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Could the FIRS be Asking too Much?

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Federal Inland Revenue Service FIRS

By Tunji Andrews

The circular from the Executive Chairman of Federal Inland Revenue Service (FIRS), Muhammad Nami, to taxpayers over payment of taxes, is one that has left me heavily puzzled.

The circular, which gave an update on the good work by the federal government on palliative measures to cushion the effect of COVID-19 on taxpayers, went ahead to plead with corporate organizations in what it referred to as booming sectors of the economy to consider making payment of their annual returns earlier than the due date apart from their normal monthly obligations.

Muhammad Nami, made this plea in the circular, stating the obvious challenges the FG was facing at a time like this, he said that, “This has become necessary in order to ease some of the cash flow gaps being experienced by the government at this critical time.”

Across the world, governments have swung in to support businesses in the aim to retain jobs and keep the economy going.

To be honest to the Nigerian government, it has done quite a bit to support the economy as a whole. The first two paragraphs of the circular delved into these efforts.

I however fear that the FIRS may be looking at the situation without fully appreciating the nuances and peculiarities of these sectors.

The inference from this circular is that these sectors are cashing out during this time. Banking, telecoms and supermarkets (Retail/eCommerce) were some of the sectors mentioned as booming sectors and I wondered what the data behind this assumption was. Let’s examine these sectors together.

Banking as a business, derives its essence from enabling business activity. Their core roles are broadly categorized into collection of deposits, enabling the transfer of these deposits and provision of loans.

Now, every banking activity from swiping your debit card to providing a multi-billion dollar facility to build a factory, can be said to fall within these categories; and while the transfer of N10,000 from Mr Akingbade in Lagos to his aged mother in Ekiti might follow the same overall process as Dangote Cement paying one of its contractors, the fees and overall impact on the bank’s bottom-line are nearly not the same.

In fact, a large amount of bank transactions these days are the types I call sustenance driven transactions and these banks are seeing their core income hit dramatically.

In addition, some banks have had to issue between 90-days and one-year moratoriums to their customers, to help them weather this period; so, I struggle to understand how they are booming. They are actually taking serious hit.

E-commerce boom is also another assumption that is entirely not data driven. The funny thing is that the entire eCommerce push since the lockdown has been more of groceries and if the FIRS had done a little inspection, they would realize that this actually contributes between 3%-5% to the entire business.

With most people trying to survive, nobody is buying luxury items, phones, gadgets, electronics, jewellery, other household items etc.

And even when such orders do come in, the operators are grappling with security agencies who do not allow passage for any item aside those classified as “essentials”. Whereas, these other items are the major sources of eCommerce income.

More importantly, there is limited movement across board because of the lockdown which makes it difficult to carry out inter-state delivery.

Security agents are also not helping matters as they do not allow suppliers who are mostly SMEs move their item to eCommerce businesses’ warehouses because they do not recognize them. How then is the sector booming when gadgets, electronics and household items are not allowed to be sold or moved?

Telecoms often tends to get the short end of the stick with regulation in Nigeria as everyone seems to believe they are making way too much money; and maybe they are but ultimately, they are offering a service and it is being paid for.

The total amount of screen time has dramatically increased across the world, with more and more people glued to their phones and tablets for news, entertainment and even connection.

What may surprise most is that voice calls (the real cash cow) has dropped for most telecoms operators. With less formal calls to make, chat messaging and internet calls have taken center stage. Also, most enterprise services with most Telcos have also taken a hit with most businesses’ shut down.

I think FIRS may missing some variables. The key to business success in any retail sector business is consumer spending and the key to consumer spending is employment.

Recent estimates show that at least 40% of employers plan to downsize as the covid19 pandemic outbreak increases. Workers across multiple industries, including airlines, hotels, restaurants, retail, and banking need to be rehired in sufficient numbers to truly impact consumer spending.

The small and medium scale enterprises also hit by various lockdowns will struggle to pay and hold on to employees. The thought of the FIRS and by extension, the government should be on how to restore income for those workers laid off because of COVID-19 shutdowns; it will also help increase consumer confidence and spark additional spending. Till then, I believe the FIRS should be asking not what businesses can do to help government (as they are already doing it) but what the government can do to help businesses

Another interesting thing worthy of note in the whole of this issue is how the whole government apparatus allow our elected officers to live in opulence in the midst of no-wealth, they move about in convoys of expensive cars, with hundreds unproductive aides, and earning millions in allowances at a time that the global and national economies are experiencing a downturn?

Interestingly, Nigerian government is appealing for support in the fight against the COVID-19 pandemic, the legislative arm is ordering the latest model of Toyota Camry for each of the 360 members of the House of Representatives. Instead of cutting cost in these areas, the same government is looking away when the FIRS is snuffing out the little air that is sustaining the companies that are already gasping for breath.

It is surprising that Nigerian governments isn’t considering tax holiday and practical palliative for the businesses that are keeping the economy running like their counterparts in other parts of the world.

Governments in other clime are looking for ways of cushioning the effects of COVID-19 pandemic for corporates, but the Nigerian government, through its agencies, are adding to the burden of these companies.

My candid advice is for the federal government is to ask the Federal Inland Revenue Service to withdraw the circular appealing for advance payment of the company tax, and look inwards to bridge the funding gaps.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

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Navigating the Maze: Solutions for Nigeria’s Flourishing Foodtech Industry

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Diana Tenebe food security challenges in Nigeria

By Diana Tenebe

Nigeria’s foodtech sector holds immense promise to transform our nation’s food production, distribution, and consumption systems. However, this burgeoning industry currently navigates a complex maze of challenges that could significantly hinder its progress.

While innovation and entrepreneurial drive are abundant, a confluence of infrastructural deficits, economic headwinds, technological disparities, and logistical complexities casts a shadow on the sector’s long-term viability.

Understanding and addressing these multifaceted hurdles is paramount for foodtech companies aspiring to thrive and contribute meaningfully to Nigeria’s food security.

One of the most significant impediments to the foodtech sector’s advancement is Nigeria’s persistent infrastructural weaknesses. The unreliable power supply, a well-known constraint for businesses nationwide, directly threatens food preservation, increasing spoilage risks and driving up operational costs for companies reliant on refrigeration and consistent processing.

Similarly, the often-deteriorated state of our road networks complicates logistics and transportation, hindering the efficient movement of goods from farms to consumers and across the supply chain.

Furthermore, limited access to clean water exacerbates operational challenges, particularly for maintaining food processing and hygiene standards. Collectively, these infrastructural shortcomings inflate operational expenses and introduce vulnerabilities throughout the food supply chain.

Economic constraints add another layer of intricacy. Fluctuations in currency exchange rates create instability in pricing and procurement, especially for businesses dealing with imported technologies or ingredients. Persistent inflation erodes consumer purchasing power and increases the cost of essential inputs, squeezing profit margins for startups.

Moreover, limited access to credit and investment capital makes it difficult for emerging foodtech companies to secure the necessary funding to invest in crucial technology, infrastructure, and expansion efforts. This financial constraint can stifle innovation and prevent promising ventures from reaching their full potential.

The digital divide also poses a unique challenge for foodtech companies aiming to leverage online platforms and digital solutions. While mobile phone usage is widespread in Nigeria, disparities in digital literacy and access to reliable internet connectivity can restrict the widespread adoption of online food ordering and delivery services, particularly in rural and underserved communities. This necessitates creative and inclusive strategies to bridge the digital gap and reach a broader consumer base.

Inefficiencies within the supply chain represent a critical bottleneck in the Nigerian food system. Fragmented agricultural supply chains, characterised by numerous intermediaries and a lack of transparency, contribute to alarmingly high post-harvest losses.

Inadequate storage facilities and inefficient transportation infrastructure further compound these issues, leading to significant waste and price volatility. Addressing these systemic weaknesses is crucial for ensuring a stable and affordable food supply for all Nigerians.

Navigating Nigeria’s regulatory landscape can also be a daunting task for foodtech businesses. The presence of multiple regulatory agencies, coupled with often bureaucratic and time-consuming processes for obtaining licenses and permits, can create significant hurdles for startups. Clear, consistent, and streamlined processes within the regulatory framework are essential to foster a more enabling environment for innovation and growth.

Building consumer trust and acceptance for new food technologies requires overcoming inherent skepticism and unfamiliarity. Concerns regarding food safety, quality, and the security of online transactions can hinder the adoption of novel food products and digital platforms. Transparent communication, robust quality control measures, and consistent consumer engagement are vital for building confidence and fostering widespread acceptance.

Finally, a notable talent gap exists within the Nigerian foodtech ecosystem. A shortage of professionals possessing specialised skills in food science, technology, business management, and logistics can limit the growth and innovation capacity of companies in this sector. Addressing this skills deficit through targeted training and development initiatives is crucial for long-term success.

Despite these significant challenges, promising pathways forward can be forged through innovative and context-specific approaches. Investing in localised infrastructure solutions, such as independent power generation and efficient localised logistics networks, can mitigate the impact of broader infrastructural deficiencies.

Exploring diverse funding avenues beyond traditional banking, including angel investors, government grants, crowdfunding, and revenue-based financing, can alleviate financial constraints.

Adapting to the digital divide by leveraging basic mobile technology and employing offline strategies like local agent networks can expand reach and inclusivity. Building resilient supply chains through direct farmer relationships, investing in aggregation centres, and utilising technology for farm management offer tangible solutions to logistical inefficiencies.

Proactive engagement with regulatory bodies and advocating for clearer, more supportive policies are crucial for navigating the regulatory landscape effectively. Building consumer trust necessitates transparent sourcing practices, clear communication about product benefits and safety, and active engagement with consumer feedback.

Finally, investing in talent development through collaborations with educational institutions and in-house training programs can bridge the critical skills gap.

Foodstuff Store is emerging as a business with a clear vision to directly confront several of these challenges. We are actively developing a decentralised network of businesses supported by strategically located distribution hubs across target states. This approach will directly address the limitations imposed by poor road networks, ensuring more localised access to our food products.

Furthermore, the establishment of regional storage facilities, including a state-of-the-art solar-powered cold storage, directly tackles infrastructural deficiencies related to food preservation and ensuring a consistent supply.

Foodstuff Store’s ambition for end-to-end management of the food supply chain, encompassing in-house production, direct sourcing, advanced storage solutions, and efficient distribution, offers a powerful solution to existing supply chain inefficiencies.

This integrated approach promises enhanced quality control, significant reductions in post-harvest losses, and a more reliable supply of both perishable and non-perishable goods for our customers.

Our aspiration to become the “Amazon for Food Products” is a clear and ambitious goal underpinned by a technology-driven approach to all aspects of our operational management. Foodstuff Store’s vision underscores a business model strategically designed to overcome significant hurdles within the Nigerian foodtech sector, offering a beacon of potential and a pathway to a more secure and efficient food system in a challenging yet remarkably promising landscape.

By Diana Tenebe is the Chief Operating Officer of Foodstuff Store

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President’s Katsina State Visit Exposes Disconnect from People’s Needs

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tinubu in katsina

By Abba Dukawa

The recent visit by the President Bola Tinubu to Katsina State has sparked concerns about the disconnect between the government’s priorities and the people’s needs. The visit exposed the hypocritical approach to the need of their people, states and the northern Nigeria as whole. The quality of leadership in the region has been questioned, with allegations of self serving  interest, ineptitude, and a lack of vision.

This is in spite of the fact that northern Nigeria as a whole faces numerous challenges that threaten its stability and development. Some of the key issues include insecurity, poverty, education, economic hardship, inequality and social and cultural challenges. The visit has been seen as an opportunity missed to engage with the state’s residents, listen to their concerns, and chart a way forward for development.

While the visit was marked by displays of pageantry and entertainment, the state’s pressing issues such as insecurity, poverty, and economic hardship, seemed to take a backseat.  Critics argue that the government’s focus on superficial events rather than addressing the root causes of the state’s challenges is a clear indication of a disconnect from the people’s needs.

The introduction of Rarara’s wife to the President by the Katsina State Governor, contravening cultural and religious norms, raise questions about leaders’ priorities and values.

Current leaders in the north seem more focused on personal interests and political survival than advocating for the northern Nigeria improvement.

Regardless of the challenges in the region the Governors  keep  praise for the President’s economic reforms, notwithstanding the region’s struggles, is concerning. economic reforms should lift people out of poverty, create jobs, and stimulate growth. If not yielding tangible benefits, they need reevaluation.

The north needs leaders prioritizing regional development and working towards a brighter future. Leaders understanding our region’s problems and committed to tackling them head-on are crucial. It’s time for a shift in approach, prioritizing people’s needs over personal interests.

As we move forward, we must demand more from our leaders. We need leaders who will stand up for the north and work tirelessly to find solutions. Anything less is a disservice to the region and its people.

We need leaders who cultivate a culture of good governance, prioritizing accountability and transparency to address insecurity and promote development.

The north needs a visionary leaders who prioritize all citizens’ needs, regardless of tribe or religion, are crucial for unity and stability.

Leaders who accelerate economic development, create jobs, and provide essential services like education and healthcare can reduce poverty and insecurity.

We require leaders who will combat corruption and promote social justice, reducing inequality and fostering stability.

In northern Nigeria, effective security reforms are necessary, including modernizing security agencies, enhancing intelligence gathering, and addressing insecurity’s root causes to ensure public safety.

To bridge the gap between the government and the people, there is a need for leaders who understand the intricacies of the state’s problems and are committed to tackling them head-on. By prioritizing the people’s needs and working towards sustainable development, the government can build trust and foster a sense of ownership among its citizens

May God guide Nigeria towards true development and prosperity.

Dukawa, a concerned Nigerian, can be reached at abbahydukawa@gmail.com

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Changing University Climate: It’s No Longer “Publish or Perish,” It’s “Be Visible or Vanish”

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Publish or Perish Timi Olubiyi

By Timi Olubiyi, PhD

For decades, the expression “publish or perish” has been of interest to academics, researchers, and professionals worldwide. Success is measured by the total number of peer-reviewed articles published, conference proceedings available online, and book chapters produced and published.

Despite so much research stemming from academic institutions, not many of these publications enjoy wide visibility in particularly those published in non-indexed journals.

Academics are continuously encouraged to increase the impact of their research endeavours, but what really constitutes impact in today’s academic environment?  Is it the number of citations for your published research?  Is it the amount of research funds your name and profile can generate?  Is it the number of speeches and presentations you deliver about your research area?  Is it the number of boards/committees/working groups that you serve on? And so on.

Though in the academic world, publication signifies validation and survival in most universities for promotion and relevance; in fact, it remains a cornerstone of career advancement. From early-career lecturers to senior professors, scholarly publishing plays a pivotal role in demonstrating expertise, building reputation, and meeting institutional benchmarks for promotion.

However, in today’s hyper-connected, information-saturated environment, a compelling principle has emerged: “Visible or vanish.” In other words, it is not just what you publish; it is who sees it, talks about it, and shares it that matters. Today, there is a stronger emphasis on quality, impact, relevance, and where your articles are published.

Globally, publications in high-impact journals measured and indexed in Scopus, Web of Science, Australian Business Deans Council (ABDC), Chartered Association of Business Schools (ABS), Science Citation Index Expanded (SCIE), Social Sciences Citation Index (SSCI), Directory of Open Access Journals (DOAJ), and more are given serious emphasis.

The primary reason for academic publication should be to advance knowledge, not merely for promotion or institutional expectations. In the author’s opinion, the true reasons for academic publication are to help scholars establish their intellectual identity, which represents a personal academic brand, provide a platform for international recognition, and create career milestones.

Though the gatekeeping role in academia has diminished, this has created a market for predatory journals for academics aiming for promotion. What are predatory journals? They are journals that are fraudulent or unethical academic journals that pretend to be legitimate scholarly publications but do not follow proper peer-review standards, editorial practices, or have recognized indexation.

All they need is money, money and money, no values or integrity. Predatory journals prioritize profit over quality and can seriously harm the academic career of a scholar with a global vision.

Though academic publications still remain respected, considering indexation is key even for institution-based journals (Journals run by university departments). Publication remains the foundation of academic promotion, but how and where academics publish matters more than ever.In an academic environment that is increasingly competitive, interdisciplinary, and global, researchers must not only produce excellent work but also strategically position it for maximum visibility and influence.

Both academics and researchers must consider more than just publication because we have only two key roles in publishing- to do our research and to communicate the research; the latter is the focus of this piece. Our research needs to be noticed, cited, and discussed due to its impact, or we risk being completely overlooked.

Platforms like Google Scholar, ResearchGate, LinkedIn, Facebook groups, Twitter (now X), and even TikTok have become unexpected grounds for attention. Researchers who communicate their work beyond academic circles through public lectures and engaging online posts amplify their impact dramatically.

A highly cited, visible paper can transform careers far faster than a series of obscure journal articles ever could. Therefore, for relevance and global standards, a quality publication with visibility is required.

Visibility today means publication with recognition, a visibility that can connect researchers to a broader global academic community. It can also enhance career and funding opportunities beyond the immediate environment of the researcher.

When publication is executed correctly, it has the potential to create change beyond academic circles, influence policies, and shape professional practices. It can also raise public awareness on critical issues like climate change and inequality.

With millions of articles published annually, even excellent research can be buried unless actively promoted to make it widely visible. Good visibility can also improve invitations for collaborations, keynote addresses, consulting engagements, and even career pivots beyond academia. Visibility, thoughtfully pursued, is no longer optional; it is extremely important. It may also help fulfil deeply personal motivations.

However, remember that scholarly publishing is not a one-way communication. It should encourage and invite critique, discussion, and debate; that is what visibility can provide. Research that enjoysvisibility has a higher chance of influencing policy, industry practices, and public understanding

It is safe to say it is key for researchers, scholars and academics to navigate this new landscape.Visibility is increasingly vital in academia as it directly influences career progression, research significance, and the capacity to engage with a broader audience. Enhanced visibility can connect to opportunities for international research partnerships, funding, and new audiences globally.

In the current competitive academic environment, merely publishing research is insufficient; scholars must proactively advocate for their work and establish a robust online presence to guarantee visibility and media attention. In an era of increasing pressure to publish quickly and frequently, remembering these true reasons can help academics stay focused on purpose over performance, ensuring that their contributions are not only counted but truly matter.

Therefore, publish wisely, publish well, and publish with purpose, along with incredible consistency. In the contemporary technological era, the way research information is handled, conveyed, processed, shared, and maintained has changed.Therefore, my colleagues, be a thought leader, there is a need to gravitate towards social media because it can improve visibility and also to promote research findings or knowledge thereof. So, welcome to the era of visible or vanish. Good luck!

How may you obtain advice or further information on the article? 

Dr Timi Olubiyi is an expert in entrepreneurship and business management, holding a PhD in Business Administration from Babcock University, Nigeria. He is a prolific investment coach, author, columnist,seasoned scholar, Chartered Member of the Chartered Institute for Securities and Investment (CISI), and a registered capital market operator with the Securities and Exchange Commission (SEC). He can be reached on Twitter at @drtimiolubiyi and via email at drtimiolubiyi@gmail.com for any questions, reactions, and comments.

The opinions expressed in this article are those of the author, Dr. Timi Olubiyi, and do not necessarily reflect the views of others.

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