The ED-JOHN School of Management, a subsidiary of Havilah Open Door Limited, has donated its modern facility worth N500 million to Lagos State Government to be used isolation center for the period of the ongoing COVID-19 pandemic. The facility is located at Isiuwu, Ikorodu in Lagos.
The facility is sited on three acres of land, is fully built and furnished with air conditioners, fans and equipment comprising of spacious lecture theaters, rooms, lodgings and standard size marquee, an expansive playground and parking lot. The facility can accommodate over two hundred and fifty bed spaces and can serve as COVID-19 Isolation Centre for people living in Ikorodu and its environs.
The high incidence of confirmed cases of the Coronavirus makes it germane for Lagos State to have more isolation centers. These facilities will expedite the recuperation process of infected persons and reduce the risk of transmission to a minimal level. As a result, we deem it fit to corroborate the efforts of our esteemed Governor by donating the aforementioned center with its impressive facilities.
“In times like this our collaborative efforts become critical to the success of the fight against COVID-19. We will be making donations to Kaduna state in the North, Edo state in South South and Abia State in the East as well. Our Chairman Osaren Emokpae is therefore calling on more state stakeholders, businesses and well-wishers to support the Lagos State Government (and others) in the effort to surmount the Covid 19 pandemic,” the firm said in a statement.
Shareholders of FCMB Group Plc have applauded the financial institution for its resilience, dynamism and impressive performance recorded last year despite the challenging operating environment.
The shareholders, who gave the commendation at the seventh Annual General Meeting (AGM) of the group in Lagos, approved the payment of a cash dividend of 14 kobo per ordinary share, which translates to N2.77 billion, for the year ended December 31, 2019.
The AGM was held by proxy, following the outbreak of the COVID-19 (novel coronavirus) pandemic, and streamed live to shareholders of the financial institution who were unable to physically attend due to the lockdown imposed by the Government.
The decision to hold the AGM by proxy was to avoid unnecessary physical contact among attendees and in line with the social distancing protocol to avoid the spread of the pandemic. The meeting was previously scheduled before COVID-19 hit Nigeria.
The Chairman of FCMB Group, Oladipupo Jadesimi, along with the Group Chief Executive, Ladi Balogun, Company Secretary/General Counsel, Mrs. Funmi Adedibu, a director, Olusegun Odubogun, Chief Operating Officer of the Group, Peter Obaseki, representatives of the Central Bank of Nigeria, Securities and Exchange Commission as well as leaders of shareholder Associations, were present at the meeting.
The Group Chief Executive of FCMB Group Plc, Ladi Balogun, said, “our businesses continue to improve with growth in other key indicators, such as loans and advances, deposits and Assets Under Management (AUM), which grew by 13.1 per cent, 14.7 per cent and 28.3 per cent, respectively. Our customer base also grew by 27.5 per cent across the Group from 5.5 million to seven million. Overall customer satisfaction has shown positive trends, with a net promoter score of 31 in Banking and 23 in Asset Management”.
Commercial banks have been advised by debt managers to share financing risks for big ticked transactions to minimize risks associated with projects.
Head, Debt Solutions at FBNQuest Merchant Bank Limited, Tonna Ejiofor, said although some Nigerian banks have the expertise and the balance sheet to solely write tickets of between $150 to $250 million, it is prudent to share the financing risk.
He said a well-structured syndication helps manage the financing risk associated with projects. “When evaluating your participation ticket, Nigerian banks should develop a methodology. Of course, yield and voting rights should be somewhere in the mix but definitely not “ego”. There should be more strategic reasons for writing the largest ticket,” he said in a report.
He also advised lenders to always read facility agreement insisting that one of the core principles of a syndicated facility is that all the participating banks have to sign up to a single agreement.
“Unlike a bilateral term sheet or loan agreement, the syndicated facility agreement is drafted – typically by the lenders’ legal counsel – from the prism of a group of lenders working together to advance a loan to a borrower. Under the circumstances, there is a tendency to assume the lead bank will read it with a “fine tooth comb” and herd everyone else in the right direction. This has been a dangerous assumption, particularly for lenders with smaller tickets. As with all contracts, it is expected that all parties take time to read the Facility Agreement and get comfortable with all clauses,” he said.
According to Ejiofor, during the restructuring and refinancing exercises undertaken post the syndication wave of 2013 – 2015, it was common for lenders to ask the Facility Agent’s view on controversial matters or general discussion points. “In most cases, the Facility Agent declined to comment. Lenders interpreted this silence in different ways. It is worth clarifying that the Facility Agent in a syndicated loan serves as a link between the borrower and the lenders and owes a contractual obligation to both the borrower and the lenders. The role of the Facility Agent to the lenders is to provide them with information that allows them to exercise their rights under the syndicated loan agreement,” he said.
He also said the banks should always keep the transaction times, adding that the arranger would typically communicate a transaction timetable as part of the syndication package. He said that as the infrastructure deficit expands, and whenever the dust of COVID 19 settles, it is clear syndicated facilities will be critical in funding the infrastructure and expansion projects required to battle an imminent recession.
Wema Bank has marked its 75th anniversary on May 2. Alongside the bank’s anniversary, ALAT, its digital banking platform is also celebrating its third anniversary since its launch in 2017.
The bank will be celebrating with a series of marketing efforts throughout the year as it looks to introduce fresh banking services and reward customers for their loyalty over the years.
Established in 1945 by the Agbonmagbe Bank to serve the old Western region, Wema Bank has grown to become Nigeria’s most innovative bank, gaining national status with over 150 branches nationwide.
“Our mission has not changed from that of our founders in 1945,” the bank’s Managing Director/CEO Ademola Adebise said in a statement.
“We are still passionate about supporting the personal and business needs of our customers both in rural communities and in the big cities. In some communities, we are proud to say we are the only bank in town.”
“We have also been strategic in our drive to provide refreshing banking services by leveraging technology to meet the needs of tomorrow’s businesses today. We have personalised banking with ALAT and today, we take pride in the fact that we are building a bank for the future.”
As part of the activities to mark its 75th anniversary, Wema Bank has launched a new website to support the financial needs of customers in a time when the COVID-19 pandemic has led many into banking from home.
First Bank of Nigeria Limited has processed transactions worth N156 billion across its Automated Teller Machines (ATMs) in country during the five-week lockdown. The bank recorded approximately 12.6 million withdrawals through the ATMs.
Also, Nigerians with FirstBank cards used them 105 million times to make payments or withdrawals worth N1.18 trillion as they relied on us to settle their banking needs. “ Our customers made transfers over 106 million times with a total value of about N8.18 Trillion across our digital channels,” the bank said.
The bank has therefore expressed its appreciation to the public – especially its customers – for their continued patronage of its services during the COVID 19 lockdown, whilst assuring the public that stringent measures have been implemented to ensure its branches and locations across the country operate in line with the health and safety guidelines issued by the Nigeria Centre for Disease Control to mitigate the spread of coronavirus.
Expressing the bank’s delight at welcoming customers to its branches and locations from Monday, May 4, the bank’s CEO, Adesola Adeduntan noted that these safety measures include ensuring personal protection, as wearing face masks is now mandatory; maintaining social distancing by reducing physical contact by at least one meter from the next person and queue guides and markings are in place to guide customers; as well as enhancing the practice of personal hygiene as hand washing stations and hand sanitisers have been provided.
Speaking on the impact made by the bank across its sub-Saharan business Adeduntan said “We are glad that our investment in technology over the years has really borne fruit as many of our staff were able to work remotely during the lock down with effective IT support to hand. We were therefore able to actively support our customers, their families and businesses through these challenging times.
“We ensured business continuity across eight countries – Nigeria, Ghana; Democratic Republic of Congo; Sierra-Leone; the Gambia, Guinea; Senegal and United Kingdom. We recognize that this has truly been a trying period and are poised to continue to provide as much support as we can to our customers and communities we operate in”.
Group Chief Executive Officer of Ecobank Bank Transnational Incorporated, Ade Ayeyemi, has said the focus of the bank is on making sure that it meets the needs of customers despite the pandemic, while also ensuring their wellbeing and safety as well as those of its employees.
Ayeyemi stated this why commenting on the performance of the financial institution in the first quarter ended March 31, 2020.
He said the quarterly performance was resilient, again reflecting the strength of our diversified business model. “We delivered $90 million in pre-tax profits, an increase of 27 per cent if adjusted for currency translation effects, and a return on tangible shareholders’ equity of 17.1 per cent. We are managing impairment losses prudently, and as a result, our cost-of-risk increased to 1.5 per cent, versus 0.5 per cent in the prior-year quarter,” he said.
He explained that all their countries have successfully activated their business continuity plan in line with the needs of each local environment. According to him, the number and value of transactions on bank’s digital/online channels across our businesses grew by eight per cent and 15 per cent to four million and $6.1 billion, respectively, on Ecobank Omni+, Corporate and Investment Bank’s corporate clients’ online banking platform in first quarter of 2020.
The Central Bank of Nigeria’s (CBN’s) policies on financial inclusion, including the Payment Service Banks (PSBs) and mobile money initiatives, are expected to deepen financial penetration by taking banking to the grassroots. A report released by Enhancing Financial Innovation & Access (EFInA) shows that more Nigerians are embracing financial services, with positive impact on lending and the economy, writes COLLINS NWEZE.
Financial inclusion is the provision of a broad range of high quality financial products, such as savings, credit, insurance, payments and pensions, which are relevant, appropriate and affordable for the entire adult population, especially the low-income segment.
An inclusive financial sector is characterised by the diversity of services providers, the level of competition between them, and the legal and regulatory environments that ensure the integrity of the financial sector and access to financial services for all.
Evidence worldwide shows that access to financial services contributes to growth and wealth creation and is, therefore, key to tackling the ‘poverty’ trap in Nigeria. It is critical for regulators and policy makers to create an enabling environment to promote the demand for and the supply of financial services to the unbanked and under-banked.
Despite financial inclusion challenges, the hope for the country to achieve 80 per cent financial inclusion rate this year is alive.
The plan received a major boost with the figure from the Enhancing Financial Innovation & Access (EFInA) survey showing that 2.6 million more people have embraced financial services.
The Central Bank of Nigeria’s (CBN’s) policies on mobile money, agency banking, Know Your Customer (KYC), insurance, and recently, Payment Service Banks (PSBs) expected to take off this year have helped to deepen financial penetration.
Not long ago, the CBN berthed the National Financial Inclusion Strategy (NFIS), which seeks to ensure that over 80 per cent bankable adults in Nigeria have access to financial service by the end of this year. In addition to what the Deposit Money Banks (DMBs) and other financial institutions have been doing, the CBN has cleared the way to license new operators referred to as Payment Service Banks (PSBs).
It has spelt out the requirements, the structure, what will be allowed and what will be considered illegalities. The key objective is to accelerate financial inclusion in rural areas. By so doing, there will be increased access to deposit products, payments and remittance services to small businesses, low income households as well as entities through high-volume low-value transaction in a secured technology-driven environment.
The FSS2020 initiatives were tailored to align with the mandate of these institutions that have the responsibility to implement the identified initiatives which is within the realm of the FSS2020 objectives. For Instance, CBN has achieved a lot in Payment System Vision 2020, an initiative of the FSS 2020 along with the cashless policy.
Notably, over the years, the CBN, in its various initiatives, has made progress in creating a robust financial system framework through several reforms. The apex institution has focused on fostering stability, sensitising the gains in serious governance and restoring confidence in the nation’s financial system.
The EFInA survey
The EFInA survey showed that 63.6 per cent of Nigeria’s adult population has access to financial services.
EFInA is a non-governmental organisation and a financial sector development organisation funded by the Department for International Development (DFID) and Bill & Melinda Gates Foundation to promote financial inclusion in Nigeria. The firm conducts surveys every two years to determine the progree made on financial inclusion in the country.
EFInA’s report came after a research across the country, with 750 respondents in each of the 36 states and the Federal Capital Territory (FCT), and 27,470 interviews, which represents 97 per cent of the target samples of 28,380.
The survey was anchored on several indicators, including banked population, remittances, savings with a bank, payments, received income, loan with a bank, and banking agents.
Northeast, Southeast on the spot
Before the release of the EFInA report, another financial inclusion report on Nigeria showed that Northeast and Southeast regions have the least access to banking. With five per cent financial access points for the Northeast and seven per cent for the Southeast, both regions remain disadvantaged in access to financial services despite efforts by the CBN, Bankers’ Committee and commercial banks to take banking to the grassroots, the Shared Agent Network Expansion Facility (SANEF) report has shown.
The CBN voted N20 billion for banks, Nigeria Inter-Bank Settlement Systems (NIBSS), licensed Mobile Money Operators and Shared Agents to accelerate financial inclusion and take banking to more Nigerians.
A member of Technical Committee of SANEF, Bolaji Lawal, said the SANEF initiative involves on-boarding 40 million low-income and un-served Nigerians into the financial system, increasing financial access points from 50,000 to 500,000 by the end of this year and deepening access to mobile and digital financial products and services, such as savings accounts, micro-loans, insurance, and pensions by Nigerians.
Obstacles to financial inclusion
The EFInA survey report concluded that three factors – affordability, institutional exclusion and lack of awareness – were the biggest obstacles to financial inclusion.
According to EFInA, 60.1 million Nigerians do not have/use a bank account, 96.3 million do not have/use mobile money and 97.9 million do not have insurance.
On the digital usage in the country, it revealed that mobile money, which was thought to be useful in the financial inclusion drive, was found to only deepen rather than expand financial inclusion. The re-port, therefore, revealed that while 35.5 million Nigerians (36.6 per cent of the adult population) use bank accounts only three million adults have mobile money and bank accounts, whereas 59.4 million (60 per cent) neither have mobile money nor bank account.
Similarly, the study showed that while 82 per cent of adults, comprising subsistence farmers and small business owners, receive their income in cash, 10 per cent of those adults receive their own income via mobile money or bank account, while another eight per cent did not receive any income at all.
Savings dropped by 13.3 per cent, according to the report, while savings in assets, property, and livestock had risen from 47.4 million to 54.7 million since 2016. Other decrease on this indicator was that of borrowing, which went down by two per cent and remittances to one per cent.
On financial access by gender, the report indicated that of the 99.6 million adults, 33.5 million male adults were financially included compared with 29.4 million female adults. This represents a decrease in the exclusion rate of 4.3 per cent and 5.7 per cent in the male and female gender, and a decrease of 4.8 per cent for gender compared with the 2016 figures.
On financial access by age groups, the report revealed that Nigerians in the age bracket of 36 to 45 (19.5 million and 30.6 per cent exclusion) have more access to finance than all others. This group was followed by those in the age bracket of 26 to 35 (30.3 million and 31.5 per cent exclusion) and 46 to 55 (10.9 million and 32.4 per cent exclusion).
Regionally, the Southwest and Southeast, two zones with the least financial exclusion rate in the past, had underperformed in the last two years.The zones recorded exclusion rate of 18 per cent and 28 per cent in 2016, compared with 19 per cent and 29 per cent exclusion rate in 2018.
All the other zones, however, recorded significant decrease in exclusion rate in the last two years with the Southsouth zone improving from 31per cent in 2016 to 23per cent in 2018, and the Northcentral achieving 31per cent in 2018 from 39per cent in 2016. Northeast and Northwest scored 55per cent in 2018 from 62 per cent in 2016 and 62per cent in 2018 from 70per cent in 216.
A breakdown of the report shows that Kano, Jigawa and Katsina states in the Northwest failed to achieve the region’s average of 62.4per cent, with Kano having the highest exclusion rate of 75.2per cent. Gombe, Bauchi and Yobe states fell below the average in the North-east region (54.5per cent). Gombe, for example, had the highest exclusion rate of 76.1per cent, Bauchi 60.8per cent and Yobe 60.0per cent. Taraba had the least exclusion rate of 30.9per cent in the region.
In the Southeast zone, Ebonyi emerged the only state that failed to achieve an exclusion rate below the average of 29.3 per cent. It recorded a financial exclusion rate of 43.6per cent. In the Southsouth zone, Bayelsa, Akwa Ibom and Edo were the states that had an exclusion rate more than the average in that zone (22.7 per cent). The states had 35.3per cent, 29.1per cent and 25.4per cent.
In all, the 2018 EFInA report revealed that 36.6 million (63 million have access to finance) Nigerians are financially excluded against 56.3 million in the 2016 report. Of this number, the exclusion by gender shows 55.9per cent for female and 44.1per cent for male. The exclusion rate of 34 per cent among Nigerians aged between 18 and 25 is the highest, whereas the exclusion rate in the rural and urban areas stood at 78.5 per cent and 21.5per cent.
EFInA believes that providing financial products and services to the low-income population represents a large business opportunity for the private sector.
Providers of financial products and services should develop innovative products and services that better suit the needs of the low income unbanked and under-banked population.
The Federal Inland Revenue Service (FIRS) is implementing small business-friendly tax policy that temporarily exempts businesses with yearly turnover of N25 million and below from charging Valued Added Tax (VAT). The FIRS is also deploying technology to ensure continued quality service delivery to taxpayers across every segment. These have led to rise in tax revenue from N1.04 trillion in first quarter of 2019 to N1.12 trillion in first quarter of 2020. The performance showed that reforms instituted by FIRS Executive Chairman, Muhammad Nami to reposition the service by bringing more people into the tax net and improving Nigeria’s tax revenue are working, writes COLLINS NWEZE.
Tax revenue has, for centuries, remained the backbone of growth and development in advanced economies. The huge infrastructural development in Europe, America and some parts of Middle East and Asia were built with tax proceeds.
For Nigeria, tax collections were for years relegated to the background, with the country’s Tax to Gross Domestic Product (GDP) of six per cent one of the lowest in the world.
But there is increased drive by the Executive Chairman of the Federal Inland Revenue Service (FIRS) Muhammad Nami to improve the trend and increase the country’s tax revenue for greater good of the economy and the people.
The FIRS has in recent months, initiated reforms aimed at bringing more people into the tax net and ensuring that right taxes are paid to the coffers of government through technology.
From the sensitisation of private sector businesses and individuals on the need to pay taxes to the simplification of tax collection processes and passage of the Finance Act 2019, the FIRS is delivering on its mandate as seen in its first quarter 2020 figures.
The FIRS increased collection record in the first quarter of the year with tax collections up from N1.04 trillion in the first quarter of 2019 to N1.12 trillion in first quarter of 2020.
Nami, a Fellow of the Chartered Institute of Taxation of Nigeria, attributed the feat to the policy reforms and institutional re-organisation he initiated on assumption of office last December.
According to him, first quarter collection results have traditionally been notoriously low as a result of limited economic activities within the period, which business analysts trace to the festive hangover of the New Year’s celebrations, among other factors.
He said the feat was achieved despite the global fall in crude oil prices and shutdown of global economic system due to the COVID-19 pandemic.
Analysis of the collections showed that Capital Gains Tax recorded 568 per cent increase to N643.9 billion from N96.4 million, Gas Income Tax rose by 420 per cent from N2.97 billion to N15.4 billion while Petroleum Income Tax increased by nine per cent. The Companies Income Tax increased by 152 per cent to N102.6 billion, among other positive indicators.
In addition, Stamp Duty collection in the first quarter of the year stood at about N4.6 billion, about 36 per cent increase compared to the first quarter of last year’s figure of N3.38 billion.
The FIRS also recorded an 81 per cent increase in its collection of Education Tax, with N13.1 billion collected in the first quarter of 2020 compared to N7.22 billion in the corresponding period in 2019.
Mrs.-Zainab-Ahmed
Both Nigeria Customs Service (NCS) and non-Import Value Added Tax (VAT) also increased by 11 per cent to N63.29 billion and N261.2 billion compared with first quarter 2019 figures of N57 billion and N236 billion correspondingly.
Besides, the recently signed 2019 Finance Act is improving the ease of doing business environment in the country, especially for small businesses, noting that the Act exempts businesses with a yearly turnover of N25 million and below from VAT.
However, these businesses would enter the tax net through continuous assessments. This Act is already impacting positively on small businesses as well as the economy.
Nami has continually advocated increased tax payment by the informal sector. For him, taxing the informal sector may also be a way of promoting good governance and political accountability of the state because tax strengthens the social contract between the citizens and the government.
“The informal businesses that contribute to tax revenue are likely to assert their rights to receive certain services from government, thereby ensuring national development and accountability.
Paying taxes is likely to promote responsiveness by the state to the needs of the informal sector in a bid to encourage voluntary compliance. It is also likely to encourage collective action, collective political engagement and bargaining by the informal sector,” he said.
Other analysts insist that if Nigeria is to reduce its budget deficits and increase revenue mobilization, it must widen its tax base and the informal sector provides an opportunity to do so.
Making tax collection seamless
The FIRS leadership has, in its response to the impact of the Coronavirus pandemic on its operations, launched business continuity plan and measures to ensure the safety and well-being of taxpayers and other stakeholders.
It is projected that the country has a low tax base and will most likely face an unprecedented revenue challenge due to the pandemic.
To cushion the effects, the tax agency introduced some measures, which are designed to relieve taxpayers of the burden of tax compliance at this time while also ensuring the safety of its staff members, taxpayers and the public.
The agency has extended the time for filing VAT and withholding tax from the 21st of every month to the last working day of the month, preceding the month of deduction.
Also, the due date for filing company income tax returns has been extended by one month while taxpayers will be allowed to file returns using unaudited accounts. However, they must subsequently submit audited account within two months after the revised due date of filing.
The agency equally outlined some measures to reduce visits to the various tax offices and enhance operational efficiency.
The measures include extension of the filing deadline of some taxes. Taxpayers were urged to use available e-platforms for filing tax returns, including withholding tax, transfer pricing, and company income tax returns electronically.
The FIRS planned to publish information requests for desk reviews and tax audits on its website and create a portal where such information can be uploaded by taxpayers for online review by the service.
Building motivated workforce
Nami is also building a motivated workforce that is committed to ensuring the commission achieves its N8.5 trillion target this year. The Domestic Tax Operation Group (DTOG) of the FIRS already pledged that with the new management’s determination to empower and motivate the staff members, the target would not only be achieved but would be surpassed.
The DTOG said the FIRS would keep track of the compliance behaviour of taxable entities, especially by integrating FIRS e-solution platforms with the Integrated Payroll and Personnel Information System (IPPIS), Government Integrated Financial Management Information System (GIFMIS), and the Taxpayer Identification Number (TIN) with Bank Verification Number (BVN).
The promotion of quality service delivery to taxpayers necessarily requires the adoption of technology. The Service was, therefore, admonished to intensify efforts towards completing the various ICT interventions, including the on-going VAT automation as well as the need to build a centralised taxpayer database to ease access to information”
Sensitisation of traders, others
on tax payment
Nami has met with officials of traders’ associations and unions as part of his public enlightenment to taxpayers and collecting agents on the provisions of the Finance Act.
The FIRS boss also visited some major markets in Lagos and other parts of the country to educate traders and marketers on the benefits of the Finance Act 2019 to them and their businesses, especially as small businesses.
Highlighting some public infrastructure being built by the Federal Government, Nami stressed that the President Muhammadu Buhari Administration was making judicious use of tax revenue, and charged the traders to continue to pay their taxes promptly so that the government could do more for them.
Nami also disclosed that more FIRS tax offices would be opened in markets nationwide to bring the service nearer to traders and make tax compliance easier for them,
He stated that the ongoing reforms at the FIRS have decentralised key operations of the Service to make it easier to do business with the FIRS, including filing for Tax Clearance Certificate manually for it to be generated electronically on the Service’s Integrated Tax Administration System (ITAS).
Stakeholders’ comments
Speaking on the success achieved at the FIRS, Lead Consultant, Dshield & Buckler, tax and management consultancy firm, based in Lagos, Oludayo Adeosun, said the FIRS boss has taken strategic steps to lift the tax figures. He said the ongoing corporate segmentation of taxpayers by the FIRS would boost tax compliance.
He explained: “There are low, medium and large tax payers. There is appropriate segmentation of tax payers which is leading to improvement for tax collection for the nation.
Tax segmentation in line with the new Finance Act, where companies with less than N25 million turnover are being exempted from payment of taxes. It is a new dimension, that never happened before.
But this new revision, allows companies that are coming up to have time to find their feet, while those that have been in business will now be faced by the tax offices to ensure that adequate and correct taxes are paid”.
He commended the FIRS for the continuous public sensitisation on tax payment.
He said: “With the regime of Federal Revenue Service, with the reconstruction of the service, it will be very very hard, for someone to evade tax.”
Also, Chartered Institute of Taxation of Nigeria (CITN) Vice President, Adesina Adedayo, said there was the need for Small and Medium Enterprises (SMEs) to have effective information exchange with tax authorities to guide decisions on taxing them.
“SMEs should know what they achieved in a particular year. If you cross a N25 million threshold in 2019, you can tell the tax office on the basis of openness, I achieved N25 million plus in 2019, whether you will be able to achieve it in 2020, is subjective.
That information management will become the basis for dealing with you and you need to be transparent, truthful and straightforward,” he said.
Adedayo advised that the way SMEs share information with the tax authorities must be based on the truthful part of their transaction. “There could even be a year that you did not do any business in a large part of the year, you also need to inform the tax authorities.
The challenge is when business owners want to play a fast game on FIRS, which has enough capacity to determine how you are able to make income and ensure you pay the right taxes,” he said.
FirstBank has unveiled enhanced palliative measures to help its customers and Nigerians through the extended COVID-19 lockdown in some states.
Among these measures are the introduction of special waivers on repayment fees on the bank’s credit cards as well as up to 90-day moratorium on SME loans. The aim of these is to cushion the impact of the toll on employment and livelihoods.
The Lagos State Government & Roducate e-learning initiative – sponsored by FirstBank – had kicked off. The initiative includes the government accredited curriculum for primary, secondary and tertiary schools designed to ensure children are adequately guided and engaged through their learning experience.
Upon the lockdown in March, the bank had announced to move one million children to e-learning which is implemented with a number of renowned organisations that have come on board from within and outside the continent.
The partners include IBM, which is providing opportunities for the acquisition of digital skills, including Coding, Artificial Intelligence and Data Science & Analytics, which would promote opportunities to learn skills of the future. These measures are taken in identifying with the roles of children at securing the future of any country.
Reflecting on the words by Benjamin Franklin, thus ‘an investment in knowledge pays the best interest’ Dr. Adesola Adeduntan, CEO, FirstBank said “in keeping with who we are at FirstBank, our commitment to self-development and continuous improvement is never far from our thinking.
As such we are encouraging all to consider and register for any of the excellent programmes being offered free by Ivy League schools and have curated a list of them covering topics, such as management, personal development, and entrepreneurship, which can be found on our website.
Adeduntan added that “with these measures, we are delighted to support our customers because you all have empowered us to do so by choosing to bank with us. This is indeed a time to double efforts and explore opportunities to ease the impact of the extension on you’’.
Once again, we appreciate our customers for the giant strides achieved on our alternative channels, as we assure you of our commitment to continue to work tirelessly to provide essential banking services across these channels.
The transaction volumes is a positive testimony to the resilience of our staff and your bank to keep things going as COVID 19 will neither defeat nor slow us down. We remain fully persuaded that together we will overcome this too.”
“Our experience over 126 years tells us the solutions lie within us, more than ever as we uphold our promise to you to be here for you and put You First always,” he concluded.
THE Central Bank of Nigeria (CBN) is planning to establish $39 billion (N15 trillion) InfraCo fund, an independently managed fund, expected to be rolled out within the next one year to boost infrastructure development.
CBN Governor, Godwin Emefiele who made this known, said the world-class infrastructure development vehicle, focused on Nigeria, will be managed by an independent infrastructure fund manager.
This fund will be utilised to support the Federal Government in building the transport infrastructure required to move agriculture products to processors, raw materials to factories, and finished goods to markets, as envisaged at the CBN Going for Growth Roundtable in March 2020.
Nigeria requires investment of $33 billion to $35 billion yearly over the next five years to close its infrastructure gap, estimated at about 45 per cent of economic output, according to the country’s Infrastructure agency, Bloomberg report said.
The initiative is part of a series of new measures announced by Emefiele to “drive a self-sufficient Nigerian economy.”
Others plans include: prioritising foreign exchange for the importation of machinery and critical raw materials with a focus on “light manufacturing, affordable housing, renewable energy and cutting-edge research.”
The CBN will also consider setting aside N500 billion in funding for manufacturers within the next three years to “procure state-of-the-art machinery and equipment” and another fund for housing development.
On the medium-term policy priorities of zero three years, the CBN boss said once the world returns to some new normal having tamed COVID-19 by a combination of vaccines and social distancing, and the economy reopens for business, the CBN will act quickly to enable faster recovery of the economy by targeted measures towards particular sectors that are able to support mass employment and wealth creation in the country.
“We will do so by focusing on four main areas, namely, light manufacturing, affordable housing, renewable energy, and cutting-edge research,” he said.
Emefiele said to pursue a substantial economic renewal, including replacement of at least 25 percent of the machinery and equipment for enhanced local production, there is an estimate of at least N662 billion worth of investments to acquire hi-tech machinery and equipment.
He said the identification framework in the banking sector using the bank verification number (BVN) will be used to verify the information provided by the off-takers before the developer can access the funds.
“We will also be considering ways to assist the Mortgage Finance Sub-sector as well as build capacity at the State levels for their land administration agencies to process and issue land titles promptly, implement investment friendly foreclosure laws and reduce the cost of land documentation, as this has remained a major inhibiting factor in the provision of affordable housing in the country,” he said.
He commended the FIRS for the continuous public sensitisation on tax payment.
