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  • Presidential committee tackles KPMG over tax reform concerns

    Presidential committee tackles KPMG over tax reform concerns

    • Says firm’s report based on its own errors, invalid conclusions

    The Presidential Fiscal Policy and Tax Reforms Committee yesterday  said the global network of professional services firms KPMG got it all wrong on its recent analysis of the newly enacted tax laws in Nigeria.

    KPMG had alleged  what it called multiple errors and  gaps in the new law, and called for an urgent review by the federal government.

    The ‘errors’ include Section 6(2) of the NTA  which KPMG claimed  may result in double taxation for foreign companies. It advocated  amendments to  clarify the treatment of foreign and local dividends.

    According to KPMG, the Act stipulates that undistributed foreign profits are to be “construed as distributed” while also requiring such profits to be “included in the profits of the Nigerian company”, implying income tax at 30 percent.

    KPMG said Section 6(1) of the Nigeria Tax Administration Act (NTAA), 2025, should be amended to exempt non-resident companies whose income is subject to final tax deduction at source from tax registration.

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    This, the firm said, would align with Section 11(3) of the NTAA, which already exempts such companies from filing tax returns.

    Responding to the criticism yesterday however, Chairman of the Presidential Committee, Mr.Taiwo Oyedele said much of the firm’s analysis was based on misunderstandings of policy intent, mischaracterisation of deliberate reforms and the presentation of opinions as facts.

    He said that  while some of the issues raised by the consulting firm were useful, particularly those relating to implementation risks and clerical or cross-referencing matters, the bulk of the commentary failed to properly situate the reforms within their broader fiscal and economic objectives.

    According to Oyedele, several matters described by KPMG as “errors”, “gaps” or “omissions” were either based on incorrect conclusions, incomplete understanding of the reforms, missed policy context, or reflected preferences for alternative outcomes rather than flaws in the law itself.

    He said disagreement with policy direction should not be presented as technical errors, noting that other professional firms adopted a more constructive approach by engaging directly with policymakers for clarification and mutual learning.

    Oyedele stressed that the new tax laws contain deliberate policy choices designed to meet defined reform objectives, and that it is important to distinguish between such choices and recommendations that merely reflect the preferences of external advisers.

    Addressing concerns over  the taxation of shares and the stock market, Oyedele dismissed suggestions that the new chargeable gains provisions would trigger a sell-off.

    He said the tax rate on gains from shares ranged from zero to a maximum of 30 per cent, which is expected to reduce to 25 per cent and not a flat 30 per cent.

    Oyedele added that about 99 per cent of investors qualify for unconditional exemption, while others are eligible subject to reinvestment.

    “The stock market is currently at an all-time high with increased investment flows, showing that investors understand that the reforms strengthen company fundamentals, profitability and cash flows,” he said, adding that claims of an impending sell-off were not supported by evidence.

    On the commencement date of the new laws, Oyedele argued that proposals to align implementation strictly with the start of an accounting period failed to appreciate the complexity of a wholesale tax reform. He said the changes cut across multiple assessment bases, audit timelines, deductions, credits and penalties, making it difficult  to anchor commencement to a single accounting date without leaving critical transition issues unresolved.

    He also defended the inclusion of provisions on the indirect transfer of shares, describing them as consistent with global best practice and international efforts to curb base erosion and profit shifting.

    The  objective, he said, was to close a long-standing loophole exploited by multinational companies and other investors, not to undermine competitiveness. He described claims that the provision could threaten economic stability as misleading.

    On value added tax, Oyedele said calls for an explicit VAT exemption on insurance premiums were unnecessary as  insurance premiums do not constitute a taxable supply under Nigerian tax law. “Insurance is about risk transfer, not the supply of goods or services subject to VAT. This has always been the legal and administrative position,” he said.

    Responding to concerns about the inclusion of “community” in the definition of a taxable person, Oyedele said the drafting approach was consistent with modern legislative principles. He explained that statutory definitions apply wherever the defined term is used, unless the context dictates otherwise, adding that comprehensive definitions help streamline operative provisions and avoid repetition.

    He also defended the composition of the Joint Revenue Board, saying its revenue-focused membership was intentional and designed to provide subnational tax perspectives that complement the fiscal policy mandate of the Ministry of Finance. He noted that the structure mirrored that of the former Joint Tax Board, which functioned effectively.

    Clarifying dividend taxation, Oyedele said KPMG appeared to conflate foreign-controlled companies with foreign operations of Nigerian companies. He explained that dividends from foreign companies could not be franked because no Nigerian withholding tax would have been deducted, and that different treatment of dividends from Nigerian and foreign companies reflected a deliberate and logical policy distinction.

    On non-resident taxation, he said the assumption that final withholding tax automatically removes the obligation to register or file returns ignored the broader purpose of tax administration. He noted that filing requirements apply even where tax has been finally deducted, both for residents and non-residents, as returns serve compliance and information purposes beyond revenue collection.

    Oyedele also criticised proposals that he said would undermine key reform objectives. He rejected suggestions to exempt foreign insurance companies from tax on premiums written in Nigeria, warning that such a move would disadvantage local insurers in their own market. He also defended the disallowance of tax deductions for foreign exchange sourced from the parallel market at rates above the official window, describing it as a fiscal measure aligned with monetary policy to discourage round-tripping and support naira stability.

    He further explained that linking deductibility of expenses to VAT compliance was an anti-avoidance measure aimed at eliminating the advantage previously enjoyed by businesses that patronised VAT-evading suppliers. According to him, the rule promotes fairness and encourages voluntary compliance, especially given provisions that allow for self-charging of VAT.

    On personal income tax, Oyedele said criticisms of the 25 per cent top marginal rate ignored the fact that effective tax rates for high earners could be significantly lower due to pension contributions and other reliefs. He said the rate compared favourably with those in several African countries and advanced economies, arguing that the structure promotes fairness without eroding competitiveness. He added that the combination of higher rates for top earners and lower corporate tax was intended to ease the tax burden associated with business formalisation.

    He also pointed out factual errors in KPMG’s analysis, including references to the Police Trust Fund, which he said expired in June 2025 following the end of its six-year statutory lifespan. He noted that concerns about the impact of small company tax exemptions on larger firms predated the new laws, as the relevant thresholds were introduced under the Finance Act 2021.

    Oyedele said the publication failed to acknowledge major structural improvements introduced by the reforms, such as tax simplification and harmonisation, the planned reduction in corporate tax rate to 25 per cent, expanded input VAT credits, exemptions for low-income earners and small businesses, the removal of minimum tax on turnover and capital, and stronger investment incentives for priority sectors.

    He said the reforms were the product of extensive consultations and a transparent legislative process that included public hearings and opportunities for professional input. While acknowledging that clerical inconsistencies could arise in any comprehensive overhaul, he said such issues were already being addressed internally.

    “The success of the new tax laws now depends largely on administrative guidance, clarifications from the tax authority and supporting regulations, pending future amendments,” Oyedele said. He called on stakeholders to move beyond static critique and adopt a more collaborative approach that supports effective implementation and advances Nigeria’s goal of building a self-sustaining and competitive economy.

  • Tax reform panel counters KPMG report

    Tax reform panel counters KPMG report

    Nigeria’s Presidential Fiscal Policy and Tax Reforms Committee has faulted key aspects of a recent publication by KPMG on the country’s newly enacted tax laws.

    The Committee argued that much of the firm’s analysis was based on misunderstandings of policy intent, mischaracterisation of deliberate reforms and the presentation of opinions as facts.

    Chairman of the Committee, Taiwo Oyedele, in a detailed response titled “Response to KPMG: Observations on Nigeria’s New Tax Laws,” said while some of the issues raised by the consulting firm were useful, particularly those relating to implementation risks and clerical or cross-referencing matters, the bulk of the commentary failed to properly situate the reforms within their broader fiscal and economic objectives.

    According to Oyedele, several matters described by KPMG as “errors”, “gaps” or “omissions” were either based on incorrect conclusions, incomplete understanding of the reforms, missed policy context, or reflected preferences for alternative outcomes rather than flaws in the law itself. 

    He said disagreement with policy direction should not be presented as technical errors, noting that other professional firms adopted a more constructive approach by engaging directly with policymakers for clarification and mutual learning.

    Oyedele stressed the new tax laws contain deliberate policy choices designed to meet defined reform objectives, and that it is important to distinguish between such choices and recommendations that merely reflect the preferences of external advisers.

    Addressing concerns around the taxation of shares and the stock market, Oyedele dismissed suggestions that the new chargeable gains provisions would trigger a sell-off. 

    He said the tax rate on gains from shares was not a flat 30 per cent, explaining that it ranged from zero to a maximum of 30 per cent, which is expected to reduce to 25 per cent. 

    Oyedele added about 99 per cent of investors qualify for unconditional exemption, while others are eligible subject to reinvestment. 

    “The stock market is currently at an all-time high with increased investment flows, showing that investors understand that the reforms strengthen company fundamentals, profitability and cash flows,” he said, adding that claims of an impending sell-off were not supported by evidence.

    On the commencement date of the new laws, Oyedele argued that proposals to align implementation strictly with the start of an accounting period failed to appreciate the complexity of a wholesale tax reform. 

    He said the changes cut across multiple assessment bases, audit timelines, deductions, credits and penalties, making it impractical to anchor commencement to a single accounting date without leaving critical transition issues unresolved.

    He also defended the inclusion of provisions on the indirect transfer of shares, describing them as consistent with global best practice and international efforts to curb base erosion and profit shifting. 

    According to him, the objective was to close a long-standing loophole exploited by multinational companies and other investors, not to undermine competitiveness. 

    He described claims that the provision could threaten economic stability as misleading.

    On value added tax, Oyedele said calls for an explicit VAT exemption on insurance premiums were unnecessary, noting that insurance premiums do not constitute a taxable supply under Nigerian tax law. 

    “Insurance is about risk transfer, not the supply of goods or services subject to VAT. This has always been the legal and administrative position,” he said.

    Responding to concerns about the inclusion of “community” in the definition of a taxable person, Oyedele said the drafting approach was consistent with modern legislative principles. 

    He explained that statutory definitions apply wherever the defined term is used, unless the context dictates otherwise, adding that comprehensive definitions help streamline operative provisions and avoid repetition.

    He also defended the composition of the Joint Revenue Board, saying its revenue-focused membership was intentional and designed to provide subnational tax perspectives that complement the fiscal policy mandate of the Ministry of Finance. He noted that the structure mirrored that of the former Joint Tax Board, which functioned effectively.

    Clarifying dividend taxation, Oyedele said KPMG appeared to conflate foreign-controlled companies with foreign operations of Nigerian companies.

     He explained that dividends from foreign companies could not be franked because no Nigerian withholding tax would have been deducted, and that different treatment of dividends from Nigerian and foreign companies reflected a deliberate and logical policy distinction.

    On non-resident taxation, he said the assumption that final withholding tax automatically removes the obligation to register or file returns ignored the broader purpose of tax administration. 

    He noted that filing requirements apply even where tax has been finally deducted, both for residents and non-residents, as returns serve compliance and information purposes beyond revenue collection.

    Oyedele also criticised proposals that he said would undermine key reform objectives. 

    He rejected suggestions to exempt foreign insurance companies from tax on premiums written in Nigeria, warning that such a move would disadvantage local insurers in their own market. 

    He also defended the disallowance of tax deductions for foreign exchange sourced from the parallel market at rates above the official window, describing it as a fiscal measure aligned with monetary policy to discourage round-tripping and support naira stability.

    He further explained that linking deductibility of expenses to VAT compliance was an anti-avoidance measure aimed at eliminating the advantage previously enjoyed by businesses that patronised VAT-evading suppliers. 

    According to him, the rule promotes fairness and encourages voluntary compliance, especially given provisions that allow for self-charging of VAT.

    On personal income tax, Oyedele said criticisms of the 25 per cent top marginal rate ignored the fact that effective tax rates for high earners could be significantly lower due to pension contributions and other reliefs. 

    He said the rate compared favourably with those in several African countries and advanced economies, arguing that the structure promotes fairness without eroding competitiveness. 

    He added that the combination of higher rates for top earners and lower corporate tax was intended to ease the tax burden associated with business formalisation.

    He also pointed out factual errors in KPMG’s analysis, including references to the Police Trust Fund, which he said expired in June 2025 following the end of its six-year statutory lifespan. 

    He noted that concerns about the impact of small company tax exemptions on larger firms predated the new laws, as the relevant thresholds were introduced under the Finance Act 2021.

    Oyedele said the publication failed to acknowledge major structural improvements introduced by the reforms, such as tax simplification and harmonisation, the planned reduction in corporate tax rate to 25 per cent, expanded input VAT credits, exemptions for low-income earners and small businesses, the removal of minimum tax on turnover and capital, and stronger investment incentives for priority sectors.

    He said the reforms were the product of extensive consultations and a transparent legislative process that included public hearings and opportunities for professional input.

     While acknowledging that clerical inconsistencies could arise in any comprehensive overhaul, he said such issues were already being addressed internally.

    “The success of the new tax laws now depends largely on administrative guidance, clarifications from the tax authority and supporting regulations, pending future amendments,” Oyedele said. 

    He called on stakeholders to move beyond static critique and adopt a more collaborative approach that supports effective implementation and advances Nigeria’s goal of building a self-sustaining and competitive economy.

  • Appeal Court orders CAC to deregister KPMG Professional Services

    Appeal Court orders CAC to deregister KPMG Professional Services

    The Court of Appeal in Lagos has nullified the registration of the business name “KPMG Professional Services” by the Corporate Affairs Commission (CAC).

    It ruled in favour of KPMG Nigeria in a long-running legal battle over name rights.

    In a unanimous decision delivered by Justice Abdullahi Mahmud Bayero, the appellate court granted all four reliefs sought by KPMG Nigeria against the CAC (first respondent) and KPMG Professional Services (second respondent).

    The court held that the registration of the second respondent’s name was improper and misleading under Section 662(1)(d) of the Companies and Allied Matters Act (CAMA) 1990, now Section 852 of CAMA 2020.

    KPMG Nigeria, comprising its audit, tax, and consulting arms, had filed an originating summons in 2002 challenging the CAC’s registration of a new entity bearing the name “KPMG Professional Services”  a name it argued was deceptively similar to its long-established identity.

    The Federal High Court had dismissed KPMG Nigeria’s case in 2005, citing an alleged merger between KPMG Nigeria and Akintola Williams Deloitte as the reason the plaintiff could no longer assert rights to the name.

    The lower court also upheld the second respondent’s counterclaim, ordering KPMG Nigeria’s name to be struck off the register.

    However, the Court of Appeal rejected that reasoning, describing the evidence of a merger as “inadequate and unsubstantiated.”

    It ruled that newspaper articles relied on by the lower court were not sufficient proof of a legal merger, nor did they demonstrate that KPMG Nigeria had ceased to exist or relinquished its rights.

    Justice Bayero held: “It is only a merger agreement that can determine the nature and scope of the purported merger. What exists here at best is a functional collaboration or partial merger of only a component, KPMG Audit, and even that is not proven by binding legal documents.”

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    The appellate court stressed that KPMG Nigeria remained the first in time to register its business entities, including KPMG Audit (1969), KPMG Tax Consultants (1990), and KPMG Consulting. It further ruled that the CAC acted contrary to CAMA by allowing a similar name to be registered without first removing the earlier existing names from the registry.

    “The Registrar cannot assign a business name already held by another entity. One cannot give what one does not have — nemo dat quod non habet,” the court held.

    Accordingly, the Court of Appeal declared that KPMG Professional Services was not entitled to be registered with that name.

    It ordered the CAC to remove it from its register and cancel the issued certificate.

    The appellate court issued a perpetual injunction restraining KPMG Professional Services from carrying out any business using the name; and

    It dismissed the second respondent’s counterclaim in its entirety and directed an inquiry into damages relating to profits earned under the contested name.

    The ruling reverses the earlier decision of the Federal High Court in Suit No. FHC/L/CS/776/2002 and reaffirms the primacy of statutory protection for existing business names under Nigerian corporate law.

    A.T. Oloyede represented KPMG Nigeria; Emmanuel Umoren appeared for CAC, while E.O. Sofunde (SAN), alongside M.O. Ajana and F.O. Salawu, appeared for the second respondent.

  • KPMG urges Nigeria, South Africa on $50b creative industry

    KPMG urges Nigeria, South Africa on $50b creative industry

    The creative arts industry including music offers huge opportunities with potential to boost the economy for both Nigeria and South Africa.

    Partner, KPMG, Nigeria, Ajibola Olomola, who stated this during the Nigeria-South Africa Breakfast meeting in Lagos, stressed the need for stakeholders to get together and think through developing a framework that will allow the creative industry to thrive for both countries.   

    He noted that the industry has the potential to employ millions of Nigerian youths and also to boost positively the Nigerian Gross Domestic Product (GDP).

    According to him, the creative industry is estimated at over $50billion with contribution to GDP potentially greater than six per cent adding there are ongoing efforts to see how that will be trapped

    Olomola said collaboration can be effective with regulations of the government, again if the agencies of government will attach the responsibility for its provision of the industry will partly take and exchange of ideas

    Also, investment of flow of capital across both countries, access to technology and their latest trends so that participants of the economy for both countries can actually leverage each other to produce even better content for distribution

    The KPMG Partner said there isn’t so much in terms of regulation affecting the industry noting that the barriers for entry into the industry so far are currently low. “There’s no regulation prohibiting Nigerians participating, but you want to create positive frameworks for the creative industry to thrive for example access to capital which is always a hindrance, access to technology for producing good quality content including for example post production editing technology,” he said.

    Olomola insisted that the government can provide the framework for providing the industry with some of those technologies that can be useful for the creative arts professionals. “So the way the government can get involved is by also facilitating the ease of travel between Nigeria and South Africa and other such frameworks,” he said.

    In a presentation with the theme: “Exploring Opportunities for Collaborative Growth in Film and Play Production between Nigeria and South Africa”, the Duke of Shomolu, Joseph Edgar said the Nigeria’s film and play industry, is one of the largest in the world in terms of the number of films produced annually.

    He noted that Nigeria has gained international recognition for its prolific output; however, it has faced challenges such as low budgets, and varying production quality.

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    According to him, despite challenges, the industry has experienced significant growth adding there have been efforts to improve infrastructure, training, and collaboration within the industry.

    He noted that the Nigerian government has also shown interest in supporting the film and play industry as a means of economic development and cultural promotion (which can be seen through the works of the Duke of Shomolu).

    On quality improvement, Edgar said that the Nollywood has seen improvements in production quality, storytelling, and technical aspects noting that some Nigerian films have gained recognition at international film festivals.

    On challenges in both countries the Duke of Shomolu said that while there have been improvements, challenges in infrastructure, equipment, and distribution still exists in both countries adding while there have been successful films and plays from both countries, gaining consistent international recognition and distribution has posed a challenge.

    The Duke of Shomolu said that cross-country collaborations can beneficial cultural exchange, skill and knowledge transfer, increased production quality, broader market access, as well as global representation

    According to the Duke of Shomolu, collaboration between Nigeria and South Africa can facilitate a rich cultural exchange adding that the two countries have distinct cultural backgrounds, and combining their creative forces can lead to unique and diverse storytelling that appeal to a global audience.

  • Economy to grow by 2.65% in 2O23, says KPMG

    Economy to grow by 2.65% in 2O23, says KPMG

    KPMG has adjusted its growth forecast for the contry’s economy to 2.65 per cent in the year.

    The professional services firm, in a report entitled: ‘Underwhelming Q2 2023 GDP Growth Recorded’, said the revision was premised on various considerations.

    KPMG listed the factors to include the recent contraction in oil production, muted government investment in the economy, the impact of subsidy removal and foreign exchange (forex) rates unification on households.

    “Q2 2023 GDP results are broadly in line with our earlier downward revision of 2023 GDP to 2.85 per cent. Nevertheless, we are adjusting our 2023 forecast further downwards to 2.65 per cent,” KPMG stated.

    According to the firm, half-year 2023 GDP stood at 2.41 per cent and would require an average growth of 3.30 per cent and 3.50 per cent in second half 2023 to end the year at 2.85 per cent and three per cent for 2023 which we believe is challenging and unlikely.

    “Q2 2023 is, however, the quarter where the impact of Subsidy removal, forex unification and other reforms of the new administration had its major impact on squeezing household consumption demand and firms’ costs of operations as well as reduced private investment as firms continued to adopt a wait and see approach, tweak strategies to cope with rising costs and reduced demand for their goods and services and struggled to find forex to operate. These factors will likely constrain non-oil growth given that household consumption and private investment constitute the largest share of GDP.

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    “The impact of subsidy removal was evident in the biggest contraction in road transportation GDP since the new GDP series. Though subsidy was only removed in June 2023 representing one month impact of the three months of the quarter, road transport GDP contracted by -55.14 per cent in Q2 2023, representing the biggest contraction in road transport GDP in history,” KPMG stated.

    “This contradicts the muted results recorded with respect to inflation for that same month which according to NBS was not expected to fully reflect on the CPI though methodologically, the Inflation rate in each sector is used to deflate nominal GDP for that sector.

    “At the same time, there has been muted government capital investment in the economy in Q2 2023 and the first half of Q3 2023 so far, with new administrations at the Federal and State level settling down in Q3 2023.

    “Furthermore, oil production has started Q3 2023 with a further contraction in July 2023 and if this trend continues for the remaining two months of Q3 2023, we will have a situation where non-oil sector growth and oil sector growth underperform.”

    The firm also said it expected further increases in inflation for the rest of the year which would make the pressure on nominal to real gross domestic product (GDP) to be higher, thereby curtailing higher real GDP growth in Q3 2023.

    Recently, the National Bureau of Statistics (NBS) disclosed that Nigeria’s GDP slowed to 2.51 percent in the second quarter (Q2) of 2023 due to the challenging economic conditions being experienced.

  • KPMG, PwC others warn on Nigeria’s debt to revenue ratio

    Nigeria’s  debt to revenue ratio is alarming, KPMG Partner, Ayodele Salami has said.

    He warned that with a debt of N22.2 trillion, the nation will be in dire straits servicing the debt  in the next five years. He added that debt servicing cost could be higher than income if the situation was not checked. It may spell doom as the country may find it difficult to discharge its responsibilities, such as payment of salaries and fund capital projects, he said.

    Salami, who spoke at a roundtable on ‘Nigeria’s Debt Sustainability’ organised by the Lagos Chamber of Commerce & Industry (LCCI) at the weekend, urged the government to do away with assets such as the Kaduna refinery and Ajaokuta Steel Plant,  saying  these have incured huge debt without any revenue to the government.

    Represented by Adegoke Oyelami, also a Partner at KPMG, Salami  lamented the use of devaluation to increase revenue, stating that the measure was only deceptive and not sustainable. He called for reduction in the cost of governance and the need to curb inefficiencies and revenue leakages, saying government should aim at working on strengthening the inefficiencies at the ports.

    He said the difficulties experienced by importers in clearing goods from the ports, have led to the increase in the cost of goods which, regrettably is passed on to final consumers.

    Chief Economist at PwC, Andrew Nevin, said  the only way out of the present economic situation is to encourage rapid economic growth. According to him, the country needs an economy that will grow at between six to eight per cent a year. This,  he said, would reduce poverty, unemployment, underemployment of young Nigerians with the population growing at about three per cent.

    He said with a rapidly growing population, the nation may not have the capacity to address her debts any moment from now.

    He said: “Nigeria’s poverty level is on the increase because the nation’s growth is not in alignment with its revenue. The economy declined significantly between 2015, and  2018, and may likely  decline  in 2019  with the International Monetary Fund’s  (IMF’s) prediction  that the economy would decline in 2020, 2021 and 2022.

    “Eight years of declining of GDP per person (per capital income) in simple terms means we are getting poorer and poorer every year, so it is not a big surprise that we cannot raise more tax revenues. The only way out is to get our growth rate up and that means encouraging policies that promote growth. Elimination of fuel subsidy is a good place to start, ease of doing business still not good enough.”

    Also speaking, the Managing Director/CEO, Financial Derivates and Company Limited,  Bismarck Rewane, regretted that the government borrows to spend rather than borrowing to invest. He said the nation’s debt is growing steadily while productivity remains low,a condition that leads to further pauperising the citizenry and leading to greater poverty.

    He canvassed policy consistency and the need to build confidence on the economy to attract investors.

    He said: “We can’t be penalising people who are investing in our country, there must be sanctity of contracts. We must embrace conducive environment, collaborate with investors and create an ambience that encourages investment, saying mangers of the economy must build trust in the people and the investing public.

  • Nigeria is 158th in KPMG’s ranking

    Nigeria dropped five places to be ranked 158 in a new report released by KPMG, audit and financial advisory firm.

    The report, titled: Growth Promise 2018, ranked countries based on macroeconomic stability, institutional strength, openness and human capital.

    Nigeria ranked 158 of the 181 countries. Mauritius, Botswana and Rwanda were the highest ranked African countries in the report.

    Nigeria got a score of 7.45 on macroeconomic stability, which considers government debt and government stability.

    This was the third highest score obtained by an African country on the chart.

    The Federal Government has been using some debt instruments to raise funds for the deficit of the 2017 budget. These include the FGN Savings bond, Sukuk and treasury bills.

    Data released by the Debt Management Office in 2017 showed that the country’s debt profile has increased to N20 trillion as of September 30 of that year.

    The 2018 budget, yet to be passed by the National Assembly, has a projected deficit of N2.005 trillion.

    Nigeria had a score of 1.27 on human development, which considers education and life expectancy. In the openness category, which considers total trade and foreign direct investment, Nigeria was rated 0.29.

     

     

  • Ajimobi charges governing council of state varsities on value addition

    Ajimobi charges governing council of state varsities on value addition

    Oyo state Governor Abiola Ajimobi has charged members of the newly inaugurated governing council for the six state owned tertiary institutions to come up with creative ideas that would add value and turn around the fortune of the institutions.

    The governor gave the charge at the Executive Chamber of his office while inaugurating the councils, following their appointment which was announced on Tuesday, January 9.

    The six government owned tertiary institutions including, The Polytechnic, Ibadan; Emmanuel Alayande College of Education, Oyo; Oyo State College of Agriculture and Technology, Igboora; The Ibarapa Polytechnic, Eruwa; The Oke-Ogun Polytechnic, Saki, and College of Education, Lanlate have been on indefinite strike since November 2 over issues bothering on salary arrears and reduction of subvention to the institutions to 25 percent.

    Ajimobi urged the new appointees to demonstrate creativity and commitment aimed at adding value that would bring new lease of life to the institutions, saying “our institutions have been bedeviled by lots of challenges which are not from us as a government but the present challenges.

    “We have carefully selected you, having found you to be men and women of proven integrity to add value to our institutions.

    “I know all of you by your professionalism, value and competence. We believe in your ability to reposition the institutions. There is no doubt in my mind that you all are equal to the task and will make a difference”

    Clearing the air on the issue of salary arrears that have led to the closure of the institutions by the workers unions, Ajimobi said government was not responsible for the payment of salaries but has been “magnanimous in giving quarterly subventions to the institutions.”

    He urged the governing councils and management of the institutions to work out survival strategies by diversifying out of the traditional source of revenue.

    “We have employed KPMG Advisory Service to audit the institutions. KPMG in its report has advised that some institutions were unsustainable and some should be close down.

    “I charge you to come forth with ideas that will add value and bring a new lease of life to the institutions. We are hopeful that government could review its reduction in subvention as the economy becomes more buoyant,” he said.

    The governor said that the country today was training clerks and not technological staff or entrepreneurs, saying such was the reason for the establishment of Technical University, Ibadan to make a difference.

    Ajimobi said that the institution has commenced academic activities with much emphasis on technology and entrepreneurship.

    Chairman, Governing Council of the Polytechnic Ibadan, Prof. I.A Adeyemi who spoke on behalf of the newly inaugurated councils appreciated the governor for the careful and meticulous selection assuring that they would not let the governor by putting in their best and more so to prove they were men and women of proven integrity.

    “We hope to build strategic idea to bring solutions to the challenges bedeviling the institutions. I assure you that we have already started the efforts here. We should be able to come up with a strategic plan for each institution that will bring about the desired development and expected difference,” he said.

    The event was attended by members of the state executive council and heads of the various institutions.

  • KPMG says economy attractive to foreign investors

    KPMG says economy attractive to foreign investors

    The Nigerian economy is seemingly on the upturn and remains an attractive destination for foreign investors, seeking sustainable growth opportunities within the continent, a KPMG report has said.

    It said the Consumer Goods, Financial Services, Telecommunication, Media & Technology and Oil & Gas sectors accounted for about 80 per cent of recent inbound investments into the country.

    The report titled, ‘Doing Deals in Nigeria – Key Insights from Deal Makers’ is the result of a survey of 50 senior business executives based outside of Nigeria, who have attempted at least one inbound acquisition in Nigeria in the last four years.

    About 62 per cent of the respondents are from five countries; South Africa accounting for the largest percentage (20 per cent); closely followed by UK (18 per cent) and USA (12 per cent). Other notable countries with interest are France (six per cent) and Netherlands (six per cent).

    Also, 62 per cent of the respondents surveyed, would consider an acquisition in Nigeria over the next two years, while 86 per cent of respondents indicated that they would more likely invest in Nigeria again.

    The report further noted that the key drivers for Nigerian acquisitions by foreign investors include the target’s customer base and domestic distribution channels and the opportunity for the investor to restructure the businesses to create further value. The ability of global corporates and private equity firms to use Nigeria as a base for expansion across West Africa further raises the country’s investment destination profile.

    According to Partner and Africa Head, Deal Advisory and Private Equity, KPMG in Nigeria, Dapo Okubadejo: “Our key objective in conducting the survey for this report, was to hear first-hand from foreign investors. The survey report shares the contributors’ unique insights and perspectives on their deal-making experiences in Nigeria, providing a direct credible feedback to potential investors on the true potential of Nigeria and what to expect in doing deals. The report also identifies the key sectors, deal dynamics, leading practices and recognises challenges in doing deals in Nigeria.”

  • Technical Director urges more competitions, sponsorships for Chess

    Technical Director urges more competitions, sponsorships for Chess

    The Technical Director, Lagos State Chess Association (LSCA), Bayo Babalola, on Sunday appealed for more sponsorships of tournaments at the grassroots for the discovery of more talents in chess.

    Babalola made the call while reviewing the just-concluded PricewaterhouseCoopers (PwC) Chess4change Championships at the Teslim Balogun Stadium, Surulere, Lagos, in an interview with the News Agency of Nigeria (NAN).

    NAN reports that PwC, a multinational professional service network, headquartered in U.K. is the second largest professional services firm in the world and one of the big four auditors along with Deloitte, EY and KPMG.

    The tournament for the secondary school started last Wednesday ended on Friday and had 22 schools with about 320 students as participant.

    The first edition of the competition in 2014 had six schools represented but the number was doubled in 2015 to 12, and now increased to 22.

    Babalola said that dearth of competitions at the grassroots might not augur well for the future of the game in the country.

    “We need more grassroots sponsorships for competitions for chess in the country. PwC cannot do it alone. All hands must be on deck to promote the sport.

    “As we know grassroots competition is the future of any sport. So we need more of these championships to help the game grow more in Nigeria.

    “PwC has been in the forefront of grassroots chess sponsorship for the past three years because they believe that there are so many benefits children can derive from it.

    “Aside that, chess can help the children professionally, it can also help them academically too. It improves the mental alertness of the kids. It’s such an undeniable fact,’’ he told NAN.

    Babalola urged government at all levels to consider adding chess to the school curriculum, noting that it was done in some overseas countries.

    “We have talked about the usefulness of chess to the development of any child mentally and I know government is well aware of this, yet they are doing nothing to develop it.

    “As a matter of importance, government need to add chess to school curriculum. Many countries overseas have tried it and it worked for them. We should copy that.

    “Adding chess to the school curriculum will help to stimulate the mental alertness of the students, it will also increase their analytical thinking and quantitative and qualitative reasoning.

    “Chess has a lot of benefits children can derive, so we need to give it the due consideration it deserves,’’ he said.