Economy
Lagos Targets N50b Monthly IGR by 2019 as Debts Hit N874b
By Dipo Olowookere
Commissioner for Finance in Lagos State, Mr Akinyemi Ashade, has disclosed that the state government plans to achieve a monthly Internal Generated Revenue (IGR) of N50 billion next year.
He said at the moment, the state generates about N34 billion monthly from IGR, compared to monthly averages of N22 billion, N24 billion and N30 billion in 2015, 2016 and 2017, respectively.
Addressing newsmen at the ministerial briefing to mark the third anniversary of Governor Akinwunmi Ambode in office, the Commissioner expressed optimism that the target would be met by this administration.
According to him, this is based on the gradual improvements in the state’s economy.
“Notably, we are recording gradual improvement in our average monthly IGR in 2018 compared to the levels achieved in previous years due to the impact of ongoing reforms and growth in the state’s economy.
“Based on our first quarter results, Lagos State has so far achieved an average monthly IGR of N34 billion in 2018 compared to monthly averages of N22 billion, N24 billion and N30 billion in 2015, 2016 and 2017, respectively,” he said.
“The target we set for ourselves is N50 billion, but we all know the kind of push backs we have experienced, including people going to court and all that. Our commitment is not for now; it’s for the future of Lagos.
“We know it is a marathon, we would win some and we would lose some, but we are very committed towards ensuring that we meet the target.
“But, if we do not meet it this year, definitely there will be another year, but we believe we will succeed in that target we set for ourselves,” Mr Ashade said.
Speaking on the debt profile of Lagos State, the Commissioner said as at December 2017, the debt stock stood at N874.4 billion, comprising 48 percent local and 52 percent foreign.
He said that the debt service charge to total revenue ratio which was 17.61 percent, was still within the World Bank’s threshold of 30 percent.
According to him, the state government will continue to maintain positive credit rating, adding however, that a downgrade of Nigeria’s sovereign rating would lead to a corresponding action on Lagos’ international drawing rights.
“As Nigeria continues to improve on its credit rating, we will be able to achieve better rating as we currently have.
“This is because no amount of revenue generation, no amount of employment growth of Lagos State can make us surpass the sovereign rating,” he said.
He, however, said that the state government had taken strategic steps to help Nigeria improve on its ratings, including adhering to fiscal discipline, improved revenue generation and tradition of inclusive governance.
On federal transfers, he said since Lagos joined the league of oil-producing states, it had received N327 million oil revenue, comprising N197 million received in 2017 and N130 million in first quarter of 2018.
“Furthermore, we are in discussion with federal government toward obtaining refund for expenditure totalling N51 billion incurred by the state government on behalf of the federal government for infrastructure projects development in the state.
“We are optimistic of successful discussions that will result in the approval and payment of the amount owed to the state by the Federal Government,” he said.
By Adedapo Adesanya
The Nigeria Revenue Service (NRS) has introduced a 1.5 per cent stamp duty on eligible virtual asset transactions, with the tax deducted directly from the cryptocurrency purchased before it is credited to the buyer’s wallet.
According to the new guidelines issued on Monday, anyone buying Bitcoin (BTC), USDT or other cryptocurrencies in Nigeria will receive fewer digital assets due to the deduction.
This requires registered crypto exchanges and other Virtual Asset Service Providers (VASPs) to withhold the levy in the digital asset being traded and remit it to the government, marking Nigeria’s most comprehensive move yet to bring cryptocurrency transactions into the country’s tax net.
Unlike traditional taxes deducted from a customer’s bank account, the 1.5 per cent charge will be taken from the cryptocurrency itself, meaning buyers will receive less Bitcoin, USDT or other tokens than they paid for.
The tax body stated that “income tax deducted at source and stamp duty shall be remitted to the service in the originating token of the transaction.”
Besides the new stamp duty, the guidelines also clarify how income tax, Value Added Tax (VAT) and other tax obligations will apply to virtual asset activities such as trading, staking, mining and other crypto-related transactions.
To illustrate the new rule, the tax authority said a buyer who pays N1 million for one Bitcoin will receive only 0.985 BTC after 0.015 BTC is deducted as stamp duty and remitted to the government. When that Bitcoin is later sold, the next buyer will also have 1.5 per cent deducted from the cryptocurrency credited to their wallet.
The NRS said the guidelines are intended to provide clarity for taxpayers, crypto exchanges, peer-to-peer (P2P) marketplace operators, financial institutions, tax consultants and all participants in Nigeria’s virtual asset ecosystem.
According to the guidelines, the 1.5 per cent duty applies to eligible virtual asset transactions facilitated through registered exchanges and other recognised intermediaries. Where a cryptocurrency is used to complete a transaction that already attracts stamp duty under the law, the applicable duty on the underlying instrument will also be payable.
For crypto users, the implication is higher transaction costs, as eligible purchases will attract the 1.5 per cent stamp duty, while VAT on exchange service fees and income tax on taxable gains may also apply, depending on the nature of the transaction.
By Adedapo Adesanya
The Naira opened the week on a positive note, as it appreciated against the US Dollar by N3.39 or 0.25 per cent in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Monday, August 3, to N1,364.83/$1 from N1,368.22/$1 last Friday.
However, it suffered a marginal decline against the Pound Sterling in the official market during the session by 10 Kobo to close at N1,837.89/£1 compared with the preceding session’s N1,837.79/£1, and lost 6 Kobo on the Euro to sell at N1,573.93/€1, in contrast to the previous trading day’s N1,573.87/€1.
At the black market segment, the Nigerian currency traded flat against the Dollar yesterday at N1,405/$1, and at the GTBank forex counter, it was unchanged at N1,374/$1.
Interbank FX transactions increased sharply as market makers’ activities raised total Dollar volume exchanged to $137.048 million, more than 132 per cent above $58.990 million in turnover at the previous close. The surge in turnover was driven by increased deals at the NFEM window. The central bank reported that deal count at the interbank FX window rose to 138 from 67 on Friday.
As for the cryptocurrency market, major tokens advanced despite ongoing uncertainty around unresolved Coldcard wallet sweeps that have drained hundreds of Bitcoin (BTC), while traders are watching whether bitcoin can hold above $63,000 through the US session. BTC rose by 1.70 per cent to $63,765.88.
Bitcoin treasury firm Strategy disclosed Monday it sold 1,638 bitcoin for about $105 million between July 27 and Aug. 2, its third sale of 2026, per an SEC filing.
Also, an attacker has moved about 1,816 bitcoins, or roughly $114 million, from more than 5,200 addresses since July 30 in a fourth wave of sweeps targeting BTC in Coldcard-generated addresses.
Cardano (ADA) appreciated by 6.7 per cent to $0.1959, Binance Coin (BNB) gained 1.5 per cent to sell for $590.82, Solana (SOL) jumped by 1.3 per cent to $73.72, TRON (TRX) soared by 0.9 per cent to $0.3286, Dogecoin (DOGE) also grew by 0.9 per cent to $0.0703, Ripple (XRP) advanced by 0.5 per cent to $1.07, and Ethereum (ETH) rose by 0.4 per cent to $1,863.33, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 apiece.
By Dipo Olowookere
Bearish investor sentiment on Monday could not keep the Nigerian Exchange (NGX) Limited in the red territory, as the bourse closed higher by 0.18 per cent.
According to data from Customs Street, there were 25 price gainers and 38 price losers, indicating a negative market breadth index.
Eterna expanded by 10.00 per cent to quote at N36.30, Caverton also improved by 10.00 per cent to N5.50, Omatek soared by 9.88 per cent to trade at N1.78, AVA Capital grew by 9.70 per cent to N9.05, and Vitafoam Nigeria appreciated by 7.90 per cent to N194.00.
Conversely, Ecobank declined by 9.95 per cent to N80.10, Cadbury Nigeria went down by 9.92 per cent to N58.10, Thomas Wyatt slumped by 9.82 per cent to N3.95, Coronation Insurance depreciated by 9.80 per cent to N2.30, and CMFC dipped by 9.79 per cent to N3.50.
Yesterday, market participants transacted 923.0 million stocks for N37.9 billion in 72,544 deals compared with the 943.0 million stocks worth N46.7 billion traded in 55,480 deals last Friday.
This indicated that the number of deals increased by 30.76 per cent, the trading volume shrank by 2.12 per cent, and the trading value dropped 18.84 per cent.
Access Holdings was the most active equity on the first trading day of this week and month, with a turnover of 166.6 million units worth N4.4 billion. Honeywell Flour sold 93.6 million units for N1.6 billion, Sterling Holdco exchanged 57.1 million units valued at N455.4 million, Universal Insurance traded 51.8 million units worth N45.8 million, and Chams transacted 33.8 million units valued at N152.5 million.
But when trading activities ended for the session, the All-Share Index (ASI) went up by 446.85 points to 245,730.53 points from 245,283.68 points, and the market capitalisation jumped by N289 billion to N158.615 trillion from N158.326 trillion.
