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Tag: CITN

  • Expert optimistic on economic progress

    Expert optimistic on economic progress

    An Abuja-based financial and public policy analyst, Abdulmumin Ali has listed solutions that should be applied by economic managers to tackle inflation and strengthen the naira.

    Ali, who is also the Managing Partner, QL Resources, called on Nigerians to remain optimistic about the economy, saying that the foreign exchange instability occasioned by last year’s fall in the exchange rate of the naira will likely not be witnessed in much of 2024, thus giving rise to positive returns by most companies.

    Speaking particularly on the low results posted by most of the multinational companies operating in Nigeria, he expressed his optimism that there would be a resurgence in the performance of the companies.

    Citing an example with Nigerian Breweries, which was among the businesses that were heavily affected by the naira misfortunes at the forex market, Ali said the bold strategies that have already been made by the company towards recovery is a sign that the rest of the economy would reflate soon.

    “I am aware that Nigerian Breweries, for instance, is approaching the capital market to raise N600 billion through Rights Issue. This sum, if successfully raised will not just reflate the company but also set it on the part of a new trajectory by offsetting the debts associated with the bleak balance sheet records of last year. I have also read that most of its dollar-denominated credit lines might be converted to naira thereby staving off exposure to the vicissitudes of foreign exchange fluctuations. These are positive steps that would engender quick recovery,” he stated.

    Read Also: FG assures World Bank, IMF of economic progress

    He commended the majority shareholders of the company for restating their commitment to the Nigerian market by opting to raise 50 percent of the N600 billion being sought through the Rights Issue, insisting it was a good sign that the fundamentals of the Nigerian economy remain positive.

    “Heineken made a strong statement of its faith in this economy by opting to take up such a significant volume of the offer. What they did is a sign of confidence in the Nigerian economy and the message will be heard across the investment capitals of the world that Nigeria remains a fertile market for investments despite temporary setbacks,” the analyst said.

    While further analysing the books of Nigeria’s largest brewer, Ali said the company would have returned impressive results but for the steep fall of the naira.

    “If you examine the books of the Nigerian Breweries with a critical eye, you will see that its records were only undone by the steep fall in the value of the naira over six months starting from July to December 2023.

    But this company recorded a gross revenue increase of 8.9 per cent from N550.6b in 2022 to N599.6b in 2023, while the Cost of Sales also increased by 14.7 per cent from N337.3b to N387b over the same period.  This led to a 0.34 per cent shrinkage in Gross Profit over the year. The spike in the cost of sales, from what one can read from the annual reports, was driven primarily by Raw Materials and Consumables and Transportation costs. These are variables that are expected to remain within manageable limits during the 2024 business year and which would enable the company to return to profitability,” he said.

    He commended the company for taking immediate steps to return the company to the part of profitability and said the speed of response has reassured stakeholders of the preparedness of the business to absorb the shocks of the past year and place the company on the course of return to profitability.

    “If you look at the 2023 annual result of Nigerian Breweries, for instance, the company performed well on most critical performance indicators but was shaken off the profits path by the external factor naira devaluation. For example, this company recorded a significant growth of more than N1 billion in assets, from N621 billion in 2022 to N797 billion in 2023. It also made significant savings in the marketing side of the business, spending N51 billion in 2023 as against N57 billion in 2022. This means that the company, given all other factors, would have made more profits in 2023 than in 2022, but these were undone by the rapid decline in the value of the naira between August and December 2023,” he stated.

    But in recent times, the Central Bank of Nigeria has cleared the backlog of foreign exchange obligations, and as we can see, the Naira is beginning to strengthen against the US dollar and other major currencies. These steps being taken by the CBN will restore confidence in the forex markets and ensure stability, meaning that Nigerian Breweries should return to its pre-2023 levels in terms of profitability by the close of this year,” he stated.

  • CITN seeks tax professionals’ input to reforms

    CITN seeks tax professionals’ input to reforms

    The Chartered Institute of Taxation of Nigeria (CITN) has asked over 28,000 professionals registered under the institute to demonstrate commitment and make valuable contributions to the ongoing reforms in the tax and fiscal landscape in the country.

    CITN President, Samuel Agbeluyi, disclosed this yesterday during the institute’s 50th induction ceremony held in Lagos, in which 605 new members were inducted as CITN members.

    He said: “To do this effectively, we must be fortified with the right skill set. We must be distinctive by the depth of knowledge we possess and the level of professionalism we demonstrate. The Institute as you know, takes seriously the issue of Continuous Learning. Apart from the annual Mandatory Professional Training Programme (MPTP), the Institute, including the CITN Tax Academy organises various trainings, conferences, workshops, seminars and specialised training programs to enable our members update themselves on new developments in the tax system”.

    Agbeluyi advised the inductees to project the Institute positively through ethical conduct and strive for excellence at all times.

    “As you progress in your various fields, please do not fall into the trap of complacency. The Institute expects you to hold in high esteem her core values which have been redefined as: Service, Teamwork, Excellence and Professionalism (S.T.E.P),” he said.

    He said that CITN remains unwavering in its advocacy drive and continues to lead the charge for a tax system that fosters ease of doing business, accountability and prudent utilisation of tax payers monies. “We are more than willing to support the current government to achieve its objectives, which we have appraised and deemed to be highly beneficial to Nigeria and Nigerians in the long-run”.

    Read Also: CITN: states harmonising multiple taxes

    Chairman, Membership & Professional Conduct Committee at CITN, Titilayo  Fowokan, said the induction ceremony is the first step towards your becoming an integral part of the Institute as there are other professional engagements to groom you as you grow in the profession.

    “Such programmes include but not limited to, active membership of District Societies (including the Society of Women in Taxation), attending the Mandatory Professional Training Programmes (MPTPs), Annual Tax Conference (ATC), and a host of other Institute’s events,” she said.

    Speaking on the 50th anniversary and induction of the new members, CITN Registrar/Chief Executive, Mrs. Afolake Oso, said the event symbolizes the beginning of a rewarding professional experience filled with growth, advancement, and endless possibilities within the dynamic field of taxation.

    She said the event was opportunity to formally recognise exceptional individuals who have diligently met the rigorous standards and requirements set by the Council of our esteemed Institute. “It is also special because of the significance of it being a golden jubilee celebration which makes our inductees the golden set of 2024,” she said.

  • Tax experts brainstorm on nation building

    Tax experts brainstorm on nation building

    The Chartered Institute of Taxation of Nigeria (CITN) will be charting new course for the Nigeria tax industry at its 26th Annual Tax Conference holding next month in Abuja.

    Speaking during a pre-conference press briefing held yesterday in Lagos,  CITN President, Samuel Agbeluyi, said the event presents oportunity for shapping the Nigeria fiscal landscape.

    He said the event, slated for May 13th and 14th, will be attended professionals, policymakers and stakeholders to chart a formidable course for the Nigeria tax industry.

    Agbeluyi, said the conference, which holds at Abuja Chamber of Commerce and Industry (ACCI) International Trade and Convention Centre, FCT, Abuja, with theme: “Sustaining Tax Culture and Economic Road Map for Nation Building,” will present opportunity for attendees to discuss issues like  tax reforms, compliance strategies, innovative tax solutions, and the pivotal role of taxation in driving economic growth and development.

    Read Also: Tinubu approves routing of 20% palliatives through religious, traditional leaders

    To streamline the conference experience, CITN has outlined detailed arrangements for attendees. Registration will commence at the event, with provisions made for those arriving from airports to expedite the process. Pre-registration and materials collection will also be available for local participants to mitigate on-site congestion.

    Attendees have been informed of the fee structure, with physical attendance requiring a payment of N150,000; virtual participation to cost N100,000 and foreign delegates expected to pay $500.

    A notable lineup of dignitaries is expected to grace the occasion, including Governors Dapo Abiodun of Ogun State, Caleb Mutfwang of Plateau, Umar Namadi of Jigawa State, among others.

     ”For tax professionals, policymakers, and enthusiasts alike, the 26th Annual Tax Conference promises to be a pivotal event, poised to influence the trajectory of Nigeria’s tax ecosystem in the years ahead,” the institute said.

  • CITN appoints Registrar

    CITN appoints Registrar

    The Governing Council of the Chartered Institute of Taxation of Nigeria (CITN) has appointed Mrs. Afolake Olawumi Oso, as the Acting Registrar/Chief Executive of the institute.

    Afolake joined the CITN as a Manager in the Research Department in 2008 where she rose through  the ranks and became Acting Head, Education and Research in 2015, she was confirmed as the substantive Head that same year.

    She was promoted as an Assistant Director in 2016 and redeployed to the Exams and Student Affairs Department in 2017.

    Read Also: CITN honours tax champions

    “In 2018, she was made the Head of the Corporate Affairs Department. In 2020 furtherance to a restructuring, she was appointed as Acting Deputy Director, Corporate Services, Membership and External Relations,” the institute said in a statement.

    “To further restructure and rebrand the institute, a repositioning exercise was carried out by Council and following her exceptional performance, she was appointed as Deputy Registrar, Technical and Professional Services in 2021 and she was serving in that capacity till she was appointed as the Acting Registrar/Chief Executive of the Institute. Oso is a Lawyer by profession,” it added.

  • CITN honours tax champions

    CITN honours tax champions

    The Chartered Institute of Taxation of Nigeria (CITN) has hounoured companies that have shown remarkable contributions to tax matters in the country.

    The corporate honourees at the award to celebrate excellence across all spectra were MTN Nigeria, Arkleen Oil and Gas, University of Lagos, among others.

    Speaking at the fellowship conferment and annual dinner and award of the institute held in Lagos, its 16th President/Chairman of Council, Samuel Agbeluyi said the awardees were selected for their outstanding contributions to the advocacy on tax matters.

    At the dinner and award ceremony, many corporate organisations and individuals were also honoured with merit awards.

    Among them was the Director of Finance, Nigerian Airspace Management Agency (NAMA), Alhaji Hamzat Balogun.

    Read Also: Tax Audit: FCT-IRS, CITN train 200 tax officers

    According to the institute, in line with its statutory responsibility of educating members on current, trending, and emerging tax issues, it is compulsory for every member of the institute to adequately participate in the Mandatory Professional Training Programme (MPTP) and other training programmes. 

    “This is with a view to sharpening their technical skills and updating their knowledge for the effective discharge of their professional services. Most of the MPTP topics are drafted bearing in mind practical and current issues within the Nigerian tax system that would be of immense benefit to members,” it said.

    Credit hours are allocated to members for the MPTP or other programmes attended and a member is required to earn a minimum of 35 credit hours yearly as a prerequisite for retaining the Institute’s membership.

    It is pertinent to note that strict adherence to the rules of attendance of these programmes is a condition for approving fellowship, issuance of practicing licence by Council as well as the basis upon which members are recommended for professional opportunities. 

    The MPTP is organized virtually in nine locations annually namely, Enugu, Lagos, Abuja, Ibadan, Abeokuta, Owerri, Ilorin, Warri, and Makurdi while it is organized physically in nine locations as follows: Kano, Port Harcourt, Kaduna, Uyo, Benin, Yenagoa, Jos, Calabar, and Asaba.

  • CITN, FRC discuss cost of registration

    The Chartered Institute of Bankers of Nigeria (CITN) and Financial Reporting Council of Nigeria (FRC) are looking at the possibility of cutting FRC registration cost for companies.

    In a statement, CITN, said its leadership led a delegation to the office of the FRCN on a courtesy visit  and were received by the Executive Secretary of the FRCN Daniel Asapokhai.

    “The purpose of the visit amongst other things was to request for a review of the cost of multiple registration by professionals registering with the FRCN and to request for collaboration between the CITN and FRCN in ways that can be mutually beneficial and supportive to both organisations in fulfilling their mandates,” it said.

    The Executive Secretary, while thanking the delegation for the visit, assured that effective January 2019, new rates for registration with the Council would be implemented and the concerns of the Institute would be taken into consideration.

    Other issues was that the FRCN would be conducting a training and sensitisation in future. CITN could be involved by contributing resources (Facilitators). Specific areas of involvement by both bodies would be discussed in due course,

    Also, the FRCN would be requiring input to its codes from time to time. It would welcome that a mechanism be put in place for a seamless input from the Institute when the need arises,

    Asapokhai said an ongoing work towards having a geographical distribution of accounting professionals. He urged the Institute if it does not have such data to work towards having same. This would provide information on whether tax professionals are properly distributed in key commercial centres and the gender spread of the Institute’s membership.

  • CITN collaborates with ICPC to curb tax evasion

    The Chartered Institute of Taxation of Nigeria (CITN) says it has signed a Memorandum of Understanding (MoU) with the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to curb tax evasion.

    Its President, Mr Ikemefuna Ede, made the disclosure on Thursday, saying that the objective was to enhance capacity development of officers of the commission.

    Ede said that continuous training and capacity building were important elements in building strong institutions and should be encouraged by all organisations.

    “The objective is aimed at equipping the ICPC officers with the required knowledge needed to fight corruption and tax evasion in the tax sector,” he said.

    Ede reiterated the commitment of CITN toward ensuring the immediate implementation of the terms of the MoU.

    He, however, noted that tax evasion was a form of corruption which if allowed to thrive unabated, would spell doom for the continuous existence of Nigeria.

    Ede blamed the rampant tax evasion in the country to weak taxation system, which he said was fixable by the government.

    He noted that the dynamics of government revenue generation showed that taxation remained a major stabilising factor of the global polity. Ede called for more stringent application of the nation’s tax statute by tax authorities against tax defaulters and also against entities that have statutory duties to remit taxes.

    “Taxation is a tool for economic management and development and should support sustainable growth and infrastructure development at all times.

    “Payment of taxes is a civic responsibility of all legible tax payers and evasion of taxes is tantamount to depriving the economy of its sustainable means of economic development.

    “Tax evasion is a major bane in the tax system; it is also a criminal offence and should be strongly decried.

    “Of course, it will lead to tangible economic loss more so as revenue from oil is no longer stable.

    “It behooves on the government to restructure the tax system such that every legible tax payer will be compelled to pay tax as and when due,” Ede said.

    Commenting, Dr Musa Abubakar, the Acting Chairman of the ICPC, expressed his delight on the signing of the MoU.

    Abubakar said that the CITN was a reliable institution which was uniquely positioned to offer training to ICPC officers in the area of investigating and prosecuting tax evaders.

  • CITN, ICPC sign capacity building pact

    The Leadership of the Independent Corrupt Practices and Other Related Offences

    Commission (ICPC) and the Chartered Institute of Taxation of Nigeria (CITN) have signed a Memorandum of Understanding to collaborate on training of officers of the Commission.

    In a statement, the CITN said the signing of the MoU which was effected at the Commission’s headquarters on 9th October, 2018 was witnessed by the Acting Chairman of the ICPC, Dr. Musa Usman Abubakar, the President of the CITN, Chief Cyril Ikemefuna Ede and other key officers of both institutions.

    In his remarks at the brief ceremony, Chief Ede underscored the need for training and capacity building as an important element in building strong institutions. He noted that tax evasion was a form of corruption which if allowed to thrive unabated would spell doom for the continuous existence of Nigeria. He restated the commitment of the CITN towards ensuring the immediate implementation of the terms of the MoU.

    In his response, the Acting Chairman of the ICPC, Dr. Musa Usman Abubakar expressed his delight on the signing of the MoU. He noted that the CITN was a reliable institution which was uniquely placed to offer training to its officers in the area of investigating and prosecuting tax evasion evaders.

    He affirmed his belief that a well packaged training programme would go a long way in enhancing the performance of its officers thereby enhancing the activities of the Commission.

     

     

     

     

  • Solicitor, experts call for enlarged tax net at CITN’s investiture

    Solicitor, experts call for enlarged tax net at CITN’s investiture

    It was a glamorous  call for service last Saturday in Abeokuta, the Ogun State capital as foremost  tax practitioner, Taiwo Waheed Raji, was installed as the sixth Chairman of the Chartered Institute of Taxation of Nigeria(CITN), Abeokuta and District Society.
    The formal investiture and oath of office was administered on him by the National President of CITN, Cyril Ikemefuna Ede, at the National Union of Teachers (NUT) hall, Abeokuta, Ogun State, amid  applause and excitement from friends and business associates including former Deputy Speaker, Ekiti State House of Assembly, Hon. Tunji Orisalade.
    Cyril hailed Raji for his new status but reminded him that every opportunity to serve comes with lots of sacrifices and challenges and urged  the new executives of Abeokuta and District Society to live up to expectations.
    In his acceptance speech, Raji pledged to intensify public awareness about the District Society activities, establish insurance welfare package for members and foster strong cohesion among members.
    Aside the investiture and swearing – in of other members of the Executive Council to assist Raji pilot the affairs of CITN, it was also a time for solicitor and tax practitioners to make case for the inclusion of many of taxable age  into the nation’s tax net.
    The experts argued that enlarged tax net is part of measures to raise revenue base  required to run the machinery of government and provide essential service to the people.
    The chairman of the occasion, Olusola Idowu, Senior Advocate of Nigeria (SAN),  and Dr. Gbenga Adeoye, an authority on taxation and tax management, decried  the ‘penny wise, pound foolish’ disposition of many in leadership positions in the country who ask people of taxable age to pay taxes while not creating enabling environment for tax payment.
    Adeoye who was guest lecturer at the occasion,  argued that no government or tax authority should  expect citizens to pay taxes promptly if little or no efforts were  taken to provide required infrastructure that enhances socioeconomic growth and development.
    Speaking on “Morality of Tax Evasion: The Immorality of Good Governance in Africa,” Adeoye noted that government is only quick to collect taxes, but doesn’t know how to use the money judiciously to better the well-being and social lives of citizens.
    “If those paying taxes are not enjoying what those that are collecting it enjoy, then there will be tax evaders.
    “Turning the nation’s assets to personal ones, rigging of election results and all sorts of evils perpetrated by people in power and ultimately, poor or absence of required infrastructure account for tax evasion,” he said.
    For Idowu, a “revolution has to be taken in tax administration” while the  issues of taxation have lots of responsibilities for socioeconomic development of the country.
    “It is very difficult for informal sector to pay tax and reason is not farfetched, since the government seems to be irresponsible and irresponsive to people’s yearnings.
    “That is why tax agency must continue to sensitise people, and it is also important for government and revenue board to tell people every time what they generate, how they spend it and what they do with it, and also guard against multiple taxation,” he said.
  • CITN backs voluntary assets declaration scheme

    CITN backs voluntary assets declaration scheme

    The Chartered Institute of Taxation of Nigeria (CITN) is fully in support of  Federal Government’s move to promote tax culture and expand the tax base, its President/ Chairman of Council, Cyril Ede has said.

    The support is coming based on the Executive Order signed by the Acting President, Prof. Yemi Osinbajo, which provides a legal framework for the Ministry of Finance to set up the Voluntary Assets and Income Declaration Scheme in collaboration with all 36 states of the federation.

    The scheme, he explained, was meant to bring more taxpayers into the tax net so as to enable them pay all outstanding taxes and the benefit to the tax payer is a waiver of interest and penalty as well as opportunity to pay taxes gradually up to a period of three years. The scheme will run for a nine-month period commencing from 1 July 2017.

    He recalled that the Institute has been in the vanguard of calling the government to declare tax amnesty wherein taxes due on incomes are demanded while the government forgoes the interest and penalties accruing. Such calls are contained in previous Annual tax conference communique and several advocacy efforts of the Institute with other bodies such as the National Association for Small and Medium Scale Enterprises among others.

    “Equally worthy of notice is the opening statement in the executive order acknowledging the duties of the State towards Citizens and their welfare.

    “This announcement, is therefore, a pointer to the fact that the government has a listening ear as it continues to aggregate the position of stakeholders in the tax space with respect to the broader and specific issues affecting poor voluntary tax compliance in the country,” he said.