Economy
70% of Lagos IGR Comes from Taxes—LIRS Chairman
By Dipo Olowookere
The executive chairman of the Lagos State Internal Revenue Service (LIRS), Mr Ayodele Subair, has said about 70 per cent of the state’s Internally Generated Revenue (IGR) comes from taxes paid by individuals and organisations doing business in the metropolis.
Mr Subair made this disclosure when he received the Managing Director of New Telegraph Newspapers, Mr Ayodele Aminu, and the Daily Editor of the media platform, Ms Juliet Bumah, in his office in Alausa, recently.
The management of the Daily Telegraph Publishing Company Limited, publishers of New Telegraph Newspapers, visited the LIRS chief to inform him of the decision to honour him with an award of leadership excellence at a ceremony to be held later in the year.
Mr Aminu said the LIRS boss was chosen because of his remarkable contributions to the development of the state and the country, especially in the tax sector.
But Mr Subair attributed the tax revolution in Lagos State to the former Governor of the state and presidential candidate of the All Progressives Congress (APC) in the 2023 general elections, Mr Bola Tinubu, saying he contributed to the significant boost to the Lagos IGR.
“He is the father of this tax revolution in Lagos State. So, we must always give him that credit. Since he made the LIRS board autonomous, the numbers have been leaping in bounds, and we hope to continue on that trajectory because we have to provide the funding for the state.
“The incumbent Governor (Babajide Sanwo-Olu) has been very supportive of our innovations and fresh ideas in tax administration in Lagos State,” he said.
The LIRS leader said Mr Tinubu must be commended for having the vision to “create some independent agencies like the LIRS and making the state less reliant on the federal government’s allocation.”
Speaking on the award, Mr Subair noted, “The joy is when there is a bit of recognition, then you feel justified, you feel happy that you have spent all those long hours burning candles at night and so forth justifiably. I’m very pleased that you have deemed it fit to honour the agency and me. I assure you that management would be well represented at the award ceremony, God’s willing.”
“It is a moment like this that we feel very glad we have put ourselves at the service of our dear state. We usually don’t get any recognition internally or externally; rather, it is you can always do better. But in our world, our numbers speak for themselves.
“In your letter, you said we almost doubled our internal revenue generation since the inception of our tenure, but in fact, it’s more than double,” he added.
While commending the staff of the LIRS for their dedication and steadfastness, the LIRS boss said, “We are delighted that we have been able to achieve all those things. It’s all from dedicated leadership and followership.
“The staff plays a very big role in making our numbers rise. Management directs and formulates the policies and all the various processes that generate such income, but at the same time, we need to commend the foot soldiers; they are the ones out in the field who help us to advocate for taxpayers to try and be tax compliant, to respect the social contracts, and to understand that if they want the state to improve in terms of provision of infrastructure and quality services, they also need to contribute.”
Mr Subair advised Nigerians, especially Lagos residents, not to relent in their duties by paying their taxes regularly and diligently as it would help the government provide infrastructure and social amenities as attainable in developed countries.
“Everybody goes to the UK, U.S and they are all marvelled at the level of their infrastructure, good road network, free education, electricity and all other things. All these are made possible because the people are highly tax-compliant in that clime. Nobody is chasing anyone about paying taxes.
“If you don’t pay tax, the sanctions are there. People go to jail. There are no two ways about it. But unfortunately, in Africa, extending to Nigeria and Lagos, people don’t want to pay taxes.
“Yes, globally, people don’t want to pay; if they could avoid it, they would avoid it, So it makes our job very difficult and trickier,” he noted.
The LIRS chairman said while tax is the most sustainable revenue, it took the federal government so long to start looking inward as tax is funding the operations of the federal government right now.
“The federal government is not getting much from the oil industry like before. So it is just what FIRS is doing that is helping. Likewise, in Lagos, all the federal receipts have gone down considerably, so it’s mostly what we are generating here and some other revenue-generating agencies,” he said.
By Adedapo Adesanya
Seplat Energy Plc will revive hundreds of Nigerian oil wells laying fallow after completing the acquisition of Mobil Producing Nigeria Unlimited (MPNU) from ExxonMobil.
The company said it aims to lift oil output to about 200,000 barrels a day, a move that will help boost Nigeria’s oil production levels, as it aims to reach 2 million barrels per day next year.
The transaction, according to Seplat, “is transformative for Seplat Energy, more than doubling production and positioning the company to drive growth and profitability, whilst contributing significantly to Nigeria’s future prosperity.”
The completion of the Seplat-ExxonMobil deal has created Nigeria’s leading independent energy company, with the enlarged company having equity in 11 blocks (onshore and shallow water Nigeria); 48 producing oil and gas fields; 5 gas processing facilities; and 3 export terminals.
Recall that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in October approved the deal as part of a series of approvals, while it blocked Shell’s asset sale of up to $2.4 billion to the Renaissance consortium.
The acquisition of the entire issued share capital of MPNU adds the following assets to the Seplat Group: 40 per cent operated interest in OML 67, 68, 70 and 104; 40 per cent operated interest in the Qua Iboe export terminal and the Yoho FSO; 51 per cent operated interest in the Bonny River Terminal (‘BRT’) NGL recovery plant; 9.6 per cent participating interest in the Aneman-Kpono field; and approximately 1,000 staff and 500 contractors will transition to the Seplat Group.
MPNU adds substantial reserves and production to Seplat Energy; 409 million barrels of oil equivalent (MMboe) 2P reserves and 670 MMboe 2P + 2C reserves and resources as at 30 June 2024 and 6M 2024 average daily production of 71.4 kboepd (thousand barrels of oil equivalent).
Business Post reports that Seplat will be part of the payment this year, and will defer some to next year,
Speaking on the transaction, the Chairman of Seplat Energy, Mr Udoma Udo Udoma commended President Bola Tinubu for supporting this transaction and appreciated the support and diligence of the various ministries and regulators for all the work to reach a successful conclusion.
“We are delighted to welcome the MPNU employees to Seplat Energy. We are excited to begin our journey in a new region of the country, and we look forward to replicating the positive impacts we have achieved within our communities in our current areas of operations.
“Seplat’s mission is to deliver value to all our stakeholders, and we treasure the good relationships we have developed with the government, regulators, communities and our staff.”
On his part, the chief executive of Seplat Energy, Mr Roger Brown, described the acquisition as a major milestone, adding, “I extend my thanks to the entire Seplat team for their hard work and perseverance to complete this transaction.
“MPNU’s employees and contractors have a strong reputation for safety and operational excellence, and I welcome them to the Seplat Energy Group.
“We have acquired a company with one of the best portfolios of assets and related infrastructure in a world-class basin, providing enormous potential for the Seplat Group. Our commitment is to invest to increase oil and gas production while reducing costs and emissions, maximising value for all our stakeholders.
“MPNU is a perfect fit with our strategy to build a sustainable business that can deliver affordable, accessible and reliable energy for Nigeria alongside attractive returns to our shareholders”.
By Adedapo Adesanya
The National Pension Commission (PenCom) is projected to close the year with over N22 trillion in pension assets impacted by challenges like inflation and monetary policies.
This is according to PenCom Director-General, Mrs Omolola Oloworaran, at a press conference in Abuja on Thursday.
She said as of October 2024, the Contributory Pension Scheme (CPS) had 10.53 million registered contributors and pension fund assets worth N21.92 trillion.
Speaking at the conference-themed Tech-driven Transformation Shaping the Pension Landscape, which showcased PenCom’s strategic commitment to innovation, she said that the numbers reflected the agency’s unwavering commitment to fund safety, prudent management, and sustainable growth.
She explained that the pension environment was impacted by the wider economic challenges facing the country, noting that the sector battled multi-year high inflation, Naira devaluation, and the lingering effects of unorthodox monetary policies by the Central Bank of Nigeria (CBN).
Business Post reports that the apex bank hiked interest rates by 875 basis points this year alone to tackle persistent inflation which peaked at 33.8 per cent as of October.
She said that these challenges eroded the real value of pension funds and impacted contributors’ purchasing power.
“To address these issues, the commission has initiated a comprehensive review of its investment regulations.
“It is focusing on diversifying pension fund investments into inflation-protected instruments, alternative assets, and foreign currency-denominated investments.
“The goal is to safeguard contributor savings and ensure resilience against future economic volatility,” she said.
She restated the commission’s commitment to expanding pension coverage, particularly through the advanced micro-pension plan designed to encourage participation from the informal sector using technology.
“This initiative will make it easier for everyday Nigerians to save for retirement, aligning with our vision of inclusive growth and financial stability for all.
“The backlog in retirement benefits for retirees of the Federal Government’s Ministries, Departments, and Agencies (MDAs) will soon be settled.
“The federal government recently disbursed N44 billion under the 2024 budget to settle approved pension rights.
“We are collaborating with the Federal Government to institutionalise a sustainable solution to ensure retirees receive their benefits promptly, eliminating delays,” Mrs Oloworaran said.
She said that PenCom’s technology-driven transformation aimed to make the CPS more accessible, reliable, and sustainable.
“From data management to seamless contributions and regulatory supervision, we are paving the way for a future where the pension industry serves all Nigerians effectively,” she said,
Mrs Oloworaran also said that the e-application portal for pension clearance certificates has replaced the manual processes and enhanced the ease of doing business in the sector.
“Since its deployment, 38,528 pension clearance certificates have been issued. This initiative ensures compliance and secures the future of Nigerians working in organisations that interact with the government,” she said.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange closed flat on Thursday, December 12 after it ended the trading session with no single price gainer or loser.
As a result, the market capitalisation remained unchanged at N1.055 trillion as the NASD Unlisted Security Index (NSI) followed the same route, remaining at 3,012.50 points like the previous trading session.
However, the activity chart witnessed changes as the volume of securities traded at the bourse went down by 92.5 per cent to 447,905 units from the 5.9 million units transacted a day earlier.
In the same vein, the value of securities bought and sold by investors declined by 86.6 per cent to N3.02 million from the N22.5 million recorded in the preceding trading day.
But the number of deals carried out during the session remained unchanged at 21 deals, according to data obtained by Business Post.
When trading activities ended for the day, Geo-Fluids Plc remained the most active stock by volume (year-to-date) with 1.7 billion units sold for N3.9 billion, Okitipupa Plc came next with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc was in third place with 297.5 million units worth N5.3 million.
Also, Aradel Holdings Plc remained the most active stock by value (year-to-date) with 108.7 million units worth N89.2 billion, followed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.5 million units sold for N5.3 billion.
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