Economy

Only 600,000 out of 22m Lagosians Pay Tax—Ambode Laments

Published

7 years ago

13/07/2017

By Modupe Gbadeyanka

Governor Akinwunmi Ambode of Lagos State has lamented the low tax compliance rate in the state, revealing that out of the 22 million living in the aquatic city, only 600,000 of them pay tax to the government.

Mr Ambode said this has frustrated the government in providing basic amenities and infrastructure to residents of the state.

He noted that residents need to adopt a wilful approach to the payment of taxes as a means of addressing fundamental challenges confronting the state and accelerating development in all sectors and sections.

The Governor, who was responding to a suggestion from a participant at a workshop in Ikeja, the state capital, that the state government should complete the ongoing shoreline protection particularly in the Lekki and Ajah axis as one of the ways to mitigate the impact of torrential rainfalls which caused flooding in the axis last week, pointed out that in as much as government was willing to do such, it was being inhibited by its limited resources.

Mr Ambode made this known at a sensitization workshop on 2017 Water Technology and Environmental Control Exhibition and Conference (WATEC).

“Talking about protecting our shoreline, I want to tell you something. The ecological fund that someone talked about does not exist because the previous government, due to political consideration, never gave Lagos anything and protecting the shoreline runs into billions.

“Even doing those groins not to allow the water to break cost a lot of money and then with frozen taxes in the last eight to ten years, there has not been any increase in taxes unlike in the United Kingdom for instance where any young person living there knows that once you start working at the age of 18, your civic obligation is that you must pay tax but here nobody takes it as their business that the new road I am using I need to pay something and so they only pay tax when they are inside the real tax net that is you are paying pay as you earn.

“That is the only way we can catch you and so everybody takes it for granted that government will do it and there is nothing like government money, it is taxes that people are paying that you are asking for this shoreline protection, it is from the taxes that you are asking for us to de-flood, it is from the taxes that you are asking for us to do the roads and all that.

“The number of people paying taxes in Lagos is less than 600,000 people and we are 22 million and then 67 percent of the people living in Lagos are below the age of 35 and even the retirees, how much are they paying? They are on pension. So, you have to go through your nose and you want to be as compassionate as possible that in a recession, you don’t overtax people,” he said at the event.

The Governor said it was time for a convergence between civic obligations and the ability of government to build trust by using taxes of citizens judiciously, just assured that his administration, within the available resources, would continue to invest in infrastructure and deliver good governance to make life comfortable and easier for the people.

“What I am saying is that there must be a convergence between civic obligations and the ability of government to build trust and be able to tell people that you know what, the little that you are giving me, I will use it judiciously. When I use it judiciously and you see it overtime, trust me, if you pay more, I will do more.

“Obviously, the vision is there, the plan is there but again it is not driven by anything than the citizens themselves and the area that we need improvement is for citizens to have trust or confidence that the taxes they are paying will be returned back in terms of infrastructure but I can tell you that I am also concerned; I see a lot of things I don’t like but I am inhibited by the amount of money I have,” Governor Ambode said.

Economy

FAAC Disburses 1.727trn to FG, States Local Councils in December 2024

Published

17 hours ago

14/12/2024

Modupe Gbadeyanka

By Modupe Gbadeyanka

The federal government, the 36 states of the federation and the 774 local government areas have received N1.727 trillion from the Federal Accounts Allocation Committee (FAAC) for December 2024.

The funds were disbursed to the three tiers of government from the revenue generated by the nation in November 2024.

At the December meeting of FAAC held in Abuja, it was stated that the amount distributed comprised distributable statutory revenue of N455.354 billion, distributable Value Added Tax (VAT) revenue of N585.700 billion, Electronic Money Transfer Levy (EMTL) revenue of N15.046 billion and Exchange Difference revenue of N671.392 billion.

According to a statement signed on Friday by the Director of Press and Public Relations for FAAC, Mr Bawa Mokwa, the money generated last month was about N3.143 trillion, with N103.307 billion used for cost of collection and N1.312 trillion for transfers, interventions and refunds.

It was disclosed that gross statutory revenue of N1.827 trillion was received compared with the N1.336 trillion recorded a month earlier.

The statement said gross revenue of N628.972 billion was available from VAT versus N668.291 billion in the preceding month.

The organisation stated that last month, oil and gas royalty and CET levies recorded significant increases, while excise duty, VAT, import duty, Petroleum Profit Tax (PPT), Companies Income Tax (CIT) and EMTL decreased considerably.

As for the sharing, FAAC disclosed that from the N1.727 trillion, the central government got N581.856 billion, the states received N549.792 billion, the councils took N402.553 billion, while the benefiting states got N193.291 billion as 13 per cent derivation revenue.

From the N585.700 billion VAT earnings, the national government got N87.855 billion, the states received N292.850 billion and the local councils were given N204.995 billion.

Also, from the N455.354 billion distributable statutory revenue, the federal government was given N175.690 billion, the states got N89.113 billion, the local governments had N68.702 billion, and the benefiting states received N121.849 billion as 13 per cent derivation revenue.

In addition, from the N15.046 billion EMTL revenue, FAAC shared N2.257 billion to the federal government, disbursed N7.523 billion to the states and transferred N5.266 billion to the local councils.

Further, from the N671.392 billion Exchange Difference earnings, it gave central government N316.054 billion, the states N160.306 billion, the local government areas N123.590 billion, and the oil-producing states N71.442 billion as 13 per cent derivation revenue.

Economy

Okitipupa Plc, Two Others Lift Unlisted Securities Market by 0.65%

Published

23 hours ago

14/12/2024

Adedapo Adesanya

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange recorded a 0.65 per cent gain on Friday, December 13, boosted by three equities admitted on the trading platform.

On the last trading session of the week, Okitipupa Plc appreciated by N2.70 to settle at N29.74 per share versus Thursday’s closing price of N27.04 per share, FrieslandCampina Wamco Nigeria Plc added N2.49 to end the session at N42.85 per unit compared with the previous day’s N40.36 per unit, and Afriland Properties Plc gained 50 Kobo to close at N16.30 per share, in contrast to the preceding session’s N15.80 per share.

Consequently, the market capitalisation added N6.89 billion to settle at N1.062 trillion compared with the preceding day’s N1.055 trillion and the NASD Unlisted Security Index (NSI) gained 19.66 points to wrap the session at 3,032.16 points compared with 3,012.50 points recorded in the previous session.

Yesterday, the volume of securities traded by investors increased by 171.6 per cent to 1.2 million units from the 447,905 units recorded a day earlier, but the value of shares traded by the market participants declined by 19.3 per cent to N2.4 million from the N3.02 million achieved a day earlier, and the number of deals went down by 14.3 per cent to 18 deals from 21 deals.

At the close of business, Geo-Fluids Plc was the most active stock by volume on a year-to-date basis with a turnover of 1.7 billion units worth N3.9 billion, followed by Okitipupa Plc with the sale of 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.3 million units sold for N5.3 million.

In the same vein, Aradel Holdings Plc remained the most active stock by value on a year-to-date basis with the sale of 108.7 million units for N89.2 billion, trailed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with a turnover of 297.3 million units worth N5.3 billion.

Economy

Naira Trades N1,533/$1 at Official Market, N1,650/$1 at Parallel Market

Published

24 hours ago

14/12/2024

Adedapo Adesanya

By Adedapo Adesanya

The Naira appreciated further against the United States Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) by N1.50 or 0.09 per cent to close at N1,533.00/$1 on Friday, December 13 versus the N1,534.50/$1 it was transacted on Thursday.

The local currency has continued to benefit from the Electronic Foreign Exchange Matching System (EFEMS) introduced by the Central Bank of Nigeria (CBN) this month.

The implementation of the forex system comes with diverse implications for all segments of the financial markets that deal with FX, including the rebound in the value of the Naira across markets.

The system instantly reflects data on all FX transactions conducted in the interbank market and approved by the CBN.

Market analysts say the publication of real-time prices and buy-sell orders data from this system has lent support to the Naira in the official market and tackled speculation.

In the official market yesterday, the domestic currency improved its value against the Pound Sterling by N12.58 to wrap the session at N1,942.19/£1 compared with the previous day’s N1,954.77/£1 and against the Euro, it gained N2.44 to close at N1,612.85/€1 versus Thursday’s closing price of N1,610.41/€1.

At the black market, the Nigerian Naira appreciated against the greenback on Friday by N30 to sell for N1,650/$1 compared with the preceding session’s value of N1,680/$1.

Meanwhile, the cryptocurrency market was largely positive as investors banked on recent signals, including fresh support from US President-elect, Mr Donald Trump, as well as interest rate cuts by the European Central Bank (ECB).

Ripple (XRP) added 7.3 per cent to sell at $2.49, Binance Coin (BNB) rose by 3.5 per cent to $728.28, Cardano (ADA) expanded by 2.4 per cent to trade at $1.11, Litecoin (LTC) increased by 2.3 per cent to $122.56, Bitcoin (BTC) gained 1.9 per cent to settle at $101,766.17, Dogecoin (DOGE) jumped by 1.2 per cent to $0.4064, Solana (SOL) soared by 0.7 per cent to $226.15 and Ethereum (ETH) advanced by 0.6 per cent to $3,925.35, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.