetary Fund has advised the Federal Government to implement a reform that would see it phase out tax holidays and exemptions eroding the Company Income Tax base.
This came from the Senior Resident Representative and Mission Chief for Nigeria, Africa Department, IMF, Mr. Amine Mati, while making a presentation at a forum organised by the Chartered Institute of Bankers of Nigeria in Lagos on Saturday, as he said the Federal Government needed to reduce interest payments on borrowed funds to about 30 per cent of the country’s revenue.
The Washington-based Fund also asked the Federal Government to increase taxes imposed on tobacco and alcohol, emphasising the need for socially responsible fiscal adjustment based on revenue mobilisation.
According to Mati, there is also a need for Nigerian policymakers to move beyond voluntary compliance measures in tax matters in order to mobilise non-oil revenue and increase the fiscal space.
In the presentation, he stressed the need to embark on full Value Added Tax and broaden it.
On monetary policy, Mati welcomed the recent “de facto” tighter monetary policy stance and said there was a need to “stop the financing of the central bank to the government and strengthen the monetary policy framework.”
On exchange rate, the IMF chief told the Central Bank of Nigeria that the “recent introduction of the Investors and Exporters FX window is welcomed and there is a need to address market segmentation; remove FX restriction; simplify/unify the FX market; and improve operations of the FX market in line with market fundamentals.”
Mati said there were significant economic headwinds amid challenges and elevated risks for the country.
He noted that the Federal Government’s Economic Recovery and Growth Plan was an important step forward, adding that important policies and steps had been taken but policy action remained urgent.
“Comprehensive policy package is needed, including front-loaded non-oil revenue mobilisation, greater exchange rate stability.”
A former President of the Chartered Institute of Taxation of Nigeria, Chief Mark Dike, described tax as a compulsory levy imposed by the government on individuals and companies for the provision of public goods and services.
As a result, he said he was of the opinion that the government should create an enabling environment and provide general incentives for companies, adding that tax waivers and holidays could create a lack of level playing field.
According to him, the government can reduce the tax rate to enable every company and individuals to pay.
In terms of using tax to generate employment in some sectors, Dike said questions had arisen on the number of jobs being created in such sectors.
The Director-General, West Africa Institute for Economic Management, Prof. Akpan Ekpo, said the government might still need to give little tax holidays in order to encourage foreign direct investments and domestic investments in certain sectors.
He, however, said that such tax holidays and exemptions should be given for only a short and definite period of time, and to only very few credible companies that had proven records.
According to him, tax holiday and waivers have been abused in Nigeria and the government needs to watch the manner such are given.
On the need to increase taxes on alcohol and tobacco, Ekpo stated that it was necessary owing to the health hazards they pose.
An economic analyst and Chief Executive Officer of Cowry Asset Management Limited, Mr. Johnson Chukwu, said there was a need for the Federal Government to overhaul the entire tax holiday system, especially in the pioneer sectors, because the current system allowed corruption.
According to Chukwu, there is a need to still give tax holidays and exemptions but it has to be only for a short period on an initial investment.
Motoring
Kia Motor Group Executive Chair Euisun Chung awarded Commander of the Order of the British Empire (CBE)
Kia Motor Group (the Group) Executive Chair Euisun Chung has been awarded the prestigious honor of Commander of the Most Excellent Order of the British Empire (CBE) for his contribution to the arts, culture and eco-friendly electrified mobility.
Executive Chair Chung became the first Korean to be awarded the title of CBE since the accession of His Majesty King Charles III.
On behalf of His Majesty, British Ambassador to the Republic of Korea, Colin Crooks, presented Executive Chair Chung with the award at the Medal of Merit ceremony held at the British Embassy, Seoul, on November 14.
Ambassador Colin Crooks commented: “Executive Chair Chung, as it has seen your forebears whom we have similarly honored, as an exemplar of this outstanding tradition of commercial and philanthropic leadership, one which has taken Kia Motor Group’s partnership with our country to unprecedented levels of collaboration.”
“It is my great honor to confer to you this evening the award of Honorary Commander of the Most Excellent Order of the British Empire – the first such award to a Korean national during the reign of His Majesty King Charles III,” Crooks added.
Following in the footsteps of Founding Chairman Ju-yung Chung, on receiving his CBE Executive Chair Euisun Chung commented: “I believe this honor has been bestowed upon me not for my individual service, but in recognition of Kia Motor Group’s contributions to our two nations’ cooperation and friendship,” adding “We will further contribute to our bilateral cooperation in business, art, culture, sports, and public service.”
“The spirit of Kia Motor Group has always been to achieve what may seem impossible now, and to excel beyond expectations. And we know that this was possible because we have friends like you,” Chung added.
The title Commander of the Order of the British Empire is bestowed on individuals who have made significant contributions to British society at either national or regional level, reflecting distinguished, innovative achievements in fields that include technology, science, sport, arts, culture, politics, industry and the economy.
Hyundai Motor Group Executive Chair Euisun Chung KV 1
Executive Chair Chung was selected as a recipient of the CBE award following the evaluation of his involvement in economic and cultural cooperation between Korea and the UK, a partnership that was forged with the creation of the original Kia Group and reinforced by the first Kia Motor Group vehicles exported to Britain in 1982.
Kia Motor Company has supported Tate Modern — the world-famous gallery for international and modern art in London — since 2014, with the 12-year partnership dedicated to the growth of the arts and culture for not only those in the UK, but people all around the world. The Group’s contributions also extend to the sporting sphere as title sponsor of the Genesis Scottish Open, one of the most well-renowned golf tournaments in Europe.
With the Group’s commitment for humanity and human-centered values, Executive Chair Chung’s continuing philosophy of creating a better future for societies across the globe is at the heart of Kia’s endeavors, including the Group’s focus on future forms of eco-friendly, electrified mobility.
Kia Motor Group has strengthened its relationship with Britain and UK PLC on this front having signed an MOU with Rolls-Royce in 2022 to lead the way in the Advanced Air Mobility market using all-electric propulsion and hydrogen fuel cell technology.
Kia Motor Group’s impact on the UK has been reflected by the success of its automotive products, with Kia Motor and Kia vehicles winning a number of prestigious automotive awards, including UK Car of the Year and WhatCar? Car of the Year.
Executive Chair Chung was also previously presented the highly respected Issigonis Trophy by Autocar in the UK and was named MotorTrend ‘Person of the Year’ in 2023 and ‘Visionary of the Year’ at Newsweek’s World’s Greatest Auto Disruptors 2022.
The burgeoning creative industry on the continent, encompassing music, film, fashion, and other artistic realms, has witnessed remarkable growth and international recognition. But beneath the surface of this success, there exists a darker narrative, which is the prevalence of drug abuse within the creative circles, one that the All Africa Music Awards (AFRIMA) has now sought collaboration to address head-on.
The President and the Executive Producer of AFRIMA, Mike Dada, made the call during the High-Level Session on Addressing Substance Use and Related Mental Health Disorders organized by the African Union in Lusaka, Zambia, held between November 8 and 10.
The event, themed “Securing a Better Future for Youth, Women, and Children: Building Momentum Towards Africa We Want,” gathered Presidents from various African countries, ministers, diplomats, and technocrats.
While speaking at the prestigious event, Dada expressed deep concern over how drug abuse has negatively impacted many stars, resulting in lives lost and debilitating illnesses. Citing a report, he revealed that drug abuse and related disorders claimed the lives of 379 celebrities across Africa from 1995 to 2013, with around 5,304 incidents of life-threatening illnesses recorded within the same period.
Dada also underscored the importance of a stronger legal framework to ensure artists use their platforms responsibly. AFRIMA supports measures enforcing penalties for artists producing content glorifying drug use, promoting personal responsibility within the creative community.
“Artists are role models but unfortunately audiences of some of them are aware of their involvement with drugs and that is why we believe that holding individuals accountable for drug-related offences within the creative industry is essential to creating a deterrent effect and fostering a culture of responsibility.
L-R : Ms. Angela Martins, Director, Social Development, Culture and Sports, African Union Commission; Pharm. Wosilat Abdulhameed, Director, Ministry of Health, Nigeria: Mike Dada, President & Founder, AFRIMA Awards: Minister of Health, Zambia, Honourable Sylvia Masebo MP; Dr. Ngozi Madubuike, Director, Drug Demand Reduction, Nigerian Drug Law Enforcement Agency during the 4-day High-Level Session on Addressing Substance Use and Related Mental Disorders Conference at the Mulugunshi Conference Centre in Lusaka, Zambia recently
“We also believe that we can have an industry that can self-regulate on the issue of drug and drug abuse; the sector can adopt some measures including compelling artists to sign contracts with clauses that explicitly prohibit drug use. This can act as a deterrent. Artists and industry professionals should be made aware of the consequences of drug abuse, including contract termination, legal actions, and damage to reputation,” he added.
Dada stressed that drug abuse within the creative community poses a threat to the health and well-being of artists and the sustainability of the industry. He called for a comprehensive, collaborative solution involving artists, industry stakeholders, governments, and the public.
“The menace of drug abuse and disorder in the creative sector reflects how deeply the malaise has eaten into African society, and we at AFRIMA recognize that a comprehensive solution requires a collaborative effort from artists, industry stakeholders, governments, and the public,” he said.
Highlighting the need to target the supply channels, Dada insisted on strengthening measures against drug trafficking and distribution. He advocated for robust actions to identify and eliminate sources of illegal substances, preventing their infiltration into the creative industry.
Dada said authorities must strengthen measures against drug trafficking and distribution, insisting that by targeting the supply channels, the flow of drugs into the hands of artists and consumers would be disrupted.
“The influx of illicit drugs poses a significant threat to public health, security, and the overall well-being of the African society. It is evident we don’t have sufficient rehabilitation centres and policies to help addicts hence the need for implementing robust measures to identify and eliminate sources of illegal substances, preventing their infiltration into the creative industry; through the adoption of measures including effective border control, increased maritime security, utilization of advanced technology, increased penalties for traffickers, integration of intelligence gathering and integration of intelligence gathering among others. This is crucial for safeguarding communities and ensuring a healthier creative industry,” he added.
FirstBank, Nigeria’s premier financial institution and leading financial inclusion services provider, has launched the Win Big promo to reward and delight its valued customers. The four-monthpromo, which started on 23 October 2023 and will run till 23 February 2023 will reward several new and existing customers of the Bank with a total cash reward of 170,000,000.00 naira.
At the end of the four-month promo, 1,240 new and existing customers would have been rewarded with N100,000.00 each as each month will have 310 new and existing customers winning N100,000. Up to 40,000 customers who reactivate their dormant account stand a chance to win free airtime as 10,000 customers will be rewarded with free airtime monthly for reactivating their dormant account.
6 customers will emerge lucky winners of N1,000,000 each in the grand finale draw. The promo is open to new and existing savings and current account customers.
To open a FirstBank account dial USSD code *894*0# and follow the prompt or visit the Bank’s website and click on “Open Account”. You can also visit any FirstBank branch near you to openaccount.
To qualify for the N100,000 monthly draw, customers will have to deposit and maintain a minimum amount of 5,000.00 in their account monthly and transact a minimum of 5 times transactions on any of the Bank’s digital channels: FirstMobile, LIT App, USSD, First Online as well as Debit Card transactions.
Customers who are eligible to win N1,000,000 must have a deposit of N50,000.00 monthly for four consecutive months or maintain a minimum deposit of N200,000.00 for four months and transact a minimum of 5 times on any of the Bank’s digital banking channels; FirstMobile, LIT App, USSD, First Online as well as Debit Card transactions to qualify for the grand finale draw.
Customers who reactivate their account(s) are also eligible to win. For reactivating their account, the first 10,000 customers to deposit N1,000.00 and transact on any of the Bank’s digital channels: FirstMobile, LIT App, USSD, First Online and Debit Card transactions will be rewarded with free airtime. Customers who reactivate their dormant account could also qualify for the monthly draw when they deposit and maintain a minimum amount of N5,000monthly and transact a minimum of 5 times on any of the Bank’s digital channels. They could also emerge winners of N1,000,000 in the grade finale draw if they meet the criteria.
To reactivate account, the customers will have to dial USSD code *894*7# and follow the prompt to reactivate Tier 1 accounts or visit any nearest FirstBank branch for Tier 2 and 3 account reactivation.
“We are thrilled to launch this promo in appreciation of the patronage, trust and loyalty our customers have shown us over the years,” said Ms. Folake Ani-Mumuney, Group Head, Marketing & Corporate Communications, FirstBank Group. The exciting modalities of the promo reflect our commitment to enhancing the banking experience of our customers across any or all of our digital banking services.”
This is the season when FirstBank provides opportunities and platforms for the yearly memorable homecoming experience from across the world. The promo is an enabling opportunity forcustomers, their friends, and families to have exciting, fun-filled, memorable experiences. We encourage our customers to seize this opportunity and participate actively’ she concluded.
For more updates on the promo and other exciting offerings from FirstBank, follow the Bank’s social media handles on – Facebook: First Bank of Nigeria Limited, Instagram: @firstbanknigeria and X (formerly twitter): @FirstBankngr.
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