Economy
Some Firms Are Abusing Pioneer Incentive Scheme—FIRS
By Adedapo Adesanya
The Federal Inland Revenue Service (FIRS) has raised an eyebrow over what it called the systemic abuse of the pioneer incentive scheme instituted by the federal government, saying it is leading to tax revenue leakages for the three tiers of government.
This was made known by the Executive Chairman of the tax body, Mr Muhammad Nami, during a meeting with State Commissioners of Finance at the Revenue House, headquarters of the FIRS in Abuja.
In a statement signed by the Director, Communications and Liaison Department, Mr Abdullahi Ahmad, the FIRS reiterated its vow to plug this tax revenue leakage in order to generate more revenue for the Nigerian government.
Mr Nami stated that tax revenue accounts for nearly 70 per cent of what was shared at the last FAAC meeting and lauded the collaboration between the service and the State Commissioners of Finance, saying this is key to bringing about increase in tax revenue.
He said without this collaboration, it would be difficult for the government to meet its obligations to the citizenry in such areas as infrastructure development and salary payment, which could lead to social dislocation.
The Executive Chairman emphasised the need to diversify the economy in order to create more sources of taxable income and increase tax revenue for the nation.
He charged the states to focus on other forms of taxes like the Stamp Duty which he described as “the black gold” which has been ignored before now.
He also charged all Ministries, Departments and Agencies (MDAs) to carefully deduct withholding tax from contracts at the point of payment.
Mr Nami also solicited the states’ support in terms of taxpayer sensitization campaigns and education, stating that rental obligation was incomplete without the payment of stamp duties. He emphasised that if these initiatives were pursued at both local and state levels more revenue would be generated.
The Coordinating Director, Tax Operations Group, FIRS, Mr Femi Oluwaniyi, who expressed appreciation to the state commissioners of finance for their support so far in revenue generation for the Federation, decried the indiscriminate tax waivers and incentives granted to undeserving companies, which he stressed has impacted negatively on revenue generation.
Mr Oluwaniyi disclosed that the FIRS has discovered that pioneer status certificates had been issued to companies that were not pioneers of their fields in the real sense, hence undeserving of such status.
He stated that this development has led to the loss of considerable tax revenue to the three tiers of government.
However, the FIRS hinted that it was auditing its findings with a view to pressing for the cancellation of pioneer certificates issued to undeserving companies in violation of the law.
The FIRS stated that pioneer status otherwise granted outside the law would not enjoy tax relief regardless of the certificate issued to them and owners of such certificates were requested to regularize their tax positions otherwise sanctions shall apply in accordance with the law.
Speaking on behalf of the delegation, the Benue State Commissioner of Finance, Mr David Olofu assured that the states were looking forward to working closely with FIRS in order to generate more tax revenue for the country.
By Adedapo Adesanya
Brent crude dropped below $70 on Monday, specifically losing $1.08 or 1.5 per cent to trade at $69.28 per barrel, as fears that the United States’ tariffs on Canada, Mexico and China would slow economies around the world and slash energy demand.
Also, the US West Texas Intermediate (WTI) futures settled at $66.03 a barrel after shedding $1.01 or 1.5 per cent during the session as the wider market saw plunges after the US President, Mr Donald Trump’s protectionist policies sent jitters across major economies and the oil market wasn’t spared.
The American president has imposed and then delayed tariffs on the country’s biggest oil suppliers,Canada and Mexico, while also raising duties on Chinese goods.
China and Canada have responded with tariffs of their own but Mexico has not followed in the path of two countries, waiting to study the direction of the development before making any move.
Over the weekend, US Commerce Secretary Howard Lutnick said President Trump would not let up pressure on tariffs on Mexico, Canada, and China.
Also, President Trump over the weekend declined to predict whether the US could face a recession as investors worried about a possible economic slowdown that could curtail oil demand.
On the supply front, President Trump is seeking to choke off Iranian oil exports as part of efforts to pressure the country to reduce in its nuclear programme.
Meanwhile, Iran’s Supreme Leader Ayatollah Ali Khamenei said on Saturday that his country will not be bullied into negotiations.
President Trump also said the US would intensify sanctions on Russia if it fails to reach a ceasefire deal with Ukraine.
This is as the country is looking ways to ease sanctions on Russia’s energy sector if it agrees to end its war with Ukraine.
Meanwhile, Russia’s Deputy Prime Minister Alexander Novak said the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) agreed to start increasing oil production from April.
He added that the alliance could reverse the decision afterwards if there are market imbalances in the future.
By Aduragbemi Omiyale
The N3.1 billion shares of Ellah Lakes Plc converted from debt to equity have been listed on the Nigerian Exchange (NGX) Limited.
The equities from the exercise were taken to the stock exchange for listing last Wednesday to increase the total issued and fully-paid shares of the organisation.
Business Post reports that the company used a total of 1,104,386,890 ordinary shares of 50 Kobo each at N2.8 per unit to pay up about N3.1 billion debt incurred by the firm.
The board of Ellah Lakes was given the authority to convert the company’s outstanding debt into equity at its Annual General Meeting (AGM) on December 5, 2024, in Lagos.
In a notice to investing public last week, the NGX said, “Trading licence holders are hereby notified that additional 1,104,386,890 ordinary shares of 50 Kobo each of Ellah Lakes Plc were on Wednesday, March 5, 2025, listed on the daily official list of Nigerian Exchange (NGX) Limited.
“The additional shares listed on NGX arose from Ellah Lakes Plc’s conversion of N3,092,283,294.81 debt to equity.
“With this listing of the additional 1,104,386,890 ordinary shares, the total issued and fully paid-up shares of Ellah Lakes Plc have now increased from 2,753,786,788 to 3,858,173,678 ordinary shares of 50 Kobo each.”
The conversion of the company’s debt to equity came after one of its largest shareholders, CBO Capital, offloaded about 81 million units of the organisation’s equities at the stock market recently.
By Adedapo Adesanya
Thailand’s Securities and Exchange Commission (SEC) has approved the use of Tether’s stablecoin, USDT, as a currency.
According to a statement on Monday, the approval enables USDT to be traded within the country, facilitating its listing on regulated exchanges and paving the way for USDT to be accepted for payments, which advances the region’s leadership in digital asset innovation.
The updated regulations aim to enhance flexibility in digital asset businesses and will take effect on March 16, 2025.
This comes after the Thailand regulator sought public feedback on these changes, which were finalized in February 2025 with widespread industry support.
“The regulator’s recognition of USDT as an approved cryptocurrency marks a pivotal moment in the evolution of digital assets in the region and represents a major step toward clarifying and enhancing Thailand’s regulatory framework.
“This will provide investors with greater flexibility and choice while fostering a more dynamic and resilient industry. By enabling the seamless integration of USDT, the decision supports the diversification and modernization of Thailand’s financial landscape,” the statement added.
Thailand is one of the friendliest jurisdictions for digital assets in recent years and ranks among the top 20 countries globally in terms of adoption.
USDT accounts for around 40 per cent of volumes.
Tether’s USDT with a market cap of $142 billion, is the world’s most widely used stablecoin, providing a trusted, efficient bridge between traditional fiat systems and digital economies.
Speaking on the development, Mr Paolo Ardoino, CEO of Tether, said it will continue to boost its services and offerings in more friendly markets.
“We highly value the Thai market and are continuously exploring ways to enhance our services and offerings. Our priority is to provide users in Thailand with a secure, transparent, and reliable stablecoin experience.
“We are committed to supporting the long-term success and adoption of stablecoins in Thailand and look forward to contributing to the growth of the country’s digital asset ecosystem by fostering a strong and sustainable stablecoin infrastructure.”
Thailand’s forward-thinking approach to digital asset regulation sets a global benchmark, and Tether is proud to see USDT play a pivotal role in driving economic progress and digital transformation in the region.
Tether added that this approval confirms its dedication to building bridges between traditional and decentralized economies while ensuring security, trust, and efficiency for users worldwide.
“Thailand’s forward-looking stance on stablecoins is reflected in its vibrant, Thai baht-backed digital asset market,” it added.
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