Economy
FG Targets $1b from New Tax Evasion Pardon Scheme
By Dipo Olowookere
At least $1 billion is expected to be generated from a newly introduced tax evasion pardon schemed by the Federal Government.
Minister of Finance, Mrs Kemi Adeosun, was quoted in a statement issued by Deputy Director of Information in the Ministry of Finance, Mrs Patricia Deworitshe, to have said that the new initiative would be launched on Thursday, June 29, 2017.
The scheme, called Voluntary Asset and Income Declaration Scheme (VAIDS), would be jointly executed by federal and state governments and would concentrate on the national duty of all Nigerian companies and citizens to pay their taxes.
The tax awareness and compliance initiative is aimed at raising the revenue of the government, especially in this time of economic downturn.
Speaking on the initiative, the Minister said similar schemes in 2016 have been implemented successfully in India, Indonesia and South Africa.
She explained that VAIDS will bring Nigeria in line with international best practice and contribute to worldwide efforts to tackle corruption.
The Minister stated that the much needed funds would be generated and transparently invested, thereby reducing Nigeria’s borrowing needs, allow investment in vital infrastructure and spur development.
“During the last eight years, Nigeria has failed to reduce its debt levels despite high oil prices and nominal GDP growth. We have inherited a situation where our debt and underdevelopment is getting worse not better. This cannot continue.
“Neither can the behaviour of some of our richest citizens and multinationals operating in Nigeria, who seem to consider paying tax to be optional. From 2018, international law will make it easier than ever to track these evaders down and punish them.
“This scheme is in line with similar initiatives launched during 2016 in India, Indonesia and South Africa. We know they work, we know it’s the right thing to do and the Treasury desperately needs the money.
“Finally, the proceeds of this scheme will not disappear. We will provide regular updates on the funds collected to date, and how those funds are being put to very transparent use,” Mrs Adeosun further explained.
“Anticipated funds to be raised are at least $1 billion, which will reduce Nigeria’s borrowing needs, allow investment in vital infrastructure and spur development,” she stressed.
Recall that at an event in Lagos recently, Mrs Adeosun had said if the government was to grow the economy, it must make efforts at raising revenue through tax.
“If we want to grow, we must address the issue of paying tax. Our tax to Gross Domestic Product (GDP) ratio of six percent is rated one of the lowest in the world,” Mrs Adeosun had said at the programme.
The VAIDS is expected to give tax payers a time-limited opportunity to regularise their tax status without penalty.
According to Mrs Deworitshe, the plan provides a one-off opportunity for evaders to avoid the full force of the law between July 1 and December 31, 2017.
During this period evaders can regularise their tax status in exchange for immunity from prosecution of tax offences and a tax audit, and be free from penalty charges and interest.
Evaders who delay participation beyond December 31, 2017 will be liable for interest on overdue tax balances, the Finance Ministry said.
Mrs Deworitshe said under the new scheme, all tax evaders, when identified, would be subjected to the full force of Nigerian and international law, imprisonment of up to five years, severe extra penalties up to 100% of the outstanding tax due, compound interest at 21% per annum, forfeiture of assets.
By Adedapo Adesanya
Nigeria, through the Debt Management Office (DMO), has offered three bonds for subscription to interested investors to the tune of N450 billion.
The DMO, in its offer circular on Monday, said that the first offer was an April 2029 FGN bond, valued at N100 billion at an interest rate of 19.30 per cent per annum. (5-year re-opening).
It listed the second offer as a February 2031 FGN bond valued at N150 billion at an interest rate of 18.50 per cent per annum. (7-year re-opening) and the third offer (January 2035 FGN bond) valued at N200 billion.
The auction date is January 27, and the settlement date is January 29, the notice stated.
According to the DMO, the FGN bonds are offered at N1,000 per unit subject to a minimum subscription of N50 million, and in multiples of N1,000 thereafter.
“For re-openings of previously issued bonds, successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the volume being auctioned, plus any accrued interest on the instrument.
“Interest is payable semi-annually, while bullet repayment (principal sum) is on the maturity date, ” the DMO said.
It said that the bonds were backed by the full faith and credit of the Federal Government, and were charged upon the general assets of Nigeria.
“They qualify as securities in which trustees can invest under the Trustee Investment Act.
“They qualify as government securities within the meaning of the Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds among others.
“They are listed on the Nigeria Exchange Limited, ” it said.
It said that they qualified as liquid assets for liquidity ratio calculations for banks,” the debt office added.
By Aduragbemi Omiyale
Nigerians have been warned against putting their hard-earned money in Risevest (Victoria Island) Cooperative Multipurpose Society Limited and Stecs (Alausa) Multipurpose Cooperative Society, commonly known as Stecs, as they could lose their funds.
The capital market regulator in a circular in Abuja said investments in these entities, which it described as unregistered and unregulated, could expose investors to the risk of fraud and potential loss of investment.
SEC said Risevest and Stecs had not been authorised to carry out capital market operations in the country, and as such, investing in them was risky.
“The attention of the Securities and Exchange Commission has been drawn to the activities of Risevest (Victoria Island) Cooperative Multipurpose Society Limited, which is engaging in capital market activities by inviting the public to invest in its various investment schemes.
“The commission hereby notifies the public that Risevest (Victoria Island) Cooperative Multipurpose Society Limited and Stecs (Alausa) Multipurpose Cooperative Society are not registered to operate in any capacity in the Nigerian capital market. Similarly, the investment schemes promoted by them have not been authorized by the commission.
“Accordingly, the SEC advised the public to refrain from engaging with Risevest (Victoria Island) Cooperative Multipurpose Society Limited and Stecs (Alausa) Multipurpose Cooperative Society in respect of any business pertaining or relating to the Nigerian capital market,” the notice read.
In the same vein, the agency said, “Our attention has been drawn to Stecs (Alausa) Multipurpose Cooperative Society (popularly known as Stecs), which is engaging in capital market activities by inviting the public to invest in its Stecs Commodity Mudarabah Investment Series I.
“The commission hereby notifies the public that Stecs (Alausa) Multipurpose Cooperative Society is not registered to operate in any capacity in the Nigerian capital market. Similarly, the investment schemes promoted by the cooperative society have not been authorized by the commission.”
“Accordingly, the public is advised to refrain from engaging with Stecs (Alausa) Multipurpose Cooperative Society in respect of any business pertaining or relating to the Nigerian capital market.”
“The commission uses this medium to reiterate that transacting in the Nigerian capital market with unregistered and unregulated entities exposes investors to the risk of fraud and potential loss of investment.”
“The SEC remains committed to the protection of investors in the Nigerian capital market and is working diligently to combat the activities of illegal/unregistered entities.”
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange saw a 65.1 per cent boost in its market capitalisation in the fourth trading week of 2025, closing at N1.770 trillion compared with the N1.075 trillion it quoted in the preceding week (Week 3), as the NASD Unlisted Security Index (NSI) rose by 0.68 per cent or 21.29 points to 3,133.20 points from 3,111.91 points.
The sterling performance occurred amid a surge in the volume of transactions by 4,402.4 per cent to 425.3 million units from the 9.45 million units recorded in the previous week.
Equally, the total value of trades during the week jumped by 740.5 per cent to N410.5 million from the previous week’s N48.4 million, with these transactions carried out in 102 deals involving 16 stocks.
In the week, there were eight appreciating securities and four depreciating securities led by Impresit Bakolori Plc, which shed 9.5 per cent to end at 95 Kobo per share compared with N1.05 per share, Geo-Fluids Plc lost 6.8 per cent to close at N4.38 per unit versus N4.70 per share, FrieslandCampina Wamco Plc depreciated by 2.7 per cent to N38.58 per unit from N39.65 per unit, and UBN Property Plc, which slid by 1.4 per cent to N1.84 per unit from N2.20 per unit.
On the flip side, Okitipupa Plc gained 33.1 per cent to trade at N52.69 per share against the former value of N39.55 per share, Industrial and General Insurance (IGI) Plc expanded by 11.1 per cent to 40 Kobo per unit versus 36 Kobo per unit, Nipco Plc grew by 10 per cent to N165.11 per share from N150.10 per share, and Mixta Real Estate Plc rose by 9.7 per cent to N2.83 per unit from N2.58 per unit.
Further, Food Concepts Plc increased by 8.8 per cent to N1.74 per share from N1.60 per share, Access Bank jumped by 8.8 per cent to N19.30 per unit from N9.68 per unit, First Trust Microfinance Bank improved by 8.8 per cent to 39 Kobo per share from 37 Kobo per share, and Central Securities Clearing System (CSCS) Plc soared by 3.5 per cent to N24.00 per unit from N23.20 per unit.
The most traded stock for the week by value was Impresit Bakolori Plc with N386.5 million, FrieslandCampina Wamco Plc recorded N8.5 million, IGI Plc traded N7.04 million, 11 Plc recorded N2.7 million, and Okitipupa Plc posted N1.7 million.
Also, Impresit Bakolori Plc was the most traded stock by volume with 406.5 million units, IGI Plc transacted 17.5 million units, UBN Property Plc recorded 0.67 million, Mixta Real Estate Plc traded 0.27 million units, and FrieslandCampina Wamco Plc transacted 0.22 million units.
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