FIRS Gives Foreign Oil Shippers Deadline to Regularise Tax Books

Image

By Adedapo Adesanya

Nigeria has charged foreign companies shipping crude oil from Nigeria to ensure strict compliance with the country’s tax laws in their operations.

This direction was given by the chairman of the Federal Inland Revenue Service (FIRS), Mr Zacch Adedeji, ordering them to ensure that they comply by regularising their tax documents by December 31, 2023.

Mr Adedeji gave the charge in Lagos at a workshop on taxation of non-resident shipping companies organised by FIRS in conjunction with the Oil Producers Trade Section (OPTS) on Monday.

He said the tax compliance exercise commenced by FIRS on the activities of foreign shipping companies lifting hydrocarbons from Nigeria was part of measures aimed at widening the tax net to grow revenue for the government.

The FIRS chairman, according to a statement by his Special Adviser on Media, Mr Dare Adekanmbi, assured the international companies that the agency was only interested in ensuring compliance with extant tax laws and not out to disrupt their operations.

Section 14 of the Companies Income Tax Act (CITA) 2004 (as amended) makes it mandatory for foreign companies engaging in shipping and air transport operations in Nigeria to file tax returns to continue to carry out their businesses within the country.

Mr Adedeji, who before his appointment as FIRS chairman was Special Adviser on Revenue to President Bola Tinubu, reminded the companies about how his intervention had earlier led to the six-month grace period given to them to regularise their tax returns.

He explained that the purpose of the workshop was to address challenges associated with tax compliance by foreign companies and find a lasting solution.

“The Federal Government has set a target of increasing Nigeria’s tax-to-GDP ratio to 18 per cent within the next three years.

“The goal is to achieve this without imposing additional taxes but by broadening the tax net. The compliance exercise on international shipping companies lifting crude oil from Nigeria is in line with this strategy of broadening the tax net.

“I am sure all the international shipping companies that we contacted are aware of the importance of complying with tax laws in the various jurisdictions they operate.

“Therefore, I urge the international shipping companies that are not complying with Nigerian tax laws to begin to do so immediately.

“The Service has noted the concerns raised by stakeholders in the oil and gas industry and the maritime sector regarding the tax compliance exercise initiated on international shipping companies lifting crude oil from Nigeria.

“I wish to state that the Service is aware of the economic importance of the sector and has no intention of disrupting operations, rather the objective is to instil compliance with Nigerian tax laws.

“Please recall that as Special Adviser on Revenue, I facilitated an intervention on this matter in June this year.

This resulted in the six-month grace period granted to non-resident shipping companies to regularise their tax affairs and contribute their fair share to the revenue of the country. The grace period will expire at the end of this year.”

“Furthermore, upon assuming the role of Executive Chairman of FIRS, I emphasised the importance of collaborating with stakeholders to address challenges associated with tax compliance.

“It is in this spirit that this workshop has been organised with various stakeholders in the oil and gas industry and the maritime sector,“ he added.

Share
Related Stories
Image
29-November-2023

The Future of Crypto Wallets: Trends and Innovations to Watch

Welcome to the fascinating world of cryptocurrency wallets, where technology is always developing and innovating. Blockchain technology and cryptocurrencies have revolutionized how we see and utilize money over the last ten years. Cryptocurrency wallets have been crucial in this transition, giving consumers the means to safely access, control, and use their digital assets. Let’s explore the exciting developments and trends that are predicted to completely alter the landscape of crypto wallets as we look to the future. Key Takeaways The environment of cryptocurrency wallets is changing quickly as a result of new trends and technologies. Future crypto wallets will prioritize

Image
28-November-2023

Unlisted Securities Close 0.84% Higher

By Adedapo Adesanya The duo of Aradel Holdings Plc and 11 Plc landed the NASD Over-the-Counter (OTC) Securities Exchange in the green territory by 0.84 per cent on Monday, November 27. The two energy stocks overpowered losses posted by two other securities admitted to the alternative stock exchange, leaving the NASD Unlisted Security Index (NSI) closing higher by 7.22 points to 864.51 basis points from 857/29 points, as the market capitalisation of the exchange increased by N9.78 billion to N1.171 trillion from N1.162 trillion. Aradel Holdings Plc saw its share price continue to soar as it rose by N28.80 to

Image
28-November-2023

Brent Crude Slides Below $80 Per Barrel Ahead OPEC+ Meeting

By Adedapo Adesanya Brent crude benchmark dipped below $80 a barrel on Monday, precisely losing 60 cents of 0.7 per cent to trade at $79.98 a barrel as investors await this week’s meeting of the Organisation of the Petroleum Exporting Countries and their allies (OPEC+). The group is anticipated to maintain its ceiling on crude oil production by member countries into 2024. This affected the oil market, with the West Texas Intermediate (WTI) crude futures declining yesterday by 68 cents or 0.9 per cent to trade at $74.86 per barrel. Last week, the 23-man OPEC+ postponed its Sunday ministerial meeting

Image
28-November-2023

Investors’ Bullish Optimism Further Lifts NGX Index by 0.17%

By Dipo Olowookere The positive momentum witnessed at the Nigerian Exchange (NGX) Limited continued on Monday with a 0.17 per cent leap at the close of business. Buying pressure, particularly in a few blue-chip equities, kept the bulls at Customs Street during the trading session, though the consumer goods space succumbed to profit-taking by 0.99 per cent. But hope was kept alive by the gains reported by the other key sectors of the market, with the banking counter growing by 1.71 per cent, and the industrial goods index appreciating by 0.01 per cent, while the insurance and energy sectors remained

More Stories
Image
11-December-2019

Naira Loses N2 Against Pound at Black Market

By Adedapo Adesanya Ahead of Thursday, December 12 general election in the United Kingdom, the Pound Sterling had continued to gain against the Nigerian Naira. On Tuesday, December 10, the Naira depreciated further against the British currency at the black market in Nigeria to trade at N470/£1. At the segment of the foreign exchange market yesterday, the domestic currency lost N2 against the Pound to move from its previously traded rate of N468 to N470 at the close of transactions. It was learned that the British Pound climbed on Tuesday, with the expectation that the Conservatives led by Prime Minister

Image
20-April-2018

Nigeria Accounts for 90% of Anglophone West Africa’s GDP—Ecobank

By Modupe Gbadeyanka A new report by the Ecobank Research team has revealed that Nigeria accounts for 90 percent of the Gross Domestic Product (GDP) of Anglophone countries in West Africa. Anglophone West Africa, which stretches from Gambia in the West to Nigeria in the East, covers six countries; Ghana, Guinea, Liberia, Nigeria, Sierra Leone and The Gambia and encompasses the West African Monetary Zone (WAMZ), which draws together the mostly English-speaking countries of West Africa. The Ecobank Research team in its newly published Anglophone West Africa section of its flagship financial website, AfricaFICC, said economic forecast for the region

Image
22-December-2017

DMO Lists $3b Eurobonds, $3m Diaspora Bonds on NSE

By Dipo Olowookere The Debt Management Office (DMO) on Thursday finally listed the $3 billion Eurobonds and $300 million FGN Diaspora bonds on the Nigerian Stock Exchange (NSE). Director General of the DMO, Ms Pat Oniha, during the listing yesterday, disclosed that the bonds would be used by the Federal Government to finance infrastructure projects across the country. According to her, these projects are expected to transform the socio-economic landscape of the Africa’s largest economy. Ms Oniha, while engaging stakeholders on the ‘Facts Behind the Listing,’ explained that from the $3 billion Eurobond, government plans to use $2.5 billion to

Image
22-January-2018

FSDH Projects 3.16% Growth for Nigeria in 2018

By Modupe Gbadeyanka One of the leading firms with experienced investment management team, FSDH Research, has projected a growth of 3.16 percent for Nigeria. In its report released today, FSDH said this year, the nation’s real Gross Domestic Product (GDP) will increase by 3.16 percent in 2018 and 4.09 percent in 2019. “Our forecast for 2018 is slightly higher than the forecast of the World Bank and International Monetary Fund (IMF) of 2.5 percent and 2.1 percent respectively,” the report said. However, with the population growing at 2.75 percent, the country requires growth rate in excess of 5 percent to

Image
29-December-2020

Jubilation as Lagos Assembly Swears-in Obafemi Saheed

By Adedapo Adesanya The Lagos State House of Assembly on Tuesday sworn-in a new member-elect, Mr Obafemi Saheed, as a lawmaker representing Kosofe Constituency II, sparking jubilation in his camp. Mr Saheeed won the December 5, 2020, by-election to replace the late Mr Tunde Braimoh, who died in July 2020. The Speaker of the House, Mr Mudashiru Obasa, said during the swearing-in ceremony that the Oath of Allegiance of Membership had been administered on the lawmaker-elect by the Head of the Legal Department of the assembly. The Speaker beseeched that Mr Saheed’s tenure would bring development to his constituency and

Image
12-August-2017

Dotun Oladipo Emerges GOCOP President

By Dipo Olowookere Renowned journalist and former Sunday Editor of the Nigerian Compass, Mr Dotun Oladipo, has emerged President of the Guild of Corporate Online Publishers (GOCOP). Mr Oladipo was elected President of the Guild after a poll held on Wednesday at the Adna Hotel, GRA, Ikeja, Lagos. He and other newly elected members of the executives of GOCOP were inaugurated the next day at the 1st annual conference of the Guild held at the Renaissance Hotel, also in Ikeja, Lagos. Mr Oladipo publishes the popular online news platform called The Eagle Online. He will lead the group for the

Image
20-August-2020

Restructuring Delays International Energy Insurance 2019 FY Results

By Dipo Olowookere One of the underwriting companies in Nigeria, International Energy Insurance (IEI) Plc, has explained the reason its audited financial statements for the 2019 accounting year have not been released. In a notice on Wednesday, the company attributed the delay to the ongoing restructuring exercise aimed at making its operations better. However, the firm has promised to ensure things are done properly and get the audited results filed to the Nigerian Stock Exchange (NSE). In the disclosure, the underwriter said it should get the documents submitted for perusal by the investing community on or before October 30, 2020.

Image
11-August-2021

Senate Asks FG to Concession Eleme-Onne Axis of East-West Road

By Adedapo Adesanya The Senate Committee on Trade and Investment has asked the federal government to concession the Eleme-Onne axis of the East-West Road to private investors for reconstruction and management. This was made known by the Chairman of the Committee, Mr Francis Fadahunsi, during a visit to the Oil and Gas Free Zone in Onne, Rivers State, where they raised the issue of the deplorable road as a key transport route for the nation’s economy. Mr Fadahunsi, who led members of the committee to tour the free zone, described Onne Free Zone as a successful initiative in a public-private

Ad
Ad
Recent Stories
Image
29-November-2023

Court Adjourns Emefiele N1.6bn Fraud Case To January 2024

By Adedapo Adesanya A Federal Capital Territory High Court, Abuja, has adjourned an alleged procurement fraud case involving ex-Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele, to January 18 and 19, 2024, for continuation of trial. Mr Emefiele is standing trial on a six-count amended charge on alleged procurement of vehicles to the tune of N1.6 billion. He had pleaded not guilty to the charges. He was granted bail on November 17, 2023, to the tune of N300 million, and two sureties and remanded at the Kuje Correctional Centre, pending when he meets his bail conditions. However,

Image
29-November-2023

The Future of Crypto Wallets: Trends and Innovations to Watch

Welcome to the fascinating world of cryptocurrency wallets, where technology is always developing and innovating. Blockchain technology and cryptocurrencies have revolutionized how we see and utilize money over the last ten years. Cryptocurrency wallets have been crucial in this transition, giving consumers the means to safely access, control, and use their digital assets. Let’s explore the exciting developments and trends that are predicted to completely alter the landscape of crypto wallets as we look to the future. Key Takeaways The environment of cryptocurrency wallets is changing quickly as a result of new trends and technologies. Future crypto wallets will prioritize

Image
29-November-2023

FG Assures Foreign Mining Investors Lower Production Costs

By Adedapo Adesanya The Minister of Solid Minerals Development, Mr Dele Alake, has assured foreign investors of low production costs as they consider investing in the country’s mining sector. Speaking at the Mines and Money Conference in London, Mr Alake said President Bola Tinubu has embarked on reforms to boost investment by streamlining procedures and reducing hurdles to attract foreign investors. “The country’s geological bounty encompasses over 44 distinct mineral types, found in exploitable quantities across more than 500 locations,” the Minister said, according to a statement by his aide, Mr Kehinde Bamigbetan. “Recently, recognizing the evolving global landscape and

Image
29-November-2023

FrieslandCampina, Others Shrink NASD OTC Securities Exchange by 1.14%

By Adedapo Adesanya The NASD Over-the-Counter (OTC) Securities Exchange fell into the danger zone on Tuesday, November 28, as it recorded a 1.14 per cent loss after the price of three securities on the platform closed lower. This chopped off N13.33 billion from the NASD OTC securities exchange at the close of transactions, going down to N1.158 trillion from the N1.171 trillion it ended in the previous session. Business Post reports that the effort of a price gainer yesterday could not save the NASD Unlisted Security Index (NSI) from declining by 9.84 points to 854.67 points from the 864.51 points

Image
29-November-2023

Naira Plunges 8.3% Amid Rush for Dollar at Official Market

By Adedapo Adesanya The Nigerian Naira weakened further by 8.3 per cent or N67.28 on the American Dollar at the Nigeria Autonomous Foreign Exchange Market (NAFEM) on Tuesday, as investors intensified their demand for the greenback ahead of the festive season rush. Amid a squeeze in the supply of the foreign currency to the market, the value of the local currency closed at N881.88/$1 yesterday compared with the preceding session’s N814.60/$1. Though the supply of FX into the official market improved by 17.9 per cent or $18.00 million to $118.06 million from $100.06 million quoted on Monday, it was not

Image
29-November-2023

Brent, WTI Jump 2% on OPEC+ Cuts Anticipation, Kazakh Oil Disruption

By Adedapo Adesanya The prices of oil benchmarks jumped by 2 per cent on Tuesday on the fresh possibility that the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) will extend or deepen supply cuts. Data showed that Brent crude futures gained $1.70 or 2.1 per cent to close at $81.68 a barrel and the US West Texas Intermediate (WTI) crude increased by $1.55 or 2.1 per cent to $76.41 per barrel after a drop in Kazakh oil output and a weaker US Dollar. OPEC+ is due to hold an online ministerial meeting on Thursday to discuss 2024

Image
29-November-2023

Profit-taking in Bellwether Stocks Pulls Down NGX by 0.44%

By Dipo Olowookere The Nigerian Exchange (NGX) Limited retreated by 0.44 per cent on Tuesday due to selling pressure on some bellwether equities during the session. Shares of Dangote Cement, GTCO, Zenith Bank, Access Holdings, Oando, Lafarge Africa and others experienced a pullback yesterday as a result of profit-taking activities by traders. As a result, the All-Share Index (ASI) receded by 312.76 points to 71,041.05 points from 71,353.81 points and the market capitalisation moderated by N165 billion to N38.875 trillion from N39.040 trillion. The level of activity at the market waned on the second trading session of the week, as

Image
29-November-2023

GE Vernova Reinforces Ethical Business Practices Across Sub-Saharan Africa

By Adedapo Adesanya Global energy company, GE Vernova, has used a series of events during Compliance Week to emphasise the critical role of ethics and compliance in business growth and success. The week-long initiative, held across Nigeria with more than 100 attendees, involved employees, suppliers, legal experts, and customers, highlighting GE Vernova’s unwavering commitment to fostering a culture of integrity and transparency. Speaking on this, Mrs Ozim Ifeoma Ibeziako, Executive General Counsel for GE Vernova’s Gas Power business in Africa, said, “At GE Vernova, we believe that integrity is the cornerstone of any successful business. “Our Compliance Week is an

Image
28-November-2023

Cytek Advocates Cybersecurity Resilience in Nigeria’s Financial Services Sector

By Adedapo Adesanya Leading global provider of technological solutions YNV Group, through its cybersecurity brand, Cytek, has advocated that stakeholders in the financial services sector prioritise cybersecurity and highlighted key strategies for resilience at a recently hosted webinar for the industry. The session which was held on November 22, was themed Ensuring Cybersecurity Resilience in Financial Services Companies in Nigeria, and served as a pivotal platform for fostering collaboration and knowledge exchange in the sector. Led by cybersecurity experts in the industry, the webinar analysed some of the pressing challenges and emerging threats faced by financial services companies in Nigeria while

Image
28-November-2023

BetWGB Empowers Youths With Omo Adugbo Initiative

By Aduragbemi Omiyale An innovative initiative called Omo Adugbo, designed to tackle the high rate of unemployment among youths across Nigeria, has been introduced by a foremost bookmaker, BetWGB. This schemed, which is part of the company to bridge the youth unemployment gap in the country, involves the provision of an outlet in each local government across the country to serve as the organisation’s contact office within the local area. By establishing these outlets across the country, BetWGB Nigeria aims to impact positively on the local economy and bridge the unemployment gap that has affected many young Nigerians. With a